Quote:
Originally Posted by Darth One
Quote:
Originally Posted by kscarrol
Well done but being up 75% over almost 4 years is not a 40% annual return...
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Indeed. OP is doing well, but we’ve all had the wind at our backs the past 4 years. I think index funds have returned like, what...50% or so over the same period?
I’m not doubting you, OP, but in my strong opinion, you ‘gamble’ with money you already have, not money you’re borrowing through HELOC or wherever. You lose that money and you’re now struggling to pay off that loan from your other cash flow...or you’re losing your house.
This happened to countless people during the last downturn of the late ‘10s. Economy slows, those investments start to lose money. This compounds when the same people lost their jobs or got underemployed, so now they REALLY can’t pay off these HELOCs.
I wouldn’t discourage you from investing, and your general thinking of making your money work for you is great...just proceed with caution. Leveraged investing is one of the riskiest things you can do. |
I'n not actually using HELOC money to invest, though I've entertained the idea. At one point I was up over 100 percent and am slowly making my way back to that. I probably won't use HELOC money because it's less profitable and higher risk especially with a variable rate. I am re-investing dividends and shit like that but no I'm not getting stuck with a huge loan if I lose money. I did use HELOC money to upgrade my roof and partially to finance my car. In the process of refi to get the better introductory rate and then maybe I'll do a fixed rate after that.