Butterschmalz
kiwifarms.net
- Joined
- May 23, 2022
Is there a way to responsibly take on some debt and profit from it?
- Thread starter Duiker
- Start date
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- Joined
- Jul 6, 2024
1. Take a loan
2. Wait for an annual rate to significantly increase
3. Set up a deposit
4. ?????
5. PROFIT!!!
2. Wait for an annual rate to significantly increase
3. Set up a deposit
4. ?????
5. PROFIT!!!
- Joined
- Dec 31, 2022
- Joined
- Jan 31, 2020
Well in the US the interest on a home mortgage is tax deductible, so I'm really not paying a cent of interest on my home and unless niggers move into my neighborhood it will reliably increase in value.
東海旅客鉄道株式会社
kiwifarms.net
- Joined
- Apr 29, 2025
If you can get a loan with lower apr than a CD then you in a sense can make a tiny bit of money off of it but it's rare to do that.
My friend just bought a Tesla with their 1% apr loan and he pays that off of a high yield savings account so in a sense he's not spending anything on the loan interest and infact getting more money keeping it in the bank and paying the loan as is.
My friend just bought a Tesla with their 1% apr loan and he pays that off of a high yield savings account so in a sense he's not spending anything on the loan interest and infact getting more money keeping it in the bank and paying the loan as is.
Duiker
kiwifarms.net
- Joined
- Dec 18, 2022
Naw. Never took out any debt. Pussed out and stacked more silver instead
- Joined
- Dec 24, 2018
In theory, yes.
When you're investing in stocks on a brokerage, you may hear about something called "margin." This is basically money the broker will lend you, with your stocks as collateral for the loan. The thing about margin loans is you're only on hook for the loan itself and the daily interest it collects. Anything else is yours.
For example: say you use margin to buy $10,000 worth of stocks. The value doubles after some time. You sell. After paying back the original debt and the interest (which for our purposes we'll say is $2,000), you walk away with $8,000, free and clear.
However, this is incredibly risky during a bear market. If the value of your collateral and/or your loan drops below a certain point, you will experience a margin call: the broker will warn you to either pump more funds in or start selling. Ignore the margin call, and the broker will liquidate the stocks you bought on margin, as well as whatever stocks they have to in order to make back the original loan amount, plus interest.
This doesn't have to be for price action. Using margin to buy dividend-paying stocks before the ex-date can help you execute a dividend capture strategy. Again, though, interest is the killer.
If you have nerves of steel or insider connections, this could be a good way to make money off a loan. Don't be retarded, and confirm with your broker how their margin works.
For example: say you use margin to buy $10,000 worth of stocks. The value doubles after some time. You sell. After paying back the original debt and the interest (which for our purposes we'll say is $2,000), you walk away with $8,000, free and clear.
However, this is incredibly risky during a bear market. If the value of your collateral and/or your loan drops below a certain point, you will experience a margin call: the broker will warn you to either pump more funds in or start selling. Ignore the margin call, and the broker will liquidate the stocks you bought on margin, as well as whatever stocks they have to in order to make back the original loan amount, plus interest.
This doesn't have to be for price action. Using margin to buy dividend-paying stocks before the ex-date can help you execute a dividend capture strategy. Again, though, interest is the killer.
If you have nerves of steel or insider connections, this could be a good way to make money off a loan. Don't be retarded, and confirm with your broker how their margin works.