Learning about investing money...?
09-15-2008, 10:53 AM
#1
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Learning about investing money...?
Well, I've spoken to a lot of rich people and most of them have told me "dont work for your money, let your money work for you." With that been said, I want to invest. Im not familiar with anything about investing tho... 
I am a heck of a sales person tho..
I just need to learn what all those numbers mean.
Everytime I see that on T.V where all these guys are screaming and all, I've found it to be very weird...lol
At the moment I am unemployed(I had a bike accident wich cause me to be in the house for a little over a year) and now, I am trying to become a Service Advisor for a dealer. Pay is good and its what I am good at.
Anyways, back on topic. I want to take out a $35,000 loan and invest about $10,000, I just dont know what/where to start the whole process.....? My credit is the only thing that has saved me. Economy is not very good, as most of you should know what I am talking about.
I am a heck of a sales person tho..
I just need to learn what all those numbers mean.
Everytime I see that on T.V where all these guys are screaming and all, I've found it to be very weird...lol
At the moment I am unemployed(I had a bike accident wich cause me to be in the house for a little over a year) and now, I am trying to become a Service Advisor for a dealer. Pay is good and its what I am good at.
Anyways, back on topic. I want to take out a $35,000 loan and invest about $10,000, I just dont know what/where to start the whole process.....? My credit is the only thing that has saved me. Economy is not very good, as most of you should know what I am talking about.
09-15-2008, 11:08 AM
#2
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You don't know what you're doing, but you're going to take out a loan to start your investment portfolio. Sounds like you're off to a stellar start! 
</sarcasm>
Try the sticky threads at the top of this forum to get an idea of some good places to start.
</sarcasm>
Try the sticky threads at the top of this forum to get an idea of some good places to start.
09-15-2008, 11:12 AM
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Originally Posted by mxt_77,Sep 15 2008, 11:08 AM
You don't know what you're doing, but you're going to take out a loan to start your investment portfolio. Sounds like you're off to a stellar start!
</sarcasm>
Try the sticky threads at the top of this forum to get an idea of some good places to start.
</sarcasm>
Try the sticky threads at the top of this forum to get an idea of some good places to start.
09-15-2008, 11:29 AM
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lol... don't give him a hard time.
investing is tough... borrowing money to invest is tougher because you not only need to break even to be profitable, but you need to break even above the interest rate of your borrowed money.
investing is tough... borrowing money to invest is tougher because you not only need to break even to be profitable, but you need to break even above the interest rate of your borrowed money.
09-15-2008, 11:39 AM
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I personally would work at getting your debt down. Breaking even in this market is hard enough, let alone trying to outpace the interest on your loan. Work for now, save money, pay off your debt. when you have 10k of your own money we can start talking.
09-15-2008, 12:08 PM
#7
The best thing you can do for yourself is forget about loans, pay down your debt as quickly as possible.
Many people take out debt consolidation loans, then re-up their old credit cards, ending up w/ even more debt. You really need to have the discipline not to tap available credit lines as they're paid off (closing them helps to reduce that temptation, but hurts your credit score).
As long as you have non-deductible debt, paying it off provides a RISK-FREE return of your interest rate / (1 - your marginal tax rate). Seriously, you can't come close to touching that kind of risk-adjusted return in the market.
Many people take out debt consolidation loans, then re-up their old credit cards, ending up w/ even more debt. You really need to have the discipline not to tap available credit lines as they're paid off (closing them helps to reduce that temptation, but hurts your credit score).
As long as you have non-deductible debt, paying it off provides a RISK-FREE return of your interest rate / (1 - your marginal tax rate). Seriously, you can't come close to touching that kind of risk-adjusted return in the market.
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09-15-2008, 02:59 PM
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Please listen to chris. Otherwise you will move from the "money and investing" forum to the "bankruptcy 101" forum.
Just as an aside, borrowing money to invest in the stock market was a main contributor to almost every economic collapse in the last 100 years.
Just as an aside, borrowing money to invest in the stock market was a main contributor to almost every economic collapse in the last 100 years.
09-15-2008, 03:25 PM
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Originally Posted by Chris S,Sep 15 2008, 02:08 PM
As long as you have non-deductible debt, paying it off provides a RISK-FREE return of your interest rate / (1 - your marginal tax rate).
According to this, if you have a 10% credit card and your marginal tax rate is 20%, then you're getting 12.5% gains on your balance just by paying it off => [[ 0.10/(1 - 0.20) ]]. Is that what you're saying?
I get the 10% bit obviously because you're not paying that money to the lender, but where is the other 2.5% coming from?
09-15-2008, 03:25 PM
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Originally Posted by Chris S,Sep 15 2008, 12:08 PM
The best thing you can do for yourself is forget about loans, pay down your debt as quickly as possible.
Many people take out debt consolidation loans, then re-up their old credit cards, ending up w/ even more debt. You really need to have the discipline not to tap available credit lines as they're paid off (closing them helps to reduce that temptation, but hurts your credit score).
As long as you have non-deductible debt, paying it off provides a RISK-FREE return of your interest rate / (1 - your marginal tax rate). Seriously, you can't come close to touching that kind of risk-adjusted return in the market.
Many people take out debt consolidation loans, then re-up their old credit cards, ending up w/ even more debt. You really need to have the discipline not to tap available credit lines as they're paid off (closing them helps to reduce that temptation, but hurts your credit score).
As long as you have non-deductible debt, paying it off provides a RISK-FREE return of your interest rate / (1 - your marginal tax rate). Seriously, you can't come close to touching that kind of risk-adjusted return in the market.