Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Is this a good financial plan?

2»

Comments

  • #32
    Deub
    Registered Users, Registered Users 2 Posts: 1,353 ✭✭✭Deub


    "6% growth", "pension" and "quasi safe investment" cannot go together in the same paragraph.


  • #33
    Rachiee
    Registered Users Posts: 880 ✭✭✭Rachiee


    Am I missing something glaringly obvious here? The bank may approve the 400k mortgage in principal but when you go sale agreed they get their own valuation, if there's a 100k discrepancy between the value and the loan they aren't going to let you draw down. It's not like they approve you and put the money in your account for you to go shopping ?

    Or would you be drawing down on a second mortgage before releasing the equity in your current home completely...in which case you may also be approved for far less?


  • #34
    bilbot79
    Registered Users, Registered Users 2 Posts: 2,025 ✭✭✭bilbot79


    Deub wrote: »
    "6% growth", "pension" and "quasi safe investment" cannot go together in the same paragraph.

    6% is my pensions performance in the last 2 years

    Quasi safe investment is where I might buy a sensible stock or something. Im not sure as I've never invested as such before.

    Of you had 50k to invest short term where would you put it?


  • #35
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,358 Mod ✭✭✭✭Jim2007


    bilbot79 wrote: »
    I guess the real question here is if you could borrow 100k at a rate of 3.5% for the sole purpose of investing it in pensions and regular investments to gain a better return, would that be a good idea. A sort of carry trade...

    Any downsides?

    There is only one word the comes to mind - BS! I’ve heard some crazy investing ideas over the past 30 years, but this one is certifiably and need go no further. Spend the next two or three years learning about investing before doing anything.


  • #36
    Deub
    Registered Users, Registered Users 2 Posts: 1,353 ✭✭✭Deub


    bilbot79 wrote: »
    6% is my pensions performance in the last 2 years

    Quasi safe investment is where I might buy a sensible stock or something. Im not sure as I've never invested as such before.

    Of you had 50k to invest short term where would you put it?

    I would suggest you to create a demo trading account and let us know how you get on. If it was quasi risk free, everybody would be doing it.

    Regarding your question about 50k investment, there isn't a right answer as it depends of your personal financial situation, your plan, what investment you already have, your appetite to risk, etc
    But one thing for sure, investing borrowed money is definitely not a solution.


  • Advertisement
Advertisement