Why don’t more people borrow to invest and increase their portfolio and wealth? 🤔

@prologic@twtxt.net because the downside of over-leveraging yourself is you lose your house.. or more.

@xuu@txt.sour.is What would you consider to be “over leveraging”? 🤔

@prologic@twtxt.net because it is gambling. Not everyone is into it.

@bender@twtxt.net Is it really gambling though if you’re investing long-term? How is it any different from borrowing money from the bank to. buy property? 🤔

@prologic@twtxt.net well, when you buy property you are obtaining something tangible, guaranteed. When you bet on the market (I am assuming that’s what you meant by investing), you are not guaranteed.

@prologic@twtxt.net There’s no guarantee you’ll increase your portofolio and wealth if you invest, much less if you borrow to invest.

@adi@twtxt.net putting money into a bank account that earns interest is also called investing 😆

@prologic@twtxt.net now you are trolling. LOL. Highest savings (or CDs) around here renders around 5%. No one is going to lend you money at that interest rate, or less, like, ever.

@bender@twtxt.net No I meant like a “savings account” 🤣 You guys (us) are lucky I guess? A savings account here in Oz barely gets you 0.35%pa to 1.5%pa depending on how much money you have in it (0-$10k, $10-20k, $20-$30k, up to $50k)

@prologic@twtxt.net Goldman Sachs, through Apple, is giving 4.4% on $100K (minimum). Four months rolling CDs in our bank are giving up to 5.10% on $50K, and up. Government treasure bills are around that, some a little less, some a little more.

The kick is, if you want to borrow money, all interests are super high (10%+). You can’t “borrow to invest ” in a savings account.

@bender@twtxt.net This is true!