Hey all !
Hope you are allright and had a nice weekend.
I know how this sounds but let me add a bit more background :
I live in a country where I almost don't pay taxes. Only taxes I paid are the WHT on dividends from US companies. I don't pay any capital gains taxes.
Also, in this country, I have a nice limit on my credit card and my wife (30k USD each) which we never use except for the groceries/restaurants, and our monthly payment are usually max 3k USD total… (so 3k out of a 60k limit).
I have the possibility to take a loan on credit card. From the bank app, I can decide the Period of repayment. For less than 12 months, its interest free, and I would pay only processing fees of 1% of the amount borrowed.
I think you start seeing my point :
I borrow lets say 12k USD at 1%, invest it in Tbills at 5%, pay back monthly the 1k USD from my salary and at the end of the year I made a few dollars. Note that I already invest monthly c. 1.5k on the market, so would be basically the same amount as my usual savings
I think that, even if thats not going to make me a billionaire, its still something and we definitely can take more than 12k USD (we make 10k USD net each and don't have any loans, looking at buying our place now as we moved recently here). I believe that we can all agree on this first point ?
Now… buying stocks ? I know it's gambling with other people money, but…. Lets say we do the same thing, purchase 12k on stocks, pay back the monthly repayment etc. At the end of the first year, I have 12k on the market, 12k paid back to the bank, whether the market crashed and I lost 10% don' really matter does it ? Cause money is already paid to the bank. However, the nice thing is that the first month of the second year, if I do the same thing, I have more money on the market (10.8k + 12k).
Basically its just an upfront advance in cash, interest free, to invest. So you “gain” one year of investing ?
Fully understand that if the market crashes and I get fired, I'm f****
But what do you all think ?
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