I just took an opportunity to borrow ~$15k @ (3% transaction cost+ 0% apr until December 2023). Looks like a good deal considering the cost of borrowing money is rising rapidly (ex. 6% mortgage rates, 3.5% 10 year treasury yield etc).
One investing idea is: I was looking at I-bonds that yield 9%+ right now but my capital will be locked for at least 12 months. Inflation can fall dramatically as well which means the return might not be as good going forward. Also, my understanding is if I withdraw the capital before 5 years, I lose 3 months worth of interests . All in all, doesn’t look too appealing for my small capital .
Another idea is : I can patiently wait another 3-6 months for the market to drop more and start deploying $15k on a monthly schedule for ~12 months. Considering S&P 500 is almost 23% down and Nasdaq is about 33% down, this idea looks very appealing to me .
What would you do if you had 15k at 3% borrowing cost to deploy somewhere??
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