Save by borrowing technique

Save by borrowing technique

With this technique you borrow funds to invest, and pay off the loan with incoming cash flow, then repeat. It can be a secured loan, or not. In the case of purchasing securities, you reduce transaction costs by making bigger purchases at one time, and buying more on dips. It will also help getting into investments that need more up front than your short term cash-flow allows. With a little practice you earn more than the cost of the loan. [1]

Sumflow 02:21, October 13, 2010 (PDT)

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