Personal loan against job

I think there are certain worries and even if u have done the research its understandable that many are warning against. Because i believe the community simply hopes that you are able to stay in the long run for investing. I think given your outlook. How you take out the loan and when is impt. If u intend to DCA it. Do u take out monthly loans? Because technically this could be a high and if u timed it wrong maybe it takes too long to reach the returns you are looking for.
So i think previously mentioned is that the payback of the instalments is cheaper than if u were to DCA ur salary in. I think using the rich people context. Is that they kind of can lose that amount of money because like u said they are rich and successful where 95% of their money is alot. But 5% is alot as well and they have the capability and different sources of income to make money and not all the 95% is just in a broad market index fund.
All the best in your strategy. There are people who have leveraged and won. There is a reason the strategy exist. We are simply worried if u can stomach the potential losses. XD

Never never invest with money you can't afford to lose.

And what are the chances of personal loan interest < return in the short term? (Note Personal loan are short term loan)

Great idea, this strategy is controversial but works with enough risk management in place. From your replies in previous comments, seems like you've thought this through. My experience:

1) Cashflow. Plan for the max duration holding power (assuming 5 years loan tenure). You've figured it out with monthly instalment < current DCA so that gives you some wiggle room. This means job security and sufficient emergency funds, just in case. Furthermore, compared to margin trading, there's no liquidation risk as long as you service the installments.

2) EIR under 7% p.a is about the best you can get for unsecured personal loans (if there's a better deal please share!). Get this number as low as possible, and it's usually a fixed rate. You'll need to be confident you can beat this rate.

3) I find it helps to break your lump sum into batches; gives a psychological escape route to "buy the dip". But you could just invest the whole amount too if you prefer. Concentrate into your highest conviction stocks/ crypto because when the market bleeds, you will feel better that you own assets you actually care about. Make Time your friend, such that you can diamond hands your way through the volatility. Also, track this amount separately from the rest of your portfolio - it can become muddled very quickly if you DCA using your non-loan funds.

4) Exit Strategy. Set a hard target to cash out capital, repay loan fully and let profits roll. There will be some fees involved but you'll have made enough profits to care.

The absolute worst case is you lose your entire principal + loan interest, and 5 years of time/ opportunity costs, so just keep this at the back of your mind. All the best :)

Hi

looking at your replies to other contributors, it clearly indicated that you worried what if you take up a loan and invested then the market drop. This is an indicative sign that you may not be ready for the risk, not to mention leveraged risk.

In general, it is not wise to leverage long term investment. As mentioned by many, the gain may not be significant (since it is 10x salary, minus interest & fees). However, the undue stress is likely to be high regardless of how much you invested. So, you are actually paying a high risk premium.

To ramp up your fire power, you may want to consider alternative income instead. Like part-time, freelance, tuition, etc.

Caleb​​​