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Anonymous

07 Jan 2021

∙

Does it make sense to borrow $15k at 12.8% (repayments over 2 years; so effectively $17k with $300 processing fee) to invest?

Is there a sensible / reasonable scenario investing via a robo?

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Elijah Lee

07 Jan 2021

Senior Financial Services Manager at Phillip Securities (Jurong East)

Hi anon

The interest you incur on your borrowings is guaranteed.

Investment returns are not.

Thus I wouldn't do so. 12.8% is really quite extreme. Even borrowing on margin for investing does not incur that level of interest in SGD terms. If you really wanted to borrow to invest, just do it on margin. Financing rates are going to be <3%

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Musyaffaq

07 Jan 2021

Business Studies Graduate at Ngee Ann Poly

Never borrow to invest.

Borrow -> confirm lose money (interest)
Invest -> potential to earn but never guaranteed

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Lin Yun Heng

07 Jan 2021

Senior Analyst at Delphi

Never ever borrow to invest! This is something reiterated by Warren Buffett because borrowed money =...

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