Asked by Coryn  |  Submitted September 25, 2015

Would getting a small loan to put into investing (stocks and bonds) be a smart idea?

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  Answers  |  1

September 29, 2015

Short answer is NO. If you have to borrow money in order to invest, then your financial situation is not secure enough to be investing. Investing in stocks and bonds carries the risk that you will lose money. Investing with borrowed money creates a negative emotional environment that makes profitable investing even more difficult. This is different than someone who already has a sizeable account who may occasionally use margin to expand opportunities.

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