[V]

Originally Posted by Red

So what are you saying? You just started this investing? Isn't it a bit premature to preach about it?

Do I seem preachy? That's text for ya. I really don't mean to. Yes, I'm new to investing in real estate with borrowed money. I've never been in the position before to do what I'm doing now.

I am not disputing the fact that investing is good. I do it myself. I am just saying that borrowing to spend on customer goods or buying RRSPs are not the way to go.

The first I agree with. I own two vehicles, one of them is an 87 Buick Century that I drive everyday and the other is a 95 Chevy Lumina APV minivan. I owe nothing on either because I refuse to pay car loans. Just a personal decision. As for the second, I borrow money every February to buy a schwak of RRSPs. I then pay the loan back when I get my tax return. I've picked up so much free money that way it isn't even funny. I know some people like the tax return because it's some kind of bonus, but I don't need it so I invest it. Why not?

"That's a fact". Actually, it's about as far from fact as you can get.

I read a study a while back about people that invested borrowed money. Those were regular people, not investors/businesses etc. Most withdrew the money at first site of losses. They were then reluctant to invest again. It's human nature. Can't argue with that.

I've stressed a couple of times in this thread that if you don't like risk, don't invest like I do. I would hazard a guess that the people in this study were looking for a quick easy buck, and didn't do enough research and math to figure out what they could handle. They probably hated debt, and only planned on being in debt for a couple of months before they raked in their millions. These people will always lose. Or maybe they'll get lucky and make their millions, but I'd attribute more of that to luck than proper investing.

Your statement I just found so ridiculous because I know so many people that have borrowed to invest and have made fortunes. I wouldn't have objected to your statement if it wasn't so absolute.