Why?Ded Precedent wrote:I'll probably just put it in an index fund.
You are borrowing that money at 7%. You will probably not even break even in an index fund? Why not just pay it pack.
Why?Ded Precedent wrote:I'll probably just put it in an index fund.
What makes you say this?shoeshine wrote:You will probably not even break even in an index fund?
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I will at the end of the year if I don't need itshoeshine wrote:Why?Ded Precedent wrote:I'll probably just put it in an index fund.
You are borrowing that money at 7%. You will probably not even break even in an index fund? Why not just pay it pack.
Not if the market has an adverse movement.Ded Precedent wrote:I will at the end of the year if I don't need itshoeshine wrote:Why?Ded Precedent wrote:I'll probably just put it in an index fund.
You are borrowing that money at 7%. You will probably not even break even in an index fund? Why not just pay it pack.
TCRpno12006 wrote:Take the 10k and enter the wsop.
Seriously though, if you can't out pace the interest rate with your investment strategy, then you are making a mistake by borrowing money you don't need.
If you are going to blow it, however, you should at least have fun. Vegas and Cancun come to mind.
This was funny.Bildungsroman wrote:
I meant this as general advice for your whole life, not just law school loans.dingbat wrote:TCRpno12006 wrote:Take the 10k and enter the wsop.
Seriously though, if you can't out pace the interest rate with your investment strategy, then you are making a mistake by borrowing money you don't need.
If you are going to blow it, however, you should at least have fun. Vegas and Cancun come to mind.
Oh, and you're not going to outpace. Don't think you will.
(not that it isn't possible, but if you are that good an investor that you can expect to, you shouldn't be considering law school)
Actually, I think you do, so long as you make the adjustment within 60 (or maybe it was 90?) days.Tiago Splitter wrote:You don't get the origination fee back right?lifestooquick wrote:At my school they tell us to take the full amount (we can't request more throughout the year) and if you have leftover to just submit a lump sum payment back
Good point.pno12006 wrote:
I meant this as general advice for your whole life, not just law school loans.
If you can get to ROI > APR then you should be in the markets, forex, or investment banking.
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Wow 17% gain? Everyone should be taking out 85k a year and sticking as much as possible into stocks!*2014 wrote:Had one borrowed the full amount and immediately put it in an index fund the last week of August 2011 as of now it would be up ~17% over the 9 months. Some of that would be gone in fees, but you would still would have made 5-8% on your money when you take away fees and loan interest.
Stock market is a gamble though, it certainly can and does work for a lot of people but it's risky. Had you for some reason invested in April 2011 instead of August you would be at a several percent net loss now instead of a nearly double digit gain.
Point is though that it isn't necessarily a stupid idea, but it comes with risks and if it fails you shouldn't feel too surprised.
Yes, and had one bet on #32 at the Bellagio's 3rd Roulette table on the left at 8.15pm on March 28th of this year, you would have earned 3500%, without losing anything in fees or interests. We should all go to vegas.2014 wrote:Had one borrowed the full amount and immediately put it in an index fund the last week of August 2011 as of now it would be up ~17% over the 9 months. Some of that would be gone in fees, but you would still would have made 5-8% on your money when you take away fees and loan interest.
Stock market is a gamble though, it certainly can and does work for a lot of people but it's risky. Had you for some reason invested in April 2011 instead of August you would be at a several percent net loss now instead of a nearly double digit gain.
Point is though that it isn't necessarily a stupid idea, but it comes with risks and if it fails you shouldn't feel too surprised.
this is actually incorrect. you would have made an infinite return, as your initial investment was $0 (it's all borrowed money). If you leverage (borrow money to invest) your profit margin isn't your return minus your loan rate, but the actual $ earned divided by the actual $ put up by yourself.2014 wrote:Had one borrowed the full amount and immediately put it in an index fund the last week of August 2011 as of now it would be up ~17% over the 9 months. Some of that would be gone in fees, but you would still would have made 5-8% on your money when you take away fees and loan interest.
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Even the biggest and best firms can fuck up and be gone tomorrow (see: Lehman, Enron)pno12006 wrote:You could just hold your stocks though and hope to grab a few ten-baggers (like MSFT or AAPL) so in ten years it is substantial. I might buy like 500 bucks worth of pennys and hope to multiply. Who knows?... In 10 years it could be 35k. But average market gains are mostly useless here (Only serious squares buy indices [little risk, little reward]).
Got a kick out of this line...pno12006 wrote:(Only serious squares buy indices [little risk, little reward]).
...especially in light of this line.pno12006 wrote: I might buy like 500 bucks worth of pennys and hope to multiply
Yeah, I should have treated this like the trolling I really wish that it was, rather than the serious post I fear it is.Tiago Splitter wrote:Got a kick out of this line...pno12006 wrote:(Only serious squares buy indices [little risk, little reward]).
...especially in light of this line.pno12006 wrote: I might buy like 500 bucks worth of pennys and hope to multiply
Buying penny stocks is no different than throwing the money into a slot machine. It's not an investment strategy.
Communicate now with those who not only know what a legal education is, but can offer you worthy advice and commentary as you complete the three most educational, yet challenging years of your law related post graduate life.
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What I meant was that in this situation you would have to be pretty square to pick up an index. You'd have very little money and time. So even at a good return rate you would have not actually made that much money. (There are easier ways to make less than 1K.) Now for someone planning for retirement or a very rich man, they would be a more reasonable proposition (because they would have the money and/or time).dingbat wrote:Yeah, I should have treated this like the trolling I really wish that it was, rather than the serious post I fear it is.Tiago Splitter wrote:Got a kick out of this line...pno12006 wrote:(Only serious squares buy indices [little risk, little reward]).
...especially in light of this line.pno12006 wrote: I might buy like 500 bucks worth of pennys and hope to multiply
Buying penny stocks is no different than throwing the money into a slot machine. It's not an investment strategy.
I'm curious about this as well in the event of a tight bind.iowalum wrote:If anyone actually has experience with this - what kind of paperwork is needed/how long does it take?chimp wrote:You can request additional funds at any point if need be. Therefore, doing what you did makes no sense.
Ask your law school, tls isn't your mother.Decimal wrote:I'm curious about this as well in the event of a tight bind.iowalum wrote:If anyone actually has experience with this - what kind of paperwork is needed/how long does it take?chimp wrote:You can request additional funds at any point if need be. Therefore, doing what you did makes no sense.
dingbat wrote:Rather than that, reduce the amount you borrow the following yearlifestooquick wrote:At my school they tell us to take the full amount (we can't request more throughout the year) and if you have leftover to just submit a lump sum payment back
Now there's a charge.
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