There have been many articles written on the benefits and risks of borrowing to invest (leveraging). For instance, we’ve all been told that if you put $100,000 into a mutual fund–using $25,000 of your own money and a $75,000 loan–and the fund gains or loses 10 % or $10,000, that would actually be a 40 % gain or loss on your original equity–before loan costs. So why another piece on the topic?
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