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Old 12-04-2012, 10:35 PM
RPsX5d RPsX5d is offline
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Location: Bay Area California
Join Date: Nov 2010
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Mein Auto: X5 Diesel xDrive35d
Originally Posted by Penguin View Post
The 2.5% is 100% assured, the 10% return is not, and can easily be negative, as many people who took home equity loans for investment money found out a while back...
Point well taken . . . I should have mentioned long term returns . . . done right and without emotions ~10% return long term is very doable . . . true for me over the last nearly 30 year period - which inclued all the modern day downturns.

As far as taking out home equity to fund long term investments - I call that DUMB! Funding long term investments with relatively short term loans . . . well you get the picture . . . I like such folks - they are what allows the rest of us to make the ~10% returns!
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