Skip to main content
No. of Recommendations: 6
My personal view is that no, you should not go into debt to invest in stocks. It seems to me that you would be borrowing at something like 15% to get a reasonable return of perhaps 8% if you are really good at investing. That is a losing bargain every day of the year. (Think you can do better? Maybe you can. But I suggest you prove it with some genuinely available cash before taking other risks.)

I'm not sure I understand what your goal is in raiding the retirement account. Would that be to go the other direction and pay off debt that's at something like 15% with money that is only earning 8%? That may be reasonable, but you will need to think through the tax and other implications. AJ and others who are financially incredibly savvy can give you better advice than I can on that part.

What I will say is this. You've reduced your debt by $10k. That's about the same as losing 50 pounds. It's brutally hard. Even harder is continuing to build the habits and practices that make this way of doing things absolutely standard and automatic. Though the remaining debt may be weighing on you, it is also forcing you to learn to think, act, and live differently than you did before. It may actually not pay off in the very long run to short-circuit that learning process.

ThyPeace, this kind of discomfort is the feeling of growth. Feels yucky, I know.
Print the post  


UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.