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Hi Fools. Question for ya. I am 31 years old and want to juice up my portfolio but I don't want to use margin because of the danger of margin calls. What about taking out a personal loan instead to buy stocks? I can get a personal loan for a high 13% APR, and buy Rule Breaker stocks. As long as my portfolio returns better than 13% annually, it will be worth it. I realize there's a good chance that my returns will be less than 13%, but my goal is to get rich in about 15 years, so I am consciously taking on a lot of risk. The worst thing that can happen is that I'll lose most of my portfolio, and be stuck with a loan which I will have no problem paying off because I make pretty good money. By the way, in addition to my portfolio of individual stocks, I invest 10% of my income in my 403(b) in a stock index fund. That is my foundation retirement fund that will be sufficient should I lose most of my individual stock portfolio. What do you think of my personal loan strategy?
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