Читать книгу More Straight Talk on Investing - John J. Brennan - Страница 47

For the same reason that credit card debt and investing don't go well together, it's never wise to invest with borrowed money. It's a certainty that you'll have to repay the money you borrowed. It's never certain that you'll receive the investment returns you're hoping to receive.

In the day-trading frenzy of the 1990s, some investors began buying stocks with borrowed money. The practice, which is called buying on margin, is very risky because it magnifies the impact of gains and losses. If the margin investor's holdings suddenly drop in value, he is often forced to sell the stocks that serve as collateral to pay off the loans immediately.

What this means is that debt with an after-tax cost of 4% is not a terrible thing if you are earning a 5% after-tax return on your investments and you can deduct the margin interest. But you're not getting ahead financially if you're earning after-tax returns of 5% a year on your investments at the same time that you are paying 19% on your credit card balance.

The tax aspects of debt are worth thinking about, but don't get so hung up on them that you squander time and energy finding ways to profit from having debt. The peace-of-mind issues are as important as the numbers.