DISQUS

Jim · 1 year ago

You should go more into detail about the potential behind investing your debt money. Other than the stock market, there are great places to invest with confidence like Treasury Bonds (as you have mentioned). With college prices skyrocketing, it is important to have a grip on your finances and not be in a hole as soon as you graduate.

One Bad Dude · 1 year ago

The obvious question is...why the hell have you been in graduate school for 8 years???

bobby · 1 year ago

umm, he says hes gunna be pushing 100k+ a year, im sure that takes alot of schooling. Anyways, nice post. I know exactly what you mean with the middle class getting screwed. Iv dealt with it myself for a couple years. The government/school gives me about 1/4-1/2 of the money I need for the whole year. Its ridiculous.

Jon · 1 year ago

Yes, education is getting ridiculously expensive. Anyway, I think using some of that money to invest is definitely better than spending it all drinking and partying. Although it's an integral part of college (don't miss out you'll regret it). And with interest free terms, you could get a nice income meanwhile.

Jorge · 1 year ago

My mistake! It should have said a student since 2000, but a graduate student since 2004, although I wouldn't put it past some folks to be in graduate school for about 8 years. Bobby, that's about the same amount I get from the government. Funny thing is, I can't ask for food stamps or whatnot since I'm a full time student (not that I'd ask for them anyways since others really do need it more than we do).

Jon, if the students here on campus would save even 5% of the money they spend on booze and partying, they'd be so better off. But I guess that's where the disconnect occurs. Only a handful of students in my opinion really worry about the future. The rest live in the present. Problem is, their present doesn't seem that interesting (beer ping pong anyone?).

Options Strategery · 1 year ago

Did I just read that you advocate borrowing to 'invest'? This is the worst idea ever. First, you are borrowing on a recourse line that cannot be discharged in bankruptcy. Second, you are telling unexperienced poor people to invest money. The reason they don't have any money is because they can't manage it. This is the path to ruin.
Yes, student loan lines and 0% APR credit cards provide a low cost of capital. Unless you a proven track record and a risk management plan, don't play with leverage. Borrowing is leverage.
How many people have the discipline to put it in a CD and make a couple hundred a year from arbitrage?
Danger!

Jorge · 1 year ago

Options:

Am I advocating borrowing to invest? Yes and no. I can only guess what your age or background is but have you been on a college campus lately? The amount of stupidity on site financially astounds me. Instead of blowing your cash on booze and other non-essentials, invest it. Or like you said, arbitrage works very well. Sure, 4% of $10,000 on a simple basis is $400 per year but it pays if you do have the discipline. I'm not saying to go out and take a loan out if you can avoid it. But some of us have such large student loans outstanding it wouldn't concern me taking out a little extra even if it's just to learn how to invest. The markets need some sort of tuition payment, right?

I guess my problem is I figure anyone who has any good handle on their finances and their future would have some sort of knowledge and/or concept of risk management. I really need to stop assuming that most folks even really care about their financial well being. I mean heck, both my parents and my wife's parents don't!