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9

Inherently lending money for gambling is not a good investment because the casino maintains a spread. The odds of one winning against the casino is lower than the odds of the the casino winning against the player. For example in roulette, the probability of red or black winning is less than 50% because the roulette wheel contains 0 or 00, while the payout ...


6

Let's say both loans require only one payment per year, and you will pay off the loan at that time. Let's say your 401k earns 8% per year. Status quo: After one year, your $10K debt becomes $11K, which you pay off. Meanwhile, the $10K in your 401k becomes $10.8K. Alternative: You pull out $10K today and pay off the debt; but now you owe $10K to your ...


4

You probably can do it, but there are some important considerations: Mortgage rates are typically lower than other types of loans, including business loans. This alone may be reason enough to avoid it. Mortgage application documents usually ask you the source of your down payment. This includes other loans and even gifts, in which case you may have to ...


3

Much like the question asked previously, the two most important things in obtaining a mortgage is debt-to-income ratio and income. Equity in the house being purchased is important but that can be nearly zero if one is using some kind of "mortgage insurance". PMI (private mortgage insurance), VA, and FHA are kinds of mortgage insurance which make down ...


2

Higher credit card limits on their own do not reflect positively on your credit score - what is important is your utilisation. Having 10% utilisation on a 10k credit card will be more favorable to a credit score than a 50% utilisation on a 100k credit score. Debt-to-income ratio also plays a role here. Instalment loans are a bit different here because the ...


1

One option would be a pledged asset line of credit -- basically you take out a line of credit or loan that is backed by the securities you have invested. Many/most investment firms will offer a product like that. This way you don't have to liquidate any securities and incur capital gains, and you can work out a loan with your family member where his ...


1

Structuring a loan to someone based on market performance is a Pandora's Box. Or perhaps it's as Forrest Gump said: "Life is like a box of chocolates. You never know what you're gonna get." Some random thoughts... Why should your brother have to indemnify you for realized losses if you sell your underwater securities? The loss already exists and that's ...


1

There's several different factors to consider here: You're avoiding paying 10% on the loan. You're adding more money to the 401(k) account. It's possible that you're ending up adding more money than your contribution cap would otherwise be; I'm pretty sure that paying yourself interest doesn't count towards your contribution limit. However, I recall there ...


1

If you're talking about a signature loan on a prospect then I might suggest your approach to business credit is a bit off. You can file as a LLC or DBA pretty easily at any county clerk's office. In some cases it's as cheap as $10. Take that certificate to a bank, open a business account, and you have the first steps to establishing yourself as a business ...


1

Yes, over 18 months you'll pay slightly less interest (3.2% vs 4% by my calculations), so on $10,000 the difference will be about $80. The breakeven point seems to be about 23 months. For shorter periods, you're better off paying the monthly interest since the balance declines as you pay down the debt. That said, I'd be more concerned about why you're ...


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