We are both in our mid-fifties and own our home. My husband is keen
to borrow $200,000 using the equity in our home to invest in a
managed fund. In the present economic climate is this a wise
investment for our financial future?
A.
I have long believed that borrowing for investment is a good
wealth building strategy as long as you stay within your comfort
level and have a secure income and asset base so you will never be
forced to sell assets when the market is having one of its
inevitable downturns. A major benefit of borrowing for shares with
a home equity loan is that you are highly unlikely to face a margin
call.
Each week financial advisor Noel Whittaker answers your
questions.
