Did you ever consider an investment loan as an option for long term investing? This type of strategy is one of the overlooked wonders of giving your portfolio that extra boost. I will give an example of how it can work for you.
Lets say for rounded off figures you have an extra $300 per month to put toward your investments. You can either put this money into your investment portfolio or you can use it to service an investment loan. This amount of money should generally cover the interest on a $50,000.00 loan and the amount of interest paid is 100% tax deductible. By carrying an investment loan you have opted to invest the full value of the $50,000.00 sooner than doing it gradually. If you were to invest only your $300.00 monthly it would take you over 13 years to have accumulated the same initial investment. The compounding possibility of your initial investment has been significantly increased.
By taking on an investment loan you can accelerate your portfolio gains many fold rather than doing this over a very long period of time. Investment loams are not for everyone but should be considered as an alternative.
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