Here's the jist. I have an opportunity to get a 25k loan at 1.9 percent interest and wouldn't have to make the first payment until 6 months after graduation. I have no debt currently and am able to spend the money however I see fit (It isn't a student loan and, as such, there are no limitations). I thought about day trading but really don't have the time to monitor it the way I would need to do it properly. Access to the funds isn't really a concern either. Any ideas would be welcome.
Thanks in advance
You sound like a homeowner circa 2006. Why would you want to unnecessarily load yourself up with debt?
Because it's extremely easy to outpace 1.9% and make a little money. I have no debt and a decent income assured for at least the first 6-9 months I would be paying on the loan. Not investing it intelligently seems like a much bigger loss than whatever hit I would take to my credit.
And I hardly think 25k is 'loading myself up with debt'
Is that you Dick Fuld?
Just call me the 'Gorilla'
Well it sounds like your term is less than a year. That's pretty illiquid, so only something that you know wouldn't fluctuate in value at all. You can't handle much...er... any volatility. After that 1.9%, what does it spike to? Are there any transaction fees?
The term is 5 years (fucking stupid of me not to mention that) and there is no increase. 1.9 percent for 60 months. There are no transactions fees.
Is this actually hypothetical?
No its legit but I haven't determined if/when I am going to take it out. I say hypothetical because I didn't want people getting caught up in questions about specific current situation, am I looking to buy a house in x years, etc. While I understand that these things are important, I was hoping for a simple, "This is what I would do."
discoverbank has a 5 year cd earning 2.9% for an easy way to scrape 1%
I saw that, I was just hoping there would be something with a little better return. I guess at the moment though 2.9 is a gift.
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