So im going for mba. been worried about the cost. so i came up with this ultiamte idea:
step 1 borrow as much student loans as possible at the 1% rate. roughly 300k over 3 years. pay off tuition at 150k.
step 2 deposit leftover money of 150k into my ibkr account. and keep as cash or short term bond while waiting for stock market pullback. (buy assets when cheap).
step 3 borrow margin loan at 1.5% from ibkr account as 75k cash. roughly 50% of portfolio.
step 4 use borrowed money to invest in real estate private equity. about 75k expected to double to 150k in 4.5 yrs. thereby negating tuition costs.
i could also just get 300k as cash. borrow 50% or 150k to pay off tuition. then i have 300k liquid in cash waiting for stock market pullback.
also i will have other money in it to keep margin calls from happening, should i buy too early and market tank further than expected.
also what if someone were to do a loop. such as 300k. margin at 150k cash pull out. then deposit that 150k again to pull out 75k. pull out then deposit 32.5k. etc etc. multiplier effect amirite6
also do margin loans affect credit score?
Mijo, don’t you have a wedding to pay for too??? Ay, dios mio!!!
wedding is mostly paid for. maybe just 15k balance. maybe 20k. but thats topps. also wedding is on nov 11 2022. so its far far.
also my networth is around 578k now. a huge jump considering it was 320k during the bottom lol.
Sounds risky. What’s that WB quote?
“Don’t risk what you have for something you don’t need.”
Getting rich slowly is the best way to guarantee long-term wealth building.
That’s the problem with low rates. It’s enticing. When god gives you lemons. Plus instead of taking the 150k hit, I could use the cheap loans to essentially make it free.
I wouldn’t do it because it’s illegal. You have to use your student loans for school. If you want to leverage your portfolio then why don’t you just buy on margin?
It will be used for school like tuition. But that’s only 150k. they also want to loan in excess like living expenses which is super inflated compared to how I live lol
Lastly I will take a margin loan in the student loan. Lol so leverage squared. I dunno it’s still in theory. But a few ppl I know say it’s smart and doable.
That is an excellent idea, speculating with that money will teach valuable lessons, you might say you will be getting a life experience degree
this is as good as taking out a 401k loan and then paying yourself interest which results in super high IRR
No cap I’m almost done paying off that loan. I’m thinking of borrowing 50k again since markets are expensive anyhow
Yep speculating on real estate crowdfunding. I’m dropping in on assets that cash flow at a 5 to 8 percent rate. And expected irr of 15%.
I actually like the idea, you had me all the way till “invest in real estate private equity”
Liquidity could present a serious issue that might have you scrambling to make interest payments with cash from elsewhere
What about an inflation play with global gold miners 
Effectively a leveraged gold play that’s much more liquid. Would require you tying yourself to a chair as a significantly more volatile play
Where are you getting an MBA that cost $150k, that’s faken ridiculous… Would be keen to hear if you found it “value for money”
I like real estate private equity because it’s illiquid. All I get is the cash flow without fluctuating values causing a margin call.
Liquidity can be an issue but I have many ways to get cash. 50k loan on 401k. 20k contributions from my Roth. I could get a home equity loan from discover at 4 percent. Ask my parents for help etc.
Not a fan of gold or non productive assets like crypto or art. As for gold miners not a fan of their product nor commodity dependent businesses.
For cost of mba 150k is pretty standard but I’m getting it at usc. Honestly I’m not doing it for money. I see it merely as a networking tool plus the prestige.
If you’ve got liquidity covered then fair enough and goes without saying that you’ve got to be comfortable with where you’re invested.
Can’t say I don’t like the idea, my local MBAs is about a third of the price and my game plan (still on the fence about getting an MBA) is to setup an online business that if any good would cover the cost of pursuit. I can see you getting there alot faster with a leveraged bet 
You’re going to go borrow a quarter milly at 1% and not use it to buy nasdaq futures?
I’ve taught you nothing.
Edit: please don’t do this. The mba isn’t going to yield you ■■■■.
Pray for ya boy Greybeard - exam on May 27th 
Good idea! If you are confident with your plan then move on!
lol i know. i did a dcf and breakeven is 18 years i think so its kind of a bad idea. but i look at it as a chance to 10x assuming if i network and do something entreprenurial. plus it gives me more credibility. lastly, my family, relatives, and friends are all excited. so im kind of stuck now. anyways if ppl are willing to pay 500k to illegally get in to usc ndergrad. it must be worth more to get an mba, amirite6
wait you need more credibility? oy
lol i tell u the person who interviewed me for my mba didnt even know what a cfa charterholder is.
