This was proposed as a way to secure a loan.
"Save up your money or sell your car or something, buy a CD through the bank at like 1.5%, borrow against that with a secured loan around 3% interest, take that money and invest it in something that nets 7% or better with dividends and roll over the difference, keep snowballing it every couple of years until you don't have to work anymore. Be sure that your investment beats your loan interest rate by at least twice the inflation rate or you're wasting your time."
I'm Just curious why you wouldn't just use the original money from selling the car, why go through the trouble of a cd and borrowing against it. when you could just use the original cash. what's the advantage the cd being protected in bankruptcy?
seriously just want to know why you'd do that.
Submitted October 06, 2018 at 09:30PM by oscarmyweiner https://ift.tt/2zVqQTh
