quote:
Originally posted by SHELDIVR:
Peter, I must respectfully disagree with your assertion that getting a loan when you have the money is stupid. To be specific, several years ago I had a fairly large sum of money invested in CDs at 16.2%. At the same time, an investment opportunity presented itself and I borrowed money at 6.5% instead of spending my own money. One of the best ways to make good money is to use someone elses money.
But you said yourself, you already had a large sum tied up at the time of your decision, if thats a move you had to make then I understand that. But the most econmically sound way to pay for anything is to pay once and only the amount on that pricetag. Paying interest unnecessarily is silly to me. Gaining interest on the other hand, fantastic. Looks like you got a pretty good IR on those CDs, why lose any of that profit margin? Like I said though, if at the time your cash wasnt where you could comfortably make that investment then very understandable...but for me, cash is king.