Taking out a loan
to invest is not a good idea. "In the late '90s we saw a lot of that and
people got really burned. But people tend to forget," Petote says. Of course
a caveat is borrowing to start or grow a business, where thoughtful consideration
has gone into the expenditure and the borrower is sure the return on investment
(ROI) is there. "That's typically the way I see clients use debt to create
wealth," he says.
Lesson: When the investment itch strikes, scratch with money you've already earned.
