Pro and Con for Investment Line of Credit?

[coffeeday]

Hi,
Can anybody give suggestion on applying for a 15 years term "Investment Line of Credit"? My finanical advisor suggested me to borrow 100,000 from bank and invest the money in a Segretated Funds. I have no knowledge of segretated fund. It looks good, but need to pay interest for line of credit. As it will be a 15 years term, pretty long time, don't know if this segretated fund still profitable after 15 years? Shall I consider it?
Many thanks for any inputs.

[CSR]

Leveraging. Do some research about it.

[asdfvcx]

Read this thread, it's discussed it detail.

http://www.redflagdeals.com/forums/showthread.php?t=736025

[charliebrown]

Hi,
Can anybody give suggestion on applying for a 15 years term "Investment Line of Credit"? My finanical advisor suggested me to borrow 100,000 from bank and invest the money in a Segretated Funds. I have no knowledge of segretated fund. It looks good, but need to pay interest for line of credit. As it will be a 15 years term, pretty long time, don't know if this segretated fund still profitable after 15 years? Shall I consider it?
Many thanks for any inputs.

Wow...that's a smart advisor:

Pay the bank interest on the LOC @ Prime + x%
Pay MER of 2+% on the segregated funds, which may or may not go up in value
(i.e. you have to pay 2% every year, even in years like 2008 where your seg fund probably went down 30+%)