Is borrowing to invest right for me?

Ask yourself these five questions:

• Do I understand how borrowing to invest works?
• Am I comfortable with the risk in the investments I want to make?
• How much interest will I pay each month? How does that compare with what I hope to make from my investment?
• If interest rates rise, will my costs increase? Will rising prices reduce what I make on the money I borrow?
• What if I lose some, or even all of the money I make with the borrowed money? Can I afford those losses? Will I be able to pay back what I borrowed from my savings?

Tip: Before you even consider borrowing to invest, make sure you understand the basics of borrowing. For example, there are real dangers to using your home to borrow.