<prompt> Human: HI, I need to have a new kitchen and bathroom fitted within the next few years but will save up the money so that I have the full cost of them in cash before getting the work done.However, Im considering taking out a loan at 5 to pay for them and then putting the cash savings into the stock market to buy high yielding dividend shares paying around 4.5 - 5 yield, this would be tax free in a UK ISA instead of using the cash to pay for the work.The reason behind this is that if I spend the cash I have saved, then its gone forever - but if I take out a loan and invest the cash, Ill have the dividends coming in potentially forever and the dividends will mostly cover the interest payments, I can then pay the capital payments out of my salary.I think this is a good idea, but am wondering if Im missing a fatal flaw in this plan, anyone else done this kind of thing?Regards,  <response>: The fatal flaw is the assumption that the dividends will be consistent and the principle value of the shares I.e. Your initial investment will not change - shares crash, you lose your money. Bottom line is you do not invest what you cannot afford to lose. Kpaxonite is right. 