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system
at what interest rate should debt be used as a tool?
user
it's tough to borrow fixed and invest risk free. that said, there are still some interesting investment opportunities. a 4% loan will cost you 3% or less after tax, and the dvy (dow high yielders) is at 3.36% but at a 15% favored rate, you net 2.76% if my math is right. so for .5%, you get the fruits of the potential rise in dividends as well as any cap gains. is this failsafe? no. but i believe that long term, say 10 years or more, the risk is minimal.
assistant