IFB289: Problems and Pitfalls of Investing with Debt

The Investing for Beginners Podcast - Your Path to Financial Freedom

Andrew Sather

Investing, Business

4.1 • 1.5K Ratings

🗓️ 29 June 2023

⏱️ 33 minutes

🔗️ Recording | iTunes | RSS

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Summary

Welcome to the Investing for Beginners podcast! In today's episode we will talk about leverage and how it is being used in investing- the good and the bad, but mostly bad. Listen on as we go around the topic of debt and why in investing it is best to stay away from it even with the allure of higher returns. Timestamps of the episodes: -The Rich Dad, Poor Dad book by Robert Kiyosaki and how it teaches financial independence [02:22] -Pitfalls and upsides of using debt in investing. [05:03] -The cruel reality of using leverage and how it correlates with real estate investing. [11:15] -The illusion of running your own business. [14:55] -Using the leverage from your own home to buy investment properties. [18:50] -The liquidity problem of real estate properties. [24:55] -Why investing with a margin of safety will always be a good rule to follow. [27:44] Note: Timestamps may differ and are approximate, depending on your podcast player. For more insight like this into investing and stock selection for beginners, visit stockmarketpdf.com SUBSCRIBE TO THE SHOW Apple | Spotify | Google | Stitcher | Tunein Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is a Glassbox Media Podcast.
0:08.5	Love this podcast because it crushes your dreams and getting rich quick.
0:11.5	They actually got me into reading stats for anything.
0:14.0	You're tuned in to the Investing for Beginners Podcast.
0:18.0	Led by Andrew Seder and Dave Ahern.
0:21.0	Step by step premium investing guidance for beginners.
0:25.0	Your path to financial freedom starts now.
0:29.0	All right, folks, and welcome to Investing for Beginners Podcast.
0:34.0	Today we have episode 289.
0:39.0	Today, Andrew and I are going to talk about the pitfalls and problems that could come with investing with debt or using other people's money.
0:45.0	And Andrew and I were talking about a event that I wanted to talk about.
0:50.0	And a lot of people were talking about real estate and some of the ways that they invest.
0:55.0	And debt was something that came up a lot.
1:00.0	And Andrew and I thought it would be a good idea to talk about debt can be good, but it can also be bad.
1:06.0	And maybe we could talk about some of the problems and pitfalls of investing with debt.
1:11.0	Whether it's real estate or whether it's stocks.
1:13.0	There are certainly some advantages that we can take into account.
1:17.0	Whether it's real estate or whether it's stocks.
1:20.0	There are certainly some advantages, but there's also some risks that need to be considered.
1:25.0	And we thought maybe we could help illuminate some of that for beginners.
1:29.0	So maybe let's talk about kind of go back to the beginning.
1:32.0	Like, where did you kind of learn about this idea of like, you know,
	...

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