Wondering if any of you do this, do a balance transfer for the amount of money you have available on hand to invest with at 0% for X months. Then park the amount that you have in a high yield savings (so you'll have the amount liquid at time to pay back). And put the borrowed money into another investment. This can be tied up past the X months because you are going to pay it off with amount in savings. Anyways using this you could for the X months, be collecting on twice the amount that you have.
This kills your credit score I'm sure, but for people in retirement, where they shouldn't be needing to buy another house (hoping it is paid off, or at least have mortgage terms already set), why wouldn't this be a good strategy? I mean it's similar to how the super rich live off of borrowed money against their "net worth".
I know college students do this sometimes but since they are early in life, their credit score comes into play more so than at end of career.
Or do the same with taking a line of credit on their homes, instead of that crazy reverse mortgage thing. Since the interest/fees on a home equity line of credit is anywhere from 0-3% (where I am). And if you can earn more than the fees, why not take out a line of credit and make sure to pay it back.
I'm considering this as an option in addition to using a property as a "rental". Once the house is paid off, keep renting it out as well as taking out a line of credit on it. Wouldn't this give you another source of income? It makes owning a rental all that much more attractive if this is possible. I don't know the laws around this so it may not be possible :S
this is a little opposite of "mustachism" since you are taking on a debt, but a debt that has minimal fees/none. And if you know you can pay back what is owed, why isn't this an option?