RetireJapan

bryanc wrote: ↑Wed Oct 09, 2024 2:40 am
question is:is it worth getting a loan for student fees given low interest rates in japan and investing in nisas/tokutei etc (and of course using other money to pay student fees)
or is this a dumb idea?

thanks!

I suppose if the kids, took out the student loan, as they can apply for it, then they would be paying mum and dad rent,food, contribute to wifi, electricity,gas, cell phone, etc etc. Since the kids have taken out the loan, its NOT YOUR LOAN. if the NISA grows, you could make enough to help pay off the student loan for the kids.(if you wish) Or you just allow them to pay off the loan as per student loan.and the very ultra low rate. ( of course this is basically) just replacing, cough cough, YOUR OWN MONEY, your putting into the NISA. The interest doesnt start accruing until they graduate.

I'm not sure it fraud, if the student loan is the students, and there are two types of loans, one loan is then the students live "at home", and the other loan is the one where they live away from home.

It’s definitely not fraud. Money is fungible, once it’s disbursed into your bank account it’s indistinguishable from any other deposit it’s mingled with and nobody can say “that 10,000 yen is from the insurance company” or this “20,000 yen is your savings” etc.

I don’t advise borrowing (especially short tern) to invest, especially in equities but the advice about fraud and being arrested is way off the mark.

Deep Blue wrote: ↑Mon Oct 14, 2024 11:28 pm It’s definitely not fraud. Money is fungible, once it’s disbursed into your bank account it’s indistinguishable from any other deposit it’s mingled with and nobody can say “that 10,000 yen is from the insurance company” or this “20,000 yen is your savings” etc.

I don’t advise borrowing (especially short tern) to invest, especially in equities but the advice about fraud and being arrested is way off the mark.

My name is Bubblegum and I endorse Deep Blue's message.
We only did it, to replace the initial lump sums, we had to pay out for university fees. So it was just the kids DCA, the return of the millions, that we (cough, choke, cough,choke) had to pay out. That was how we looked at it. Plus it was long term. Most certainly not short term!

Yeah, if you can borrow long term for a fixed rate at low cost (just like a mortgage here) then I think it can make sense to invest rather than pay off the mortgage early. Lots of people I know have done this. Personally it’s not for me - my job is not ever particularly secure - so I prefer to be debt free.

But there are cases where I think the risk reward is reasonable - if you are sure you can service the loan in all eventualities and you have a long time horizon for the investment side then it’s just up to your personal risk tolerance how deep to go.

been off the boards for a while-great to see this thread has taken off!thanks to everyone for their comments.. i was really looking for opinions
on whether it economically made sense or not,but seemed to have got a lot of comments going on about fraud which i find to be utterly bizarre.
(though still appreciate people making the comments!) will be paying university fees for three ,the money for which would have been invested in nisas otherwise..deciding to borrow the money for the student fees is a personal decision..

would have thought that the discussion is more about attitude towards risk...
either way,all opinions are valid and welcome.

bryanc wrote: ↑Tue Oct 22, 2024 7:44 am been off the boards for a while-great to see this thread has taken off!thanks to everyone for their comments.. i was really looking for opinions
on whether it economically made sense or not,but seemed to have got a lot of comments going on about fraud which i find to be utterly bizarre.
(though still appreciate people making the comments!) will be paying university fees for three ,the money for which would have been invested in nisas otherwise..deciding to borrow the money for the student fees is a personal decision..

would have thought that the discussion is more about attitude towards risk...
either way,all opinions are valid and welcome.

You were not comfortable with the *risk* of a home-loan. Which are incredibly stable, secure, predictable and low interest.

What has changed? Has your attitude towards risk changed? That is a personal question, I do not think anyone can answer that for you.

the loan rates are basically the same -but i agree with what you are saying-circumstances are better now and i have developed more understanding of investing which i didnt have before(lot of that due to people onhere,thanks)