8 Undeniable Benefits of Investment Loans

Whether you’re looking to develop a retirement plan or a savings strategy, explore the undeniable benefits of investment loans!

8 Undeniable Benefits of Investment Loans

Are you looking for a way to reach your financial goals faster? Have you ever considered the investment opportunities with an investment loan? 

Investment loans are when you borrow money to make a large, lump sum, purchase that will grow in value over time. Investment loans enable you to invest more money than your cash savings, and you can see the benefits of your investment with greater and faster returns! 

If you are saving for retirement or looking to build your personal wealth, you should consider an investment loan. Not sure if an investment loan is the right choice for you? Keep reading to learn more about the benefits of investment loans and how they can help you reach your personal finance goals.

1. See Results Sooner

The goal of any investment is to see that you are making money. With an investment loan, you will be able to initially invest much more money than if you only use your savings, and you will see compound growth sooner. 

Compound growth is what happens when your initial investment is earning interest, and that interest in turn makes your investment bigger. As the amount of money you have invested grows, it will continue to gain more interest. As you already know, the bigger the investment, the more money you make, so this process will result in more money sooner and bigger long-term gains. 

2. Invest More to Make More

Anytime you invest, you expect to see a percent of the investment returned, so the more money you invest, the more you can make. By investing a larger lump sum, you can expect to see much greater gains on your investment. 

How does this work?

Take, for example, if you save money and can invest $10,000 and make a 10% return, you will earn $1,000. This is not bad, but if you borrow an additional $90,000 to make the initial investment of $100,000 the 10% return is now $10,000! You can see how the larger lump sum investment will allow you to quickly make more money. 

3. Create Leverage

Leverage is when you use borrowed money to acquire an asset or investment with the goal of greatly increasing your gains. What this means is that by using an investment loan, you become in control of a larger financial portfolio, with a larger potential for earning money, than you could have using only your savings. 

Leverage is important because you will see the rewards of your investment without putting in all the initial money. With leverage, you are in control of your entire investment even though you only put down a portion of the cash investment with your savings and used an investment loan for the rest. 4.

4. Start Early

It is common knowledge that the sooner you begin investing, the better your financial future will be, but for many people, especially younger adults, it can be challenging to make large contributions to investments.

For qualifying young adults who are confident they will be able to afford to make payments on their loans, personal loans to invest are a great option to grow their portfolio. By using borrowed money, young adults can begin to make meaningful contributions to their investments years earlier than they would have been able to without an investment loan. 

5. Diversify Your Portfolio

Investment loans are not just for beginner investors. Many experienced investors use investment loans to increase their wealth. 

Experienced investors will benefit from an investment loan if they want to diversify their financial portfolio. These investors may use the funds from an investment loan to expand their portfolio to include different stocks and assets. Financial advisors recommend having a diverse array of investments in your portfolio. 

6. Long-Term Gains

Investment loans are a great option for individuals who are planning to invest for long periods of time. 

An investment loan will help you see the compound return on your investment faster, and will create greater returns. If you allow your money to work for you over many years, you will really be able to see the benefits of your investment. 

7. Tax Deductions With Investment Loans

Talk to your accountant or financial planner about how an investment loan will affect your taxes. 

You may be eligible for a tax deduction on the loan interest that you pay. By taking advantage of tax deductions and paying lower taxes, you will be lowering the investment loan cost. 

8. Reach Your Goals Faster

Whatever your financial goals are, you will reach them faster with an investment loan than if you are only using savings to invest. By using borrowed money to invest, you can maintain your cash flow for all other financial obligations you have. 

Take Control of Your Financial Future

Investment loans allow you to take advantage of investment opportunities that require more cash than you currently have. 

If you are saving for retirement or looking to grow your personal wealth, investment loans are a great option to maximize your earning potential. 

Now that you see all the different benefits of an investment loan, what are you waiting for? Contact the financial experts at Belanger Financial, to learn about how you can apply for an investment loan. Professionals at Belanger Financial will work to show you the different options available to you. 

Tim Belanger
About Tim Belanger

Tim Belanger is a local Ottawa Mortgage and Insurance broker that prioritizes you. No matter your lifestyle or budget there is a plan for you.