MANY problems. When investing in any financial instruments whether it be bonds, mutual funds or stocks you are dealing with uncertainty, you are not gauranteed to recieve a positive return all the time from your investments and most people ignore or forget the potential risk of losing. Even with the best financial planner in town, that will not shield you from risk exposure because they can't predict the stock market, no one can or else they would be extremely rich and would not be sharing their advice. Even with good credit, to borrow that much money, you need to have assets that banks can use as leverage just in case you don't pay them back. You also need income to pay the monthly payments. Banks are becoming more strict on who they lend money to after the recession. I am a finance student who took a course in banking and we were given assignments on cases about who to lend and who to deny loans to. Even if you were older most banks would not approve the loan you are requesting.
First of all, to get a loan like that, you need a good credit score as well as an income you probably don't have. Even if you could get the loan, the interest rate you'd have to pay will be more than you'd make investing in stocks. Think about it, why would a bank loan you money if they could make more by investing it themselves?
Problems? Several.
Most of them start with the being 16.
First of all - you don't have "good credit". You don't have any credit. To get a credit score - you need to have had credit cards that have been paid responsibly. Or a car loan. And you have none of that as you are 16.
Second - no one walks into a bank and gets a loan for that much money - without it being for a mortgage with the house as security. No one gets a loan for that much money without having security/collateral to back it up.
And no 16 year old would get a loan of any size - not even $500. 16 year olds are minors and cannot sign legal contracts - like a loan contract.
I have done it but when much older with much more net worth. I refinanced a house pulling out over 100K equity so paying 3.458% interest and invested in mutual funds hoping I might make more. This was before 2008 so I lost a lot for a couple of years so was down, but I had a good job and the payments weren't a problem. I have made much more than the interest I paid over the last few years but it isn't guaranteed and most don't have the financial depth to handle it or the nerves.
1) you wont get a loan wiht no income , and for a 100k loan a lot of income
2) you say you will pay back the money whatever it is
Suppose you aint got any money
3) dont matter how many advisers you get, or how good they are, profits are not guaranteed
Only thing guaranteed is you will have to pay them
4) suppose you dont make a profit
The problem is that the payments on that loan are going to roll around whether you make any interest or dividends.
We can't all make 10'000% on cattle like Hillary did.
If it was that easy to do a lot of people would have done it.
Good luck ....hope it works out for you
The average interest to BORROW money is always higher than the average interest PAID on money invested, generally....that's why banks & financial institutions do just fine regardless of the state of the economy...
Try again, kid...
Yes no Lender would give you a loan. You have no security to back it up and you are a minor.
Why not put it all on number 13 ??
