Borrowed money from the bank to Invest in stocks

[Jitster]

Ok, I made a dumb mistake by borrowing money from the bank to Invest in indivudual stocks. I borrowed £40K at 4% interest rate. Now I'm left with 19K! And a debt of £32K. The 19K is now fully invested in Vanguard All world ETF. I also have £21K in savings.
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Should I pay this debt by selling the ETF and using savings? Or should I keep on paying the monthly loan repayment amount of £477 for another 6 years?

Yes I can afford the monthly repayments.
FYI, I've paid off the loan today 😀 I'm back in the black.

I'll start from scratch and start building the ETF again. The £477 will definitely go towards the £1000 I plan to Invest each month.

Cheers. I've paid off the loan! Now back to investing again... and no trading 😉

@Jitster

Good call. Count yourself lucky you are able to bounce back and get your head down and get saving.

Good luck!

Sorry I might be being a bit slow here OP but how are you back in the black, do you not have any loans at all now including mortgages?

The OP is not 'back in the black'.

They are just pretending they haven't lost £30,000 + and have used all the money they did have to clear the loan they should never have taken out.

Borrowed money from the bank to Invest in stocks : wasn't that the root cause of the Wall Street crash and ultimately the Great Depression ?.

That's right zero loans, and no mortgage.

My only mistake was I shouldn't have sold Altria, that stock pays 9% dividend. The dividend covers loan interest.

I am back in the black, I have zero loans and my bank balance is positive albeit a bit lower.

I wish you luck OP.

I don't personally subscribe to the power of positive thinking school of investment, but maybe it will work for you.

@Midnightrunners

The cause of the Great Depression was a combination of the stock market crash, overproduction, contractionary policies, and protectionist trade measures which all contributed to the severity and global spread of the Great Depression.

@HumanRightsAreHumanRights

20 years ago I feared the markets, but not now. After witnessing every crash, there's always a recovery.

The S&P 500 has had positive returns in approximately 73% of the years, compared to negative returns in around 27% of the years.

Just invest in the S&P500 and never look back.

Banks know there is no such thing as a customer for life. Especially among customers that consider themselves financially astute. Hell, I work for a bank and I have savings all over the place for the best rates and would shift my main current account if it was to my benefit.

I’m enjoying O”bank loan day trader”P now giving us all investment advice 😂

@MugLove
I don't know about you but I'm going to borrow the max I can to invest 🤣

"The cause of the Great Depression was a combination of the stock market crash, overproduction, contractionary policies, and protectionist trade measures which all contributed to the severity and global spread of the Great Depression."

Looks to camera. 'None of these things can happen now'. Winks.

@whowhatwerewhy

You should give it a bash, it's quite simple tbh, just focus on one stock that has a good dividend history. Don't get distracted with other stocks, that was my biggest mistake.

@Corksoles

I would love to see another depression, could you imagine the stock prices 😉. Remember you have to speculate to accumulate.

@MugLove

Where have you invested your dollars?

@countrygirl99

You should only have savings for emergency. The rest should all be invested in S&P500 ETF or equivalent.

1. What makes you think I don't have significant investments - I do.
2. I'd be an idiot to take financial advice from you so bog off.
3. I very much doubt you are FCA registered so stop giving financial advice if you don't want to be prosecuted.

@countrygirl99

I never mentioned that you didn't have investments. I only pointed out about cash savings. You can do whatever you like.

This is a forum about money matters, people give advice! I wonder how many users on this board are FCA registered 🤷

@Jitster stop digging.
You know the old phrase about keeping quiet and letting people think you are stupid rather than opening your mouth and proving it - you should take that advice.

I’m fairly sure OP is a 28-year-old unemployed bum who’s living with his mum. He’s watched a few TikToks and he’s come on to wind up “risk averse women” because of course none of us understand investing

hence no mortgage - mummy is paying - and the incessant mansplaining of stuff that he’s totally wrong about

Relax dude! No need for the insults! Ok I'll be the adult in this convo and say, let's agree to disagree.

@WeAreBorg

I could be married 😉 never assume my friend.

Why do you assume that everyone should have a mortgage? And if they don't have one, then they are skint.