Does getting a loan from the bank and putting it into an index fund, make financial sense?

If someone takes out a loan of X amount of money from the bank at 6% interest rate and puts it into an index fund such as the Vanguard S&P 500 that has an average of 11.7% return since 1976, then technically, barring a financial disaster (stock market crash, but is highly unlikely) you could essentially make money and not do anything. In theory this makes sense, so why don't all people do this?

Submitted October 29, 2018 at 02:19AM by ghostzfh https://ift.tt/2PXGbbf