Shilo…..yes, as long as it is in SAFE investments then I think it would be OK. Keep in mind, that again, w/ current rates you are lucky if you can get something much over 5% in a savings vehicle. After off setting the loan rate and taxes there would be little if any left over….It also depends on how good of a money manager someone is…...if they aren’t following things closely, then this type of plan can turn around and bite them.
There are alot of other factors to consider, is my point. Can your thoughts work? Yes. But for some it may not be a good fit. New job, high stress, new family, starting a medical/law practice…..any of these things can be overwhelming. I am just counseling this person down the safest road.
Can you strategy work? Yes. But it must be done w/ care, thought, planning, close monitoring, etc.
It is a different way of looking at money. I was counseled to do something similar…...but instead I now own my cars, house, etc. free and clear. No credit card debt, no student loans. Nothing.
I bet you are going to tell me how much I am missing out on not being able to write off house loan debt on my taxes :)