Interrupter CheckmarkInterrupter IconFacebookGoogle PlusInstagramGroupRamsey SolutionsTwitterYouTubeExpand MenuStoreCloseSearchExpand MenuBackStoreSign in

Ask Dave

Student Loan for ROTH IRA?

Brad's medical school professor thinks he should get student loans to fund Roth IRAs, but Dave says you should never borrow money to invest.

QUESTION: Brad emails that his medical school professor said students should take out more school loans in order to contribute to Roth IRAs since they won’t be able to as doctors.  Is that good advice?

ANSWER: You’re right – your professor is wrong.  You should never take advice from broke people – especially broke medical school professors! 

Absolutely, positively, never borrow on a student loan to fund any kind of investment.  You should never borrow money to invest.  You should also never invest in anything you do not understand.