With the nation interest rates sitting ultimately low at 0.25% as of 2015, this impacts banks borrowing to the people. Virgin are offering up to 41 months 0% interest free cash transfer effectively beating any loans.This Portfolio is based on borrowed cash to beat the administration cost before the 0% interest free expiration. Basically I am borrowing Richard Branson’s money to generate income.
Project Kick-OffThis project kicked off on 11th April 2016 where $15000.00 was borrowed from Virgin credit card at 0% interest for a total of 36 months. Before 11th April 2019 all the balance payment have to be repaid to avoid any interest. The only payment required are the 2.90% administration fees which worked out to be $435.00. Therefore over the course of three years the total investment needs to be above $15435.00 to make any profits. So therefore for the next three years we need to beat an average of 0.95% per year.
Project BenchmarkThe project portfolio shall be measure against FTSE 100, FTSE 250 and Dow Jones. Please follow the blog post for progress
The Five Commandments
- the money shall not be used for any personal use
- the money shall not be used for debt payment
- the money shall not be used for lotteries or gambling websites
- the money shall be repaid at least 31 days before end of term to avoid cost
- the money should be deployed in a balanced portfolio