10 of 17
BACK NEXT
10. Borrow against other investment accounts
Pros: Anyone with an investment account can qualify for a so-called margin loan, which costs nothing to open. The rates are decent: typically 6.2% to 7.3% for accounts with at least $50,000 in assets.

Cons: It's a bad idea to borrow more than 25% of the value of your stockholdings (even though you're allowed to borrow up to 50%). That's because drops could trigger an automatic sale.

Say you have $100,000 in assets and borrowed half of that. If your portfolio falls 10%, you are now allowed to borrow only $45,000, or $5,000 less than what you borrowed. Assuming you don't have the cash on hand, your broker will have to sell double the difference, $10,000, to get you back in line with the 50% limit, lowering your investment account to $80,000. If the stock market keeps falling, this can be a vicious cycle of forced selling when stocks are already down.

NEXT: Borrow from strangers
Last updated August 22 2008: 12:36 PM ET
Millionaires in the making Only 27 years old, prodigious savers Gina and John Rodrigues are determined to retire with a million-dollar nest egg by the time they turn 40. (more)
21 ways to stomach a sour market Feel like you're getting nothing but lemons from the stock market? Allow us to introduce nearly two dozen recipes for lemonade. (more)
5 money mistakes to avoid ou don't have to wait for new laws based on behavioral economists to save you from the money mistakes you're hardwired to make. You can implement your own fixes using their techniques. (more)
Special Offer
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.