Use a mortgage to fund a mutual fund investment for cash reserve?

As rates continue to fall, I'm considering the following:
My home will appraise for ~500,000
I currently owe $200,000 in year 5 on a current 30 yr mortgage @5.875%.

I have spent the last 5 years paying down mortgage debt (my only debt) as fast as possible. Should I tap into my 300k of equity to fund an invetment plan?
I'm considering:
1) Take out a $350,000 loan for 30 years (hopefully, at 5%)
2) Pay a monthly mortgage of ~$2,000
3) Put the $150,000 into a conservative mutual fund to earn a modest 8% interest.

Given the tax advantages of the mortage interest, the numbers look promising. I understand that mutual funds don't automatically return 8%. Some years they may lose and some years they may get 16% or more. It's the average.

The numbers will create a nice cash reserve in about 5-10 years, which is comforting.

Does this make sense. The numbers all point to yes, but I don't know if I'm missing something. I do have a separate IRA for retirment

Any suggestions?

Bad idea, see your other post to read my answer to the same question.

As stated the last time you asked this.

Borrowing money to invest it is a terrible idea.

If you had done so about 6 months ago you'd have lost a huge chunk of it.

Why not sell your half million dollar house when you retire and move some place where houses cost around $80 a square foot?

My suggestion is not to borrow money and gamble it.

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