Straight talk answer on margin account!
Those who got enough won't be easily hoodwinked by snake oils...
Its those who have little or not enough capital and have hole-in-the-heart that are more pliable...
Not enough? Just use share-financing or margin account so you can double or triple your capital!
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CW,
ReplyDeleteIf we don't have to be 100% invested in the markets to enjoy our lifestyle, we can sleep better at night. That's a sign we are diversified enough ;)
Imagine those who are 200% or 300% invested just to meet the minimum PC requirement...
Its like buying a car or condo on borderline basis...
If we know what is enough. Do we know? Or how many people seriously know?
DeleteMajority of people use large leverage for gian png reasons. Hahaha! Not to maintain FIRE.
DeletePeople who use margin in pure zero-income retirement are (1) in the tiny minority, and (2) only a very small portion of their overall portfolio & using lower leverage, certainly less than 50% e.g. 1.2X to 1.4X
That's why most rich people will prefer to employ large leverage in rental properties rather than in paper assets --- collateralised, hence cheaper interest, more favourable financing & much lower chance of margin call.
Those who still don't believe in season of the Sun will use margin to generate and maintain cash flow either in retirement or FIRE. Hope that Winter never come.
DeleteWe need more leverage to keep the bull charging!!!
ReplyDeletePlease!!! More kool aid!!!!
LOL!!!
If you just trade or invest equities only and had adequate capital to meet your investment income level. Why you need margin account?
ReplyDelete