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Should I lever up?
What kind of question is this? It all depends on your risk tolerance and where your stops are.
I guess this is another "Look at me!" thread from you http://www.discussworldissues.com/fo...s/rolleyes.gif And Interactivebrokers.com offers 1.67% margin rate |
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Initial margin 50% maintenance margin 35%, btw
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No, it doesn't. The relevant comparison is to the distribution of returns on equities, not some rate I am unable to use. Now go away. http://www.discussworldissues.com/fo...lies/smile.gif
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I pointed out you can get better rates with another broker... 3% is not unusually low, especially considering where rates in general are now. You'd also probably be better off switching brokers if using margin was of significant import to you. |
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And yet 3% is so low you have to take advantage of it.... you make a lot of sense, KH http://www.discussworldissues.com/fo...s/rolleyes.gif
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Like I said, this is all very personal and depends on your risk tolerance and your portfolio itself. You can not expect any meaningful answers to the question "Should I lever up?" from any of us.
"Look at me!" thread is all this is. |
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Oh right... because NONE of us know your personal circumstances well enough to be able to provide you with anything even resembling adequate financial advice. http://www.discussworldissues.com/fo...nwitdornan.gif |
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pchang just said a general mantra that may not be true nor may be applicable to you. Have fun, KH. |
holy ****. I just checked my brokerage account... I got $2500 in cash just sitting there. Holy ****! http://www.discussworldissues.com/fo...milies/eek.gif
My liquid net worth is double what I thought it was! http://www.discussworldissues.com/fo...milies/lol.gif http://www.discussworldissues.com/fo...danceparty.gif I got to keep better tabs on where I put my money! |
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Options. Futures. Leveraged ETFs... Options on futures of leveraged ETFs (do they have these, that would be awesome!)... Pick a FOREX cross... any FOREX cross... and go ALL IN 200:1... grow some hair on your chest!
You have options to leverage yourself to hell and back man, stop wussing out! |
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Pick a FOREX cross... any FOREX cross... and go ALL IN 200:1 QFT http://www.discussworldissues.com/im...ons/icon14.gif
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I wouldn't lever up that high but I'm more of a mutual fund sort of guy instead of an active investor. What I really need to do is get a government job so I can use my 9 years of Army service so I can qualify for a government pension in just 11 years and retire by age 45. Then I can be part of the mounting public pension debt problem and laugh when KH whines that his taxes keep going up to pay my pension. Government jobs! http://www.discussworldissues.com/im...ons/icon14.gif
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Dan, the relevant risk numbers come from comparison to NPV of lifetime earnings (say, post-tax), not to amount invested.
Nobody's provided me with any numerical tools yet (other than pchang's rule of thumb), so I'll attempt to build my own. The savings represent ~0.4 * after-tax earnings of one year (for both myself and wife). Using that year as base 1, discounting at (say) 5% p.a., and inputting a reasonable future path of nominal income (2% inflation + projected real gains) over the next 20 years I get that they represent ~1.76% of my post-tax lifetime earned income (NPV). There are some more analytics to be done of, course, but this is where we should start when thinking about this. |
is based upon the amount of time you have until retirement. If you want to retire earlier than 65, then you should start de-leveraging sooner. Rough proportionality should be good enough. In the mean time, margin up with the same asset allocation you have now!
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