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For ultra-high net worth individuals it's a pretty safe strategy. Typically a low volatility equity that doesn't pay dividends is used and only a small percenta
by papercrane 5y ago
For ultra-high net worth individuals it's a pretty safe strategy. Typically a low volatility equity that doesn't pay dividends is used and only a small percentage of their portfolio is used.
Over the long run it tends to work in their favour as well, since it's very likely that the increase in the portfolio value will outpace the interest paid.
- kristjansson 5y ago> increase in the portfolio value will outpace the interest paid Ah, right. Caught me twice on my fixed-pie thinking :)