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The interest rates often make those unattractive. You also expose yourself to the risk of a margin call with its many implications. It isn’t something the avera
by jandrewrogers 1y ago
The interest rates often make those unattractive. You also expose yourself to the risk of a margin call with its many implications. It isn’t something the average person should be doing casually.
- dmoy 1y agoIBKR will loan you vs your stocks at a cheaper rate than pretty much any place will for a heloc on your house. Not like a lot cheaper, but maybe 0.5%-1% cheaper if you have <<$1M, and a little better at higher amounts. Most other brokers, even Schwab and Fidelity, will not. Agree it's probably not a good idea for most people. (I might argue the same for a heloc, depending on what for, what emergency savings, what level of job security, etc)
- kingofmen 1y agoI didn't say it was a good idea. I said it was available to people other than the "richest of the rich".
- Swizec 1y ago> The interest rates often make those unattractive. You also expose yourself to the risk of a margin call with its many implications FWIW my brokerage gives me a margin loan at 4.9% up to 30% of the portfolio. The interest is literally lower than the mortgages I see advertised these days.