Should I lever up?

[KrazyHorse]

My broker's margin rates are 3%, which seems too low to not take advantage of. I'm already 100% in equities; should I make it 200%?

[Al B. Sure!]

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

And Interactivebrokers.com offers 1.67% margin rate

[VetLegion]

Playing with fire...

I'd do it, but I don't have a family to think about, so I'm all about risk.
Can't say whether it's prudent... what kind of portfolio?

[KrazyHorse]

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

And Interactivebrokers.com offers 1.67% margin rate

As I'm looking for advice from people who know something about finance, please be quiet. Also, IB having lower rates doesn't help me, ******.

[KrazyHorse]

Playing with fire...

I'd do it, but I don't have a family to think about, so I'm all about risk.
Can't say whether it's prudent... what kind of portfolio?

100% equities, all index etfs. 1/6 small cap US, 1/3 large cap US, 1/3 emerging markets, 1/6 Canadian large caps

Size is what I managed to save in taxable accounts in one year (~50% of net pay)

[KrazyHorse]

Initial margin 50% maintenance margin 35%, btw

[Al B. Sure!]

As I'm looking for advice from people who know something about finance, please be quiet. Also, IB having lower rates doesn't help me, ******.

It puts your 3% margin rate in perspective, sweetie.

[Zoetstofzoetje]

Some guy that is on my ignore list is asking something about margin. I have infinite margin. Rarely use it. Don't feel the need to say more.

[KrazyHorse]

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.

[pchang]

Current investing theory

It puts your 3% margin rate in perspective, sweetie.

says you should margin up as much as possible if you are under 30, and start de-leveraging until you are at 0 margin by the time you are 40.

[Al B. Sure!]

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.

You wrote "My broker's margin rates are 3%, which seems too low to not take advantage of". This seems to mean to me at least that the low rates are predicating your interest in using margin.

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.

[Al B. Sure!]

Anyway this is such a fundamentally personal question that you asking people on Apolyton about it makes no ****ing sense. Just another "Look at me!" thread

[KrazyHorse]

says you should margin up as much as possible if you are under 30, and start de-leveraging until you are at 0 margin by the time you are 40.

I am 31, but my earnings period starts later and ends earlier than the average.

[KrazyHorse]

You wrote "My broker's margin rates are 3%, which seems too low to not take advantage of". This seems to mean to me at least that the low rates are predicating your interest in using margin.

******, how many times do I have to explain: the comparison is between 3% and equities.

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.

Read post 9 again, ******.

[Al B. Sure!]

And yet 3% is so low you have to take advantage of it.... you make a lot of sense, KH