Re:Tech bubbles are bursting all over the place
by kevstev on Friday May 13, 2022 @05:08PM
(#31372549)
In the typical scenario, I could have sold my stocks and incurred a 20-39% tax on the gains.
The other option was to instead take a margin loan out at a hair over 1% blended which is tax deductible and incur no tax bill.
There was a bit of risk in this yes, but I came out way ahead despite there being a pretty sharp pullback right after I closed on my house. I wasn't leveraged to the hilt at all, I think I had a loan equivalent to about 25,maybe 30% of my portfolio when the market pulled back.
If you have significant assets this is something you should be considering. This is imho one of those "rich guy" things that's available at a relatively low level of wealth, and the risk associated with it is well worth it in most cases.
The other option was to instead take a margin loan out at a hair over 1% blended which is tax deductible and incur no tax bill.
There was a bit of risk in this yes, but I came out way ahead despite there being a pretty sharp pullback right after I closed on my house. I wasn't leveraged to the hilt at all, I think I had a loan equivalent to about 25,maybe 30% of my portfolio when the market pulled back.
If you have significant assets this is something you should be considering. This is imho one of those "rich guy" things that's available at a relatively low level of wealth, and the risk associated with it is well worth it in most cases.