It’s been 1 year since I started using margin. Here is a brief run down of lessons learned on how I manage margin health, what I’ve been charged monthly from interest costs and some ideas on paying down margin or maintaining a balance to accumulate more units. https://youtu.be/lspIbg68Xkw?si=pPPV5_ah90Z7_CAb
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3 Comments
Vince Chow@boringlyfree · 8h
At first, I was quite worried about your margin usage, as it was on the higher end (in a vacuum). Then I went back to your previous video to see what you hold in it - ECHI, UTES, and BANK. While these can still get volatile sometimes, at least you aren't double leveraging. We are on the same boat, as I started using margin for about a year as well. I keep my % a bit lower...(normally 10% with 15% being the higher side on my end) because I am more exposed to funds like HHIS, EASY, and so on. It works really well! Whatever big payments come in, I just withdraw on margin (and reinvest less accordingly) without triggering unnecessary capital gain. The (new) debts are pretty much gone the next month after receiving distributions. The best part is the much lower interest rate (perhaps slightly higher than IBKR) than what you get from other channels.
Georges @escapes.by.georges · 8h
Hi Jordan... Have you considered separating your Margin account from your Non-Reg, so you can leverage income from your Non-Reg while preserving the tax status of interest charged in your margin account? Ie... a defensive set of etfs in the margin account to pay the interest and transfer margin funds to a regular Non-Reg account, putting those funds to work and withdrawing the distributions generated there?
Mitchell Muir@mitchell2025 · 8h
Awesome thank you Jordan!
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