So I have dabbled in stock trading off and on but have been out of it for years, anyway, every year for the last several years I kept telling myself that no way the market will keep going higher and a crash will happen, well I've been wrong and the market has just gone up!
So I decided now is the time, especially with tax reform set to boost stocks and I'm finally ready to invest. So here are my questions..
I'm going to invest $5,250.00, BUT I'm thinking about using margin so I can invest $10,500.
The interest rate on the margin loan is 8.5% which is $446.00 per year, the dividends paid out from the stocks I want are $490.00 per year.
Can I just use dividends to pay the interest on the margin loan?
Also, is margin a good idea? It seems like if investors used margin the last decade they would have made a ton of money!
Also, I'm wanting to invest long term and as long as the dividends keep paying the margin interest, I can use margin to hold stocks long term Right?
Fyi, I'm going to be smart and invest in good, great tech companies. I'm looking to take positions in INTC, AAPL, FB, AMZN and MSFT using margin.
Thoughts?
Submitted January 02, 2018 at 08:40AM by VRgamer84 http://ift.tt/2CElk72
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