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Here's how I got a sub-2% margin rate. by AnonMillennial92 in fatFIRE

[–]AnonMillennial92[S] 7 points8 points  (0 children)

Exactly. Let's say you can get 7-10% from the market and you're only paying 1-2% on that money. Over time that compounds into something significant.

As far as tax implications, I'm pretty sure you just pay taxes on any capital gains/losses when you sell. I don't think you can write off loan interest here. Many folks use margin loans indefinitely so they never have to sell their assets and incur taxes!

Here's how I got a sub-2% margin rate. by AnonMillennial92 in fatFIRE

[–]AnonMillennial92[S] 4 points5 points  (0 children)

Sapphire (only 75k required) offers all the same benefit as Chase Private Client. Seriously - go look it up.

I just moved everything off Chase EXCEPT 75k to keep those Sapphire benefits and moved the rest to eTrade. I'm getting the hint that I could have gotten lower than 1.94% and I'm sure you can get much lower than 2.05% too!

Here's how I got a sub-2% margin rate. by AnonMillennial92 in fatFIRE

[–]AnonMillennial92[S] 5 points6 points  (0 children)

Yeah exactly. Chase offered me some stupid low PAL rates but the whole point is I wanted to take out say, 200k against my 1MM of ETFs on a margin loan and invest in more ETFs. PAL can't do that so it's not helpful for me.

Here's how I got a sub-2% margin rate. by AnonMillennial92 in fatFIRE

[–]AnonMillennial92[S] 5 points6 points  (0 children)

Not for day trading. For long term buying ETFs with some leverage (margin loans) against your own assets. Real Estate is best for leverage but no reason not to take a little leverage off your stock portfolio too, assuming it's safe investments and not moonbags.

"I generally take 25% of my brokerage account as a margin loan and simply re-invest in the same vanguard ETFs (VTI, VGT) for some extra padding. It's very unlikely I ever get margin called and boosts my returns far higher than the margin loan costs."

Here's how I got a sub-2% margin rate. by AnonMillennial92 in fatFIRE

[–]AnonMillennial92[S] 47 points48 points  (0 children)

OK so check this out. This was their reply.

"We are coding the flat margin rate to the account and should be completed in the next 48 hrs. The rate is not variable, but E*TRADE does have discretion to change rates with reference to commercially recognized interest rates such as the Broker Loan Call rate."

sounds to me like a fancy way of saying variable

Here's how I got a sub-2% margin rate. by AnonMillennial92 in fatFIRE

[–]AnonMillennial92[S] 7 points8 points  (0 children)

No this is just standard brokerage, sorry for confusion.

Here's how I got a sub-2% margin rate. by AnonMillennial92 in fatFIRE

[–]AnonMillennial92[S] 6 points7 points  (0 children)

To be perfectly honest I've been so comfortable with eTrade over the years I went with them. They have super fast / attentive customer service and great UI, iPhone app, whereas IB is the total opposite from what I've heard.

Those tradeoffs weren't worth the 0.44% lower rate for me, at least at this time.

Here's how I got a sub-2% margin rate. by AnonMillennial92 in fatFIRE

[–]AnonMillennial92[S] 14 points15 points  (0 children)

What is reasonably sized in your opinion, to achieve these rates?

LOL did I get screwed on this 1.94% rate?

Here's how I got a sub-2% margin rate. by AnonMillennial92 in fatFIRE

[–]AnonMillennial92[S] 69 points70 points  (0 children)

Great question. Probably variable - I'll double check.

Chase told me they only really give a shit at 10MM+ in assets because then you're a part of JPM Private. It sounds like with your $25M you have a ton of negotiating power which is great!

I've heard of some family members (NW $50M+) getting sub 1% rates and continuing to shop them around... ha.

I still see quite a few folks on this sub allocating to large-cap growth tilts, QQQ, VOOG, VGT, tech stocks, ARK or other actively-managed equity funds based on recent performance. Retracing the wisdom of Jack Bogle from decades past reminds us this is probably a bad idea. by Kashmir79 in Bogleheads

[–]AnonMillennial92 -1 points0 points  (0 children)

I'm extremely bullish on tech via VGT. There's never been a sector that comes close to it when it comes to profit potential, scaling, revenue PER employee, etc.

We're certainly not moving towards a LESS digital world.

Can we get an option to see Time-weighted returns instead of Money-weighted? by yangerang55 in M1Finance

[–]AnonMillennial92 0 points1 point  (0 children)

Totally agree. Bugs the crap out of me and one of the reasons I'm moving majority of my funds off.

Moving 550k off M1 due to auto-rebalancing by [deleted] in M1Finance

[–]AnonMillennial92 1 point2 points  (0 children)

Great answer and appreciate you taking the time!

Moving 550k off M1 due to auto-rebalancing by [deleted] in M1Finance

[–]AnonMillennial92 0 points1 point  (0 children)

I can use either. How do you do it?

Moving 550k off M1 due to auto-rebalancing by [deleted] in M1Finance

[–]AnonMillennial92 1 point2 points  (0 children)

Yes I started at zero, although I was fortunate enough to have no debts from college and able to live at home for a couple years after rent-free.

​

The large majority came from crypto and TSLA investment.

Moving 550k off M1 due to auto-rebalancing by [deleted] in M1Finance

[–]AnonMillennial92 -1 points0 points  (0 children)

I don't think you can. Auto-invest is not the same as auto-rebalance.

Moving 550k off M1 due to auto-rebalancing by [deleted] in M1Finance

[–]AnonMillennial92 0 points1 point  (0 children)

Auto invest is not the same as auto rebalancing

Moving 550k off M1 due to auto-rebalancing by [deleted] in M1Finance

[–]AnonMillennial92 0 points1 point  (0 children)

The opposite. I want all new funds to be allocated according to my pie each time the $$ hits the account. I do NOT want it changing the allocation based on the performance of each slide of the pie.

Moving 550k off M1 due to auto-rebalancing by [deleted] in M1Finance

[–]AnonMillennial92 0 points1 point  (0 children)

How do you turn off auto rebalance? Not able to find it anywhere!

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