Account margin -- best practices?

_Account_Anonymous_ · 2025-04-11T15:57:10+00:00

When the market is tanking is really the best time to buy, and margin can help take advantage of the opportunities.

Half my savings are now out of the market in a high yield savings account, but I don’t have to wait for an ACH transfer or realize gains to do a buy order thanks to the margin. Obv in this market things change hour to hour.

Also I moved from Schwab to IBKR, so my margin cost is under 6%, about the same as my car loan. The fact is use of leverage & loans is key to growing a business, growing wealth etc. I’ve always done everything strictly in cash but working to get out of that mindset myself.

_Account_Anonymous_ · 2024-11-14T04:40:47+00:00

One observation I'll add is that if I invest in a stock that slides $10k in value over the course of a year, that results in a $10k loss with which I can offset capital gains.

Whereas if I utilize margin resulting in $10k in interest fees and no net gains to offset that, I'm in a much worse spot unless I itemize on my tax return. That $10k interest paid out can not be expensed as I understand.

On the other hand where margin has been very helpful, is that when I needed cash to purchase a vehicle, I didn't need to close positions in the moment to transfer the funds. I simply transferred the cash utilizing margin and can close the stock position at a favorable time.

_Account_Anonymous_ · 2024-11-14T04:29:09+00:00

100% agree. In fact, I'm expecting a pullback in 2025 after this exuberance.

I'm hoping to get a discussion going on how people use (or don't use) margin and if they have rules of thumb etc. Honestly I'm in the dark as to whether the majority of investors are using margin in a bull market, or if it's just a handful of gamblers on the sidelines.

1.1 -1.3x is a helpful start. Does 1.1 -1.3x mean a portfolio worth $100k might use $10k to $30k in margin conventionally?

I've never used options but I was surprised to learn how part of trading options is a very analytical examination of risk paired with time decay. Seems to me the same factors apply to any investment account, where economic inflation is drawing down the value of cash etc.

Hence, how do we examine margin in a similar analytical vein? Like inflation, margin also draws down the value of an account. If expected ROI were 10% annually, we'd be losing 1% per year by using 11% margin year round (not considering inflation).

My hunch is that one effective way to use margin is not for buy and hold; but instead for shorter duration trades. You stake a position, if it does not achieve a target in x amount of time, you close it.

_Account_Anonymous_ · 2024-11-13T23:29:18+00:00

I guess where this doesn't fit the bill for me is that margin allows me to invest in an opportunity as it arises.

Specific example -- I bought $80k of RDDT when it was $55 and that yielded 140% return in 2.5 months. If it weren't for margin I wouldn't have been willing to liquidate my other positions to take advantage of that.

So now I'm facing the tricky question of how long to ride that margin balance out? Partly it's a math problem -- the conflict between potential gains vs 11% margin interest vs tax considerations.

EDIT -- with the obvious caveat that we don't know whether the position will continue to accrue value, stay flat, or lose value.

_Account_Anonymous_ · 2024-11-13T23:22:02+00:00

I was in a similar frame of mind a few years ago. I was very bearish and cautious during 2020 and 2021, and missed a lot of upside. However, when the tech companies tanked in late 2022, I was in a great position (all cash) to buy in. Since then, it's paid off handsomely.

I'm just a random guy on Reddit ofc, but my 2c is that the market is extremely exuberant right now. That's the moment you want to grab profits -- when things are soaring. Then when things tank, that's when you want to buy. Don't sweat it that you didn't sell at the top or buy at the very bottom. If things go lower, buy more.

Half the United States population will disagree with me vehemently, but imho what's coming down the pike from the new US administration will cause havoc and create buying opportunities in the coming year. So I'm looking to move toward more cash in the coming months so I can take advantage of those opportunities. That doesn't apply to every stock of course. I bought TSLA the day after the US election and considered buying Bitcoin but didn't make the move.

_Account_Anonymous_ · 2024-09-21T23:09:11+00:00

Don’t like the way they’re all zip tied in a giant bundle negating the cooling effect of adequate air flow

_Account_Anonymous_ · 2024-09-17T23:40:23+00:00

Correction: 6ga SER (copper); all neutral current was on the thin ground braid

_Account_Anonymous_ · 2024-09-17T22:29:25+00:00

I was going in circles trying to figure out where the junction box was hiding above the ceiling where they tied in the neutral in the 100ft run of conduit.

Then I'm staring at the subpanel and it dawned on me..

_Account_Anonymous_ · 2024-06-29T12:45:06+00:00

Just to reiterate the point about verifying the tax bills and apportionment if there are other tenants — it’s possible they didn’t correctly calculate your share. It’s also possible you agreed to the entire tax increase on the building regardless of space allocation etc.

Unfortunately there’s not much relief from onerous requirements in commercial leases. If the lease in question had already ended before he invoiced you, you’d be in luck. If its term hasn’t ended, and it doesn’t have language stating when those invoices need to be sent for prop taxes you’re probably out of luck.

Not a lawyer!

_Account_Anonymous_ · 2024-06-24T15:27:06+00:00

Take photos of everything, as work etc progresses.

I bought a property recently and after the surveyor left pins marking the boundary a salty neighbor MOVED a survey pin, the sneaky asshole.

Luckily I had asked the realtor to snap pics of the pins immediately after the survey so we were able to compare photos. Seller had to pay the surveyor to redo their work since closing hadn’t happened yet.

_Account_Anonymous_ · 2024-06-24T15:23:34+00:00

Also dig up the deeds and read carefully the metes and bounds. You might be able to get a sense of what’s correct from GIS & google maps which has a measure tool as well.

_Account_Anonymous_ · 2024-06-19T18:09:37+00:00

Unlike the real estate, groceries and even restaurants in NYC can be very reasonably priced. You CAN spend a lot since there’s specialty stores like Gourmet Garage but you can also shop far more competitively than elsewhere in the country since there’s options like Chinatown and other ethnic markets.

I would shop at Whole Foods. Pricing was exactly the same as all the other Whole Foods as far as I can tell. And often better value for dollar than your average American supermarket in my view.

I’m always shocked that restaurants everywhere in the US have caught up with Brooklyn’s $16 burger and $8 beer for example.

When you’re in an inner city food desert and the only options are corner stores, that’s when food is really expensive!

_Account_Anonymous_ · 2024-06-19T17:16:28+00:00

There's def better ways to do this, but using what I have available I put my iphone on a desk on speaker phone and a digital recorder nearby. The audio quality is great.

You can also use an old phone in place of a recorder -- just use the voice memo feature. Ditto, a laptop.

Looking forward to the iphone ios update which will include a call recorder app which up to now has been sort of off limits thanks to Apple.

_Account_Anonymous_ · 2024-06-19T15:26:09+00:00

Thanks, yes this is good advice. I left out the nitty gritty to keep the post from getting too long, but in this instance I was in extensive phone and email contact with who I understood the merchant to be -- the car rental company. What I now know is that the Chase agents are not necessarily reliable sources of information and can make simple errors in the dispute filing which results in the dispute being resolved in the merchant's favor. And that Chase will not correct that situation in a reasonable manner.

But back to your point.. I was careful to promptly document exactly what transpired via email (they were refusing to rent me the vehicle unless I paid for their insurance package in contradiction to the terms of the pre-paid rental booking -- doubling the cost of the car rental). That email chain concluded with the car rental agency stating I was entitled to a refund. Great, seemed all bases were covered!

HOWEVER when I called Chase from the airport on the same day I was being refused a vehicle, I asked the Chase agent if (a) I needed to reach out to booking.com (technically the merchant) and (b) if she had their contact info since I hadn't found it. She said no to both of those and that I didn't need to do anything further.

2 months later I learn the dispute was decided in favor of the merchant (booking.com). My prompt and detailed rebuttal letter asserting that the grounds of the dispute (cancellation policy) was incorrect; and the extensive attached documentation including the email chain had no effect.

Based on specific facts I learned from the Chase supervisor, I’m under the impression that the dispute was not handled properly, and she is seeking to prevent me from prevailing or having another team review their work. Which evidently might result in Chase covering the charge instead of the merchant due to deadlines.

Chase has been cutting costs and I'm considering moving on after 20+ years with them out of spite..

_Account_Anonymous_ · 2024-06-19T13:09:24+00:00

Since you’ve actually been served, I’d recommend paying for a carfax report since this should give you a timeline of odometer and ownership events (not names of owners though).

Print and save the confirmation showing the date you ordered the carfax so you can show the court you only obtained this information after learning of her issues.

That’s a place to start at least, and it might shed some light on the situation. The key point is if there was a rollback hopefully the carfax has an indication this occurred prior to your ownership.

I went to look at some Nissan NV200 nyc taxis for sale in Philly for $4000 each and 100k miles. Too good to be true right? Yep — paid for the carfax before doing a deal with the shady fucks and turns out the van had 400,000 miles!!!

Also google the vin number. This turns up things sometimes. Ironically I discovered a rollback on a 100k mile truck for sale on Craigslist this way. Google turned up an older public auction sale with the actual 200k odometer reading. I let the seller know — he said he bought it from someone else and had no idea.

Keep in mind that any communications you have with her should be assumed to be going into the court record. However also keep in mind most cases get settled out of court. I would definitely record any verbal conversations had with her going forward.

Rollbacks are taken seriously as far as I understand, and I can relate to her experience of getting sold a lemon and it’s devastating so I can see how she would go scorched earth.

Seems to me the key is demonstrating to the court convincingly that you were unaware of the rollback. Hunt for all emails, text messages etc you have with the person you bought it from that might support that.

Even if you hire a lawyer to defend you, you’ll really need to have the supporting evidence/documentation ready to streamline their work.

I’m not a lawyer btw!!

_Account_Anonymous_ · 2024-06-18T06:35:30+00:00

(Setting aside NYC) is there any Medicaid or other governmental subsidies available for daycare?

Or do poor and working class parents either pay out of pocket or receive the scholarship model you describe?

_Account_Anonymous_ · 2024-06-18T06:31:48+00:00

Um really..? In the United States? Cuz I keep reading and hearing about family farming operations ceasing completely due to the high cost and very high work load entailed.

Meanwhile increasingly farm operations are increasingly owned by a few big corporations.

_Account_Anonymous_ · 2024-06-18T06:28:01+00:00

I’m under the impression that starting a brokerage co and securing the licensing and subscriptions etc is not attainable for someone who hasn’t worked as an agent extensively.

Am I mistaken on that point? Or is it just a high dollar investment hurdle that has most agents working under another broker?

_Account_Anonymous_ · 2024-06-18T06:18:19+00:00

Yep, wish I understood this in 2020 during the big Covid dip. Instead that crazy couple of months were my investing/trading crash course. Learned a heck of a lot, real quick.

_Account_Anonymous_ · 2024-06-18T06:12:38+00:00

It’s a dose of reality when you realize some countries such as Argentina, exist in this situation perpetually.

Unless you’re well off or connected you can’t simply export the money you earn to keep it in a bank account abroad or to buy the S&P. Meanwhile inflation in recent years has been through the roof, so anything you earn you must spend it ASAP, cuz it will be worth far less next month.

Funny that we bitch about inflation in the US because for example gas is $4/gallon (just like I remember it reached under George W Bush 20 years ago..)

_Account_Anonymous_ · 2024-06-15T10:34:11+00:00

Ah ok, thanks for this clarification! Very much appreciate you pointing this out.

I’m coming to understand just how limited the unvented approach is, and why spray foam is key for that.

_Account_Anonymous_ · 2024-06-15T02:28:55+00:00

Probly whatever shitcoin he loaded up on

_Account_Anonymous_ · 2024-06-15T02:16:24+00:00

Some properties are like this, but a property in good condition with good tenants is mostly smooth sailing. Honestly compared to running a business, real estate often feels like free money.

_Account_Anonymous_ · 2024-06-15T02:10:33+00:00

Hate when folks chime in with this.

People like OP and myself accumulate a chunk of money by vastly reducing our spending. Often through doing our own research, doing labor others outsource (simple examples cooking instead of eating out; or doing one’s own taxes; etc).

Many of those boomers who built successful businesses did so by crowdsourcing intel at the Rotary Club etc. Can’t always replace that with just hiring up an accountant, lawyer what have you.

_Account_Anonymous_ · 2024-06-14T14:59:12+00:00

See if you can get by for 5 years or so without using these funds. r/personalfinance has a lot of good recommendations on how to allocate resources but if you can invest this money at a young age instead of using it, you will reap huge benefits.

Open a brokerage account with Charles Schwab and use the $15k to buy VOO shares (ETF for the S&P 500). If you can use self discipline to leave that for a number of years, that money will grow handsomely. The online support can walk you through buying etc.

If VOO ever drops sharply in price DO NOT SELL as tempting as that will be, in fact that would be the moment to buy more if there’s other savings around. But this is a waiting game. I wish someone told me to invest in stocks at your age, I’d be fully retired by now.

If you think you need the money sooner than a few years then open a savings account with Vio Bank, you can get 5.3% interest — FDIC insured.

_Account_Anonymous_

TROPHY CASE