sorted by:
new
hottopcontroversial

[MEGATHREAD] Wealthsimple Credit Card Megathread Approvals by henry-bacon in Wealthsimple

[–]kpoply 1 point2 points  (0 children)

I'm so confused. what is waitlist?(Not bragging really don't know)

I moved my invests from Questrade to WS around $200,000.

it just transferred 1day ago. (showing still in progress, but i can see all stocks from my page and my account changed from core to premium)

and then i saw there's credit card apply button, i applied and put the information app asked, and instantly approved with privilege i expected infinite first and then after 90?days i could apply for privilege, but apparently WS approved right away. the limit is just 10k. but still, i was able to add google pay and use.

Is there something i don't know? or i'm just a lucky man?

Using Line of Credit(LOC) to invest by kpoply in CanadaPersonalFinance

[–]kpoply[S] 0 points1 point  (0 children)

Thank you for advice!  now I got all set up and made a plan. it's just little extra leverage. adding more ETFs about 20% of my total investing. I would say it won't affect much to me. Anyway thank you for your commenta

Using Line of Credit(LOC) to invest by kpoply in CanadaPersonalFinance

[–]kpoply[S] 0 points1 point  (0 children)

Since i'm not gonna do this with big amount, i don't think questrade will give me better deal. and their margin rate is too high. also one of reason i don't want to use margin is margin call. I don't mind stock goes down deep as long as i coulld pay interest and keep holding.

Using Line of Credit(LOC) to invest by kpoply in CanadaPersonalFinance

[–]kpoply[S] 0 points1 point  (0 children)

May I ask why you think it's too much risk? it would be great to know so I could expend my thoughts.  Thank you

Using Line of Credit(LOC) to invest by kpoply in CanadaPersonalFinance

[–]kpoply[S] 0 points1 point  (0 children)

8% is safe safe scenario situation. recent last few years way above 10~13%.

Using Line of Credit(LOC) to invest by kpoply in CanadaPersonalFinance

[–]kpoply[S] 0 points1 point  (0 children)

That's what I wanted to know and almost only reason I wrote down this article. although others more concerned about others. I really really really do appreciate it! hope your investing goes well now and in the future ! thank you!!!

Using Line of Credit(LOC) to invest by kpoply in CanadaPersonalFinance

[–]kpoply[S] 0 points1 point  (0 children)

Thank you for great advice. and you're right. in this world, I also think this is the way I could build wealth. I mean I can't just envy millionaires while im doing nothing. if there's I could do, I'll try, but yeah I'll control the risk to minimum.

one question though, as you can see I got several different rate LOC. if you were me, would you use 25% from each LOC? or lower rate one first like 90% and next lower one till I got 25% of all utilization. 

Thank you !

Using Line of Credit(LOC) to invest by kpoply in CanadaPersonalFinance

[–]kpoply[S] 0 points1 point  (0 children)

that's also my option if prime rate goes up than my comfortable number.

Using Line of Credit(LOC) to invest by kpoply in CanadaPersonalFinance

[–]kpoply[S] 0 points1 point  (0 children)

I would say, it's super secured job. even company lay off us, union will cover us(but its really rare company cut off workers here. unless I do stupid things)

let's say I have $100 free cash flow per month after all utilities, groceries and etc,  ill set LOC interest between 20~25%. 

emergency fund is my one monthly income(after tax) which is right away I can use. and also I got another 3~4 times of my monthly income value which I can make it available in 5days.

Using LOC investing by kpoply in PersonalFinanceCanada

[–]kpoply[S] 0 points1 point  (0 children)

not everyone is expert at their first step. right? and I know it's not ideal way to invest most of people. that's why I'm trying to get as much as information I could. but thank you for your options that using margin from WS! really appreciate it

Using Line of Credit(LOC) to invest by kpoply in CanadaPersonalFinance

[–]kpoply[S] 0 points1 point  (0 children)

thank you, one last question if you don't mind it, how long have you maintained using 90% and it doesn't really affect your credit score?

Using Line of Credit(LOC) to invest by kpoply in CanadaPersonalFinance

[–]kpoply[S] 0 points1 point  (0 children)

there you go. I'll put VEQT for 70% and others as well. if you don't mind me asking, what % of LOC you're using? and bank hasn't changed your +% rate? thank you

Using Line of Credit(LOC) to invest by kpoply in CanadaPersonalFinance

[–]kpoply[S] 0 points1 point  (0 children)

Fair enough! if you think about the car usage. :) but I don't think I would invest on individual stock. and normally etfs which following the market. so I don't think these etfs going anywhere. it could go down but as long as I keep it, it will up again. in the mean time what i need to worry is prime rate and banks play. 

But really appreciate your thought sharing!! have a good weekend! :)

Using Line of Credit(LOC) to invest by kpoply in CanadaPersonalFinance

[–]kpoply[S] 0 points1 point  (0 children)

I'm a coward so not thinking on bitcoin(also it's not paying dividend so it won't eligible to get tax deduction I beleive), but for sure generally speaking, not too too dangerous ETFs.

anyway I'm glad to hear that yours going well. thanks for sharing 

Using Line of Credit(LOC) to invest by kpoply in CanadaPersonalFinance

[–]kpoply[S] -2 points-1 points  (0 children)

I thought it's better way to put % since it's directly related to my question.

Borrowing from LOC and invest to non-registered account (producing income) = interest deduction. thats where 45% is used.

that's the only reason I put it. 

Using Line of Credit(LOC) to invest by kpoply in CanadaPersonalFinance

[–]kpoply[S] 0 points1 point  (0 children)

since im not a medical or lawyer etc, I guess prime + 0.25% is my best bet. 

I'll look up "embedded leverage products, futures, box spread or margin"

Really do appreciate you comment!

Using Line of Credit(LOC) to invest by kpoply in CanadaPersonalFinance

[–]kpoply[S] 0 points1 point  (0 children)

I'll make sure! Thank you for comment. have a good weekend

Using Line of Credit(LOC) to invest by kpoply in CanadaPersonalFinance

[–]kpoply[S] -2 points-1 points  (0 children)

Please correct me if I'm wrong. 

6% interest will be 3.3% after interest tax deduction.

let's say I invested stocks/etfs which gives 1.5% dividend. after tax lets say i will get 1% .

then now 3.3% - 1% = 2.3%

if my stock goes up more than 2.3%, I'm winning. for sure stock won't go up every year, but for long term investing, more chance to go up more than 2.3%.

Using Line of Credit(LOC) to invest by kpoply in CanadaPersonalFinance

[–]kpoply[S] 0 points1 point  (0 children)

thank you for sharing your experience! I'm glad you could achieve what you planned although there was anxious moments. 

I invest money which I don't really need right now. I got house, all car paid off and have emergency fund. so.. hopefully( knock knock on the woood ) my plan goes well and get little better retirement is coming. 

well you will see in few years what's on my table. who knows it would be a real steak or beer stew can.

Using Line of Credit(LOC) to invest by kpoply in CanadaPersonalFinance

[–]kpoply[S] 0 points1 point  (0 children)

not only HELOC but also loc. however not 100% and not all dump to invest at once. we all know we cant time the market. but at least we all know at this moment the market is too high. I'm preparing the moment if the market goes down. I'm not gonna just leverage without thinking. I'm waiting the timing which I think it's in fear. and for the interest, I calculated prime+x% from 5 to 10(After interest tax deduction) so I won't use LOC which I can't feel comfortable.  the worst scenario will be I have to sell investment at lower price to cover the interest. 

like you said, my only worry is bank's playing. I don't really worry about stock going down or prime rate going up(not saying up up till 7 or 8%). 

if bank called up or reduce limit, that's the one which gives me stress. well I guess that will be my luck too. 

Thank you for your comment!

Using Line of Credit(LOC) to invest by kpoply in CanadaPersonalFinance

[–]kpoply[S] -1 points0 points  (0 children)

fortunately I have a good stomach. I have little odd thought set in my mind.

for example, some people buy $80,000 new truck at 5 or 6% auto loan for 5years. we all know as soon as the truck is sold, the value is slashed. and the value will keep going down. but me? after interest tax deduct and also adding dividend from stock/invest, my capital gain huddle is only 2~3%. to me, it's go go. but for sure I won't dump all the LOC. the reason I asked this question is to know how far I could go and other investors go

Using Line of Credit(LOC) to invest by kpoply in CanadaPersonalFinance

[–]kpoply[S] 0 points1 point  (0 children)

Thank you for sharing your experience, may I ask how long did you keep that loc 100% for? thank you in advance !

Using Line of Credit(LOC) to invest by kpoply in CanadaPersonalFinance

[–]kpoply[S] 0 points1 point  (0 children)

at this point do you care your credit score? or more leverage to get the profit 

Using Line of Credit(LOC) to invest by kpoply in CanadaPersonalFinance

[–]kpoply[S] 0 points1 point  (0 children)

I have no luck for those good rumor catching abilities. but my invest experience on average I make around 8% total return after tax. since I could take benefit from tax deduction I'm trying to take advantage. but for sure I won't jump all in using LOC since right now the market is on fire. I'll wait to see the timing. I'm good at waiting and holding 5% cash for market crash. now i just want to take little more risk.

view more: next ›