09-06-2015, 09:12 AM
Dividendsrule, you are pretty much exactly in the situation that I would like to be in. About 15-25% margin, as long as the average dividend % is greater than my interest % then that is basically money from thin air.
But like I said in the first post I don't want to start building leverage in the current situation as I still think, that in general, the stock market is priced quite high and there is certainly some room to slide downwards. I think of the margin more as my "extra ammunition" if there is a dip and I can get some good stocks for cheap. Then I won't hesitate to use 15-25% in leverage and quite frankly I'm assuming that once I start using leverage I won't be going back.
But like I said in the first post I don't want to start building leverage in the current situation as I still think, that in general, the stock market is priced quite high and there is certainly some room to slide downwards. I think of the margin more as my "extra ammunition" if there is a dip and I can get some good stocks for cheap. Then I won't hesitate to use 15-25% in leverage and quite frankly I'm assuming that once I start using leverage I won't be going back.