RE:RE:RE:RE:More TFSA money
loopsbutterfly wrote: sorry it is not the same thing at all !!!
1-You have to pay interest
2-You can get a margin call
me I can enjoy my full dividend without paying interest and no margin call no matter the stock go down so I can sleep at night quite well !!!
1 - So what I have to pay interest? It is a lending tool like all others, the companies you own pay interest on thier borrowing costs, those costs are also your costs on the balance sheet, you just don't have them attached to you personally. If you have a mortgage, a car loan, or a line of credit/credit card with a balance and while investing, your paying interest somewhere that could be lowered by utilizing your investments to pay those down and reduce or have no interest costs. Some of us just decide to pay interest utilizing this tool.
It should also be noted that if you use margin to by shares of CJ and a few others, the interest you pay is less than the amount you receive in dividends, therefore you are net positive on money you don't have. That should be recognized as rather intelligent.
2 - Margin Calls depend on how close you fly to the sun (and I fly extreamly close to it), I've had 100s of Margin Calls notices, I've only had one in which the bank made a move on me because I tested them to see what would happen when they triggered it. Through that testing I learned the process that I get 3 daily notices in a row (other institutions may have other processes) before they pull the pin, and when they do, they sell your most liquid position until you are back above the allowance level. I've never had a legit Margin Call that I could not fix with a deposit of funds from my other accounts I have avalible as safety measures.
It's ok, Loopy, you can admit your not confident enough in yourself or just down right scared of it's concept, because your not fully as versed and competent in utilizing it successfully on your investing journey. Don't disparage others that understand/utilize many other strategies and levers to achieve thier success. Just because you have a bigger position, portfolio and use more conventional means for investing, doesn't make you above us, a better investor or person like your tone illudes to. We all have our routes to getting where we are trying to go.
And yes my current CJ position is 8000 shares, which is about 18% of my full portfolio, it's an allocation that I feel is also way oversized for my portfolio size and strategy. I sleep perfectly well at night, and with a smile for knowing I'm making money utilizing the bank's money for my personal gains. Since I have utilized margin capabilities, I've seen my non-registered portfolio gain 149.5% in less than 4 years inclusive of interest cost factors (not all of it can be attributed to margin usage, as I was allowed margin capabilities in the early days of the pandemic so there is a large portfolio recovery aspect also in that calculation) but my portfolio now is nearly 4x the size it was pre-use, a good chunk of which was pandemic recovery investments, including adding to CJ (unfortunately not at/near the lows, but as the dividend was being reintroduced through to recently).