RE:RE:More TFSA money
loopsbutterfly wrote: alll my shares are fully paid and I have no margin account.(37 900 shares)
Some investors said they have big holding but in fact they hold on margin.
Use of margin or not we still control the shares the same as you do... so step off your high horse!
Margin gets a bad rap, but it's only a liquid, secured line of credit on your portfolio that doesn't have a repayment schedule, rather than securing a loan/line of credit against a house/property, car or whatever else. It's arguably better because the bank has less control over it's distribution, the size and the use of that credit as the rules are very clear and they can only initially reject your use for the account.
I would go further to say it shows more competence to successfully use leverage to create alpha for your portfolio. Just like a buisness/management team that can successfully use leverage to grow at a better rate. Anyone can live hand to mouth in a positive position, especially those with a stronger backing base.
You throw shade at individuals that attempt to use lending to achieve success, yet you invest in businesses that use lending to function/succeed. I would argue because you own the shares of a buisness that uses debt, you also are in possession of that debt. So, that would position you in hypocrite territory.
I use my Margin account as a regular liquid bank account, I can pull cash from it, use it to pay bills, I put any income in it to store for the time being and reduce interest costs of its use day by day. The only hang up is an extra transaction is needed to pull from it, but there are no fees for that move.