RE:Reddeer Hey BanShee__WHY do You KEEP ON Asking as You HAVE Posted MANY Times that
You Will NEVER Have the NERVE to USE Margin__And Besides ALL Your Holdings are
in REGISTERED Accounts Where Margin is NOT ALLOWED.
In Answer to YOUR Questions__You ONLY Pay DAILY INTEREST on the PORTION of
Your Total Available BUYING POWER (Credit Available) Drawn IN USE
As a Platinum Level LONG TIME Customer I Pay BANK PRIME RATE__5.95% Compounded
Monthly__Most Retail Investors WOULD Pay Around PRIME + 1% or So.
BUT One of the MAIN ADVANTAGES of Using MARGIN is that ALL of the INTEREST is
100% TAX DEDUCTIBLE__THUS in the TOP TAX Brackets the AFTER TAX Interest
Would BE HALF of the Rate Being PAID__3.0% in My Case__THUS Pretty Much ALL
Large Cap BLUE CHIP Equities PAYING @ 5% or More WOULD More Than COVER
the Margin Interest PAID.
Starting 4 Years Ago__AFTER I Made a VERY LARGE Buy of DOMAN__ I HAVE BEEN
Paying DOWN My Large Margin Balance__Which SHOULD BE All Paid OFF in 7 MORE
Years.
As of NOW My Annual DIVIDEND Income IS 4.35 TIMES My Annual INTEREST__With
RATES Expected to DROP in the Coming Months/Years This Ratio WILL Get BETTER
My DIVIDEND Income is So HIGH as My OVERALL Yield on My TOTAL HOLDINGS is
14.444%__With TELUS and DOMAN Yielding 58.5% of My TOTAL Annual Divey Income
Banshee wrote: This is not an attack but a legit question l would think many here and elsewhere might find interesting and informative. You are the only person on the boards that advocates the use of margin and no doubt it has worked to your benefit. Now l could check this question on line , but l think it is both important and relative. I am aware that you swing about a 2 million bucks margin account and as of now you stated only 31 percent is drawn .So dl you pay full interest on the entire account amount or only the portion in use. .When interest rates are very low and your dividends exceed the fee , all well and good , but what about now , don't know what that margin account costs but l would guess your overall div I come today is about 6 percent and l would guess your interest payment is somewhat higher.Cheers thanks for a reply