What’s new in the new year
Last year I set out 5 goals and accomplished 4 of them. Not bad overall. 🙂
The act of writing down goals, and tracking them over time has helped me so much.
This year I have 6 new goals.
You can check out my new video explaining each one, or continue reading this post for a summary. 🙂
- Increase household net worth by $300,000
This is $50,000 more than last year’s target. As usual most of the heavy lifting will be produced by our existing assets.
- Borrow $130,000+ on margin
Right now I have roughly $110,000 CAD of margin debt. I want to increase my borrowing to $130,000 total. I’ll elaborate on this below.
- Read at least 5 books
I managed to read 4 books in 2021. So this year I want to try reading one more.
- Meditate for 60 minutes a day for 60 consecutive days
I heard this is good for you and lots of highly productive people do it so I’m going to try it out.
- Make 10% return in my margin account
Higher if possible because inflation is running pretty hot these days.
- Earn $20,000 in net premiums from trading options
In 2021 I earned about $10,000 in premiums. This year I plan to double that figure because I feel more comfortable making riskier trades with higher returns since I can manage them now.
Why I want more margin debt
Normal people have goals to pay down their debts. But I’m anything but normal, haha.
Here’s how much debt I currently owe in my margin account.
I want my total margin debt balance to exceed $130,000 CAD because that would give me the privilege to borrow at more favourable interest rates.
IBKR has tiers of borrowing. Any additional debt I take on after the $130,000 threshold will be charged an interest rate of only 1 percent. 😀
Yes. That’s insanely low, lol.
As long as inflation stays above 1%, I would be essentially getting paid to borrow new money.
What’s the catch? Borrowing more on margin adds to the risk of receiving a margin call if my stock holdings fall precipitously. This means I need to put the proper insurance in place to make this work. With liquidity being so readily available there are multiple strategies I can use to make sure I don’t lose my shirt. For example, I could tap into my unused HELOC to cover any unexpected margin requirements. I look forward to this new challenge of managing more debt. 🙂
Random Useless Fact:
Prevention is often better than cure.