How margin loans work If you already have a regular cash account for trading stocks, you may want to consider getting a margin account as well. You can also convert your existing cash account into a margin account. There is no additional risk in doing this. You only take on more risk IF you buy more than what… Read More »
If you’re not familiar with how margin accounts work, you can read this other post first. We’ve already seen how a margin account is similar to getting a mortgage or a home equity loan (HELOC.) Today we’ll discuss margin loans and how to avoid a margin call. A conventional mortgage requires a 20% down payment which means the bank… Read More »
How Margin Accounts Work A reader asked me awhile ago about my margin account. As you know, I like to use leverage. So when I found out I could own stocks without actually paying for the full amount, I began to think about the possibilities, and opened up a margin account through my discount broker. I simply made… Read More »
It’s Better to Invest than to pay down Mortgage debt Many financial gurus will advise home owners to make lump sum payments on their mortgages and pay them down sooner rather than later. However I worry people may be under estimating the power of opportunity cost. Let’s work through the numbers and look at some facts instead of… Read More »
It’s only the beginning of the year and I’ve already made a big item purchase. Earlier today I bought 45 shares of Goldcorp Inc. (G.TSE) at $45.95 each. The price is very attractive, the company is well managed, and it’s financials are in great shape. This is a long term hold for me. I don’t care if it… Read More »
There’s no such thing as good debt or bad debt. Some debts are better than others but it’s always a bad thing to owe someone else money. However going into debt doesn’t have to be a negative experience,. You can use debt to generate life enhancing experiences like financing a kitchen stove because your old one broke, or… Read More »