Mr._johngalt
Thinks s/he gets paid by the post
- Joined
- Dec 3, 2002
- Messages
- 4,801
wab said:I don't know what I'm supposed to think about, but the differences are:
1) I know exactly what my upside/downside is at any time.
2) I can stop playing the game at any time without the possibility that I may have to sell securities at a loss.
I'm getting a sense of deja vu as I ask you this, but what do you do if you decide for some reason that you need to pay off your mortgage, and your leveraged stock holdings are 50% below where they were when you decided to play the leverage game?
I never run into that scenario (as long as I'm using CDs, i-bonds, or some other instrument that is guaranteed against principal loss).
Hi wab! As you probably know, I am in a position now where I can't sell
a lot of my stuff as the NAVs are down. However, I knew that would happen going in.
Unfortunately, I have no guarantee "against principal loss" on most investments. However,
I do have multiple "fallback" plans. I don't forsee any condition
where I would need to sell "at a loss" in order to stay ERed. As I have posted
before, even a 100% loss of my entire portfolio (excluding real estate)
would not force me back to work.
JG