Living off of margin loans

[gomo]

We are deep into the high(er) interest period. I assume a lot of original participants of this thread adjusted their views on marginal loans. I'd be really curious to hear from someone who is still actively playing with this strategy.

I've been using margin since 2007. Sold off a good chunk of CVX to pay it down last fall. This is the lowest my margin has been based on percentage. At current IBKR rates, I'm letting the dividends pay it down.

 

[Markola]

I've been using margin since 2007. Sold off a good chunk of CVX to pay it down last fall. This is the lowest my margin has been based on percentage. At current IBKR rates, I'm letting the dividends pay it down.

Interesting. What % of your annual income is covered this way, if you don’t mind?

 

[gomo]

Interesting. What % of your annual income is covered this way, if you don’t mind?[/QUOTE

Currently the margin is about 2% of the account, so not too much. I withdrawal however much we need each month for expenses.

Margin is a good tool if used properly.

Retired in 2012 at 37, the wife a few years later at 40, it has worked out.