Pros/cons of borrowing cash against stock in IBKR?
It’s no secret that one of the main ways the wealthy avoid paying taxes is by borrowing against cash flow generating assets instead of selling those assets.
If I’m not mistaking, IBKR now allows retail investors to do this at rock-bottom interest rates:
https://www.mrmoneymustache.com/2021/01/29/margin…
Doesn’t this make way more sense than keeping a huge pile of cash on hand in savings? Why not have that money working for you until you need it? And then even when you borrow against it, the assets are still working for you
Hi TheEmperor, yes, I'm a bot, but I'm also good looking. Hopefully, these threads help you:
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Hope that helps.
Low interest rates there are great. I have used to finance apartment security deposit and 1st month rent during gap between jobs. Really no downside just don’t go crazy and let the leverage get away from you
Just need to keep in mind that you'll possibly need to borrow against your stocks when they'll be at their lowest. (Especially in finance, unless you work in restructuring or something like that)
If you keep that in mind and make sure you do not get margin call it's probably the best solution available.
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