I see Schwab’s best margin rate is 6.575%, wouldn’t you need to invest in an asset that appreciates more than that to make using margin worth it? I know you can use the margin interest as a tax write off, am I missing other benefits?

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You can yolo significantly more than your capital base on PLTR as it blasts off to the moon 🚀🚀🚀

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You can usually only deduct if you itemize and if you can trace it to non-tax advantaged investments.

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To answer your question, yes, I’ve seen it used for avoiding selling appreciated assets, speculating and try to nab a return greater than the interest, or simply trying to juice returns by using debt instead of equity.

Wouldn’t recommend using margin unless you have significant experience. Margin calls can be brutal if positions take a hit.

Although, if your cap gain rate is only 15%, maybe consider selling some as that’s the best rate you’ll probably get (in general, if in that bracket, not subject to additional 3.8%).

Of course above isn’t advice, facts and circumstance specific, do your own DD, and talk to your advisors, etc. to determine what’s best for your position.

I definitely see the use as apposed selling securities and triggering 15% capital gains tax or to borrow vs an unsecured loan

Margin rate is annual. You need better than 6% return, but you’re forgetting about the leverage you can get with margin. Instead of 10k in cash you have 20 k to buy, make 3 percent and you’re good.

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