Normal
Re: Margin lending questionI only keep cash, or go back to more cash, when I think the market's looking extremely vulnerable, like the past year. (US housing/credit issues) I also have 'cash' sitting in my IG account for day trading. Remember, you can use the excess equity/cash in your margin loan as you like for other 'investments', but you need to keep a good account of it. If you take excess equity out for any other reason the interest is not (supposed to be) tax deductable. In answer to your question, you also need to look at the interest you get on the cash compared to what you pay on the ML. Cash you may get 5%, while you will pay 8% ish on the ML, so you should be investing cash first.(note: I am not licensed to provide any advice about anything in particular, except scuba diving)
Re: Margin lending question
I only keep cash, or go back to more cash, when I think the market's looking extremely vulnerable, like the past year. (US housing/credit issues) I also have 'cash' sitting in my IG account for day trading. Remember, you can use the excess equity/cash in your margin loan as you like for other 'investments', but you need to keep a good account of it. If you take excess equity out for any other reason the interest is not (supposed to be) tax deductable. In answer to your question, you also need to look at the interest you get on the cash compared to what you pay on the ML. Cash you may get 5%, while you will pay 8% ish on the ML, so you should be investing cash first.
(note: I am not licensed to provide any advice about anything in particular, except scuba diving)
Hello and welcome to Aussie Stock Forums!
To gain full access you must register. Registration is free and takes only a few seconds to complete.
Already a member? Log in here.
