I have never borrowed to invest unless you count not paying of the mortgage faster.
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Stocks
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Sent using a thumb maybe 2
I hadn't either until december. Lost opportunity cost was killing me. Only time will tell if I made a good choice. You are playing with a much larger pool of invested money than I have. In theory, my strategy helps narrow the gap (not by a lot but some) at the cost of increased risk and lower returns from the borrowed money.
I think a 5k/deposit is a fairly safe bet...technically can reduce the mortgage prepayments until that 5k is paid off....then rinse and repeat.
With mortgage rates so low (currently) you can risk investing but if rates go up, mortgage payment, and LOC payments go up.
But with only 5k/deposit...then your exposure is limited.
Now...dropping 60-70k into a variable LOC to pay down...that takes nuts. Which I don't have. And one nut isn't enough to pull that kind of move, steel or not.
EDIT:
Technically, I'm considering dropping 5k into TFSA (own cash), and then 5k into a non-registered account (but then need to track very well for tax purposes - interest, dividend, charges, etc etc etc)...so if someone's got a good tracker, I'm all ears.
With mortgage rates so low (currently) you can risk investing but if rates go up, mortgage payment, and LOC payments go up.
But with only 5k/deposit...then your exposure is limited.
Now...dropping 60-70k into a variable LOC to pay down...that takes nuts. Which I don't have. And one nut isn't enough to pull that kind of move, steel or not.
EDIT:
Technically, I'm considering dropping 5k into TFSA (own cash), and then 5k into a non-registered account (but then need to track very well for tax purposes - interest, dividend, charges, etc etc etc)...so if someone's got a good tracker, I'm all ears.
If the only money taken from your HELOC is put into non-registered investments, tracking is basically done for you. All interest on HELOC is directly related to investment. If you start pulling more money for other things, tracking gets more complicated.
Haven’t opened the HELOC yet but do have a prime rate LOC (2.45% today) with tangerine for 30k.
My lawyer has been MIA but I’ll need to set that up with a different lawyer.
Concept remains the same. Provide a clear path that CRA can follow and check if it comes down to it. Money from LOC to Investment account to security purchase. Dividends from security back to LOC. Presumably you could keep reinvesting the dividends and let LOC ride and still be OK with CRA. I don't know how CRA treats borrowed cash sitting in investment account. It would be logical that you weren't eligible to write off interest on a loan that was sitting as cash but CRA isn't always logical.
Anyone else considering just dumping lspd I may suck up the loss and carry on soon.
Sent using a thumb maybe 2
Sent using a thumb maybe 2
Nope. I was looking at it as a two year play. I did not expect it to do well over months.
I dumped half of my position in time to harvest a loss for 2021 and should have dumped all of it after the initial drop.
Purchased @ $128 and sold at $51 so it hurt. My remaining 50% is down 70% with no hope of recovery.
Lesson learned again that your first loss will usually be your best option. But I never learn
The opportunity cost of a declining asset gets higher everyday.
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Haven’t read this thread all the way through but is anyone investing in crypto? I’m waiting to see if it starts climbing for a March run like it has tended to.
I look at crypto as gambling, not investing. It has no inherent value. I don't have any money in but I know some people that have done very well. MP's friend did really well but doesn't talk much since there was a big pullback.
I don’t understand crypto , and I strongly believe many that claim they do are pulling levers behind a curtain. It scares me . My very conventional investment company won’t touch it but it’s very mainstream and people have made a fortune.
I do own a very small amount so I can feel cool and part of the conversation.
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I do own a very small amount so I can feel cool and part of the conversation.
Sent from my iPhone using GTAMotorcycle.com
My main issue with crypto is the gas fees to purchase sometimes. You're buying a few hundred dollars of a crypto, and spend almost an equivalent amount in gas fees to buy it. But in the end it's gambling.
My buddy's kept quiet recently, but he's pushing me to buy some newer one that he's in on. Pyramid scheme through and through. Early adopters need to bring on new blood to prop up their own purchase. It works for the top layers.
My buddy's kept quiet recently, but he's pushing me to buy some newer one that he's in on. Pyramid scheme through and through. Early adopters need to bring on new blood to prop up their own purchase. It works for the top layers.
There's a good podcast I enjoy 'Behind the Bastards' and they do a 2-part episode on crypto. They basically call it a grift and a pump and dump scheme as everyone tries to setup a new coin, run it up, and then dump it.
Plus the amount of ecological damage in terms of electricity required is insane to mine these things.
Highly recommend a listen.
Part 1: Part One: Let's Talk About Cryptocurrency - Behind the Bastards | iHeart
Part 2: Part Two: Let's Talk About Cryptocurrency - Behind the Bastards | iHeart
And if you really want a laugh, I was dying listening to this:
Grifters, grifters everywhere..... Part One: The Not-At-All-Sad History of Libertarian Sea Nations - Behind the Bastards | iHeart
Not touching crypto with a 10 ft pole. The easy $ on this ponzi scheme is looong gone.
My take is once the USA and other G7 countries introduce their own digital currency, it'll go kaput. The only way I see it staying relevant is as a clandestine form of payment that criminals would use and that's assuming it doesn't get shut down as China did there.
And that's not even talking about trying to cash the stuff out. No way for me.
My take is once the USA and other G7 countries introduce their own digital currency, it'll go kaput. The only way I see it staying relevant is as a clandestine form of payment that criminals would use and that's assuming it doesn't get shut down as China did there.
And that's not even talking about trying to cash the stuff out. No way for me.
How are the porfolios today? I've heard of massive losses across the board today, but have seen some green with very minor gains.
Guess I should've bought some war machine stocks. And oil.
Guess I should've bought some war machine stocks. And oil.
I was down a few percent this morning. Back to roughly even now. My Israeli drone maker has been green all day (but just a little). Financial stocks got kicked in the nuts (down 3-5%).
Threat of war was already baked into the market, so it seems.
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