More power to your portfolio
Article Abstract:
Borrowing can be used to advantage by investors who want to add to portfolios and increase tax deductions. This is called gearing or leveraging and is compared to mechanical advantage in a physical system. It is not appropriate for everyone.Serveral approaches are suggested for those with sufficient risk tolerance to be comfortable with this strategy.
Publication Name: Personal Investor (Melbourne, Vic.)
Subject: Personal finance
ISSN: 0813-2992
Year: 2001
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Profit margin
Article Abstract:
Margin lending can make a person financially independent, making early retirement possible, and need not be stressful according to a man who tried it in Australia, starting in 1993. He has never had a margin call and keeps his gearing, or leveraging, level conservative. Dividends pay the interest payments and any dividends left over are reinvested.
Publication Name: Personal Investor (Melbourne, Vic.)
Subject: Personal finance
ISSN: 0813-2992
Year: 2001
User Contributions:
Comment about this article or add new information about this topic:
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