Margin loans kind of get a bad wrap...
But I disagree. Margin loans can be a great financial tool. In this video I explain how I use them and how they can help minimize your tax burden!
- Margin loans provide access to capital at very low interest rates
- The lowest rates are at Interactive Brokers. M1 Finance Pro also has great rates and is a much more user friendly platform.
- Using a margin loan to access capital is cheaper than realizing gains and paying taxes.
- Generally keeping your money in the market is positive returning.
- Personally I would never withdraw more than 25% of my balance on margin. I explain the requirements and my risk calculations in the video.
- I primarily use margin loans for financing accounts receivable from my business. This is lower cost than a/r factor or selling and paying taxes!