Then we also have our income plus dividend to spend what .

I think if I have 50% of his stage, I will retire .

You are well on yer way........

He is about 43 years old.........

From what I see, U have very little liquidity assets such as Cash to cushion off any emergency landings such as severe corrections in the share markets.

BTW, share market cum share margin forms the highest assets ( one sided ). Other assets are a bit illiquid or owned jointly . Any standup loans arranged to lower your share margin account ?

And share market ( Bursa ) is trading almost at the top mountain prices, no harm to do some asset re allocations . Max usage of share margin forms some big risks there.

Just give a bit of thought.

Regards always

This post has been edited by SKY 1809: Apr 9 2013, 10:36 AM

I see, then I have another 13 more years to reach his stage. But I am not in the camp of property, hopefully shares could yield higher return than property.

Have you heard of margin calls? If not better learn up.

If later margin calls, you have no physical cash to back up, the IB will fire sale all your shares at very unfavorable price.

HI GARK,

when IB want margin calls? can colleteral land or house with a specific date to payback?

Worse is people with share margin account think the share market moves in one direction always up, seldom comes down.

No share margin call you have to back up with cash.. cannot use your land or house. You can however mortgage your house and get cash to back up the margin call, but usually you do not have the time. Usually broker will call you and ask you to inject money (cash) into your account right away or fire sale.

Margin calls is when your shares drop a certain % from your marginable (pledged) securities... playing with margin is a great way to earn with free money during an upcycle, but during market crash, your margin calls will kill you faster than a speeding bullet and wipe out all your holdings.

This post has been edited by gark: Apr 9 2013, 10:44 AM

It's exactly why I will not invest in stocks using margin.

With very short notices, so u need lot of stand by Od or cash to cover them.

If not shares lelong liao.

This post has been edited by SKY 1809: Apr 9 2013, 10:48 AM

i personally think that play with margin risky as you may not know the market cycle unless you have the same amount of cash pledge/standby in case of margin call..

Plenty of backups needed to play with share margins.

Margin only suitable to those highly confident speculator.

either the very bullish market or bearish market(SHORT) are prefer

The winner from the outcome is the broker as the broker earn extra interest from the margin. The losers definitely will be the margin users.

thanks sky 1809,

Me no much cash better dont play margin...later IB margin call i left single underwear.

Just check my EPF and also liquidate the position in share margin to take profit and repay the share margin yesterday, so this is my update:

Monthly Income: RM5,500 (Gross EPF & Tax)
Monthly Estimated Expenses: RM5,000
Expected Yearly Bonus: RM11,000 (about 2-month year end bonus of which I have been rewarded in the past year)
Expected Yearly Dividend Income: RM10,000
Expected Yearly Savings: RM24,000

EPF: RM70,000

Assets:
Unit Trust: RM2,500
Shares: RM200,000
Cash: RM7,000
House: RM100,000 (the house is fully paid and its market price is estimated to be RM200,000, shared 50% with my brother)
Land: RM300,000 (market price)
Total Assets = RM609,500

Liabilities:
Car Mortgage: RM41,000 (another 48-month installments)
Total Liabilities = RM41,000

Net Assets = RM568,500

I pledged my RM200,000 shares portfolio to get the share margin of RM300,000. Now I am holding the RM300,000 facilities open ready for any opportunity in post-election.

By the way, I plan to buy a house for my own stay near my work station (I am currently working in KL and staying at PJ) after clearing the car mortgage 4 years later. Too bad that my salary increment would not be a lot because I am working in a NGO, hopefully with the return from share investment, what I can save plus EPF in the next 4 years and can outpace the price appreciation in property.

Hi Everyone,


Anyone can share the experience their success or failure playing margin during/after 2008 Financial Crisis ?

Good, only thing is you do not have good backups to cover your share margin accounts.

Kinda best scenario type , not on worst case scenario.

Actually u might swap your land with a much needed house , so u can stand clean, or using the house for a standby loan.

This post has been edited by SKY 1809: Apr 9 2013, 10:58 AM

True story, got a colleague have been very successful to earn few KFCs during the uptrend but finally lose about 90% of the capital ONLY, due to several margin calls.