Good evening,
I have $400k in my vanguard portfolio primarily in broad-based cap weighted domestic and international indexes. I recently signed up for margin and was shocked that I have $138k available to trade on margin.
Current situation: I have nominal debt, A1 credit, living expenses are basically non existent, and I only pay $600 in rent. I work as a scientist and make over 100k a year. I would like to pursue my ph.D. I also have a medical malpractice lawsuit in progress for the wrongful death of my mom and could potentially see a significant settlement. Additionally, I have 1 bitcoin in a cold wallet. Lastly my employer has an employee stock purchasing plan @ 15% off.
My question is what would you think would be a smart move to slightly amplify returns? I consider myself a decent investor. I mainly embrace indexing, but take on some risk with derivatives like futures and covered calls.
Im fascinated by the concept of borrowing money to buy assets. This loan amount is like a pharmacists salary in seconds over a cup of coffee with lower taxes. It’s exhilarating but I’m not a kid whose found his dads gun, I’m very cautious. Like Ben Graham said, “Safety of Principle and a moderate return.”
In my hemisphere, everyone around me seems to be saying borrow and buy assets. Fractional reserve banking is a joke, they print money out of thin air why work hard for it and pay taxes on it. Interest is cheaper. Should I tap into this well while the ball is rolling nice for me? Thanks for reading and I appreciate the guidance.