Not seeking financial advice, just theoretical discussion and the numbers used are just for simple math.
Can someone explain to me very simply how margin investment works?
If i enable margin investing, do i automatically have to invest it?
For example, if i’m eligible to take out $1million at 4.5% in margin funds for investing, can’t i just invest $5,000 a month for the next 16.67 years into the sp500 (historically super low risk, specifically for a longer term). What am i missing here?