No. of Recommendations: 0
Ray,

<<You can use margin to help ease the mechanics of drawing down your stock investments--kind of like a reverse mortgage. Take a monthly withdrawal, which increases your margin loan. When you do your annual update, pay off the entire margin loan as part of the normal update process. That way, you don't incure extra commissions. Over the long run, you'll pay maybe 7%-8% interest (on the increasing balance), but gain 15%-18% in growth (of the stocks you are delaying liquidating), so the margin interest isn't a net cost.>>

Now that's an interesting twist that has definite possibilities. Only thing that would upset that apple cart is if the market really tanked.


Regards....Pixy
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement