I started investing towards my retirement a couple years back and I max my roth IRA every year. I still have liquid money left over each year beyond 5500 I contribute. I was looking to start investing outside my IRA (skipping 403b since employer doesn't contribute at all) to have even more liquid money to take larger/longer vacations, pay off house faster, etc.
I saw that BRZU tanked, which makes it tempting to put money into it. I see that it is triple leveraged, which I am not sure how that makes it any different than a ETF I would use at a major investment firm other than I gain or lose 3x the index it follows. Do I buy "shares" and sell them when I feel like it with any normal stock/bond/fund? Or is there something different to worry about?
I understand that if I put in $100 a fund manager will borrow 200 to make it $300 and that's the money used to get the 3x. If I hold it for a month, do I have to pay interest on the money that was borrowed for the time period? If the leveraged ETF were to tank again after I bought shares would I potentially owe money?
Submitted May 20, 2017 at 05:09PM by xvrickh http://ift.tt/2rpwwBA
