I'm thinking of taking a little bit of margin out to put into some relatively stable funds. Margin rates I'm seeing range around 3-5% depending on broker. I'm looking at Vanguard REITs (so well established, diversified) which can return 7-8% on dividends alone.
Can someone poke holes in my plan if I were to take out margin and put into relatively high dividend paying REITs? I'll have enough to cover a margin call should housing drop. But is this a viable, relatively long term play?
Also, is margin interest in any ways deductible for tax purposes?
Submitted April 16, 2019 at 10:06PM by teletwang99 http://bit.ly/2IqkdxJ
