Context: cash balance and equity currently.
Inquiry: do I use the cash balance to pay off my onetime expense and the margin to replace that cash and buy equity. Or buy equity with cash and use the margin to pay the one time expense.
My thoughts are using cash to pay expense and buying securities with the margin reduces risk as you still have margin debt fluctuating with your securities. I.e. 50% down you still have margin/2 vs having zero equity on margin if margin is used to pay expense.
Ex. 10,000 stock 400 cash balance to pay off expense and 400 margin to buy more securities.
Submitted September 27, 2021 at 07:39AM by zipperchill https://ift.tt/3kKYG4J
