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The Buy-Borrow Cheat Sheet

Slide the borrow level and watch when a cheap loan turns into a margin-call machine.

Simulator
The Buy-Borrow Cheat Sheet
@fmaunlv
Slide the borrow level and watch when a cheap loan turns into a margin-call machine.
Portfolio value (imagine future you)
$
How much I borrow against it
30%
Cash unlocked, tax-free today
A loan isn't income, so nothing is taxed at draw.
...
Yearly interest at ~6%
Every borrowed dollar must out-earn this, or you paid to lose.
...
Your loan-to-value after a 30% crash
Past ~70%, banks force sales at the worst possible moment.
...
Never borrow past 30 to 40% of the portfolio.Markets fall 30 to 50%. The rule is what keeps the loan survivable.
Selling is a taxable event. Borrowing isn't. Not advice.
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