44. Using Debt to Invest in the Sharemarket

This week's episode is all about using leverage in the sharemarket. 

We look at the different borrowing options, the pros and cons of using debt to buy shares, and the things you need to consider before diving in.  We also share thoughts on which options are the most attractive and whether we'd do it ourselves.


Discussion points...

• Follow-ups on insurance and the pension  (1:34)
• The benefits of borrowing to buy shares  (06:33)
• Downsides of using debt to buy shares  (09:47)
• How does tax work when we use leverage  (15:23)
• Working out your profit margin on the borrowed money  (18:08)
• Using home equity to buy shares  (21:36)
• Margin loans  (24:10)
• NAB Equity Builder  (35:40)
• Leveraged ETFs  (41:26)
• Should you invest differently with borrowed money?  (51:18)
• Other considerations and reminders  (55:03)
• How debt can affect early retirement  (57:36)
• Which option we like the best and final thoughts  (1:01:00)

Resources and stuff mentioned...

• How we track our investments:  Sharesight
• Recommended broker for buying shares:  Pearler
• Article:   Should You Borrow to Invest in Shares?
• Article:  The Ultimate Guide to Debt Recycling
• Podcast:  Key Investment Principles For Long Term Success
• Podcast:  How to Manage An Investment Portfolio

More from us...

• Pat's blog:  Life Long Shuffle
• Dave's blog:  Strong Money Australia
• Contact us with questions and feedback:  [e-mail]