Hi,

I have a question on how much leverage in a portfolio you would consider appropriate:

My bank offers me a securities backed credit line with 2% interest. With the 4% rule, we expect an average of at least 4%+inflation return p.a. Therefore, it would make sense to own more stocks/ETFs than capital available to benefit from the spread.

Now obviously, there is the mathematical side, which would take the maximum drawback into account and all that, but there is also the standpoint of being debt-free. I believe investment is about taking controlled risks.

Do you leverage your investments and how much? What is your opinion on this? And does it make a difference whether you are still working or retired?

Looking forward to hearing your opinions!

best regards,

Roger