Author Topic: FIRE 2023 prospects margin accounts municipal etf  (Read 997 times)

VolcanicArts

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FIRE 2023 prospects margin accounts municipal etf
« on: March 23, 2017, 02:32:06 PM »
Hi I'm new here. I plan to work minimally by 2023 and be completely able to thrive financially without a job even though I still plan to work. I have been reading these posts for a while and most people seem to play the conservative role i.e. 4% withdrawal or 25x savings. I would like to know if anyone has tinkered around with either margin accounts, leveraged etfs, or municipal bond etfs. It seems you could have a much higher withdrawal rate than 4 pct without ever touching the principal and could FIRE much faster assuming no drastic downturn. I have also seen municipal bond etfs yield 8 pct tax free yield at times and these are very safe and tax free so you could easily get away with a 7% or more withdrawal on these and sleep well at night. Also with margin accounts you assume higher risk but receive the reward much faster so if you could get a decent rate on margin interest you could hit FIRE 3 times as fast then switch to more conservative plays to maintain principal and wd rate.  Any thoughts? 37 here 165000 NW 50% savings rate.
« Last Edit: March 23, 2017, 02:44:31 PM by VolcanicArts »

tarheeldan

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Re: FIRE 2023 prospects margin accounts municipal etf
« Reply #1 on: March 24, 2017, 05:28:35 AM »
Risk. Bond yields capture information about risk.

IMO, once you add leverage (margin), you're speculating wrt time, that gains (above the rush free rate) will come now rather than later.

Guesl982374

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Re: FIRE 2023 prospects margin accounts municipal etf
« Reply #2 on: March 24, 2017, 07:47:59 AM »
... and what happens to your FIRE date if there's a margin call due to a market pull back?

I agree with your overall premise that leverage (debt) magnifies returns however there's additional risk associated with those higher returns.