Gearing involves risk – it can magnify your returns, however it may also magnify your losses if the value of your investment decreases.
OnTrack Wealth are Margin Lending specialists. We know what goes wrong and we know what works.
Did you know?
You can gain the advantages (and disadvantages) of margin lending, without exposure to a margin loan?
Yes – there is capital protected margin lending available (usually called protected equity loans)
Can’t borrow within super? Then considered Geared Investment Funds.
We do wish to stress however that many people have suffered financial ruin when margin loans have gone sour. If you don’t fully understand how margin loans work and the risks involved, don’t take out a margin loan. And don’t borrow against your residence to double gear into a margin loan!!
On the other hand, a margin lending facility will allow you to invest more into the market and have enhanced growth and capital advantages, plus you should be able to claim the cost of servicing margin loans as a tax deduction.
Margin lending isn’t for everyone. At OnTrack Wealth we will take the time to ensure your risk tolerance and investment time horizon is appropriate before recommending this strategy. More importantly, we want to take the time to educate you, provide you with case studies (good and bad) before implementing this strategy.
Please also visit ASIC’s web page – Borrowing to Invest – Margin Loans