Comments on: How Much Should You Leverage? http://www.thefinancialblogger.com/how-much-should-you-leverage/ This is where your finance takes place Wed, 19 Nov 2008 17:39:25 +0000 http://wordpress.org/?v=abc By: Brian Poncelet http://www.thefinancialblogger.com/how-much-should-you-leverage/#comment-293 Brian Poncelet Wed, 01 Aug 2007 16:28:08 +0000 http://www.thefinancialblogger.com/how-much-should-you-leverage/#comment-293 Hey FB Here is another example (real estate). Water front on lake okanagan near Penticton (B.C) cost about $500,000 (with a house) in 2003, now that same water front is about $1,500,000 !! Yet for years in the 1990's getting $200,000 was a struggle! (lots of Alberta money!) Stocks real estate have a habit of staying flat for many years then jumping up in value! The problem is how many years will it remain flat? Many people give up! Who can blame them we want results now! regards, Brian Hey FB

Here is another example (real estate). Water front on lake okanagan near Penticton (B.C) cost about $500,000 (with a house) in 2003, now that same water front is about $1,500,000 !! Yet for years in the 1990’s getting $200,000 was a struggle! (lots of Alberta money!)

Stocks real estate have a habit of staying flat for many years then jumping up in value! The problem is how many years will it remain flat? Many people give up! Who can blame them we want results now!

regards,

Brian

]]> By: The Financial Blogger http://www.thefinancialblogger.com/how-much-should-you-leverage/#comment-290 The Financial Blogger Tue, 31 Jul 2007 23:50:44 +0000 http://www.thefinancialblogger.com/how-much-should-you-leverage/#comment-290 Hi Brian, Thank you for the precision on this topic. While I am not too big into index fund (I prefer trading myself), I thought it was an easy (and lazy :wink:) way of following the market. I must admit that your example from 1968 - 1982 makes me think a little bit further. Cheers, FB. Hi Brian,
Thank you for the precision on this topic. While I am not too big into index fund (I prefer trading myself), I thought it was an easy (and lazy :wink:) way of following the market. I must admit that your example from 1968 - 1982 makes me think a little bit further.

Cheers,
FB.

]]> By: FourPillars http://www.thefinancialblogger.com/how-much-should-you-leverage/#comment-289 FourPillars Tue, 31 Jul 2007 22:43:03 +0000 http://www.thefinancialblogger.com/how-much-should-you-leverage/#comment-289 Thanks for the link FB! Mike Thanks for the link FB!

Mike

]]> By: Brian Poncelet http://www.thefinancialblogger.com/how-much-should-you-leverage/#comment-288 Brian Poncelet Tue, 31 Jul 2007 18:15:50 +0000 http://www.thefinancialblogger.com/how-much-should-you-leverage/#comment-288 Great Post FB, Acouple of notes: Leverage what you feel comfortable with. Markets always have a habit of going down hard. Index funds... the Globe and Mail had an interesting section on mutual funds that beat index funds in a down market and have out paced them over the last 7 plus years. regards, Brian Poncelet,CFP Great Post FB,

Acouple of notes: Leverage what you feel comfortable with. Markets always have a habit of going down hard.

Index funds… the Globe and Mail had an interesting section on mutual funds that beat index funds in a down market and have out paced them over the last 7 plus years.

regards,

Brian Poncelet,CFP

]]> By: Brian Poncelet http://www.thefinancialblogger.com/how-much-should-you-leverage/#comment-287 Brian Poncelet Tue, 31 Jul 2007 16:28:52 +0000 http://www.thefinancialblogger.com/how-much-should-you-leverage/#comment-287 Hello FB, Good post. A few comments from some who has done this over ten years. Leverage only what you feel comfortable. Remember markets always correct. The index idea works well in a bull market, but ...look at the the Japanese 225 index over 20 years...companies like toyota etc. has averaged about 1%!! With index funds you can't switch to another index fund with out capital gains...with corporate class funds you can. Interest rates can stay low, but you can still have a bad market...look at the dow 1968 - 1982 about 2% over the 14 years! With reinvested dividends about 5.5%!! Regards, Brian Poncelet, CFP Hello FB,

Good post. A few comments from some who has done this over ten years. Leverage only what you feel comfortable. Remember markets always correct. The index idea works well in a bull market, but …look at the the Japanese 225 index over 20 years…companies like toyota etc. has averaged about 1%!!

With index funds you can’t switch to another index fund with out capital gains…with corporate class funds you can.

Interest rates can stay low, but you can still have a bad market…look at the dow 1968 - 1982 about 2% over the 14 years! With reinvested dividends about 5.5%!!

Regards,

Brian Poncelet, CFP

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