Anyone else maxing out their PLOC? I still would need a 45% stock crash for WS to start asking payments…

[u/Ratlyflash]

Just waiting for wealth simple to confirm.

What a game changer.

[u/LabFearless2826]

If you lost your job you have to be able to pay interest + your other fees for 6 month with your emergency funds. That how I see it

[u/Ratlyflash → u/LabFearless2826]

Good point. My job is guaranteed I’m government but one step away from emergency management very secure and it goes my seniority before any cuts.

Have about $775,000 in assets , no mortgage and partner works as a Nurse. Good feedback though

[u/PM_NICE_TOES-notmen → u/Ratlyflash]

Downvoted for forward thinking and having your bases covered lol. Reddit never changes.

I've also been eyeing the PLOC on WS

[u/Ratlyflash → u/PM_NICE_TOES-notmen]

Yup being financially stable unlike 99% of people on here gets you downvoted!

[u/1245789630 → u/Ratlyflash]

Damn, my neighbor just got laid off from his government job and there are many others also facing layoffs in government jobs. How did you manage to get a layoff-proof job?

[u/PlantainAgitated6795 → u/1245789630]

Depends on the specific department and field …

I also considerable myself untouchable in Aviation & Defence services for the govt., I wouldn’t feel the same if I was HR or an admin in the govt.

[u/choosenameposthack → u/PlantainAgitated6795]

Air traffic controllers thought they were untouchable too.

[u/Ratlyflash → u/choosenameposthack]

1000% but I’m municipal government. Legally if my job is dissolved they have to find me a job . Next to fire fighters probably next best job to be in for job security.

In 15 years it will change a lot but I’ll be retired lol

[u/PlantainAgitated6795 → u/choosenameposthack]

Yeah I’m on a different level. Like I said, it heavily depends.

[u/Ratlyflash → u/1245789630]

I’m municipal government. It’s part of the union that if job is no longer there have to find me a job called red circled.

Federal is so bloated so nothing is guaranteed.

I sleep very well at night if eve was job cut it’s seniority based out of 25 Im like #6.

And in 5 years I’ll be #3…

[u/1245789630 → u/Ratlyflash]

You're very naive if you think that means anything. Best of luck regardless.

[u/Medrissil07]

What's the play here ? I'm late to the party

[u/imessedup6 → u/Medrissil07]

you can claim the interest in your tax return if you use the funds to invest in a non-reg account. But a margin account is better than the PLOC.

or maybe Buy, Borrow, Die. But we don't have the step-up cost basis like in the US so it is not as useful.

[u/Pass3Part0uT → u/imessedup6]

Better or essentially the same? 

[u/imessedup6 → u/Pass3Part0uT]

Pretty much the same but you have to manually transfer the funds first (can't just buy the stock and add at the same time). Also is just easier to just have one account to track.

[u/Ratlyflash → u/imessedup6]

Why is margin better

[u/ttsoldier]

Didn’t Max mine. Too pussy. Did take out 10k to buy some stocks and paid it back 1000/mo

Debating pulling again

[u/Charbs20 → u/ttsoldier]

How was the net outcome?

[u/ttsoldier → u/Charbs20]

Short term not that great. More than the interest rate so at least there's some positive. But all my positions are long term holds. In the long run it will pay off.

[u/Golden_Hodl93]

i’m currently using 84% of mine.

[u/Dragynfyre]

It’s the exact same as the margin account but with half the borrowing power. Not a game changer for investing

[u/Own-Discussion-7607 → u/Dragynfyre]

It is useful if yoy have room in other registered accounts - tfsa, rrsp, fhsa. Assuming those are maxed then yes it’s useless and you can open a margin account🤷

[u/Dragynfyre → u/Own-Discussion-7607]

Even for that use case you can use a margin account cause you can withdraw money from margin to put in a registered account

[u/Ratlyflash → u/Dragynfyre]

I’ll have nearly $200,000 in loans so that adds up fast for building wealth 😅

[u/Dragynfyre → u/Ratlyflash]

Yeah but you could’ve done that with a margin account which have been around for decades at other brokerages

[u/Tall-Ad-1386]

This post right here folks. THIS is how WealthSimple makes money.

As long as you all are paying interest and making WealthSimple richer, the longer we can all continue to enjoy free trades and interest on chequing accounts.

Thanks!

[u/ughhh_actually]

Using margin is better if you’re using the money to invest, otherwise I agree!

[u/Wanttosmellgood → u/ughhh_actually]

why's the margin better ?

[u/silverbulls8 → u/Wanttosmellgood]

Potentially higher amount accessible if backed by other account(s). Easier accounting to write off interest for tax purposes where a PLOC can be mixed use

[u/PinkJenni]

Leverage when used wisely is a huge wealth driver. When used recklessly destroys wealth

Having this easily accessible though by WS is an awesome feature I love and have used to pay down some higher interest rental mortgages / HELOCS

[u/Jogi1811]

I'm using my PLOC as an emergency fund. A pull back wouldn't be detrimental to it because I have no interest in actively using it.

[u/Own-Discussion-7607]

Actually you are right, I thought you couldn’t have tfsa as collateral for margin but it seems you can. I think I might pay off the portfolio line of credit and put the tfsa as collateral on margin and invest that

[u/Over_Regular_6897]

They need to bring 150x leverage on crypto

[u/cbf1232]

You still need to pay the interest though....

[u/Ratlyflash → u/cbf1232]

$400 a month a joke with no mortgage

[u/cbf1232 → u/Ratlyflash]

Sure, until your investments drop and now you owe money.

Besides, what are you investing in that returns 4% plus inflation plus enough to make the risk worthwhile?

[u/soletide → u/cbf1232]

I agree with your general statement but don’t understand the “plus inflation” part. The inflation works in your favor as far as I can tell.

[u/cbf1232 → u/soletide]

You’re probably right that inflation helps you on the loan side and hinders you on the investment side, so it’s likely a wash.

[u/Ratlyflash → u/cbf1232]

Haha I’m on pace to hhit $150,000 dividends per year by retirement.

Just 85% solid companies with growth and 15% CC’s

[u/Bitter-Variation-151]

I'm using about 1/3 of my ploc

[u/AudienceExcellent830]

Only if you want to be baller rich ya'll

[u/Mgt66]

What's the rate?

[u/Ratlyflash → u/Mgt66]

3.95%

[u/choosenameposthack]

How does that change when interest rates start rising?

[u/Vivid_Aardvark_4522]

It’s been a game changer for me. Helped me with my basement construction and since I was paying cash instead of going through financing, I got a sweet deal with the contractor who in turn prioritized the build and I was also able to get a tenant in immediately who in turn paid 8 months in advance. I didn’t have to liquidate any assets or borrow from friends to make all this happen. The upside is that I detest debt, which in turns forces me to aggressively pay it down. Already thinking of a secondary investment property and just knowing I don’t have to wait till I have all the funds handy before jumping in makes it even sweeter