TSP loan or Margin Loan

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elvislives
Posts: 11
Joined: Mon Oct 29, 2012 1:15 pm

TSP loan or Margin Loan

Post by elvislives »

I have a personal stock brokerage account and was wondering if taking out a TSP loan instead of a margin loan make good financial sense. What do you think?

Scorpio70
Posts: 432
Joined: Thu Dec 24, 2015 11:49 am

Re: TSP loan or Margin Loan

Post by Scorpio70 »

So let me get this straight, you want to take out cash on your retirement, so you can go gamble..... or you want to borrow on a credit card to do it? Hey, you only live once right. Cat food is delicious, at least that Fancy Feast Pate..my cats love it. I would rather my dollar be worthless, than owe a bunch of worthless dollars, and have nothing to show for it. If you take money out of the TSP, buy something that we know will hold, or increase in value.

crondanet5
Posts: 4324
Joined: Tue Aug 19, 2008 8:51 pm

Re: TSP loan or Margin Loan

Post by crondanet5 »

Don't do either one. I remember the time I was out on a hundred thousand dollar margin in Ford Motor Co. and the stock went down. Fortunately it recovered and I made a small profit and vowed to never go out on margin again, which I have not. Try dividing your brokerage account into three equal amounts. Buy a stock, set a sell order for a small profit. The next day buy a stock with the second amount and set a sell order for a small profit. Third trading day the same. By then the first order should have sold and will settle so it can be transacted on day 4. Your account continues to grow and your share purchases do as well. I am not a buy and hold stockpicker although it might have been wise to hold PLUG when I traded it at $16. Oh well.

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elvislives
Posts: 11
Joined: Mon Oct 29, 2012 1:15 pm

Re: TSP loan or Margin Loan

Post by elvislives »

Some good suggestions. Thank you! Right - playing the stock market is alway a risky bet.

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