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To: wilywilly who wrote (5707)8/27/2010 4:11:48 PM
From: w0z  Respond to of 219730
 
w0z, If "IAB" is Interactive Brokers, they have quite cheap margin interest costs:

$0-$100K: 1.68%
$100K-$1M: 1.18%
> $1M: 0.68%


You're correct!

[url]http://webreprints.djreprints.com/2417800443909.html[/url]

I followed through on my original plan to convert my home financing from margin to a conventional fixed rate 30 year mortgage. My reasoning was to lock in low long term rates in anticipation that Øbama's printing press will eventually lead to inflation in short term rates (i.e. margin).

I no longer have any margin debt but am looking at traditional to Roth IRA conversions (anticipating Øbama raising rates) which will create an immediate and substantial tax bill. I could liquidate some LT taxable holdings but that would create even more tax liability this year, so I'm once again considering margin as an alternative, with the goal of paying that off in installments over several years (while staying underneath Øbama's $250k radar scope).

Interactive Broker's margin rates are very compelling but I'm curious to know what others who've been using them think of their overall service, other fees, etc?