Monday, March 1, 2021

Debt of Margin account

 My IG account is getting bigger.

But I only have around S$5k invested in the account.

Current profits is around $12k.

Total portfolio value is around $60k.

I was thinking more about the interest that I pay daily.

I pay around US$5 daily.

To be conservative, I use interest rate of 1.4.

So in SGD, it will be S$7 daily.

Interest rate for a year will be S$2.6k.

That is quite substantial if I deduct it from my annual salary from job.

The account has some Singapore shares, which is DBS and Fraser's Centre Point.

Their current Portfolio value is around S$35k.

Lets say they pay 5% dividends, I will receive S$1.8k.

In other words, the interest that I need to come out from my own pocket will be 2.6k-1.8k = S$800.

Which is still not too bad.

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