Incredibly terrible example because you are allowed to borrow money against a 401k, up to $50000 with no penalties as long as you pay yourself back at whatever schedule you have determined for yourself
No but he’s also not borrowing against his 401k? You and I can also go and borrow against stocks held in regular accounts? https://us.etrade.com/bank/line-of-credit
As others have mentioned, Silicon Valley Power charges about half of PGE, and SF actually already has a power provider for businesses via Hetch Hetchy. It’s probably true that overall they might be a generation shortage but it doesn’t have to be true on a local scale. Plus PGE also needs to pay a lot of money for all the fires they started…which of course just goes back to the rate payers.
If you put around 200-300k into IBKR (not affiliated) you can get portfolio margin which will give you just shy of $2,000,000 in buying power. Access to leverage isn’t really an issue, but forced liquidation definitely is. The bank will not liquidate your mortgage if you end up underwater.
reply