- It may be risky to OD from your primary brokerage account. It is better to have a smaller brokerage account (aka savings) linked to a checking account.
- For the first 30 days after purchase, the MMF funds are non-marginable. So depending on timing of MMF purchases and withdrawals margin may be disabled. One possible solution is to keep MMF and ultra short-term treasury ETF (SGOV, BIL).
- Substantial drawback of this approach, that you can’t automate the purchase of MMF, you have to do this manually.
- For your scenario you do not need a checking account. You can pay credit cards (direct debit and BillPay) from a brokerage that is not linked to a checking account.
https://www.schwab.com/content/how-to-o ... redit-card
- You can simplify this process by choosing the same due date for your credit cards and other major payments (rent/mortgage).
Schwab margin interest rate is negotiable.
- For the first 30 days after purchase, the MMF funds are non-marginable. So depending on timing of MMF purchases and withdrawals margin may be disabled. One possible solution is to keep MMF and ultra short-term treasury ETF (SGOV, BIL).
- Substantial drawback of this approach, that you can’t automate the purchase of MMF, you have to do this manually.
- For your scenario you do not need a checking account. You can pay credit cards (direct debit and BillPay) from a brokerage that is not linked to a checking account.
https://www.schwab.com/content/how-to-o ... redit-card
- You can simplify this process by choosing the same due date for your credit cards and other major payments (rent/mortgage).
Schwab margin interest rate is negotiable.
Statistics: Posted by VictorStarr — Tue Apr 16, 2024 2:59 am — Replies 10 — Views 519
