💡 Strategy: Recurring Credit + Leverage for Compounding Growth (Clean-Year Model)
🔁 Core Model
• Every year you:
• Borrow $1,000 from a bank at 4% p.a.
• Deposit it into your prime broker account and get an additional $1,000 leverage at 5% p.a.
• Invest $2,000 total in long-term equity products with 12% CAGR
• Repay the bank loan and broker interest from salary/cash flow the same year
• So, each layer of $2,000 compounds cleanly without accumulating loan interest in later years
✅ Net Outcome
• You used no own capital, just yearly $1,000 debt and paid it off each time.
• Total clean compounded value at end of Year 5 = $14,238
• No outstanding loans, since all repayments handled annually.
• Total net gain = $4,238 profit on borrowed capital = 85% return on rotating leverage.
@TigerBrokers @Tiger_comments @TigerStars #Jagannathan Janakiraman$SPDR S&P 500 ETF Trust(SPY)$ $Invesco QQQ(QQQ)$
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- nizzmo·2025-07-14This strategy sounds intriguing1Report
- glitzy·2025-07-14This is a smart strategy1Report