Thanks for the help.
Just to clarify, by second scenario do you mean the last one where you go to $0 margin to "reset"? The concern I have with that one is the cost of commissions required to reset the entire margin balance can be $hundreds or $thousands, because my broker's fee scales with the size of the transaction (IBKR Pro). I'm aware other brokers have different fee structure, but they also have much higher margin interest rates.
What is your opinion on using multiple accounts and transferring positions between them? E.g. to take the last scenario where you want to buy a $100k yacht with multiple accounts:
Start with:
Checking: $30k in cash
Brokerage account 1: $1.1m in stocks, -$80k cash (margin)
Brokerage account 2: $0 stocks, $0 cash
Transfer 100k stock position to get to:
Then sell $100k from account 2:
Checking: $30k in cash
Brokerage account 1: $0.90m in stocks, $-80k cash
Brokerage account 2: $0 stocks, $100k cash
Then withdraw $100k to buy the yacht.
Checking: $130k in cash
Brokerage account 1: $0.90m in stocks, $-80k cash
Brokerage account 2: $0 stocks, $0 cash
Would this also be a way to keep the accounting separate?
