I have some advice for you if you feel compelled to use margin heavily in order to produce the kind of returns needed to fund your retirement: Don’t.

That’s not just because margin can lead to intolerably huge losses that lead either to margin calls or your throwing in the towel at some of the worst possible times. The other reason for my advice: You don’t need margin in order to produce spectacular returns.

Today’s retirees (and those near retirement) are especially in need of this advice because many of them have come face to face with the awful truth that they haven’t saved enough in order to have the retirement they were hoping for. They think that they can overcome this lack by leveraging their returns through margin.

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When is it OK for retirees to use margin?