UkNorthampton
TSLA - 12+ startups in 1
I hadn't thought about it before someone here mentioned, but looks like it may be possible to borrow against investments. May not be legal to be secured against a UK ISA, but it may be possible to borrow as an unsecured loan. I just found one company that discusses it - but just lost the link!A lot of rich kids today, a lot of phantasizing about how to spend that new found wealth. But remember, it's all still on paper. Nothing in your pockets until you sell. The price targets are still far away and it could (will) be a rocky ride. Once you start thinking about what you could do with all that paper money, you're stepping on thin ice. When the SP starts plummeting, for days on end, losing hundreds of points, it may be hard for some to hold on and not panic sell, seeing those early retirements, mortgage free homes and new cars disappear again. I made the mistake once, but was lucky to get away with just a scratched ego. Keep a cool head.
That gives you options - one would be to work out a value that allows you to retire/take a break. Consider the break as a way to find yourself, further investment ideas or a new career. Then borrow for spending money. I think this would be untaxed. You'd have to roll it over and keep adding to it - so compound interest is against you, but you keep your shares. If you believe in faster Tesla growth, and the loan to value keeps getting smaller, this can continue. Pay back could occur in a number of ways,
- death - as part of settling estate, although the investments (in a shares ISA - for UK tax residents) and loans could continue to the spouse
- sell some shares when you think the time is right
- takeover of tesla
- dividends - eventually most shares get dividends, even a tiny yield would pay for the interest and principal from frugalish living and Tesla growing faster than borrowings. UK ISA - no tax on dividends from a quick google but that can change. Whether Tesla pays dividends in the future is a question. If they don't, they probably have a better use for the money so share price goes up from new investments - sell some shares instead.