Result · hold (no restart)
Run the simulation to see when LSR hits 60%.
Year LSR hits 60%
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months from start
Net equity at that point
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Shares value − Loan
Max monthly cash-out
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In nominal RM at trigger month
Year-by-year breakdown + crash stress per year
Right side: if -40% crash hits THAT year| Year | Asset (Maybank) | Margin loan | Net equity | Monthly cash-out | LSR | ↓ if -40% crash this year ↓ | ||
|---|---|---|---|---|---|---|---|---|
| Post-crash LSR | Status | Cash to avoid margin call | ||||||
♻️ Restart Strategy
Sell-all → repay loan → re-lever to initial LSR, each time LSR hits 60%Instead of just holding when LSR hits 60%, you liquidate everything, clear the margin loan, and restart the whole buy-borrow-die with your remaining net equity as fresh capital at the same initial LSR. Your monthly cash-out keeps growing with inflation across the whole timeline (living costs don't reset). Question: does equity compound upward, or grind down to zero?
Run the simulation.
Equity hits zero?
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Restart cycles in 60y
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Equity at last restart
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| Restart # | At year (timeline) | Cycle length | Capital at start | Net equity at next trigger | Δ vs prev restart | Cash-out at trigger |
|---|
Model assumptions & caveats
- Monthly resolution. Stock price compounds at CAGR/12; interest compounds monthly on outstanding loan.
- At t=0 only: simulator borrows margin and buys extra Maybank to reach the Initial LSR. After that, leverage is left alone.
- Each month: LSR drifts naturally — stock appreciation pushes it down, cashout shortfall pushes it up. No automatic rebalancing.
- When dividend < cash-out + interest, the shortfall is borrowed from margin (loan↑).
- When dividend > cash-out + interest, surplus reinvests into Maybank (cash purchase, no new leverage).
- Bank's Share Value (BSV) is assumed = market value (no haircut). Real Maybank haircut is typically 5–10%.
- Simulation horizon: 60 years. Stops early if net equity ≤ 0.
- Restart strategy assumptions: assumes you sell ALL shares at the prevailing (non-crashed) price, fully repay the loan, and immediately re-buy at the same price — ignoring brokerage, stamp duty, bid-ask spread, and any market-timing gap. It also assumes the 60% trigger is reached in calm markets, not during the crash scenarios shown in the table on the right. If the 60% is hit because of a crash, selling locks in the loss and the picture is far worse.
- Tax not modelled. (Malaysian individuals generally pay no capital gains tax on shares, but each liquidate-and-rebuy still incurs brokerage + stamp duty in reality.)