Read? Playing The Game of Leverage (2)
The story continues ....
After pocketing the difference of 4% by leveraging on his borrowed $10K from the Banker, the Investor happily told his Wife that he has finally found a new way of leveraging for passive income. She listened attentively to him and thought deeply for a while and said: "Honey, your Banker has short-changed you by paying you only 1% per annum. Why not you keep your $40K with me? I will double the Bank rate and give you 2% per annum."
Investor: "Wow, That is a Good Deal and I will pass $40K to you!"
She then invested $40K in DBS 6% NCPS to receive dividends.
One year later year, the Wife received 6% Returns from her $40K investment in DBS 6% NCPS from DBS. She passed 2% to her husband and pocketed the difference of 4%. Investor was lagi happy ......
