Wow - that is quite a story. There are a few points in that story that differ from my situation, though:
- I'd like to avoid borrowing any money at all if possible. Is it possible to invest in a long-term leveraged way without debt?
- If I do have to borrow, I could probably take out a student loan (as I'm still in school), which should prevent the chance of a margin call if the stock market drops for a period of time.
- I'm not comfortable doing anything "complex" to achieve this scenario. I know very little about options and would love a method that is akin to just buying an index fund. Basically I wish Vanguard offered a leveraged world stock index fund, but I don't know enough about finance to know whether this is possible.
And regarding bonds, the most compelling argument I saw was that adding 20% bonds to the portfolio will significantly reduce risk while only slightly reducing return. However, my question is the converse: If your goal is to maximize return while not "overpaying" in risk, what's the best way to do this? (I wonder if you could leverage a diversified stock/bond portfolio, but maybe this doesn't make sense.)