What are peoples comments on the following? This is a long term investment so hopefully I could ride out problems like the recent drops by holding a considerable cash buffer - and buying more units if a margin call occurs. You could probably swap out SFY for STW as performance is relatively similar. Capital $50,000 Loan $100,000 @ 9.5% LVR 66% Weighting SFY 75% -> $112,500 SLF 25% -> $37,500 Dividend Yield (last year from Commsec) SFY 5.7% -> $6412 -> DRP SLF 7.9% -> $2962 -> Take as cash Growth PA (from 3rd Jan 02 to 2rd Jan 08) SFY 17.9% -> $20163 SLF 5.2% -> $1958 Investment Value is $178,534 Minus Interest of $9,500 Plus Cash of $2962 Final Value of $171,997 14.6% return not including $6537 of remaining tax deductible interest payments or franking credits. Each year (or some other suitable period) I draw down on the ML to keep it at 66%.