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How to Invest and Borrow Like the Ultra-Wealthy

  Рет қаралды 5,861

Jake Gosselin

Jake Gosselin

2 жыл бұрын

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In this video, Jake teaches you about a portfolio line of credit using M1 Borrow.

Пікірлер: 65
@racewiththefalcons1
@racewiththefalcons1 2 жыл бұрын
So, in theory, you could borrow money during a dip in the market, invest that money when your holdings are down, then use dividends from your holdings to pay the interest and never have to actually spend any more of your own money - you'd essentially be spending the money you borrowed to pay off the interest on the money you borrowed. And because you invested during a dip, your holdings will grow and thus the amount you can borrow will also grow, so you can then borrow more during the next dip and repeat the process, never spending a cent of your own money. It's like an unlimited free money glitch.
@jeffreywilliams2917
@jeffreywilliams2917 2 жыл бұрын
Message the number above for support.
@FairwayStreams
@FairwayStreams 2 жыл бұрын
This is called buy, borrow and die. Great video 👍🏻
@trevydouglas4145
@trevydouglas4145 2 жыл бұрын
bro, you have opened my eyes. God bless you greatly 🙏🏽
@Legitifyd
@Legitifyd 2 жыл бұрын
Hey Jake! I stumbled across your channel yesterday and have already watched a bunch of your videos. I just wanted to say that your content is ridiculously useful and informative. Really appreciate the straight fire videos you put out. I think your channels gonna do great if you keep this up.
@JakeGosselinYoutube
@JakeGosselinYoutube 2 жыл бұрын
I appreciate the encouragement Luke!
@a_d_s5361
@a_d_s5361 2 жыл бұрын
This channel is an instant subscribe. I’ve watched a lot of the videos and have already made $895 in a week in a half selling cash secured puts.
@markgreene6661
@markgreene6661 2 жыл бұрын
The stock market does not just have short term corrections. Look at Japan since the 90’s or the US Market from 1967 to 1977. You have to be prepared for a long term correction and a drop of 50% to use margin this way. Love the concept. The concern with the current stock market is that it most likely will not have the growth we have seen over the last few years going forward. It might not be the best performing asset class in the next 10 years, especially tech.
@luisruiz9604
@luisruiz9604 2 жыл бұрын
Hey Jake, Super awesome content. Questions tho, with the interest you’d have to pay back M1 finance, or which ever brokerage/lender, what funds would you actually use to pay the interest.
@sarbadavarun6102
@sarbadavarun6102 2 жыл бұрын
Thanks Jake. it's really useful!!!! subscribed for more useful content.
@tyesandoval4391
@tyesandoval4391 2 жыл бұрын
Can you borrow against your stocks to buy more stocks? This seems like an infinite money glitch!
@danieloliveira9370
@danieloliveira9370 2 жыл бұрын
I’m not a financial advisor but that seems very risky. If the market goes into recession you’d now be owing more money than you are worth and you’d be below water in debt
@Putseller100
@Putseller100 2 жыл бұрын
That’s a basic margin loan. Interest rates are considerably more perhaps 8%. Not a bad idea to use some if you see a good deal but just don’t go overboard.
@Fraguille94
@Fraguille94 2 жыл бұрын
Thanks Jake! You just gave me the piece of knowledge I needed to blow up! God bless you bro and you have amazing content! I liked and followed you! 🚀🚀🚀
@jeffreywilliams2917
@jeffreywilliams2917 2 жыл бұрын
Message the number above for support.
@TheSebackers
@TheSebackers 2 жыл бұрын
Why not use interactive brokers? Margin interest rates are around 1% .
@Pravin_Yeshua_BTC
@Pravin_Yeshua_BTC 2 жыл бұрын
Thanks. I signed up with your code today. ✨
@marcr2204
@marcr2204 2 жыл бұрын
I didn't even know such a thing existed wow!! I had 2k margin before but never wanted to request more since I was afraid to use margin. I was wondering all these days how I will bring my profile up to 300k from 250K lol I did it instantly by changing the default setting of 2k to 100k now in my RB a/c hahaha I just have to be careful not to get carried away
@darylarmstrong2051
@darylarmstrong2051 2 жыл бұрын
Dude love your content and god bless
@joshfulaytar9635
@joshfulaytar9635 2 жыл бұрын
Excellent video. Such a good idea
@Bluebird22200
@Bluebird22200 2 жыл бұрын
What are your thoughts on double borrowing? Say I pull out 100,000 in equity on my home at 2.75%, add that to my portfolio, then do a line of credit on my portfolio for an additional 35,000? Bad idea?
@thomaswinter739
@thomaswinter739 2 жыл бұрын
The video creator literally did exactly this, he has a video about it.
@jordy_beats2980
@jordy_beats2980 2 жыл бұрын
So do you still have to pay monthly or annually? Are there specific deadlines you would have to pay like you would on a credit card? Or can it just accumulate and pay it off whenever you please? Aren’t you still using your earned income to pay off that 2% debt?
@jeffreywilliams2917
@jeffreywilliams2917 2 жыл бұрын
Message the number above for support.
@4music1060
@4music1060 Жыл бұрын
Question: I noticed you have auto-invest on. Doesn't that beat the purpose since it's selling and buying on its own?
@lewisflores7793
@lewisflores7793 Жыл бұрын
I'm unfamiliar with M1 Finance but I'm guessing M1 does not lend against a margin account? Ex. $100K portfolio ($50K Cash, $50K Margin). Maybe Cash plus profit value of the entire portfolio?
@lewisflores7793
@lewisflores7793 Жыл бұрын
Or is this M1's 'Margin Account" similar to TD's Margin accounts where they match (X2) your cash value.
@milkmaned5770
@milkmaned5770 2 жыл бұрын
Awesome as always Thanks
@customersupport9055
@customersupport9055 2 жыл бұрын
Wait but if the market corrects won’t you get a margin call? How much do stocks have to drop for you to get a margin call? Truly want to know more about the risks. Thanks!
@JakeGosselinYoutube
@JakeGosselinYoutube 2 жыл бұрын
The account would have to drop more than 55% to get margin called.
@kickitg
@kickitg 2 жыл бұрын
Can you borrow against stocks in a Retirement account?
@scsmith4604
@scsmith4604 2 жыл бұрын
No, that is not allowed.
@Putseller100
@Putseller100 2 жыл бұрын
Interesting, the majority of people have their entire investments in retirement accounts. They legally cannot do what the super rich do. Accident or not?
@Casey_Smith80
@Casey_Smith80 2 жыл бұрын
I have a pie with M1 but now would like to use that by for borrow with other stocks. Can I sell the stocks I currently have without having to pay capital gains if I leave the ROI in the pie?
@FlameMing
@FlameMing 2 жыл бұрын
No When u sell the stock, u “realized” capital gain, therefore u gotta pay taxes. Unless it’s a Roth ,Sep account etc.
@UnstoppableNoah
@UnstoppableNoah 2 жыл бұрын
Mind blowing
@methospayne4735
@methospayne4735 2 жыл бұрын
You mad lad I FKN LOVE IT ty
@mohitmahalan9365
@mohitmahalan9365 2 жыл бұрын
Hey Jake, great video! Wanted some clarification on something, so if you're not investing in a retirement account and you're not planning on selling anything from your portfolio in retirement, how are you planning on getting money in retirement? Are you planning to get paid through cash-producing assets?
@JakeGosselinYoutube
@JakeGosselinYoutube 2 жыл бұрын
My goal is to acquire at least one rental property per year for the few decades. Those will produce cashflow for retirement. OR I can also keep borrowing against my stocks to fund lifestyle and keeping the borrowed amount under 30% LTV. But most likely, I'll borrow against my stock portfolios for down-payments on investment properties.
@milkmaned5770
@milkmaned5770 2 жыл бұрын
I have a IRA with M1 Can I borrow against that??
@Putseller100
@Putseller100 2 жыл бұрын
No, only taxable accounts can be borrowed against.
@JDIAthletics
@JDIAthletics 2 жыл бұрын
Also, doesn't Robinhood Gold offer a competitive feature with their subscription on margin? I haven't read up on the limitations but would be interested to know what you think about M1+ borrowing versus Robinhood gold (2% versus 2.5%)
@JakeGosselinYoutube
@JakeGosselinYoutube 2 жыл бұрын
Yeah, I think Robinhood lets you do a higher LTV like 50% assuming it's not super speculative stocks. I think I'm a bigger fan of M1 because they force you to keep a lower LTV at 35% and it has a slightly lower interest rate.
@andrewtrinh7144
@andrewtrinh7144 2 жыл бұрын
Hi Jake! Is all your 150k in M1 finance? How do you trade your options on there? Or do you have 100k in robinhood to trade
@JakeGosselinYoutube
@JakeGosselinYoutube 2 жыл бұрын
It’s two different accounts each with around $150k
@tylerrossi7507
@tylerrossi7507 2 жыл бұрын
Would it make sense to take a loan out for all living expenses? Take that loan and just invest it along with an additional $1k per month? Then repeat each year. My portfolio is at 100k
@JakeGosselinYoutube
@JakeGosselinYoutube 2 жыл бұрын
I'm pretty sure that's what the ultra-wealthy do, but it only works/makes sense if you have multiple millions worth of stocks/assets just from a risk and credit availability standpoint. But I actually want to think through the math on that one a bit more. you might have given me an idea for another video : )
@youngatnaruto5842
@youngatnaruto5842 2 жыл бұрын
There are places you can borrow against your Art Work
@nickylove7768
@nickylove7768 2 жыл бұрын
Mr John david is the best, recommending him to all beginners who wants to recover losses like I did
@jonnywayne984
@jonnywayne984 2 жыл бұрын
Trading with Mr John david was never a regret to me, All thanks to him, he is the best I have ever seen
@stephenduncan9472
@stephenduncan9472 2 жыл бұрын
How can one reach an expert in trading,cos I have lost alot of money trading with a wrong trader.
@nickylove7768
@nickylove7768 2 жыл бұрын
*① ④⓪④③④①②⑥⑨*
@nickylove7768
@nickylove7768 2 жыл бұрын
Text him directly whats appk
@nickylove7768
@nickylove7768 2 жыл бұрын
Please let him know you were referred by one of his client
@OKZK_Bros
@OKZK_Bros 2 жыл бұрын
Man with that interest rate that is hard to beat! So do you plan on paying this debt off? Or are you just saying you are going to pay the interest rate and let it defer for life?
@OKZK_Bros
@OKZK_Bros 2 жыл бұрын
Wrote this while watching the video haha. Now I get it. You’d rather put the principal towards more stocks to gain hopefully more than 2% and it looks like so far you’re crushing that
@pdcdesign9632
@pdcdesign9632 2 жыл бұрын
Good video bro but take it easy with predicting your own death. The markets will swing up and down so who knows if these financial borrow products will last.
@chartingwithliv
@chartingwithliv 2 жыл бұрын
Its the infinite money glitch :d
@JDIAthletics
@JDIAthletics 2 жыл бұрын
So does this Portfolio line of credit, show on your credit report?
@JakeGosselinYoutube
@JakeGosselinYoutube 2 жыл бұрын
Nope, does not show up on credit report, that's one of the huge benefits.
@user-oi9bf3if7c
@user-oi9bf3if7c 2 жыл бұрын
Thanks for watching and comments, we’re available always for questions, guidance and support at any time. Just DM *
@glmoraga
@glmoraga 2 жыл бұрын
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