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Margin is the equivalent of real estate “leverage”, in which case the loan is secured by a percentage of the current value of your portfolio instead of the value of real property. Subject suggestion for a follow up video: tax strategies using margin in a brokerage account.

At the moment im using margin since thee rates are low on robinhood because i truly believe u have to leverage other people money to reach the FIRE lifestyle

Excellent video with coverage of an important topic. 💯💯💯 25% Max margin You are a gift to your KZfaq subscribers 💯💯💯

Im buying, DRIPing 100%, investing 50% margin. I plan to buy and hold through bull and bear markets indefinitely.

One of the best use cases on margin i have seen. Great video!

You explain this well my friend. I have been following todd like you since he started, you are a great addition to this margin/high yield space, keep making videos!!!

I agree with all that was said in the video. BUT at least within Fidelity, ALL margin debt is automatically paid back anytime there is cash in the account. If you live on the dividends, that means there will months that you don't get any income because the broker took all your dividends to pay back the margin loan.

I try and almost max out my margin (higher risk) I keep around a 35% buffer. I monitor my ETFs daily while the market is open so I don't get a margin call, that way I have total control of my account at all times. The rate on margin is only 6.75% on Robinhood with a small $5 monthly gold membership fee.😊

I use margin a lot. But my margin is floating up and down, only using 50k at a time, and always paying down. I got into margin this morning so I can buy more NVDA, Nvdy, TSLY, and IBIT. So my debt is about 3k. As other stocks go up, I'll sell a little to clear margin or pay it down. I want to buy more NVDY & TSLY for the dividend coming up next week. This year alone, I have margined 40k 3 times. I'm marging till the dividends are paid, then pay down or pay off. I pay all my bills 1 year ahead. I start selling stock in October to pay bills and taxes. Again, another inspiring video.🙂

I was looking to decrease my amount of shifts at work and transition to living off on my rental income and now, high-yield dividend funds. However, I realized only later that I am not able to use the cash from dividends because it automatically goes towards margin. Womp womp. I wish I knew this earlier. Rookie move. It's like my bank automatically taking my rent and use it towards paying my mortgage! lol

Curious how much margin you’re using. Would you say you’re being conservative for your portfolio? I know you mentioned not disclosing the amount but the portfolio size is well under $1M

Margin changed my financial future. Unless you already have a small fortune to invest, loans are critical to grow and succeed. I can't think of a better use of margin than buying income producing assets. It takes money to make money - but it doesn't have to be your money. Thanks for discussing margin. 🍺

I love margin. If I get a margin call, I got a few days to liquidate some stocks. Companies use credit lines to increase their business all the time. The problem I had with margin calls was I was heavily in TSLY. Too volatile.

First off -- I really appreciate that you provide clear commentary, well-reasoned, and not delivered at a frantic pace. A couple of additional comments about margin: Depending on the size of your portfolio and time as a customer, it may be possible to negotiate a lower margin rate from your broker. It doesn't cost anything to ask... It **MIGHT** be possible to deduct some or all of your margin interest as investment expense. (Consult your tax pro -- there are limitations, etc.) I definitely use margin, although I'm conservative in terms of the amounts that I use. I always use margin to leverage purchasing dividend yielding stocks or funds, never solely growth. I want the dividends I receive to be able to cover the margin AND pay me. If market conditions change to where that isn't the case, I'll sell/re-balance accordingly.

Don't like using margin. Hate margin calls. It's a form of debt like a house mortgage but worse. But it could work if your dividend received exceeds the margin interest rate and the stock value doesn't nosedive like what happened in 2008.

Great video ,Took me a while to break out my old way of thinking and wrap my head around margin i can see it being useful for sure now and gonna continue to use it wisely and diligently while it works for me . If it makes money it makes sense to me long as the dividends greatly outperform that margin interest charge per month its a go .

Margin 70% all day with a buffer in your buying power just in case

I don't particularly like to use margin but I'll use the buffer portion of it. Non margin impact buying power in very situational trades that won't take more than a few days. Maybe once or twice a month but that's it.

Well explained with some good perspectives. Thanks!

Thanks again! I've been actively learning and this helped a lot.

So theres no definite margin payments collected certain time each month? I use etrade. I use like 70% of the margin purchasing power

Thank you for this content. I see lots of various opinion and review describing the opposite on those YieldMax funds. For instance Ryne Williams stating TSLY is a SCAM. Would you mind sharing your point of view and opinion based on his arguments?

If u dont mind me asking are u using margin at the moment

you just debunked the myth or wrong assumptions on margin. thanks for the clarity. can you go into actual numbers of margin maintenance buffer when it is a good buffer or a bad buffer? i am trying to maximize the margin without getting a margin call. what to do if i get a margin call? isn't this easily resolved by selling your shares? once again, thanks.

Great video

Gonna go the depression proof route 😂

Eloquently put.

Here First

What do you think about using a fixed rate heloc loan to buy these funds?