How I Avoid Margin Call Risk Using The Art Of Diversification In Top Passive Income Dividend Funds

There are three reasons why I use $250,000 in margin to diversify away from Cornerstone (CLM and CRF):

(Remember, the 250K margin that I run is charged interest of around only 5%/YR, because I negotiated it down, and my 100K in dividend earnings will pay back the margin debt in less than 3 years. No matter what the market does, our dividends cashflow the positions overtime and payback the margin, allowing us to live financially free).

Anyway, the three reasons are:

To reduce both default risk and concentration risk, to increase performance with upward left to right moving names, and to reduce margin call risk.

Having no margin calls means our stress-free way of life and financial independence stays intact.

Here on this channel, we don’t live life on the edge, barely avoiding margin calls to stay alive.

Rather, we stay in the indexes, and diversify away from core holdings in order to increase performance, causing us to thrive, not merely survive.

This philosophy is appropriate under any circumstances, margin or no margin.

[MrToddAkin]

There are three reasons why I use $250, 000 in margin to diversify away from Cornerstone (CLM and CRF):

(Remember, the 250K margin that I run is charged interest of around only 5%/YR, because I negotiated it down, and my 100K in dividend earnings will pay back the margin debt in less than 3 years. No matter what the market does, our dividends cashflow the positions overtime and payback the margin, allowing us to live financially free).

Anyway, the three reasons are:

To reduce both default risk and concentration risk, to increase performance with upward left to right moving names, and to reduce margin call risk.


Having no margin calls means our stress-free way of life and financial independence stays intact.

Here on this channel, we don’t live life on the edge, barely avoiding margin calls to stay alive.

Rather, we stay in the indexes, and diversify away from core holdings in order to increase performance, causing us to thrive, not merely survive.

This philosophy is appropriate under any circumstances, margin or no margin.

[hamsterjohn]

finally a channel that lives up to its name

[giancarloperezsoccerplayer]

Hi Todd, take a look to EWZ is an ETF of dividends payers Brazilian stocks run by Blackrock, the yield had only be over 10% in 2001, 2008 and present and it has upside potential, the margin require is only 30%, the one thing I do not like is the semiannual payments.

[stevenkemp]

Nice job! Can you explain your portfolio protection plan with selected puts and inverse funds?

[NNIS]

Thanks Todd! I agree with u on SCHD. I pulled in $500 last month & over $300 this month in payments from TSLY. It would take SCHD 3 years to return the same amount. 🤷‍♂️

[flextime]

Commenting for the algo, another great video keep them coming! 🙌🏼

[SLethiot]

How do I enroll in the CRM & CRF DRIP program? Thx

[jweezy]

Does cornerstone follow the s&p 500, their total returns are not close except for the past six months, are you making up for that with tax savings? With ROC

[djkatohitori]

How do u go about quickly taking active income and converting into margin income I sent you a email couple days ago... thx

[oliveroliverwarders]

Please stop using cough drops in your videos, save it for after.