How I SAFELY Earn Over 100K/YR in Dividends Using Margin EVEN With Higher Margin Rates #FIRE

In this video I dispel common myths on using margin, and discuss how I use certain techniques to get more out of my brokerage account in order to live financially free, while safely earning over $100,000 per year in dividends.

Trading on margin is taboo, and for good reason. It is risky! Also, even if you win in day-trading (which is rare overtime), the banks don’t take day trading gains for loans!

They only take qualifying income like paychecks or dividends to provide housing loans, car loans, personal loans etc. This is how you live financially free!

Margin is already granted to every brokerage account when you start, no acceptance from a loan officer needed. For every one dollar you put in, you are granted four dollars (depending on your broker).

For all people starting out with margin, you start with small amounts because that’s how you learn, safely. Going a step further, ONLY take out in margin what you earn in monthly dividends.

That way, you payback the margin by the end of the month! This helps you grow your account faster than without margin, all the while avoiding unnecessary risk and higher interest rate payments.

Also, I have an E-Guide on how to properly play Cornerstone if you need more yield to safely cover margin interest charged.

If you already bought E-Guides, don’t forget to text or email me for free Discord access to the Cornerstone RO alert service.

Thanks everyone!

[MrToddAkin]

In this video I dispel common myths on using margin, and discuss how I use certain techniques to get more out of my brokerage account in order to live financially free, while safely earning over $100, 000 per year in dividends.

Trading on margin is taboo, and for good reason. It is risky! Also, even if you win in day-trading (which is rare overtime), the banks don’t take day trading gains for loans!

They only take qualifying income like paychecks or dividends to provide housing loans, car loans, personal loans etc. This is how you live financially free!

Margin is already granted to every brokerage account when you start, no acceptance from a loan officer needed. For every one dollar you put in, you are granted four dollars (depending on your broker).

For all people starting out with margin, you start with small amounts because that’s how you learn, safely. Going a step further, ONLY take out in margin what you earn in monthly dividends.

That way, you payback the margin by the end of the month! This helps you grow your account faster than without margin, all the while avoiding unnecessary risk and higher interest rate payments.


Also, I have an E-Guide on how to properly play Cornerstone if you need more yield to safely cover margin interest charged.

If you already bought E-Guides, don’t forget to text or email me for free Discord access to the Cornerstone RO alert service.

Thanks everyone!

[kashhawkins]

I get you. Your doing what the rich do and they keep it a secret so we can not get to where they are. When the trading fees went away a few years ago was a game changer. The rich are always 20 steps ahead of us. Your investment strategy is getting us another step closer. I started using margin because of you. It’s not dangerous if your dividends are paying the margin every month. Plus I’m adding money. Win Win Win. Thank you.

[terraslayer]

A lot of people talk about paying back the margin Asap, but I'm actually of the opposite thinking. As long as your portfolio continues to grow, I really see no benefit in paying off the margin. I have a 5 year chart I made before investing, I started with 20k investment. I borrow 60% of my port on Margin, so the initial 20k investment, i'm borrowing 12k.

4 months later, my portfolio is now worth $28k. Had I not used any margin at all, it would be at 24k. In 1 year my port will be estimated at 32k vs 26k if non margin.(will change based on actual market movements). In 5 years, assuming a 5% div yield per month (which is the current average for the Yieldmax funds), My portfolio will be at $380k vs only $65k had I not used margin.

This assumes that I continue borrowing more as my portfolio grows, which is what I plan to do. So in that example, my net worth would be $380k, and I would be borrowing $230k. My monthly interest would be $1900 per month but my dividend would be paying $32k!

[Fred]

Thanks for sharing Todd, you inspire me keep it up man.

[Bathroomguy]

This is exactly what I have been doing with Fidelity's 13.3% margin rate and it has taken my dividend income to the next level. It has put my account and income on steroids! Thanks Todd for turning me onto this idea a few months back.

[stonksdays]

I already made 20% off my initial investment in TSLY 3 months ago. I think it's a good idea to tie those funds to weights to SPY or QQQ which would be 2%-4% for TSLY since thats the weight in the index. I have high hopes for the YieldMax funds over the next several years

[Whoisbu]

anyone know if Fidelity does the drip at nav?

[NateBra]

does anyone know if schwab has the special drip for clm/crf? they bought td recently

[JFCotman]

@15:20 Wait?

ETrade let’s you negotiate rates?

😮

[dpragain]

Wouldn’t you get the same result if you just reinvested your dividends each month?

[ashleeleonard-vf]

How do you know when cornerstone is having a rights offering?

[jamesgarcia]

Does anyone here have good high yield dividend option on robinhood cornerstone isn’t available on there.

[jimjones]

I’m new to margin so I’m trying to understand fully. If you make 1k a month in dividends so you use 1k on margin then after a month the margin is paid back is that including if you reinvest the dividends you’re already receiving? Or would you buy 1k on margin then your 1k month pays it back so you can’t reinvest it that month. Or is the beauty in it you buy 1k on margin then your 1k month pays it back while also allowing you to reinvesting it?

[NateBra]

do you have a beginners guide to getting into this? do you need a certain credit score to get the loan to start investing with? can you start with less than 100k? what's your advice for a beginner to this who only has around 10k invested like your example said

[theportaloftime]

Can you deduct the margin interest you pay on your taxes?

[Sharky]

Question for roughly 11:15 -- how does paying off the margin work? So you said the interest rate doesn't matter if you pay it off by EOM?
Came across your channel earlier and I love the vids! Liked + Subscribed.

Are you still rolling with CLM + CRF?

[Seoulsearch]

I have family members who are invested heavily in CLM and CRF and have said that the rights offering program is cancelled. Is this true?

[MariaTang-xv]

Under what circumstances tsly’s earning will reduce or tsly’s price drops

[charlesgallagher]

Why aren't you using IBKR? I've been doing this for 3 years. Margin portfolio account. 6.5% I love that you're getting this out there. I'm big in YIELDMAX funds, JPM funds, iSHARES funds and SVOL. I pull 6k per month and let 6-10k go back to Margin and buying power.

[nunomedina]

Thank you as always, Todd. I've been away because of our new little family member and all is well. I recently opened up my Etrade account and finally did the DRIP for CRF and CLM. I only have a few shares and not enough to qualify for margin, as I'm still learning the ropes. It can seem a little daunting, honestly. I would love to to start with something small, ie; $1, 000 - $2, 000 but not sure if it's even possible with Etrade.