M1 FINANCE FREE MONEY LOOPHOLE
Ver Vídeo: M1 FINANCE FREE MONEY LOOPHOLE
Last week, I did a video talking about how I borrowed $25,000 to invest with and how this was essentially free money. I had a lot of people asking for a more detailed explanation, so here you go! This is how I am using M1 Borrow to essentially earn free money, however there are risks involved.
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I hope I explained this as simply as possible! Let me know down below if you want to see more videos like this 😀👍
Wow horrible advice
You forgot that there are tax on dividend.
How does this work with taxes? Its unclear to me if this would still be profitable after paying back the borrowed money with post-tax dollars.
Wait you pay the interest per year?
Is this the same if you don’t have m1 plus?
Pure Genuine 🧠
Don’t forget to apply the M1 plus annual fee and taxes on dividends to that total earned. You’re coming close to zero/negative profit. Especially if you have unqualified dividends or reits
I really had concerns about borrowing from your equities, this video was helpful. One question how about when you borrow against your stocks and you sell those stocks for another stocks or keep some profits in cash does m1 finance penalize for selling those stocks that you had borrows from since they use those stocks as collateral?
Great video and explanation
Do not use your loan to buy NKLA stock
Ryan I joined M1Finance I think through your site. I wondered if I wanted to invest in a new fund or stock, and deposit $5000.00 to buy it. how does it work.
This just seems like a no brainer
Thanks for the video. Similarly, I used Borrow to 1) cross that $100k barrier and 2) buy $15k of Apple before the split. So, like you, I'm doomed because this is the internet, and people have trouble distinguishing "possible" from "probable."
You must be getting tax free dividends then. Also, ignored the 125 you paid to get the improved rate. What you are essentially describing is trading on margin which is extremely risky. I suspect you might also be subject to a margin call if your securities decline in value. Good luck.
how long is this loan for a year or 5 ???
That is amazing. Once my investments hit five digits, I am certainly considering coming back to this and consider the potential this gives me.
Love your videos I've learn so much from you. Going to open a M! Finance account. thank you.
Let's say you made $800 in profit from dividend. After TAX it's about $400. You pay $500 for the interest plus another $150 for M1 Plus user. End result: You made $400 and lost $650 ($500=$150). End result: You are a LOSER that is not smart enough to realize it.
This is the perfect time to invest …
Seems like a lot of risk if the value of your $25k went to $15-20k in a crash
Does this work if market drops and you lose money?
Just my opinion; The problem is with your strategy is; if there is a black swan event and the value of your holdings temporarily crash, your account will trigger a flash liquidation and get liquidated out – and then the equity later returns to the holdings you once had; and you will be priced out of them. Thats how these leveraging sites do it. They are patient and they are not stupid.
I bought riocan
Do you have your m1 dividend profile shared
Have a question why’s the monthly payment on 25k borrow amount, can I do the same thing but re invest it in vug ?
Lol owned pl
I had a question?! I would appreciate anyone who knows could please answer it and thanks in advance! I’m new with M1…. but if I start with $100 and invest it in my pie… and at the end of trading day I make 2% ($2) can I take my earnings somehow or does it NOT work that way??? Thanks again!
It would be interesting to see how you arrived at a yield of 3.185%.
The 10%-2% is close but it's not accurate. The 2% is an APR while the 10% is an average. Combining the two different returns yield erroneous results.
Great video nonetheless!
Wouldn't the most reliable monthly dividend stock "O" aka reality sort of pay itself off using this method? if Ryan Scribner or anyone else could answer would be appreciated.
Hey Ryanl, can u make a video about Nokia and Erickson stocks? I feel it will be very profitable if Huwei is banned as they two are the only other competitors
Ryan. Have you noticed the account activity has inaccuracies? I actually keep track of my dividends and some of my dividends have just vanished and nowhere to be seen. If you would like to communicate on this please contact me via here we can set up some time.
Another reminder is that you eventually have to give the 25k back!
Great to see a fellow finance YouTuber speaking on this- wasn't aware of portfolio lines of credit until watching this. Very informative video👍🏾👏🏾
How do you plan to repay the loan?
You talk Diamond Man,So Clear Cut and Exact.
M1 offers 0.00% interest rate to borrow a couple of months ago. Let’s just say I took advantage of that, invest it and pay back the money before the promotion period end. I made pretty nice gains.
Thank you