How I Use Margin and Dividend Investing for Expenses (Part 1)

Añadido: 2026-05-26

[00:00:01]All right, happy Memorial every day everybody. Um, today since the markets are closed, I'm going to go over margin and what my how I use margin in my daily life. If you've been watching my investing videos, you've been seeing me use margin to boost my portfolio, but uh not the other things that I use margin for uh because portfolio is not big enough to do it, number one, and that's not part of the goal of this portfolio.

[00:00:23]But I've gotten enough questions on it that I'm going to go ahead and do this video today. We'll play out some scenarios and see if they make sense to you. Uh they make sense to me, but not everybody cares about margin or really cares to understand it. So, if you don't care about margin, uh maybe skip this one. All right. So, uh here here's how I use margin besides boosting my portfolio. So, boosting my portfolio means that I'm trying to use margin to grow my shares faster so my snowball gets going faster. So, that's what I've been using it for. But let's just say that I uh needed to go buy a vehicle uh for one of my kids and it's going to be a $10,000 car. So, let's just say that that's going to be the case. And what I'm going to tell them is invest enough money that we can use margin uh a margin loan to pay for the truck instead of you getting a car loan because I don't like the banks. And so, I don't like dealing with them. I don't like dealing with the payments. I don't like dealing with them screwing up the direct deposits. I don't want to mess with it. So, I just want it to be all housed in one system. And so, we're going to use margin for that. So, how much money do we need in order invested in order for uh the car loan to get paid for by dividends um without ever using the bank. Okay. So, so I used AI this morning and you can feel free in the comments, correct me if my math is wrong, but uh I'm just using um you know, calculator on my phone and uh you know, little Google Gemini. And I asked the question at 5% annual margin rate borrowing $1,000 costs what uh from Robin Hood. So what they said was 14 cents a day, right? So let's just do this. $1,000 costs um you know 14 cents a day.

[00:02:16]Okay. So, uh, that means in a year, let's multiply this out times a year.

[00:02:21]So, that,000 bucks is going to cost me 365 times.14.

[00:02:27]We're not going into leap years. I know somebody's probably going to say something, but uh, this cost me $51 51.1 a year uh, in in interest. All right. So, a $10,000 vehicle. So, 10K costs what? So, um, apparently the leg on this thing's not sticking. So, we're going to we're redo that. See if it'll stay this time. All right. So, 10,000 is 10 times that, which is $510 a year.

[00:03:08]So now I need to invest enough that this $10,000 loan I'm getting more in dividends than it than at least the interest. But I want this to get paid off fairly fast. So we're going to play out the scenario. By the way, my handwriting sucks. I know. And I don't care. So I do presentations with this board in front of hundreds and hundreds and hundreds and maybe thousands of people and uh they can read just fine.

[00:03:30]So I've gotten a few people over the years, "Your handwriting sucks." Yeah.

[00:03:34]Yeah. You know, whatever. um you know, doesn't stop me from making money. All right, so here's the deal. So, this $10,000 loan, I need to to pull that out. And my rule is I never use more than 25% of my portfolio value in margin. So, uh in order to be able to take a loan out this size, um my son, we'll just say he wants to buy a new pickup, he's going to have to save he's going to have to invest $40,000 into his brokerage account. All right? And so, uh, because, uh, he is a juvenile and I've got control of his his brokerage account, you know, because it's a custodial account, we're taking all of his paychecks and investing this money into here. He does blue collar work, so he makes good money. And, uh, every single week he's getting paid and we're putting the money in here and this money is starting to stack, right? So, uh, are we going to get to this 40 grand by the time he wants a truck? Probably. So, we'll have that $40,000 in there. And if you go look at my my portfolio, let's just say that the portfolio is going to blend out like I think it will and I know it has been because I've been using it uh on on other accounts. But the custodial account is going to blend out at about a 20% dividend return. So between the monthlies and the weeklies, I've got a 20% return. And yes, um I've got some longerterm hold in there for him, but let's just you say for the truck, we're only going to do the weeklies and monthlies. so that his truck gets paid off, right? So 20% of this that four $40,000 times times.2 is 8,000 bucks. So $40,000 times 20% equals $8,000.

[00:05:23]That's it a month or a year. A year, right? So, $8,000 a year. So, at $8,000 a year, how long is it going to take to pay that truck off? So, let's divide that by 12. So, I'm at $666.

[00:05:40]8K a year is $667 a month.

[00:05:49]Yes, we could go get a car loan for this and he could be paying that to the car against the car loan. But again, we have to deal with the banks. I got to move the money from the brokerage account to the banking account, then I got to pay it. And then somewhere along the way, the uh the bank's like, "We never got your transfer deposit." Right? And then he's stuck having to figure scramble and figure that out. So, if we do it all within the brokerage account, we take out the $10,000 loan.

[00:06:17]This equals out to on on a monthly basis he's gonna at the minimum he's going to pay 510 divided by 12 uh $42.50 a month is what that margin loan is costing him. Right? So if he's paying chunking it down at $667.

[00:06:38]So 66 667 minus minus 42.50 50. That means -42.50.

[00:06:50]He's going to have $624.50 a month attacking that margin loan.

[00:07:01]Okay. So that that margin loan at $10,000 divided by 624.50 is 16 months. So this 16 months to pay off the truck.

[00:07:25]But here's the thing.

[00:07:27]The whole time this has been going on, once he gets his 40,000 bucks in here, he's adding his paychecks in. So let's just say he's making I think he's doing like $7 $800 a week right now. So, he's got the $700 a week going in. He's We're not going to use the $700 to eat down the margin low. We're going to use the $700 to add more shares into his portfolio. So, the snowball continues to roll and continues to grow because uh we're putting his paychecks in here. So, how much faster will this get paid off than 16 months putting his paychecks in?

[00:08:03]That's the question, right? So the so uh having done this in the past um you know and and seen this happen we're probably talking right around 12 months and his truck is paid for with dividends. He has not out his cash, right? So he didn't take sh sell his shares down to $30,000 to buy the $10,000 truck. He still has his 40,000 when his truck's paid off. He still has his 40 grand and he still has all this cash flow coming in from this from from this uh this 40,000 bucks. He still has the $8,000 year plus whatever money he's been able to put into uh along the way. So in that that let's just say it's 16 months and um how much is that portfolio grown at $700 a week in 16 months. So let's just pretend that there's only four weeks in a month. So 16, I think it's 4.3, but let's do 16 time 4 for easy math. So 64 weeks times 700, he's put another $44,000 in that some right? So he's got 44 grand. So he doesn't have $40,000.

[00:09:12]At the end of this 16 months, he's got what I say 44,000. He's got 84 grand.

[00:09:22]We already ascertained that he's getting 20% in in dividends. So, let's just pretend this is only $80,000. That means he's getting 16,000 a year. This is getting chunked down fast, right? So, uh when he's like, "Dad, I'm I want to move out um cuz he's, you know, 17 or 16. So, when he's he's 16 now. So, when he wants to move out in a couple years, how much money is he going to have in this account? If he kept cashing it out to buy stuff rather than using margin loans, the answer is not much. He'd be in the same boat as the rest of us, right? So, the rest of us when we have an emergency. So, let's do an emergency.

[00:10:02]So, now he's got his truck. Truck's paid off. Truck's paid off. You know, uh, we're good, right? So, a year down the road, he's got a paid off truck. He now has $84,000, he's got his 84K in his brokerage account, kicking out dividends.

[00:10:25]Dividend, we got more conservative along the way as I do. So, I'm going to get more conservative. I'm going to say we're down to 18%. So, 84K, we're down to.18.

[00:10:39]So that means he's doing 15,000 at 18%.

[00:10:46]He's at 15,000 a year in dividends. His truck breaks down, needs a new transmission. It's going to cost $5,000.

[00:10:55]What most Americans do is they they don't have this going. So, and they don't they live paycheck to paycheck, so they put it on what? A credit card or a payment plan of some kind that's high interest. Maybe it's CLA. What's What's the interest rate on CLA? So, let's do uh and I know this my automotive guy uses CLA. So, CLA um CLA interest rate.

[00:11:25]So, CLA's interest rate depending on your credit is up to 35% with the average being uh 29%.

[00:11:36]So, if you're going to take out a loan from CLA at 29%. We're going to take out a credit card loan at 30%.

[00:11:44]Or you're going to your bank's going to give you a personal loan, hopefully, maybe. But how long are they going to take to do that in time to get your car out of the the shop? Probably not. So, let's just say that your bank jerks you around like they always do when you actually need the money and you're like, "Hey, I need a uh you know, let's say the the transmission's five grand.

[00:12:04]So, you need $5,000 and they're going to give it your bank. You think your bank's going to give you a personal loan for that?

[00:12:10]Could be, right? So, they might. But what what's the interest rate on personal loans? Let's ask Google. Um, let's do this.

[00:12:26]What's the current What's the current personal loan rate at Wells Fargo?

[00:12:36]Wells Fargo is 7.7% is their average, but they go all the way up to 26% depending on your credit.

[00:12:47]So, you are stuck paying a lot of interest, right? So, uh now you're dealing with the banks again, you're asking for money, you're dealing with your credit card. Uh your credit card's stacking on you, right? So, uh the thing is this problems always come in threes.

[00:13:02]So, your transmission's going to break down, you know, uh he's going to have some other kind of problem. A tire goes out on his vehicle. So, now he's got to replace all four. And then he's got something else that happens. Then he needs more money. You know, if he owned a home, I'd say his HVAC system would break, his uh washing machine or his refrigerator would break, and then uh he'd have a car problem, and it would go bam, bam, bam, and now he's stuck.

[00:13:25]Right? But in this case, we need we we'll just call it 6,000 bucks for the transmission on the truck because you know that it's not just a dang transmission. There's something else going on, right? So, the transmission, they find a uh some other knick-knack things that go on because it's an older truck. Uh we need a $6,000 transmission on it, right? So that $6,000 transmission plus, you know, the other or 6,000 bucks is going to fix everything on the truck. We're going to be good to go. So what do we do with this $6,000? Take out a margin loan.

[00:14:04]We already determine that $1,000 equals out to 14 cents a day. So let's just say that we need $6,000 6,000 bucks times 0.14. So um that can't be right. All right. So um so let's just do this. What what is it in a month? So uh 0.14 times 31. All right. So $4.34 is what $1,000 going to cost me in a month. So I need six of those. So times six. So it's going to cost me $26. and 4 cents in in interest a month.

[00:14:55]So this is.14 time 31 31 days equals $4.34 that $1,000 that's what it cost me. So 1,000 bucks cost me $4.34 in interest per month. So, I need six of those times 6 equals 2604.

[00:15:18]All right. So, now my 6,000 bucks, we know what the interest is going to charge is going to be. So, I'm like, okay, let's go ahead and take out that $600 or $6,000 margin loan. And how much are we making off of this thing? So, we got 15K a year. So, let's divide this by 12.

[00:15:36]15,000.

[00:15:40]I don't know what just happened. My screen blinked and it made me nervous.

[00:15:44]All right, 15,000 divided by 12. That means I'm doing 12 $1,250 a month in dividends.

[00:15:54]Let's say he's not adding to it. He's not adding to it. He still is. He's adding his $700 a week into this, but let's just say this is a fixed environment. So, he's going to take his $1,250 a month and he's going to crack on this thing with it. So 1,000 or 2 $1,250. So let's do 6 grand 6,000 bucks divided by 1250 4.8 months. So his dividends goes to work on this plus the $264 in interest per month. So we should have added that in.

[00:16:33]So 26.04 04 times let's just say five months. So we got a extra $130 in there. So let's just say it's going to take five months to pay it off.

[00:16:46]We're down to five months. It's going to pay the interest and it's going to pay that loan down in in around five months.

[00:16:54]And the cool thing is is how many of these shares did he have to sell? How many shares did he have to sell in order to pay for the transmission? The answer is zero. Right? So the, you know, people ask me all the time, Joe, why don't you do um, you know, growth investing in the long term, growth investing is going to win. I don't disagree. If my goal was to die with the biggest portfolio, I would I would do growth investing, of course, but my that's not my goal. I don't want to die with the biggest portfolio. I want to live my life free right now. So in order to live free faster, I need dividends in order to do it. This is freedom, right? because he doesn't have to take any of his cash. He doesn't have to get a credit card. He doesn't have to f with the banks. He doesn't have to do any of this stuff. He can go down there, take the margin loan, drop it into his bank account, pay the guy off, right?

[00:17:45]And if he's smart, he could do it like me, and eventually he'll get there because he can't get a credit card because he's only 16. But like like me, what I do is I have airline cards. I've got one from United. I got one from Delta. So, I would pay for the transmission with that card. I take the margin loan out and pay off the credit card with it. Right? So that way I get my airline miles and my points.

[00:18:07]That's how I get my status on airlines.

[00:18:09]That's why most of the time I'm firing flying first class. Not because I paid for it. I did kind of, you know, but because I got enough status that I always get upgraded to first class.

[00:18:18]That's the key here, right? So all right. So now we got this going.

[00:18:23]We've got the 84,000 bucks in here.

[00:18:27]Let's use another example.

[00:18:30]medical bill comes up. Okay, it's he turns. So, he's been putting $700 a month in here.

[00:18:40]$700 a month. He's been doing it for five years times 12, that's 84 thou8,400 or 700, not $700 a month. $700 a week.

[00:18:54]700 * 52 36,400 * 5 years he's got a 882,000 in shares that he's bought. This is without the um the snowball effect happening. So we got 182K in here. Let's just say the dividends the every one of these investments had nav erosion to the nines and we had to invest 100% of the dividends back into these in order to just keep the account balance at level. Let's just pretend that's the case. It's never happened. Um you know every one of the things that I've invested in has a appreciated and the dividends because I'm dividend reinvestment I live on 50%. I have the kids do the same. They're living on 50%.

[00:19:42]they're reinvesting 50%. The um that the the appreciation of this is massive, right? So, if you've been taking the dividends out, reinvesting the 50% and this has been appreciating at only 5% a year or 4% a year, uh you know, it's going to be massive. But, let's just say that it's he's got the 182 grand in there. That's all just the just the money he's put in. And we got super conservative along the way. Uh we're now at 12% return. We're at a 12% dividend payout on this. So 182,000 times 0.12, he's doing $21,840 in dividends.

[00:20:21]2184, right? So now he's 21 years old. He's got super conservative 12%, you know, so we're invested in some BDC's.

[00:20:36]Um, you know, very stable, uh, ETFs like QQQI and, um, you know, he's got that $21,840 in income. Now, mind you, this is going to be much higher because we're just saying that this this number doesn't include any dividend reinvesting. He took 100% out, let's just say, and it didn't appreciate at all. uh or you know uh all the NAV erosion that everybody complains about all the time actually happened on all those and uh they got you know uh got wiped out and so you had to put the money back in all the dividends he got to in order to cover the nav erosion one or the other right so all he has is the tooth at $21,840 he gets in a dirt bike accident right so he's got to go to the ER uh says uh after he's all said and done he's got the x-ray they re the broken leg blah blah blah uh it's going to cost them $7,000 bucks.

[00:21:32]Now, $7,000 in a medical bill, most people would either a you've got medical insurance and did you meet your deductible and if you didn't meet your deductible, then you got to pay the $7,000 out of pocket until your deductible is met. And they're going to pay a percentage and you're going to need a Ouija board to figure it out. All right. So, are they going to pay any of it? I don't know. I mean, I have blue cross and uh I got an apppendecttomy and it was 40,000 bucks emergency right out of a ruptured appendix. I this is years ago, several years ago had to go in uh total bills 40 grand out the door. So, uh all the, you know, imagery, them knocking me out that, you know, uh all the stuff. I was in the hospital for 14 hours start to finish from the time I walked in the door to the time I walked out. 14 hours. 40,000 bucks. They saved my life and I do appreciate that. I have no complaints about paying the $40,000.

[00:22:21]my life is worth way more than 40 grand.

[00:22:23]All right? So, no problems at all paying the $40,000, but I had Blue Cross and Blue Cross is supposed to cover my medical bills. And so, they weasled out of it every way they could. Well, the the hospital was under uh you know, contract with them. They were in network, but the radiologist was not, and neither was the pharmacy, and neither was the surgeon. And so by the time it was all said and done, they covered $3,000 of my bill and I was stuck with 37 grand. So what did I do with that $37,000?

[00:22:56]Exactly what I'm about to show you. All right. So let's just say in my son's case, he needs to come up with $6,000 for, you know, busted leg and other problems. Has to go to the ER. He's got a $6,000 medical bill.

[00:23:15]Now, he doesn't have any health insurance. We have zero health insurance. After that whole thing with Blue Cross, what did I do with those bastards? I fired him and I won't give him any more of my money because insurance should look work like this. I get into an accident or I get sick or something happens. If I get in a car accident, if I get in a car accident, somebody rear ends me or and they don't have car insurance, um, I have uninsured motorists on my auto policy, right? And um if if they hit me and they don't have insurance, is the expectation that my auto insurance is going to cover my bills? The answer is yes. Right? So I have Meday on my auto insurance. Med pay means they're first in line. If I if I accumulate medical bills and because of the result of a car auto accident, Med pays up first. Now, let's just say that I have a crappy auto insurance provider, which I don't, but if I did, um they would not pay, right? right? They would fight me tooth and nail. What would I do with that auto insurance policy? I would cancel it, right? And so there's no point in having up paying them every single month not to pay any bills. And so it's the same thing with medical insurance. I think medical insurance is a scam. One of maybe one of the biggest scams perpetuated on American citizens ever, right? Because they tell you that they're going to pay your medical bills and then don't. And then uh they jack up the prices of everything because um you know, you're not negotiating with a doctor. It makes you a bad consumer. You going to the doctor, you don't ask them, "How much is this going to cost?"

[00:24:42]You need dental work. How much does it cost? How much does it cost to clean my teeth? You don't know. Your dental insurance is covering it theoretically, right? And so, uh, then you get all upset when you get a bill and your dent your dental insurance didn't cover it.

[00:24:53]You're like, "But I thought you covered cavities." Well, not that type of cavity. It's a different type of cavity we cover. And now you're going to you're on the hook for a thousand bucks. Well, if you negotiated that uh that rate with another doctor ahead of time for cash, it wouldn't be a,000 bucks. it would be far less because you negotiate it yourself like a proper consumer, right?

[00:25:10]So, I'm going to get off my high horse on negotiating medical bills, but the reality is is I pay for far less than medical for medical, you know, uh my the medical needs in my family than what I was paying for insurance, just insurance that didn't cover Like, I paid for it out of my own pocket. Uh as soon as I started paying for it out of my own pocket, it made me a better consumer. I started negotiating my pricing with the the medical providers and guess what? My costs went way down. So, uh, but if I run into one of these situations where I got the $6,000 medical bill, what do I do? What do I do? So, the thing is is I know that this 6,000 bucks, let's let's do it again. That $6,000 is going to cost me how much in interest per month?

[00:25:52]So, $1,000 uh in in interest or $1,000 is going to cost me 14 cents a day. So, 14 cents a day times 31 days. So again, it's $4.34 a month in interest time for a,000 bucks times 6 that this is going to cost me $26.

[00:26:14]$264 in interest per month.

[00:26:23]Okay. So at the very I'm getting this is a 26 04 two two 21 $264 that's what it's going to cost me $264.

[00:26:40]So that's what this is going to cost me in interest. Okay, how long is this going to take me? So, I'm I got $21,840 divided by 12, I'm getting $1,820 in dividends. Now, mind you, he's still getting his paycheck. His paychecks are still coming in here. So, he's still shoveling his paychecks into this thing.

[00:27:07]So, by the time he's 16, because he's shoveling his paychecks into this thing, uh he should have way more money than this, by the way. way more. But let's just say that it's this. All right. So, $1,820 per month is what he what he's pulling pulling out of this thing. So, 1,820. How long is it going to pay take him to pay this off?

[00:27:28]So, we'll just do 26.04.

[00:27:32]Let's just going to say I'm just going to say it's going to be four months times four.

[00:27:39]So I've accumulated * 4 $104.16 in interest.

[00:27:47]So 6104.16 divided by 1820 is 3 and a half months. I said I said four, but it's actually 3.35.

[00:28:03]So, in order for his dividends to pay off his medical bills, this is going to be 3 point, let's just call it 3.5 months.

[00:28:16]And yes, that's using all of his dividends. But had he been reinvesting these dividends all along, putting more of his paychecks in there, and uh these things had grown the way that I've seen them grow, you know, using, let's just say he was only using NEO's funds for this 12%. So QQI, SPY, IWMI, BGCI, etc. And it's blended out to 12%. and go look at the, you know, go on Syncing Alpha and look at the total return charts on NEO in all the NEO funds. Just put them all in there. Put all their ETFs in there and look at their total return over the last year and go, do you think that's going to hold? Probably not. I think the growth is probably going to we're going to have a down market at some point. That's going to be an extended one. But the reality is is do the dividend reinvestments that he's getting from these overtime make up for any of the down market stuff that we're going to see? And by the way, see if he was a growth investor, none of this would work, right? None of this would work. He would have to be like, you know, and I keep looking up here because I'm making sure that my thing is recording, but um but the reality is is all his bills would be coming out of pocket. What does that do to your growth investing when you're paying these big bills out of your pocket? You stop investing. So, yeah, you got your job and your 3%, you know, match for your 401k. BS, you know, great. Awesome. Take advantage of that. If you work a W2 job and you get a 3% match at your job, you should take it because that's 3% free money. Of course, of course you should.

[00:29:51]Absolutely. I did when I had a W2 job, too. So, you know, I work for big companies and they're like, "We have a 3% 401k match after you've been here for three months." Cool. You know, on three months in one day, sign me up for that But none of that money helps me pay my bills, right? So, how do how am I using my margin loans to not just boost my portfolio, but to keep me from having emergency expenses? The problem with Dave Ramsey's plan, right? So, you talk Dave Ramsey's plan. I love Dave Ramsey's plan, by the way. Get you out of debt.

[00:30:25]Here's the problem. This is what it's missing. How do you stay out of debt?

[00:30:29]How do you stay from getting big credit card expenses? Because most people are stuck with the $6,000 medical bill. They got choices, right? To pay for it with a credit card, pay for it with cash, um, you know, let it go to collections because you simply don't have the money, you know, whatever it takes, right? So, if you've been investing like my son along the way, then you can pay these bills. The best time to start doing this for him was the second he started his first paycheck, right? So, every one of my kids when they start getting paid, we're putting money in investments.

[00:30:59]We're putting all the money in there and we're letting these dividends stack up.

[00:31:03]So, by the time they're 21, 23, 25, they have enough dividends in order to pay all their bills, right? And so, the only kid I didn't do this with was my oldest one. And so, uh, you know, uh, because I didn't know about this back then, but all the ones that are younger, like my 21-year-old, you know, he's got a job.

[00:31:20]He does, he's roofing. He does roofing.

[00:31:22]And so, he takes his paychecks from his roofing uh, work and puts it in. So, he goes and so he's he does roofing sales.

[00:31:29]So, he takes all his commission checks and shoves it into the account. So, all that those commission checks stack up.

[00:31:36]And when he when he needs to fix his truck or any of that kind of stuff, he can take out margin loans. And this is why Robin Hood makes sense to me because these 5% margin loans get paid down so much faster. All right, where am I at on time? All right, so I'm at 32 minutes. All right, so uh I'm I'm actually going to leave it at that.

[00:31:54]That's long enough on a holiday. All right, so uh I've got a million other ways I use margin, whether it's buying houses, you know, or buying real estate or any of these things, but you can kind of figure it out, right? Uh because if you're like I'm hellbent on buying a house and you're like me and you're a business owner, do the mortgage companies want to deal with you? No. Do they count my uh I I thought they they would look at how much uh I'm getting paid in dividends and go, "Dude, this guy's like, we got to do business with this guy." But the reality is is they wouldn't do that. Uh I know many of my friends who are dividend investors, they have a a uh a um a business that they own and the mortgage companies won't give them a home loan, right? And so which is smart around here because you know the pri the price to you know um you know the cost of buying versus the cost of renting the the ratio is too great. It's actually way cheaper to rent here. So I live in Idaho and uh Eagle Idaho and uh the the ratio skews rent heavy. And so what I do is I rent you know I'm in like a I think it's like a $1.4 million home if somebody bought it.

[00:33:01]And so, uh, rent's costing me 40, you know, $200 a month or whatever it is.

[00:33:05]You know, you can go look at my sheet and figure it out. So, um, so what, you know, it's like almost 4,500 bucks a month. But the reality is is buying this house versus renting it. How much would I pay in um, you know, um, my my mortgage plus interest plus homeowners insurance? By the way, my renters's insurance is $22 a month from USAA. and uh homeowners insurance way higher than that. I wouldn't have to deal with the taxes, stuff breaking, you know, on and on and on. So, a lot of these emergencies I talked about don't happen to me because I don't own a house. So, HVAC system goes out, not my freaking problem. Somebody else fixes it. So, uh but the reality is is this kind of stuff does happen. Somebody breaks a leg, what do I do? How do I cover this $6,000 bill without taking money out of my account or selling it or going deeper in debt?

[00:33:56]And that's this is the answer is margin.

[00:33:58]So, uh if you didn't know about margin, dive deeper into it. I strongly recommended remend researching, you know, margin rates wherever your brokerage account is. Um if you're using Robin Hood, it's 5%. There's other ones that are cheaper. I'm testing those out uh to see how their margin works before I recommend them to anybody. But, uh Robin Hood, if you're interested in Robin Hood, there is a link below. Um, and just to let you know that if you sign up for Robin Hood Gold with my account, I get five bucks. So, you know, um, I think, you know, I've gotten like nine people who've signed up for it since I started these videos. Thank you so much for doing that. You know, uh, but, uh, at 5% margin, this thing makes sense. What I'm talking about here makes sense. If it's 20, you know, 10% or 11% or 12%, uh, like it is at Schwab at 11%.

[00:34:46]you know, some of these other ones are even 8% 9%. You know, it's harder to make the math math out. It takes so much longer to pay these margin loans down.

[00:34:56]So, um you know, that being said, hopefully this was helpful on how I'm using margin uh to fund my personal life. And if it was, uh you know, um you know, I always appreciate comments and always try to respond to those. All right, thanks a lot and uh happy Memorial Day and we'll see you all in the investing video tomorrow.