Borrow $10,000 Interest Free for Almost 2 Years

追加: 2026-05-05

[00:00:00]Have you ever wondered what it's like to never run out of money? Well, it's freaking awesome.

[00:00:07]Here's a little trick for you to get up to $10,000 for 21 months.

[00:00:12]The other day when I posted a video talking about how to use a credit card for 21 months interest free, I had a member named Ace Flames join who has been doing something like this for over a year. And he immediately taught us a couple of cool tips and tricks. One of them was that he had actually done this with over $40,000 on different credit cards with 0% APR.

[00:00:38]And not only that, but he actually liquidated those credit cards and turned them into immediate cash to send over to his brokerage.

[00:00:48]Now, I didn't know you could actually do this and he broke it down here and showed screenshots of it working.

[00:00:53]Now, to do this, you need your new credit card, let's call it credit card A, and credit card B, an existing credit card that you already own that has a higher credit limit than your new credit card. Credit card B has to have no balance on it when you do this. And what you do is you transfer that zero balance of $10,000 plus over to credit card B and then with credit card B, it's going to post a negative balance, which means that they owe you a credit card.

[00:01:23]>> [snorts] >> You reach out to their support for credit card B and you tell them to send a refund to your checking account.

[00:01:30]Here he shows screenshots of him actually doing this.

[00:01:34]He chatted with them over what looks like the messaging app, asked them to refund the negative balance.

[00:01:40]And then here in the other chat, you can see that just a few minutes later, they did it.

[00:01:48]And some credit card companies don't ACH over a certain balance. I think he said that it was over $8,000 for maybe it was American Express, but then they write you a check and mail you a check for that amount if they can't ACH that amount.

[00:02:04]Then he actually cited a source, consumerfinance.gov regulations. Pretty crazy stuff. I can post this link in the description here.

[00:02:15]After that, in our Discord, we had some long discussion about not only that, but a little bit about what type of strategy that Ace Flames runs and Margin Mindset and him were diving into strategies and chatting a lot about what each of them does.

[00:02:30]Ace Flames had pointed out that there's going to be a time that it would be beneficial for me to use portfolio margin.

[00:02:37]Now, if you haven't heard of portfolio margin, it is essentially the same thing as margin that you see us all talk about, but you have the ability to use more leverage and it's harder to get margin called because of this. But, it does come with some risk just like margin does.

[00:02:57]Now, every brokerage doesn't offer portfolio margin. Interactive Brokerage is the most common one that does offer it. I've been told they don't have a very friendly user interface and I don't know many people that use Interactive Brokerage, but I do think that the reason that they use it is because of portfolio margin.

[00:03:17]So, here I pulled up a little side-by-side comparison so you can get an idea of portfolio margin.

[00:03:23]Regular margin versus portfolio margin.

[00:03:26]And regular margin is just rules rules-based. Typically, you can borrow up to two to one leverage. Now, portfolio margin on the other hand, you can up to 5x or 6x your margin. So, that means that instead of having a two to one ratio, you might be able to have a six to one ratio, which obviously can amplify your gains or losses much more.

[00:03:49]Now, if you don't know what you're doing, this is going to send you back to zero very quickly because you're going to see that as the market goes down and you buy maybe risky assets and you're not hedging, that you're going to quickly quickly go down in value. Now, of course, with margin, it does come with this same risk, but your volatility won't be as high if you're not maxing out that amount of margin. That being said, there's a few things to consider here.

[00:04:18]One would be that just since you have that higher leverage ability and you can maybe use 2.5x leverage instead and then you still have a larger buffer making it harder to get margin called.

[00:04:33]Another thing to consider would be that as your portfolio gets bigger and bigger, not using as much margin, whether you're using portfolio margin or just reg T margin, and using more external leverage. Yes, you're going to pay higher interest rates, but like what we talked about in the Discord, maybe using credit cards with 0% interest for up to for up to two years, using loans on your car, using even possibly personal loans if the market gets low enough. That way you get rid of the risk of margin calls altogether. Now, that being said, you do get very favorable interest rates with margin, so it does have its place, especially when you're building your portfolio at the beginning, but once you get to like a million, two million dollars, you really don't want to get margin called and it gets harder and harder to protect yourself.

[00:05:23]Another way to protect yourself as you get bigger and bigger is by using a HELOC and then using that type of debt into your portfolio to amplify the amount of shares that you can buy and then maybe just using a tiny bit of margin, keeping your margin health always above 80-90%.

[00:05:42]If you're using Interactive Brokerage, if you're using their pro service, it's 5.1% and if you have over $100,000 in margin and it's between 1 million, you pay right around what I pay now. I pay 4.5% and you're at just 4.64%.

[00:06:01]Now, paying that extra 1.64% is worth it if I reduce my risk of getting margin called by like 3x. That is way worth the trade.

[00:06:14]Now, as it stands, I'm listing my rental for sale on March 26th and at that time, I'm about one and a half months out probably from reducing my margin balance and getting my margin health back to a very healthy position. At that point, I'm going to start buying shares with every single dollar that comes in. I did just buy $5,000 on March 20th just because I knew I was going to have a little bit of incoming money this week, but I can start to be a little bit more aggressive because I know that I'm getting very close to having access to a lot of funds that I wouldn't normally have access to.

[00:06:51]And at that point, I'm really just preparing for a big downturn.

[00:06:54]So, as of this morning when I'm making this video, VGT is at $705 per share.

[00:06:59]It's down about 12% from all-time highs and VOO is down to about $597 per share making it down about 6 and a half percent or 7% from all-time highs, which still isn't quite where I want it to be where I would even start to tap into margin.

[00:07:17]But that being said, we're starting to be at some decent prices where if you're not buying, you're starting to miss out.

[00:07:23]And I do think it could fall much much further and this could be drawn out quite a bit. So, I'm not going to just dive right in and start over leveraging, but I do want to be prepared to maximize on this opportunity because it's not going to be down forever.

[00:07:39]Now, the thing I don't like about stocks is that you just never know when it's going to start coming up and there can be long drawdowns. So, for example, during the dot-com bubble, we had seen the craziest downturn in I think the history of the stock market. So, it was down from say in the year 2000, it started dropping and it didn't recover back to that price until like 13 years later. So, that obviously would not feel great, but given my current age, this doesn't bother me at all and it does give you an opportunity to buy very many shares at a big discount. Now, I'm not saying that we're like entering in the dot-com bubble or anything like that, but just always keep in the back of your mind that it can get pretty dicey for a long time and you have to be prepared to weather that storm. So, if you're not prepared to weather that storm, you should be a little bit more conservative than I'm being so you're not getting yourself into some bad positions. Like if my margin health were at 61% for 13 years, that would get a little scary because during that time you also had the dot-com crash, which after getting hit by this and staying at say 61% would get me close to getting margin called during the '08 financial crisis. Now, as long as you can survive some of these drawdowns, which is why you need to manage your margin health very carefully, you're going to do really well in a long period of time.

[00:09:09]After you get to a certain size, it becomes more important to mitigate risk than it becomes to continue to chase outsized returns.

[00:09:23]Risk and volatility are two important things to understand and as you get bigger and bigger, you want to shift some of that risk down and you want to have a little less volatility if you're going to be running a large account with margin. Now, some people have talked about in my Discord how they like the idea of having two separate accounts.

[00:09:48]And there's a few reasons for this. Some of them are starting to become interested in introducing to some income accounts.

[00:09:54]And when you have money outstanding on margin, they can lend out your shares, which is called rehypothecation.

[00:10:03]And the thing with that is that you're going to get taxed at your ordinary income rate, which is going to really mess up your tax bill.

[00:10:11]And if you have two separate accounts, say you have your normal account and you just use minimal leverage, but then you move that money over to account number B to account B, and in account B in a separate brokerage, or maybe even the same brokerage, but a separate entity, you can then buy those income stocks that you maybe desire, and you have the ability to then get taxed at your ordinary dividend income instead of instead [snorts] of getting hit with rehypothecation and paying your ordinary income tax. Now, there's a big difference in Now, based on your income, there can be a big difference in how much you get taxed there. I saw that Fully Invested FI got hit at a 33% tax rate for all of his ordinary income, and he had taken over maybe $50,000 in dividends, and a large chunk of those, maybe 30% of them or something, had been hit at a 33% tax rate. That can be a pretty devastating when you don't expect that tax bill.

[00:11:14]Now, since I invest primarily in growth, the amount of dividends that I receive is so minimal that it doesn't bother me if I get hit with a slightly higher tax rate on a couple thousand dollars in dividends. I only make, I don't know, $2,500, $3,000 a year in dividends. It's a pretty meaningless amount of money in the grand scheme of things. I care about appreciation.

[00:11:38]The thing with that is my total return can be higher instead of capping myself with covered calls and things of that nature.

[00:11:45]And the benefit there is that since they are appreciating instead of me getting dividends for payments, I'm not paying any taxes on those. And the thing with that is that then I can just borrow my money tax-free, and I can use it to buy more and more, especially when the market's down like it is now, or when it drops down even further.

[00:12:07]So, hope you got a lot of value from this. See you next time.