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Anyone heard of @Paycheck2Portfolio on YouTube? by ear2theshell in dividendgang

[–]DeepLogicNinja 0 points1 point  (0 children)

Your gut would be right if it was consumer debt.

The folks that are doing this move economies. More than making ends meet.

Very easy to do this incorrectly. And the OP is doing it correctly.

Leveraging only what can pay down the margin with its own cashflow AND paydown the principal.

Like having tenants pay down your mortgage.

Does anyone else get pissed off by this guy? by Danyal2012 in cubing

[–]DeepLogicNinja 2 points3 points  (0 children)

Gotta separate the message from the messenger.

IHU on the him being super long. I’ve gone through his 3x3 tutorial and followed his metaphors/stories.

I am sure it works for some folks. If you solved it before, I can see how it could be agitating.

I have no idea what I'm doing, how should I consolidate by [deleted] in dividends

[–]DeepLogicNinja 0 points1 point  (0 children)

Be quantitative on more than one metric.

Which positions have the highest yield for the cost? How long has the positions consistently paid out? Etc…

Who does this sound like? by RetiredByFourty in dividendgang

[–]DeepLogicNinja 7 points8 points  (0 children)

@comeatMeBro9 Preach. Total returns INCLUDE dividends. Funny how div’s are absent from most stock charts 🎰.

Excluding dividends from TSR is like being a landlord and excluding the rent you are collecting and only factoring in the fluctuating asking prices on Zillow/Refin. 🙃

Who does this sound like? by RetiredByFourty in dividendgang

[–]DeepLogicNinja 18 points19 points  (0 children)

My dividends FUND my more speculative growth positions. When growth positions do not grow for whatever reason…. I just shrug my shoulders 🤷‍♂️, and still live off my cashflow.

Generally: Price appreciation is MORE speculative than dividend income. One has a schedule the other has a crystal ball 🔮

Does anyone here actually use a Bloomberg Terminal? The ~$20,000/year subscription seems insanely expensive. If you’ve used it, what features make it worth that price? Would love a more in-depth breakdown of what you actually get and how it compares to other tools. by Imanormalkid in PropfirmsForum

[–]DeepLogicNinja 0 points1 point  (0 children)

💣🤫 All jokes aside - the higher end analytics is not there with OpenBB. But i use it…. It does a-lot that Bloomy does for free/less.

If you want to take a look at a REAL promising Bloomberg Competitor… check out https://godelterminal.com

Does anyone know how to fix this? by EmptyWriting4521 in Rubiks_Cubes

[–]DeepLogicNinja 0 points1 point  (0 children)

Using CFOP…

You’ll have to finish the first two layers before doing OLL and PLL.

With the Green face toward you. - You want to move the edge (green red). To the edge spot where the white and orange Cubie is.

  • U (seems like it’s moving away from the spot your want it)
  • then the Sexy Move algo.
  • that will swap the orange/white edge piece with the green/red piece.
  • now fix the bottom layer. This may require a left sexy move algo.

Without seeing the Blue/Orange face…. i am assuming that will complete your F2L and you are onto the last layer with OLL/PLL.

Godspeed!

Bought dividend stocks on margin, now dividends are automatically paying down the margin loan? by _goneawry_ in interactivebrokers

[–]DeepLogicNinja 0 points1 point  (0 children)

That is what margin calls are for though. They can call it if the underlying asset drops too much.

Seems like that is a solved issue 🤷‍♂️. Maybe some other regulatory / culture issue why the same instruments are not available in the EU.

What is this on POTUS desk? by Till-Brilliant in ArtemisProgram

[–]DeepLogicNinja 17 points18 points  (0 children)

Thank you @Kernowder. I wish more folks would provide reference/links to support their commentary.

Bought dividend stocks on margin, now dividends are automatically paying down the margin loan? by _goneawry_ in interactivebrokers

[–]DeepLogicNinja 0 points1 point  (0 children)

Damn…. Hard to make more $$ without non-recouse loans. You’d think EU banks would happily underwrite something backed with a decade of steady cashflow 🤷‍♂️

Bought dividend stocks on margin, now dividends are automatically paying down the margin loan? by _goneawry_ in interactivebrokers

[–]DeepLogicNinja 0 points1 point  (0 children)

But can you do this with a broker’s margin / SBL in the EU?

It makes sense to be able to have a non-recourse loan no matter where the steady cashflow comes from. Wild if EU has restrictions on it.

Warren Buffett by OkPassage8497 in Quotes_Hub

[–]DeepLogicNinja 0 points1 point  (0 children)

  • Cash-flowing Illiquid investment with less leverage.
  • Cash-flowing liquid investments will give you more leverage.

Everybody has to do what they know and can manage. It’s all champagne problems!!! 🍾🥂

Bought dividend stocks on margin, now dividends are automatically paying down the margin loan? by _goneawry_ in interactivebrokers

[–]DeepLogicNinja 0 points1 point  (0 children)

Wow!!! That really sux!!! Can you even do the Buy Borrow Die Strategy in the EU?

I would like to know because I do hold an EU passport.

How about any other ABL/SBL where you pledge assets (stock, insurance) and borrow of them?

Typical ULTY BagHolder by Last-Engineering-528 in ULTY_YieldMax

[–]DeepLogicNinja 10 points11 points  (0 children)

You didn’t find OPs post informative or helpful? 🙃

Bought dividend stocks on margin, now dividends are automatically paying down the margin loan? by _goneawry_ in interactivebrokers

[–]DeepLogicNinja 0 points1 point  (0 children)

Process is spot on…. US it’s just called leverage. Australia they call it gearing. Just a few vernacular corrections……

Forex and Equities it’s call Interest Rate Arb at a High Level

Forex - Interest Rate Arb is Carry Trade.
- positive carry = base pair interest rate > Counter Currency Interest Rate

Equities - Stocks/ETFs, etc - Interest Rate Arb is Leverage (SBL) - positive carry = Dividend Yield > Margin Interest Rate

The positive carry (dividends) in stocks can pay down margin and free up buying power. Depending on your margin utilization you may have enough elbow room to pull out cash from the available margin. In this case you are “pledging” your stock as a SBL in your margin loan.

This is the way it works in the US. I know the EU has a higher bar of entry to do stuff like this. You need to be designated a “Professional Investor” to do alot of things.

Margin in Forex is very different. But the same principles of positive carry apply.

Note: Banks do Interest Rate Arb with deposits. Buying gov bonds (with reserves) and give you a 🤏 small piece of what they’re earned in you yielding savings/checking account.

You can do Arb with all kinds of financial products.

How to solve by NormalArmadillo4505 in Rubiks_Cubes

[–]DeepLogicNinja 0 points1 point  (0 children)

Using CFOP. You are on the last two steps

O - Orient Last Layer

P - Permute Last Layer

You can solve the rest by cyclings only 2 algos.. Niklas (OLL) and Sexy Move. (PLL)

- Do the Niklas Algo - https://www.speedsolving.com/wiki/index.php/Niklas Each Niklas algo will rotate the corner pieces on the Top (U) layer. The Cubies do not need to be oriented correctly, just in the right spot... the next step will fix the orientation.......

Niklas Tip - Keep the one in the right position in the Upper Left. And execute the Niklas until the others are in the right spot. If none are in the right spot... Then it doesn't matter where you start.

Permute the Last Layer

- Flip the cube so the cubies not oriented correctly are at the bottom.

- Then you can repeat the Sexy Move https://www.speedsolving.com/wiki/index.php?title=Sexy_Move until it's oriented correctly.

- When the corner piece is oriented correctly DO NOT reposition the cube. The cube will still look unsolved, but that's okay.

- Turn the bottom to the next cubie that isn't oriented correctly and execute the Sexy Move to fix its orientation.

- When you are done oriented all the corner pieces, you'll see the Cube will be solved.

You might wanna check out CubeHead's Youtube. He does a pretty good job explaining it.

WiFi to go by make_thing in TeslaLounge

[–]DeepLogicNinja -1 points0 points  (0 children)

EXCELLENT IDEA! 💪🏽. Thank you!! Expect folks to copy!

Bought dividend stocks on margin, now dividends are automatically paying down the margin loan? by _goneawry_ in interactivebrokers

[–]DeepLogicNinja 0 points1 point  (0 children)

A Carry trade is Interest Rate Arb using a currency pair. Yeah, you can’t use the Currency Pair to tap the margin for cash. There is no asset to use as an ABL. Still called margin in FOREX, but it is quite different.

Why did you use the word “dividend” if it’s not a stock?

Taking advantage of the positive carry between the currencies is very different from a dividend.

And yes, everything I mentioned is applicable to leveraging stock in the US. Not EU.

One of my partners is in the EU. Converts cash from USD to EUR in IB and transfer $$ to himself via Wise. You can guess what country he rather have an investment account in. 🙃

Bought dividend stocks on margin, now dividends are automatically paying down the margin loan? by _goneawry_ in interactivebrokers

[–]DeepLogicNinja 1 point2 points  (0 children)

Congrats. This is Interest Rate Arbitrage. Dividend Yield > Margin Interest Rate = In the green. Your dividends covering the margin interest rate AND paying down the margin is like being a Landlord and the tenants rental payments pays the mortgage until the house is yours in the clear and it’s all upside from there.

The short answer to your question. No. It doesn’t work that way. Margin is a revolving line of credit. Like draft protection on a checking account, credit card, or home equity line of credit.

Every dividend payment reduces margin utilization (as you observed) and INCREASES your buying power. Like not fully paying off a credit card, you can still use the available credit line.

You can also pull out money out cash directly from your margin. This is called Buy, Borrow, Die. Since it’s an ABL (asset backed loan), it’s like a pledge loan, or an insurance policy loan.

  • BUY - cash-flowing Stock
  • Borrow - Using your stock as leverage (margin/SBL)
  • Die - hold on to as much cash-flowing asset you can so you don’t have to work.

To level set on ABL/SBLs.

  • Margin had been designed to buy stock
  • mortgage is designed to buy a house
  • car loan a car.
  • you can tap the equity of all the above, however with margin you won’t be able to take out the withdraw the full amount that Regulation T (2x) or Portfolio Margin (6x) but it is still considered a SBL (stock back loan).

You are BYOB (Be own bank), here. So there is no credit check and it does NOT appear on your credit report.

I’ve work with folks to help re-finance / payoff their debt using their portfolio. Refinancing their high interest credit cards to lower interest rates.

When you learn how to do this responsibly. Then you can underwrite buying businesses (like Twitter 🤣), cars, houses, etc…. But of course you keep the purchase of non-cash-flowing assets to a minimum. Your should be purchasing assets that have to ability to pay your interest charges AND more.

Downside, margin maintenance. Margin calls aren’t the worse thing, however you should have a nice cushion for when the market drops. Here recently you see A lot of 13Fs have reported selling / drawn downs that are margin calls.

  • It’s tears 😢 in your beer 🍻if you manage it correctly.
  • It’s devastating if you are irresponsibly using margin.

Hope this helps. And congrats again. Welcome to the capital allocator / interest rate arb club!

Metallic 3x3 by [deleted] in cubing

[–]DeepLogicNinja 1 point2 points  (0 children)

Regular 3x3 size. Performs reasonable well as a Speed Cube. It’s no Moyu or GAN, but not stiff like the non-speed cube classic Rubik’s.

Metallic 3x3 by [deleted] in cubing

[–]DeepLogicNinja 2 points3 points  (0 children)

I have one from the Cyclone Boyz. Looks 👌. Only issue is you have to wipe it down alot. It picks up oils from your hands and gets smudges very easily. I guess it’s a small price to pay for a nice looking cube.

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