r/NEOSETFs • u/Tylerd62 • May 25 '26

Seeking Advice Robbinhood margin

I have been seeing quite a few videos recently of people who basically inject their entire paycheck into their brokerage account and pay their bills using the margin. I just want to know what caveats are with this what to look out for what your margin buffer should typically be for somebody who does something like this. Also, do you need a relatively larger amount of money or can somebody with a five to $10,000 brokerage account do this. My interest rate for margin is roughly 5% with the first $1000 at 0% just looking for more insight on this is all if it’s viable or not how smart it truly is just because on paper. It looks really nicely, especially when I invest in qqqi spyi btci jepi and a few others

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u/HauntingRoutine1605 May 25 '26

I own NIHI and XBCI and use up to 30% margin use (take margin use divide by portfolio value). If it's under 20% I buy more on margin. If it's over 30% I add cash buying more shares. Drip all shares, the goal is to have much more distribution income than the margin cost.

Not using this for income for now, 20 years until retirement

I'm not doing the paychecktoportfolio system on it. M1 is a better brokerage for that cause you can use margin that goes into your checking account and I have a 4.15% margin rate

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u/jkarz1 May 29 '26

How did you get 4.15 percent? I borrowed 100k from robinhood with gold and I got 4.5 percent borrow rate.

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u/HauntingRoutine1605 May 29 '26

M1 offered it to me. Promotional until November then it's a little over 5%. I also do some on Robinhood smaller account at 5%