It’s way less risky. It’s FDIC insured when it’s swept and because I use multiple banks, it’s actually FDIC insured up to $1.5 million, and the interest-rate goes up every time the feds raise interest rates or lowers
What convinced me not to do it ultimately is the different tax rate on dividends, which the read file does not very clearly spell out in non-lawyer jargon. Thank you for explaining this quite clearly.
So today I got paid $64.95 on 41 shares of FAZE stock on Robinhood. I had 80 shares before, at an average price of 11.20. I sold half at around $23 because it made sense. I have been holding this stock since last year. I was sent $6.34 last month for lending. I came to this video for some understanding and I think I get the gest of it. Thanks for that.
That seems like a nice little payout for the lending program. Do you still use the lending program? How has your results been, using it, since this comment?
@@whatta7793 so in total i have made $166.36. I started getting paid from stock lending in Aug. I have made most of this from RUM, FAZE, and AGRX. but that 64.95 has been my best month and that is when faze was shooting up. Rumble has been the higher pay out right now for around 4- 10 dollars a month. Usually, I get paid more when these stocks move up a lot in price. if i am holding share its cool that i get something from it. I have about 163 shares of rumble if that helps.
@@issacsaad6042 so, sort of a no brainer to turn this feature on? With that combined with dividends/savings interest from cash balance, that could no doubt increase compounding
You are correct in explaining how short selling works and what a short squeeze is. However There are allot of scenarios where one could lose stocks in a lending program that is outside of the short squeeze scenario.
Sounds interesting and it’s good that we have the option but I don’t know if 1.5% is worth the risk. Especially for someone who has a lot of volatile, wild card stocks like Tesla ect.
Very clear explanation. Really appreciate it. I have enabled the feature on my Roth account because it’s a much smaller than my brokerage account. I look at this is a way to safeguard my large amount of money while testing out the feature.
I love the video however, this is not for me either. I was contemplating the idea and figured “watch a video first”. Thank you for breaking it down and explaining it.
yeah make 150 bucks but risk losing some or everything on 10k doesn't seem to make sense. be better off just buying dividend stocks that have 1.5% yield or higher to get that kind of return.
@@zw3565 I did my first covered call option last week on DKNG, only risked selling 2k of shares I already owned, I got the $30 regardless of how the stock performed, if more people knew about covered options Robinhood would get a bad rap for even offering stock lending!
Seems like high volatility stocks such as those with crypto exposure could be even higher risk with stock lending. Secondly, seems like lending shares seems to enable shorts to go under contract without the investors having to purchase said stock. Id rather have these short investors purchase stock to fulfill their commitment thus driving my shares higher. Are my assumptions correct?
I think I will get YieldMax ETFs but I will keep my portfolio diversity up to 10% max on these. I will use the distribution and invest it into safer stocks. When I invest I usually put $5.00 a stock each paycheck. I think that I won't be doing stock lending.
Thanks for the video! Would you reconsider using the Ken Burns effect? The effect distracted me while I was trying listen to and process your presented information.
Please clerify for me. Does this mean if a short squeeze were to happen, I lose my stock? Or is this only a concern for those who make a living off of stocks. Because my robinhood account is purely for investing and growth
It sounds like the stock itself would be gone from your portfolio, and you receive some sort of collateral that was held from the borrower It said cash collateral so I presume it’s some sort of static amount around the price of the stock borrowed When the stock skyrockets and the borrower loses money on his short, you would likely be in better shape holding the skyrocketing stock than the cash amount held as collateral at the time of borrowing. I don’t believe in shorting stocks, I This is how I understand it, and personally decided not to lend my portfolio as it sounds like the borrowers are day trading gamblers as opposed to long term growth, and if I lose money I’d rather it be my fault than letting a day trader gamble with it. It’s been a year since your comment, If you decided to lend, are you happy about it?
Curious because you said it affects the taxes. Does doing this with a tax free savings account change anything? Does it mitigate or nullify the problem?
I think he means the taxes on the dividends being paid out to you may increase. Which is earnings/ paid out. So, at the end of the year you may owe money to the irs.
Robinhood keeps pushing “you’re missing out on extra income!” As if some dude that I don’t know that borrrowed my stock can just default and bankrupt and you get fucked.
1:12 My guy hides his portfolio value, but *zero crypto holdings* are on full display. Bro nonchalantly signaling his wealth by throwing shade at crypto.
Basically the 1.6% earning if any could potentially make you lose more from paying taxes. One thing for sure, no company design a business to make us earn profit. They design it to make THEM profit. So anytime they say we are earning income, that means they will earn more through this system somehow. We will never win. They will win. I mean just look at dividends in some ETFs. Their dividend value will always be lower than the real market. Also whenever you try to buy a stock, they will always sell it at a higher price when the current market price is lower. And when you wanna sell, they will always sell at a lower price than the current stock market. You will never win. They control it all. Best way is to invest your money in opening your own company and run your own business. So no one is controlling your money but yourself.
Would love to hear about cash sweep on Robinhood. Thanks love the videos
Same here would like to hear about cash sweep.,
If you're interested in a Robinhood Cash Sweep video, like Jack's comment!
It’s way less risky. It’s FDIC insured when it’s swept and because I use multiple banks, it’s actually FDIC insured up to $1.5 million, and the interest-rate goes up every time the feds raise interest rates or lowers
Thank you for this . This helped me be informed and stopped me from stock lending. I knew it was to good to be true .
What convinced me not to do it ultimately is the different tax rate on dividends, which the read file does not very clearly spell out in non-lawyer jargon. Thank you for explaining this quite clearly.
Not planning to continue to do WKHS updates, but I still do check on them in my personal time
I’m so glad I watched this before I made my decision.
What was your decision?
Your decision?
@@duainehiler602definitely don’t do it
She did sign up for lending
So today I got paid $64.95 on 41 shares of FAZE stock on Robinhood. I had 80 shares before, at an average price of 11.20. I sold half at around $23 because it made sense. I have been holding this stock since last year. I was sent $6.34 last month for lending. I came to this video for some understanding and I think I get the gest of it. Thanks for that.
FAZE is the perfect stock to qualify for lending. Glad to see you’re making some passive income this way 👍🏼
That seems like a nice little payout for the lending program. Do you still use the lending program? How has your results been, using it, since this comment?
Good job on getting out at the top.
@@whatta7793 so in total i have made $166.36. I started getting paid from stock lending in Aug. I have made most of this from RUM, FAZE, and AGRX. but that 64.95 has been my best month and that is when faze was shooting up. Rumble has been the higher pay out right now for around 4- 10 dollars a month. Usually, I get paid more when these stocks move up a lot in price. if i am holding share its cool that i get something from it. I have about 163 shares of rumble if that helps.
@@issacsaad6042 so, sort of a no brainer to turn this feature on? With that combined with dividends/savings interest from cash balance, that could no doubt increase compounding
Authenticity works well for you bro, keep it up!!
Thanks for the honest breakdown. This helped me make my decision
Thanks man! Appreciate you watching
Yes I was about to click that button on the feather but decided I needed the college of TH-cam 😂 thanks 😊
I did the same...
You are correct in explaining how short selling works and what a short squeeze is. However There are allot of scenarios where one could lose stocks in a lending program that is outside of the short squeeze scenario.
Explain to us explain
Give us few examples of how that can happen
Explain?
Sounds interesting and it’s good that we have the option but I don’t know if 1.5% is worth the risk. Especially for someone who has a lot of volatile, wild card stocks like Tesla ect.
and right now you can't just pick 1 or 2 stocks to do it with in your portfolio its either all or none.
Hey brother, due to the video being very well made and especially split into timestamps, I instantly subbed. Thank you.
Thanks! Glad you liked the ay it was laid out :)
Very clear explanation. Really appreciate it. I have enabled the feature on my Roth account because it’s a much smaller than my brokerage account. I look at this is a way to safeguard my large amount of money while testing out the feature.
Cool! How's it been going after 2+ months?
As soon as I heard "nightmare scenario" I disabled my stock lending quick. After Voyager and Blockfi, it's not worth the risk.
In the same boat. All about risk vs. reward in my opinion.
Super helpful thanks. It seemed to good to be true and for me I believe it is. Great educational video.
Very clear explanations. Thanks
I love the video however, this is not for me either. I was contemplating the idea and figured “watch a video first”. Thank you for breaking it down and explaining it.
Thanks for the helpful video. I’m now more confident in my decision not to lend my stocks.
Definitely! Glad this was able to help you make up your mind
👍🏼
Yea that's how I feel.
@@fernando3061 Thanks for watching!
@@TheRDGuarantee you got it!
Sounds like a rare knowledgeable and ethical fin-fluncer just about this video
Thank you for this explination I have liked, commented, and subed!
Awesome, thank you! Glad to have you on board 👍🏼
$150 for every $10k lent, naa not worth any level of risk. Might as well tell me give me one share and you will get two back.
yeah make 150 bucks but risk losing some or everything on 10k doesn't seem to make sense. be better off just buying dividend stocks that have 1.5% yield or higher to get that kind of return.
@@zw3565 I did my first covered call option last week on DKNG, only risked selling 2k of shares I already owned, I got the $30 regardless of how the stock performed, if more people knew about covered options Robinhood would get a bad rap for even offering stock lending!
👍 agreed
Seems like high volatility stocks such as those with crypto exposure could be even higher risk with stock lending.
Secondly, seems like lending shares seems to enable shorts to go under contract without the investors having to purchase said stock. Id rather have these short investors purchase stock to fulfill their commitment thus driving my shares higher.
Are my assumptions correct?
Thanks 🙏🏻 great video! ❤️
It was very helpful video, well explained 👍
Bro! Thank you for video!
Yeah… I don’t want this anymore I got 150 shares and I need them all they get lost I’m hosed Ty I turned that off
I think I will get YieldMax ETFs but I will keep my portfolio diversity up to 10% max on these. I will use the distribution and invest it into safer stocks. When I invest I usually put $5.00 a stock each paycheck. I think that I won't be doing stock lending.
Hey Rick great video man. Do I get to choose which of my stocks can be borrowed or is my entire portfolio up for grabs to be borrowed?
entire portfolio is up for grabs
Thanks for the video! Would you reconsider using the Ken Burns effect? The effect distracted me while I was trying listen to and process your presented information.
Thanks for the feedback!
Thanks! This is probably the most informative vid I've seen on the subject. I'll pass.
Thanks!
Excellent video. Thank you
You are welcome!
1.5% 😂 learn to sell options as a better source of income or buy the dips and make 5 to 10% a year. That’s crazy lol
When do I get my money back once I disable lending?
Instantly
Thank you so much for this explanation
The tax info on dividends help make my answer! Thank you
Happy to help!
Robinhood automatically put some of my shares on lending, we might as well see what comes of it
Well explained thanks for the information
Glad it was helpful!
Please clerify for me. Does this mean if a short squeeze were to happen, I lose my stock? Or is this only a concern for those who make a living off of stocks. Because my robinhood account is purely for investing and growth
If a short squeeze happens, you *could* lose your money. While this is unlikely it does seem to be possible in theory.
It sounds like the stock itself would be gone from your portfolio, and you receive some sort of collateral that was held from the borrower
It said cash collateral so I presume it’s some sort of static amount around the price of the stock borrowed
When the stock skyrockets and the borrower loses money on his short, you would likely be in better shape holding the skyrocketing stock than the cash amount held as collateral at the time of borrowing.
I don’t believe in shorting stocks, I
This is how I understand it, and personally decided not to lend my portfolio as it sounds like the borrowers are day trading gamblers as opposed to long term growth, and if I lose money I’d rather it be my fault than letting a day trader gamble with it.
It’s been a year since your comment, If you decided to lend, are you happy about it?
Good video. Doesn’t sound worth it at all to lend. Thanks.
No problem 👍
Even though you are cute as Hell, I don’t feel comfortable using the technique. However I am interested in knowing more about Robinhood Cash Sweeps.
I've got a video on the channel about that exact same topic.
Let me get this right. I loan someone stock and if they lose money I get screwed. I'm I missing something. ? No way. That can't be right.
Great content now I’m understand .
Thank you 😊 Robinhood !!!!!!!!!
You don't really need to do stock lending if your recieving a high return on your dividends, and besides your going to be taxed for stock lending.
Agreed! All depends on your personal strategy.
Thank you for this brother saved me pain
I see this is an option for Roth IRA accounts. Does it work different for Roths?
Great video thank you.
Thanks for this Video
You're welcome!
awesome video bro!
Appreciate it!
Can u please make a video about cash sweep?
Video posted!
Is this for stocks only? Or include crypto?
How do you get your stock back if you opt out?
Just disable stock lending!
how does the change in tax rate apply to a roth ira? does it at all?
I made .03 cents last month off lending stocks so idk if it's worth it
🙃
I want to shut stock lending off but I dont see option to disable it where i enabled it.
It will be in the same place you enabled it. Retrace the steps in that section of the video.
I have that same lamp with Nanoleaf bulbs in mine 🤣
Personally, I just don’t think the juice is worth the “short” squeeze.
Curious because you said it affects the taxes. Does doing this with a tax free savings account change anything? Does it mitigate or nullify the problem?
I think he means the taxes on the dividends being paid out to you may increase. Which is earnings/ paid out. So, at the end of the year you may owe money to the irs.
I would imagine stock lending is good for a bear market
This sounds like too big of a risk and a rip off
Up to each person. If you are under 250k per bank, your money is backed by the US government.
My brother opted into this and now has 5000 in his RH account, now what ?
Very informative video
Thanks for the info
Glad you think so!
Almost brought the hedge funds down but Robinhood protected them and screwed over the rest.
What is your main broker?
tldr; It's kinda risky and doesn't pay much. Stock lending is for rich people trying to penny pinch.
You definitely wont get "rich" off of stock lending.
Robinhood keeps pushing “you’re missing out on extra income!” As if some dude that I don’t know that borrrowed my stock can just default and bankrupt and you get fucked.
1:12 My guy hides his portfolio value, but *zero crypto holdings* are on full display. Bro nonchalantly signaling his wealth by throwing shade at crypto.
Wait so you can only sell it to someone that trying to short the stock meaning bring it down😂
Indirectly yes. Brokers also use these stocks to settle trades/facilitate purchases as well
I’m not doing it. I don’t trust Robinhood
LOL a year after the whole GameStop/AMC/BB squeeze, RobinHood decides to offer stock lending to its users. Classic.
haha
what’s $150/ yr.. definitely not worth it
Depending on how much you have to lend, small amounts can add up over the long run.
agreed, i just think for me the risk is not worth it for what i’d get
Not worth it
Not worth it.
Basically the 1.6% earning if any could potentially make you lose more from paying taxes.
One thing for sure, no company design a business to make us earn profit. They design it to make THEM profit. So anytime they say we are earning income, that means they will earn more through this system somehow. We will never win. They will win.
I mean just look at dividends in some ETFs. Their dividend value will always be lower than the real market.
Also whenever you try to buy a stock, they will always sell it at a higher price when the current market price is lower. And when you wanna sell, they will always sell at a lower price than the current stock market.
You will never win. They control it all. Best way is to invest your money in opening your own company and run your own business. So no one is controlling your money but yourself.
this makes me want to yank my money out of robinhood... what a scam. a huge scam. whoever does this is not wise.
It's not worth the headache in doing this.
I've been doing this for a little while now. Robinhood takes care of the hard work, you just have to turn on the feature.
@@TheRDGuaranteeWhat happens if you sell covered calls against your shares and then enable stock lending?
Who the f has 10 grand to just through out at a risk
It's not an extremely high risk but you've got to make decisions that you're comfortable with.
Doesn’t sound worth it.
For some people it won’t be, but I think for plenty it will
So you are lending out your stocks to help companies tank the stock you own. You are screwing yourself over.