Comments by "Jake Broe" (@JakeBroe) on "My $25,000 Brokerage Account Challenge (2021)" video.

  1. Thanks for watching everyone! If you are pumped for this video series, then give this video a LIKE so other people can find it. Also check out my complete playlist documenting every move I make and why: https://www.youtube.com/playlist?list=PLscTZuOqKWIyS6LKoVjC_fifTSiwrxdNV
    23
  2. Hey Sam! Good thought, but I do not view it as adding money, it is borrowing against the equity in your account to double your buying power. Everyone who has margin trading enabled with their broker has this ability. For an active trader (day or swing), margin is just a tool they can use to increase their gains on volatile days. If someone watching this started an account at $2,000 or $5,000, then margin is always available to them, doubling their buying power to $4,000 or $10,000. I will be using it as a tool and explain its benefits and hazards as day and swing traders use it. Cheers!
    3
  3. Hey Macaroni! I would never recommend leveraging money from a credit card. I do not talk about or encourage balance transfers either because I do not recommend people hold any debt that costs above 4% or there being the risk of it costing more than 4% eventually. Trading on borrowed money is a receipt for a worse case scenario should the market go south or a human error in a trade occurs. Once again, I do not support this.
    3
  4. Hey Cyril! When you swing trade, you just pay your ordinary marginal tax rate on your gains. Yes, long term capital gains is more tax efficient (most people 15%), but short term is the same tax efficiency as your ordinary earned income. Not engaging in short term trading because it is tax inefficient it like saying you shouldn't work a day job because that is tax inefficient. If short term trading can earn me more money than long term trading, then tax efficiency doesn't matter. Money is money!
    3
  5. Hey Mque! All my retirement funds (TSP and IRA) are passively invested in S&P 500 index funds. This year I will be actively trading to learn about it and see what it is all about. I'll be documenting it all so people can see for themselves if this is something they want to try or not. Cheers!
    2
  6. It's not easy to do! Cheers Goose!
    2
  7. Hey Richard! The purpose of an emergency fund is for a near future unexpected cost, so definitely not an IRA. Maybe in a brokerage account, but only if you place it in a Gov Bond index that you could quickly sell off and then get your money out should you have an emergency. Best of luck!
    2
  8. Thanks Genie! I have a lot to say about everything I've taught myself. I'm not trying to sell anyone anything or present myself as some kind of expert offering a guarantee, so I'll be completely honest about people who actively trade.
    2
  9. Hey Stan! Yep, I am anxious to buy something to get the series going, but the market is at an all time high right now, so I need to be patient. Georgia run-offs on Jan 5th and the new Congress meets on Jan 6th. Around that time I think will be my first swinging opportunities. Since I filmed this video Facebook already shot back up 5%.
    2
  10. Thanks Sam! I do plan to sell put options on Tesla (short them) because I think that stock is going to crash hard before the end of the year. I there there is a lot of people who made profit in 2020 and will want to cash out in 2021 as soon as they can get long term favorable capital gains. Cheers!
    2
  11. Hey KBD! I will talk about taxes in a video, but I can quickly tell you. If I start with $25,000 and double up to $50,000, then I will be paying short term capital gains on my growth. My marginal tax rate will be 24%, so I will owe 24% of $25,000 which is $6,000 in taxes. Long term capital gains is only 15%... but no way I would double up this year buying and holding a broad market index fund.
    2
  12. Haha, 100% Save and invest today to live free tomorrow. Cheers!
    2
  13. Thanks for the good fortune Ron! I wish you the best in your investing goals for 2021 as well!
    2
  14. Awesome! Welcome to the channel Mike! Glad to have you with us!
    2
  15. You can still follow along and learn! Cheers!
    2
  16. Ambitious, cunning, and shrewd. Also image conscious and eager to learn and expand my power and influence (on YouTube)... yep, I'm a Slytherin.
    2
  17. Robinhood is addictive. When I first got my account I was on it all day every day and I hated it. I honestly am only going to be checking my account once a day on a computer and won't be checking it on my phone at all. I have a lot of investing videos coming soon that you are going to enjoy! Cheers!
    2
  18. Haha, I know. I wanted to enter it as well, but I can't start doing anything until Jan 1. Don't worry! There will be lots of good swing this year!
    2
  19. Sounds fun David! Best of luck to you as well!
    2
  20. Hey knapz! I don't know anything about that but I can look in to it. Cheers!
    2
  21. Thanks for watching and the support Bridget! I have some great content coming soon!
    2
  22. Lots of people are commenting about this and I'm honestly not worried. I will make a video explaining soon how the taxes of all this breaks down. Cheers!
    2
  23. Haha, congrats on your CS Platinum Justin! It's a great card and I love investing with Schwab. Hopefully you get a lot from this video series I will be making this year. Cheers!
    2
  24. Hey Mark! I will be paying short term capital gains on any profits I take in 2021, that is correct. So if I start with $25,000 and double it to $50,000, then I earned $25,000 in profit, then I'll pay my marginal tax rate of 24% on the $25,000 in gains. I would owe $6,000 in capital gains taxes if I grew this account to $50,000 by the end of the year.
    2
  25. Thanks for sharing Jon! I appreciate the support!
    2
  26. Hey Amy! My referral stopped working. I gave it out to too many people. Schwab didn't like I was sharing it with people beyond my family and friends. Maybe someone else can share their link!
    2
  27. Hey Kitima! The PDT is a government law. Anyone with less than $25k in equity in their brokerage account won't let you make more than 3 day trades in a 5 day period. Schwab and every other brokerage has to follow this law.
    2
  28. Awesome Mike! Welcome to the channel! Great to have you with us!
    2
  29. Thanks julio! Cheers!
    1
  30. Hey Nick! I will talk about taxes in a video, but I can quickly tell you. If I start with $25,000 and double up to $50,000, then I will be paying short term capital gains on my growth. My marginal tax rate will be 24%, so I will owe 24% of $25,000 which is $6,000 in taxes. Long term capital gains is only 15%... but no way I would double up this year buying and holding a broad market index fund. I can't compare the difference between them if I actually outperform the index fund. Yes, my time has value... but if I enjoy doing this then it is a hobby for fun that I am doing in place of playing videos games or going to bars. It's going to be fun!
    1
  31. Thanks for the long time support Anthony! Good to hear from you and you can't go wrong with any of those discount brokers. As long as there are no fees, it's better than no investment account. Cheers!
    1
  32. Thanks Kristin! Cheers!
    1
  33. Haha, that's the dream! It's going to be an informative and useful playlist either way. Cheers!
    1
  34. Hey Taylor! Honestly, nope. Maybe next year! But I have to prove that I am not full of BS first. 365 days to double up!
    1
  35. Awesome! Thanks so much Valentina! I am glad to have you with the channel and that I am able to explain things that are understandable to everyone. Cheers!
    1
  36. Awesome! Thanks for watching Heather. I appreciate the support!
    1
  37. Should be fun Ricky! Cheers!
    1
  38. Thanks Blake! Cheers!
    1
  39. Haha, not really. Other YouTube channels are doing brokerage account challenges, but they add money every week or month and don't do a good job of tracking their progress. I'm a numbers guy and want to be precise! Feel free to follow along with me this year!
    1
  40. Hey Jesus! I honestly do not know who either of those people are. Are they active traders or something?
    1
  41. Thanks Kevin! Should be a fun time!
    1
  42. Awesome D H! I have some investing fundamental videos coming soon. Don't miss Saturday's video!
    1
  43.  @masfishing1  , I do not know much about them! I would just do a google search and see what you find. I am not sure.
    1
  44. Hey Kyle! I have never used them. It's a form of robo advising. If you prefer that over just buying your own broad market index funds from Schwab, then that works for you! As long as you aren't paying a fee for it, it can be a beneficial service to help you invest. Cheers!
    1
  45. You bet! I have been having a lot of fun with it and it has been exciting documenting my progress as we go. Cheers!
    1
  46. Video coming Monday will explain the basics of Swing Trading. Thanks for following my channel!
    1
  47. Thanks YH! These are going to be fun videos to make and I am excited to see where this goes. Thanks for watching!
    1
  48. Thanks Nick! Glad to have you with us!
    1
  49. If you want mutual funds with Vanguard then buy VTSAX or VFIAX. If you want ETFs then buy VTI or VOO. You got this!
    1
  50. Thanks Krystian! It's going to be a good year!
    1
  51. Awesome! Welcome to the channel demancey! Glad to have you with us!
    1
  52. Hey DDD! You can't. I do not trade live and I would not want anyone just doing what I do anyways. I am going to give detailed explanations how to trade and invest. I want to educate and help people make better decisions for themselves. Cheers!
    1
  53. Hey Lee! I saw your message and responded. Cheers!
    1
  54. Haha, those did do well this year. Cheers!
    1
  55. Hey Daniel! I'm pretty confident I won't accidentally make 3 day trades in a 5 day period. I'll just be extra careful if I do momentarily fall below $25k. Cheers!
    1
  56. I believe in you Seong Jin!
    1
  57. Hey Sam! I've seen the studies. I know what I am up against and that is why I want to do it. The stock market is the highest level competitive sport in the world. There are thousands of high frequency computers trading based on artificial intelligence. It's folly to think I can beat them. But we'll see!
    1
  58. Hey Ryan! It's a great company, but I do not like it's current valuation. A personal rule for me, but I am not looking to buy any stock that has IPO'd in the last 13 months and their original investors are in lock up agreements. Check out my video on IPOs for more details. https://youtu.be/pyZ8AAJBkS4
    1
  59. Awesome! Welcome to the channel j hideyo! Great to have you with us!
    1
  60. Thanks Nate! Glad to have you on my side!
    1
  61. I'll be talking about macd soon! Cheers!
    1
  62. Thanks Theodore! Best of luck to you as well in 2021!
    1
  63. Awesome! Thanks deadleague! I appreciate it!
    1
  64. Hey Isai! Both are great, but I like the interface layout of schwab better. You'll see when I setup my account in the next video, but it's easier in Schwab for me to track hundreds of stocks. In March I'll be starting a value investing series and I'll be using my Fidelity account for that. Cheers!
    1
  65.  @isaileon1584  , I am not sure what fee you are speaking of. I have never paid a fee to deposit or withdraw money or to buy or sell stocks with Schwab. No fees that I know of for their basic brokerage services. I will explain the philosophy behind value investing in a video series coming in Feb/March. Stay Tuned!
    1
  66. Thanks BC! All these videos are going to be in a playlist forever and since this was the first video in this series, I just kind of wanted to set the tone for people who might find my channel randomly in the future and don't know me. $25K is a lot of money and I just want to remind myself mostly that I have been doing well and I shouldn't take this money from granted. Cheers!
    1
  67. Holy cow Walter! You bet big and hit the jack pot this year with those call options, haha. I should be following you for investing advice. Cheers!
    1
  68. Solid plan Nick! Cheers!
    1
  69. It's going to be fun Zac! Cheers!
    1
  70. Thanks MM! Cheers!
    1
  71. Thanks JP! My video coming tomorrow and Monday will talk more about swing trading and I am conscious of everything you are saying. I make no guarantees on this channel, lol
    1
  72. Haha, yes. I am a Slytherin. I am cunning, image conscious, and ambitious. Every wizarding test I have ever taken labels me a Slytherin.
    1
  73. Thanks Austin! Cheers!
    1
  74. SSSSsssSSSssSSsssSSSsssssSsssSsSSSSssss. If you spoke parseltongue then you would have got that! Cheers!
    1
  75. Thanks for watching and supporting SFBL! Cheers!
    1
  76.  @cyril_ogude  , I am! But I like learning new things and I have to see for myself what being an active trader is like. I give no guarantees that this brokerage challenge will go well, lol
    1
  77. Thanks John! Cheers!
    1
  78. Thanks Juan! Cheers!
    1