JAAA
Janus Detroit Street Trust - Janus Henderson AAA CLO ETF
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Bond fund / ETF with better yield than SGOV and super low risk ?
What stocks/etfs do you have that are most resistant to market dips/recession?
Opinions on JAAA or ICSH as alternative to SGOV?
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Alrighty, so i have a hypothetical i've been thinking about. S&P500 is the standard we are measuring strategies against. Ideally, we want to beat that to at least have an argument that a strategy may have an edge. Suppose I buy DEEEEP ITM LEAPS on SPY. So time value is relatively small. I think at it's limit, like if spy is 750 and i buy a 1$ strike price for 2029, there will be close to no time value and it will almost all be intrinsic. The time value that's left, given the risk is pretty much zero is just the tradeoff that the option seller could have just bought bonds. So that tiny bit left is actually just based on the fed interest rates. you could take that remaining dollar and put it into bonds and match the performance of SPY. Now suppose we look at a fixed income corporate loan fund. Like JAAA or something like it. This technically has higher risk and so return higher dividend payments than bonds. At this point, by many, these loans are rated higher than the US govt. Whether you agree with that or not, could we not use something like this to beat S&P500? Like lets say i have 75000 to buy spy. I spend 70000 and change to buy a 50 strike leap and use the remainder to buy JAAA. I then collect the dividends which will be higher than fed rates, which will be higher than my tiny time value. By the end of expiration i will have beaten spy by some amount proportional to my strike price and corporate loan fund rate when compared to just buying spy. I aint back testing this shit, so you guys should just believe me.
Real estate involves a lot of expenses, mortgage, taxes, repairs. There is a way to generate income from market investments that doesn't involve selling stock or the expenses of real estate. Most investors today focus on share price growth in there investment accounts. There are stock and Fund that pay Dividneds. Dividends are cash profit sharing cash payments directly in your brokerage account. Now many growth index funds pay a dividend of about 1%. A dividend investor targets higher yields Typically 1% to 10%. Instead of investing in individual stocks you invest in dividend ETF. I am retired and living off of dividend income of 5k a month. I am not selling stock for this income. Since you want the money now and not in retirement you need other use a taxable account. And since dividends generate taxable income we need to invest in things that are taxed at a lower rate. Some good funds to use are QQQI 13% yield, SPYI 11%, IAUI 11% EMO 9% UTF 7%, UTG 6.4%. 100K invested in fund with a yield of 10% will produce 10K a year of income. And all of these make monthly payments. The three funds with the highest yied will be taxed at close to 0% for 7 years for QQQI and sPYI and IAUI are zero for 9 years. The other two will generate tax every year but at a very low rate. Generally you want to avoid using one fund for all of your income. Simply because if one fund develops issues you will still have others generating income. Now I also hive dividned funds in my Roth because they they are taxed at the work income tax rate. Putting dividends in a roth is a great way to to avoid taxes in retirment. My roth has all of the above funds listd plus AARDC 9%, PBDC 9%, CLOZ 8%, PFFR 8%, and JAAA 5.5% and FAGIX 5%. The dividend funds in my roth are generating 5k a month right now.whichis all reinvested right now.
i’m similar tho i just keep cash in SGOV/JAAA/PAAA
With a growth index fund most of the gowth in the first 15years comes from your money deposit into 401k or Roth. There is a limit to hw much ou deposit. and that deposit limit limits the size of the account. Growth index funds don't include BDCs or MLPs businesses. Even VTI which is advertises as the total US stock market doesn't have them. SO You can add PBDC 9% yield, and EMO 9%. And these com\[panies are required to pay ou most of there income as dividends. So the yield is higher than most stock that are not required to pay dividends. If you include these funds in your portfolio the reliable dividend from these companes will continue to come in and you can use the income to add to other funds in your portfolio. In addition debt opbligations such as credit fund, CLO fundsare not stocks but funds investing in these assets also pay very good yield So i also hav ARDC 9%, CLOZ 8%, and JAAA 5.5%. Utility and infrastructure funds are also stable dividend fund and I have UTF 7% yield and UTG 6.4%.
I like JAAA it has better returns than Sgov
Here are some ETFs that are more defensive / capital preservation focused in nature: DGRO, VPU, XLU, VDC, XLP, SPLV, LVHD, SCHD, SPHD, JAAA
Same. Put some in NVO. I like the yield in JAAA compared to SGOV for what seems like very little risk.
In general brokerage money market fund earn about the same ammount of interest in high yield saving accounts. Now not all HYSA and money market funds have different rates so you should look fora yield you like. brokerages generally have more than one money market fund so select the one with the highest yield. These funds are also insured so you likely won't so it is unlikely you will loose your money But in general once you have more than 6 months of cash saved, The excess should be invested. While these funds and bank accounts are safe they barely earn more than the rate of inflation. so it really isn't growing. There are ETF that pay dividends. Which is similar to interest but you can get yields from the current 3.5% to about 10% And some dividend funds funds are tax efficient so you pay less tax on the earnings. Interest HYSA and money market funds it taxed at the highest rate. The biggest risk is you have to buy shares . And if you want to withdrawal all the money you have to sell. And you might sell at a price lower than the purchase price. So dividned ETF are best used with money you don't plan on withdrawing for about a year. some ETF you could consider are: * SGOV very safe government bond funds but the yield is not much better than HYSA. * SCYB coperate bond fund 7% yield. * JAAA CLO fund5.5%yield * CLOZ CLO fund 8% yield. * SPYI 11% covered call fund. This is also very tax efficient * QQQI 13% covered call fund. Also very tax efficient.
IN my root I am investing in my Roth in QQQI 13% yield, ARDC 9%, PBDC 9%, EMO 9%, CLOZ 8%, pFFR 8%, UTF 7%, UTG 6.4% JAAA 5.5%. This would generate substatial income..
Sell FEPI it has serious NAV erosion issues. NAV erosion causes the star price to drop and prevent share price grwoth. As the star price drops you loose your initialinvestment. Also the dividned payout drops with the share price drop. Eventually you loosely of your initali nvesmtne and your dividned income but the NAV erosion keeps the calculated yield high. And CHPY is also at high risk for NAV erosion. The only reason why CHPY does currently have NAV version is due the AI crating a lot of chip demand. Once the AI bubble pops CHPY will have NAV erosion. on The other problem you have is you are overly reliant on covered calls funds. You could sell MLPI and instead invest in EMO with a yeild of 9%, you could also add PBDC 9%, ARDC 9%, CLOZ 8%, PFFR 8%, UTF 7%, UTG 6.4%, JAAA 5.5%, FAGIX 5%. substantial yields without covered calls. And since it is in a IRA no taxes on the income.
I hate to pile on, my friend, but “it pays monthly” is not exactly a good reason to invest in CONY, particularly when there are a million other vocations and investments in this world that pay monthly (SGOV, JAAA, QQQI, portable toilet waste removal technician at a massive summer festival during a heat wave, gravedigger, you name it).
the 6 month emergency cash fund is just the start of what people should do when they get to 100K. Anything in excess of the 6 month emergency cash fund should be invested. In a taxable accout so that you would have more investments you could use for income if you loose your job or have to stop working due to medical issues. Additionally you want a return of about 6% to insure you money grows faster than inflation. there are three basic choices. 1. invest in grwoth index funds just like people do in retirement accounts. There is low tax impact in a taxable account. But you would have to sell stock when you need the money and you might end up selling at a loss. Also if you permenently cannot work your money would run out. 2. Investing bond funds these would produce cash monthly which can be used to cover expense indefinitely if you cannot work. This income could leas the rest of your life but the yield of bonds is in general every close to the inflation rate. Also you pay taxes on the bond income every year. 3. The remaining option is to to invest for dividends. Like bonds they produce cash income. Like bond dividend investing can produce cash for the rest of your life. But unlike bonds you can get yields of 1% to 10%. And surprisingly a dividend fund of 10% yield has no more risk than a growth index fund with average yearly yield of about 10% like S&P500 grwoth index funds. Many people use methods #1.However method #2 and #3 have the benefit that you in that you can gradually increase your income without changing jobs or working more hours. Potentially allowing you to retire beforeage 50 or even earlier. And if you don't need the income for an emergency you can use it to fund a Roth account or pay regular utility bills or even you home mortgage. For my self I chose #3 Some very safe dividned fund are JAAA 5.5% yield, UTG 6.4%, UF+TF 7%, and CLOZ 8%. Some less safe funds I also use are ARDC 9%, PBDC 9%, and EMO 9%. With yield like this you can generate substantial income. With teh funds I have listed 100K invested could genrate about 8K a year. Build that up to 200K you are up to 16K. A little more tha n 1K a month of income. i retired at 55 with 5K a month from from my investments in taxable brokerage account. I could have done this in my late 40s but didn't know much about dividends at time. Additionally not all dividneds are taxed the same so with careful fund selection you can potentially lower the tax on the income you get substantially. Sometimes close to zero.
Interest rates are based on what the government bonds pay. However dividend funds you can get fixed rates of of 5% on up to about 10%. For example in my roth account I only invest for dividends from the these funds: QQQI 13% yield, EIC 11% , ARDC 9%, PBDC 9%, EMO 9%, CLOZ 8%, UTF 7% UTG 6.4%, JAAA 5.5%. FAGIX 5%. With dividend funds you can lock any rate you want. Not a fund can cut or reduce e the dividend due to bad economic conditions but these are rare. With UTF, UTG, FAGIX, ARDC these funds have been paying stable dividend for decades.
As people are their risk tolerance tends to decline nothing wrong with dividend investing at your age. Now government bonds ar the preferred route for many people because the government always pays. But the yield are always small and barely keep up with inflation. If you invest in dividend funds that don't invest in government bonds you ca get higher yields Now I live in the US and don't know anything about your taxes or investment options but for myself I like diviend dinvestings. And JAAA 5.5% yield, UTG 6.4%, UTF 7% and CLOZ 8% all pay more than the long term inflation rate and they are hghly reliable payer. UTG and UTF both have 20 years of no dividend cuts. FCLOZ and JAAA don''t have a long history but the asset they invest in CLOs is a very low risk Asset. So in any recession these should pay out dividend. I also have AADC9% yield about 15 years of history and the dividend is very stable, EMO 9% and PBDC 9%. They have more risk but still reasonably reliable dividend. and the best part is none of these funds are covered call funds. And non have nave erosion. As to covered call funds I have some but NEOs fund like QQQI and SPYI and GIX and GPIQ are all covered call funds with no nav erosion. Nav erosion is normal for any wlell runs dividned fund. NAV Erosion typically occurs in fund that are not well managed or are paying out a dividend higher than covered calls can reliably generate. The covered call fund I have mention have been intentionally setup to pay lower yield and many other covered call funds that have NAV erosion. but with Yield of 8 to 13% they still earn a lot more than the inflation rate. Now with the higher yield from funds like that you can generate more income from less invested. But like I said earlier I don't know what funds are available to your or or the tax laws you have to deal with.
when the market is down bond will still be generating cash you can use to invest or you can live of the cash generated When there is bull market nothing has higher returns than goth. This is has been true for 100 years. investments that generate cash (Bods or dividends) The problem with bonds is that they have such a low yield that they don't really keep up with inflation. But if buy corperate bonds you can get a yield tier than government bonds but there is a risk a bond can go into default. And dividends can be reduce or cut but you can get dividend fund that have yield of 5 to 10% The trick is to select funds that pay more than the inflation rate and don't have more risk than you can tolerate. I have JAAA 5.5%yield in my roth along with CLO 8%, UTF 7% UTG 6.4%, ARDC 9%, and EmO 9%. UTF and UTG have 20 year histories of paying dividends without dividned cuts.
Dividend investors invest in fund like JAAA 5.5% yield, UTG 604% yield, UTF 7% yield, CLOZ 8% yield, EMO 9%, PVDC 9%, ARDC 9%, and QQQI 13%. these yield are much higher than the government and banks are offering. The higher the yield the lower the share price growth. the higher the growth the lower the dividend But higher grwoth tend to come with a lot of share price volatility. high dividend funds often have less price volatility. Now for dividned investors they prefer to buy and hold a dividend fund for a long time. and just collect the dividends generated. Now you can reinvest the dividend back into the fund to gradually increase the dividend or you can simply use the dividned to cover living expenses. Tax are owed on the dividend when you relieve it just like interest from a bank. But not all dividend funds are taxed the same some have qualified dividend which are taxed at a lower rate ROC dividend are not taxed for years but then they are taxed at the qualified tax rate and some government bonds and municipal bond funds are also tax free. Sp ot os possible to to avoid significant ammount of dividned taxes. Now if you only want o the invest the money in a dividend fund for a year and then withdrawal all the money you have to sell shares of the fund on the open market and if the market crashes before you sell you might sell at a loss regardless of how much dividned you received. So for dividned investor you select solid fund and hold as long as they stay good. Some stay god for many decades. Others are simply bad investments. All the finds I have listed above are good solid investments. QQQI is the most tax efficient fund however some of the other are taxed at the same rate as work income. and other will be somewhere inbetween. I am retired and my dividend income from a taxable account over all of my living expenses about 5K a month. When my roth becomes available I will double my dividned income and all the Roth dividend income will be tax free.
HYSA and government bonds don't keep up with inflation once you factor in inflation your total return goes from3.5% to very close to zero or even negative 1%. My Roth currently has about 500K in it and it is invested in QQQI 13% dividend Yield, ARDC 9%, BPDC 9%, EMO 9% CLOZ 8%, UTF 7%, UTG 6.5% and JAAA 5.5% yield. with funds like these you can easily get 8% on your 500K which would generate 40K per year of income. Which is enough income to cover most monthly bills and expense people have per month. You do have to pay taxes on the income but if all you have 40K you would in the US owe about 1K in taxes. IF you use tax efficient fund you could get the tax down to zero.
The big problem with government bonds is tha they barely keep up with inflation. A bond yielding 3% is very safe but if inflation i running 4% per year your effective total return is on -1%. This means you need to look for yield higher than the rate of inflation. I generally I prefer to aim for a yield 6% which is about 2times the long term average inflation rate. You probably aren't going to find government bond with that yield.But you can get corperate bonds yielding 5 to 7% and some muniboxnd funds with yields this high. There are Collateral loan obligations funds JAAA 5.5% yield invest in AAA rated CLOs which in thee 30 years this asset has been availalable there have been no defaults. CLOZ 8% yield invest in BBB rated CLOs which have only a 1% default rate. UTF 7% and UTG 6.4% both invest in utilities and infrastructure. Both have a long histiory of reliable dividned payments. ARDC is credit funds 9% yield. again a long history of paying dividends and no significant yield cuts in its history. PBDC 9% yield and EMO 9% are invested in businesses that are required by law to pay out some of their profit as dividend yield. As a result the yields are higher than most stocks that don't have any legal requirement to pay a dividend. Investing in funds like this can get you a higher total return especially if you reinvest the dividends than government bonds with a yield well above inflation. Now nothing will do better than growth in a bull market but most of the funds I have listed that did exist in 2008 wen the market returned about -40% all payed the dividend And for those funds I have listed that didn't exist in 2008 most of the assets they invest in did very we'll and thy silll payed yield. And with funds like these you can get more income than you can get with bonds.
Ok looks like money added this month will get 4.75%. I have some extremely stable funds such as MINT and JAAA already getting 5% but they are not “fixed income”
So I'm kind of thinking: 40% SGOV-- present through Year 2 of retirement (\~mid-2029) 35% JAAA -- Years 3-4 of retirement, reallocating to SGOV at Year 3 mark (\~2030) 25% VOO -- Years 4-6 of retirement, then reallocating to JAAA at Year 3 mark (2031) Years 6+ of retirement - Turn on SS and begin IRA withdrawals The initial SGOV bucket should last until mid-2030, so I'm being a little conservative with the reallocation timing. Could probably stretch the whole plan out by another year or 2 if I get half-decent returns on JAAA and VOO Does this general strategy make sense?
Yeah, that is why I am doing JAAA. Not corporate bonds but typically pays out about 5% a year. Based on AAA debt so pretty solid.
You could consider a Aaa-rated CLO (JAAA, PAAA, FAAA etc) for a higher yield than SGOV
JAAA or FBND for a little higher return for your year 2 year+ bucket. I might do a small bit of JBBB as well, but not too much. SGOV/HYSA for short term needs mixed with some CDs for 1+ year.
150k in DGRO, 150k in SCHD, 50k in JAAA, 50k in DIVO
Doesn't need to be put in equities. JPIE or JAAA for cash equivalents (roughly 6% yield)
>What about infrastructure software? Waste management? Insurance services that collect fees regardless of market direction? >I keep coming back to businesses that are essentially toll booths - they collect a cut of transactions that happen There are specifically companes that are required by law to pay out most other income as dividends. MLPs companies move oil and gas through pipelines and BDC that loan money to companies. As result of the laws that they must follow they pay higher yields than many other companies. For BDCs I have a ETF PBDC 9% yield and for MLPs I have EMO 9% yield. And there are companies that deal with infrastructure I have 2 such funds I like UTF 7% and UTG 6.4% yield. And we all have to deal with home loans business with buisness loans. These loans are often sold as loan obligations. so when the loan if payment is made most of the money goes to the people that own the loan obligations. I have two C collateral Loan obligation funds JAAA 5.5% and CLOZ 8%. I also have a general credit fund ARDC 9%. All of these funds are consistant dividend payers.
IN the current market it is probably best to invest in some dividned funds or bond funds. The market could crash and the value of your investments would drop but the dividends keep coming in. Dividend ar the investment version of invterest. If you took your 150K of cash and invested it in taxable brokerage accountant deposited it in QQQI 13% yield you would get 1.5K per month. As people get older they get uncomfortable with the risk of growth index funds. So for you it is time to change your nesting stratagy for dividend income The only difference between QQQI and your vangard cash money market account is that you would have to sell QQQI to get your full 150K back you would need to sell QQQI. If the market is up you will likely get some captial gains. But if the market is down you have a captial lose. While QQQI has a nice high yield in a market crash there is a good chance the yield will drop and it may take years to recover. So many use bonds instead of dividned fund but those are paying about 3.5% righ now. However there are some very safe dividend [funds.you](http://funds.you) could use, JAAA 5.5% yield, UTG 6.4% yield, UTF 7% yield, and CLOZ 8%yield. These are about as safe as you can get 6.7% yield you have an equal amount of money in each fund. 800K invested in at 6.7% you generate 53,600 per year or about $4466 per month. Now with this portfolio if the market crashes the value of each fund will drop but you will continue to get your 6.7% yield and 4466 per month. So as long as you just collect the dividneds and never sell you will continue to get moneyUTF and TUG have been paying dividends since 2004. CLOZ and JAAA are new ETFs but they invest in one of the safest assets available except government bonds. I would suggest you read the Book The Income Factory and look art armchair income on youtube.
If you look away from money market accounts, HYSA, and government bond funds you can get dividend funds that have yields of 5 to 10%. Dividend are cash payment made directly into your brokerage acount. You don't see the dividend stock together the money. I a retired and living off of my dividend inomt of 5K a month. Funds I am using are QQQI 13% yeild, ARDC 9%, PBDC 9%, EMO 9%, CLOZ 8%, UTF 7%, UTG 6.4% JAAA 5.5%.
how much money are we talking about here? on the one hand, I get it and sympathize with the goal. on the other hand, the dollar amount matters. if you have $5,000 in this savings account, the difference between 3% and 4% will be about $50/year. not a life-changing sum. I know people who burn $10,000 worth of brain calories to get $500 worth of interest yield and credit card rewards per year. it seems like a wasted effort, a very stressful hobby with spreadsheets. they could earn more cash with an overtime shift every month, but seem to enjoy gaming the system and feeling clever. so keep things in perspective. but for all I know you have half a million cash and 1%/year will be a substantial difference, in which case go nuts. ETFs with "collateralized loan obligations" and "floating rate debt" are not guaranteed and have a more risk and potential tax complexity than HYSA. but they are relatively stable and tend to have a price that hovers in a certain range over the long-run. the yields can be attractive. JAAA has a ~5% yield, JBBB has higher risk CLOS with a 7% yield. FLRN has a yield in the 4-5% range. for a few examples.
Often the reason for multiple CDs in a single bank is because they are creating a CD ladder. Money in a CD is generally not accessible until it matures. So they invest iin a 1 year CD and then next month they invest in a second CD. So after one year once a month one CD expires. If you need the money you withdrawal it or your reinvest it into another CD. You can get higher interest rates with CD than you can get from a high yield savings account. And the money is FDIC insured. An alternative of a CD is a dividend ETF. For example JAAA has 5.5% yeild. CLOZ has a yield of 8%, and ARDC 9% a they payout monthly. They are not insured. But they can supply a continues steam of income for bills or retirement income. Much higher yields than CDs. And is there is a market crash these funds will continue to pay high yields.
There is a r/ fire sub were people discuss investing for retiring before age 60. Age 60 is a required retirment data. it is just the date that the retimrent funds open and allow withdrawals without penalty. You don't need to use a retirment account. you can use a taxable brokerage acount with no restrictions on deposits and withdrawals. Yes you owe taxes when you receive dividends or sell stock. So investors need to understand taxes and learn how to estimate the tax impact. But beyond that you can retire using a taxable account. After I started my retirment fund and set up a saving account. I started investing in growth. The idea bing that if Islet my job I could sell it off for additioanal income. Turns out I worked 32 years at that company before I retired. So I had amassed substantial ammount in growth. I then learned about dividends So I sold off much of the growth and reinvested that money for dividneds, At 55 i retired with 5K of of dividend income. If I had known about dividned income I possibly could have possibly retired 10 years earlier if I had knowns about dividends earlier. I am still a few years away from 60 so I am moving my 401k into my roth and investing specifically for dividends. Using fund like QQQU 13% yeild, ARDC 9%, BPBDC 9%, EMO9%, CLOZ 8, UTG 7%, and UTF 6.4%, and JAAA 5.5%. currently I am getting 5K a month from dividends from the investments in the roth. which is being reinvested . I you take these same funds sandpit them in a taxable brokerage account and build that up you could get enough income to retire when you want. I would recoment you read the book the income Factory and look at armchair income on youtube.
For those wanting to retire early by selling stock for income the recomendation is to have 25 time your living expenses. for dividned you could get buy with about 2.5 times living expenses. The key is to aim for yields of about \^% to about 12%. I'm using funds like QQQI 13% yield , EIC 11%, ARDC 9%, PBDC 9%, EMO 9%, CLOZ 8%, UTF 7%, UTG 6.4%JAAA 5.5 % for dividend income For more fund ideal look at Armchair income on youtube. He is investing exclusively for dividend income in retirment.
Must be friday All the anti dividend /Passive income people have spammed this post. yes safe bonds and HYSA don't pay much in yields. But there are dividend funds that pay much higher yields. QQQI (A covered call fund) for example has a 13% yield. Not the highest yield available from cover d call funds but It doesn't have any of the problems the higher yield funds have. 4.5 invested in this fund will produce $585 a year not much. But is you deposit 500 a month for 10 years you will have 125K and the yearly dividend of 16k a year. A little over 1K a month. And you pay less taxes on the dividends so it is a tax efficient fund. The key to high dividend income is to consistently depositing money every month to build up a large portfolio. Not covered call funds are not the only choices In addition to QQQI I have ARDC 9% yield, PBDC 9%, EMO 9%, CLOZ 8%, UTF 7%, UTG 6.4% and JAAA 5.5% I have these in my roth and they are currently pumping about 5K a month into my roth. I also have some in a taxable brokerage account so I can access the cash now.
At some point people need money from their investments. Now you can sell for income or invest for dividends. I am 55 and my current dividend income is 5K month and I retired and that covers my basic living expenses. By age 60 when I have access to my retirement account I should have 10K a month of dividned income. My dividend investments right now are QQQI 13% yield, ARDC 9%, PBDC 9%, EMO 9%, CLOZ 8%, UTF 7%, UTG 6.4%, JAAA 5.5%
I have batch 30% yield, QQQI 13%, SPYi 11%,EIC 11%, ARDC 9%, BPDC 9%, EMO 0%, CLOZ 8%, UTF 7%, UTG 6.4%, JAAA 5.5%
Inflation often comes in one short surge than drops. The long term average inflation rate in the US is 3.2%. So it will probably not be as bad as you think but the future is unpredictable. I suggest you look into a different retirment stratagy that doesn't involve drawing down your portfolio. Let's assume you need 100K to cover living expenses in retirment. you could set asside 1million in your portfolio into dividend funds and get about 100K in dividends. Dividends are profits of your investors distributed to you as cash without selling shares. There are people that have retired on 200K of dividend income per year. Also on risk no one plans for is an injury or medical issues that prevents you from working. Effectively forcing people to retire early. One thing you can do is to invest in dividend income in a taxable acccount. I retired early with 5K a month comming from dividend funds in my taxable account. I would suggest you read the book The Income Factory. And Armchair income on youtube is a good resource for fund ideas for an income factory. Some of my favorite dividend investment are QQQI 13% yield, ARDC 9%, PBDC 9%, EMO 9%CLOZ 8%, UTF 7%, UTG 6.4% and JAAA 5.5%. You can add government / cooperate bonds and municipal funds.
Gold doesn’t pay you, but I like it too. Within your ROTH you won’t get taxed on dividends. I’m not a huge fan of government debt, but I do like SPHY and JAAA. It’s like a high yield savings within the ROTH. Yet if you’re hellbound on growth, it won’t help. Might want to sprinkle in some energy like XLE, since it goes hand in hand with tech.
A chill portfolio this close to retirement should have some easygoing income ETFs in it like SPHY, JAAA, BND. You don’t want a AI bubble pop harshing your retirement mellow.
Long JAAA + short HYG
JAAA or SGOV until the real dip
Generally the starter recommendation is to establish a retirment acount and deposit the maximum allowable (if possible) and establish about 6 months of living expenses theIRA don't invest the money you put into it. You have to choose the investments and how much of the money goes into each fund. After that many people just stop. My recomendation is that the emergency fund should be in a money market account in taxable brokerage and then I would start slowly building a dividend fund. Dividend fund distribute their earnings quarterly or month though cash dividend payment directly to your brokerage account. that money can then be invested or spent as you wish. I would slowly build up money in this fund and then when it exceeds $600 a month invest the dividend income in the Roth and continue to build the dividend fund in the taxable account. Any extra dividend income can then be used to pay uitility, gas, food bills while you continue to add money the dividend fund. The overall goal is to eventually have enough dividend income to cover your living expenses so your work income could be deverted to other uses. This would also insure you have income if you loose your job or cannot work for midical reasons. I now have enough dividned income to cover all of my living expenses. About 5K a month. QQQI is a good starter fund for a taxable brokerage account13% yield and it is tax efficient fund. It would also work well inside the roth with VOO keep 50% of your deposit in QQQI and 50% in VOO in the roth. You could also di the same in taxable brokerage. Eventually you could deversify to other dividned funds. My Roth it is just invested in dividend funds. I am currently using QQQI 13% yield, EIC 11%, ARDC 9%, PBDC 9%, EMO 9%, CLOZ 8%, UTF 7%, UTG 6.4%, JAAA 5.5%. And you could VOO to that if you want.
First off build your emergency fund and invest in your employers retirement plan or a roth if they don't have one. Growth index funds are find one theretirment account. If you want to be able to access the money then I suggest you open a taxable brokerage and invest in dividend funds. Dividend funds produce passive income. You don't have to sell shares to get the income. The passive income will be invaluable if you loose your job and unlike a cash emergency fund the passive income will not run out of money. you Couldstart out with a fund like QQQI 13% yield and it is tax efficient. For now simply have the dividends reinvested. But it is a good idea to have multiple funds which invest differently. If you have need fro the money you can turn off the dividend reinvestment and just collect the cash in a money market fund. With 50K invested in QQQI it will generate about $500 a month. As you gradually build the income you could start using the income to cover monthly bills and maybe eventually get enough income to cover all of your living expenses. Allowing you to invest more of your work income. I have been working on this for a while and I get 5K a month of income from dividends which is enough to cover all of my living expenses in a high cost of living area. I am currently using the following funds for income QQQI 13% yield, SpYI 11%, EIC 11%, ARDC 9%, PBDC 9%, EMO 9%, CLOZ 8%, UTF 7%, UTG 6.3%, JAAA 5.5%, I was able to retire at age 55. But if I started dividend investing earlier I would have retired much earlier. Now you could have a growth index fund like VOO in the account as well.
Yesterday late morning Eastern Time I pulled the trigger, mostly cash and currencies now. And JAAA.
I wouldn't base the decision on the interest rate. If you don't like the money market interest you can always invest money into a dividend EFT and get bitterly whatever yield you want. One ofmy favorit ETF is QQQI with a 13% yeild. Yes it has more risk than a money market fund. Or you could with CLOZ 8% yield or JAAA 5.5% yeild, both are much safer than QQQI and both easily have higher yields than any money market accounts. I would base my decision
Put a little in a few covered call ETFs because they do well with the market votality. The rest in either SGOV or JAAA. Everything else IMO is a gamble
Yeah I’m considering TIPS but the yield is shitty and going down in the short term. If it’s looking like rates have bottomed I may buy some. Agreed about REITS, choose wisely but they will continue to pay, if you choose something with a long enough average lease. O would be perfect as a 10% allocation. SCHD is probably a good bet, a quality ETF. One of the ETF’s focussed on FCF (COWZ etc) and VGK. I’m also holding plenty of SGOV, JAAA, a bit of PCN, some emerging market government bonds. If tariffs are bazookered, taxes will need to go up and I’m hoping inflation will be DoA. We can all dream.
Switched over to JAAA bonds for half my portfolio last week. If I miss out on some upside, then so be it. Just gonna wait for the bottom and collect my 5% until whatever the fuck this is passes.
Long term investing has been (relatively) easy for the last 100 years or so. Buying the S&P 500 and resisting to urge to sell when things feel uncertain was arguably the only advice an investor needed to succeed. The firs growth index fund became available around 1980. retirment funds also became available at about the same time. But both don't really become widely available until about 90's. Prior to 1980 the common investing stratagy was to invest for dividned stocks and and picking growth stocks. And what you are seeing today is not really different than what people were seeing in the late 90's if you subtract everything trump does. Investing and holding the S&P500 but good investors don't stoop there or stop at the 6 month emergency fund. Some people now are starting to add more bond and dividend funds. in Bear markets growth can be hard to find. But dividends keep common and pond keep paying. and don't limit yourself to fund paying a divined of 5%There are good dividend funds that pay %% to about 10%. I like QQQI 13% yield, SPYI 11%, ARDC 9%, PBDC 9%, EMO 9%, PFFA 9%, CLOZ 8%, UTF 7%, UTG 6.3%, JAAA 5.5. Another thing people do is after their retirement funds and 6 month emergency fund are setup people start investing for dividends in a Taxable account. Why we all have mostly bills to pay including home mortgages and rent. Everyone is hemorrhaging money monthly. So some people start investing for dividends in a taxable to with a goal of covering common monthly bills. It takes time but eventually you could get enough income to cover much or all or your monthly expenses.
If you are interested in private debt (or credit), consider a CLO ETF suck as CLOA, CLOI, JAAA. For better returns but more risk, JBBB or similar. I am a long term CLO investor and pleased with the risk/returns, but it may not be for everyone.
Some people don't tolerate market crashes well panic and sell at a loss.Typically this is common in those that are older and have no experience with investing. You know your risk tolerance but do you know your moms? Typically these people do bettrterwith dividend stocks or funds. In the US I like QQQI 13% yield, SPYI 11%, ARDC 9%, BPDC 9%, EMO 9%, and CLOZ 8%, UTF 7%, UTG 6.3%, JAAA 5.5%. The lowest yield funds are the safest and even the higher yielding funs a very good. She won't see big big gains but she will see consistant quarterly or monthly payments.
5-7 years? SGOV or JAAA if you are feeling spicy.
Serious? Split it in two. Dump 1k into something like vanguard, 1/3 into VT or VTI, 1/6 in BND, 1/6 in GLDM, and leave the remainder in JAAA as a cash like position at 5.48% APY. Ignore it for as long as you can. Have fun with the other 1k. Whatever that means.
I subscribe to an AI that swing trades the broad market on leveraged ETFs TQQQ/SQQQ and throws money into JAAA when market is at higher risk. Started a little over a year ago. Backtest looked promising, and the real money account results have been good. Can’t complain. https://preview.redd.it/9x3bndw8xu9g1.jpeg?width=1892&format=pjpg&auto=webp&s=6dcbc3d2d172cf6f144d6875308e9d7520ccf0f5
First step would be to increase if possible the amount deposited per month in your IRA. IF that is not possible you can open a Roth IRA at any brokerage That would allow you to save another $7000 for retirement. With both IRA and Roth their restrictions on whithdrawaling the money before age 60. IF you want access to the money at any time without restriction you need to open up a taxable brokerage account. Many with growth investments in their retirment accounts will continue with the same growth investments in a taxable account. But others prefer to invest for income in the taxable account. a good money market funds is equivalent to a bank High yield savings ac counts. I encourage you to keep 6 months of cash in brokerage money market account. But any additional money should go into a high yield dividend funds CLOZ is one very safe fund to use with a 8% yield Don't automatically reinvest the dividends. When the cash dividned is payed it will then show up as cash in you money market account. You can then use the money to pay bills or other expenses or reinvest the money in a Roth account or invest the money in CLOZ. Never sell shares of CLOZ. If you sell shares of CLOZ the dividends will stop coming. Now you can invest in other dividend ETF than CLOZ. QQQI has a yield of 13% and you pay less tax on the dividend income. QQQI has more risk than CLOZbutit has the very desirable yield. Now yields above QQQI are available but many of those funds don't last long and you gradually loose your original deposit. I am currently getting 5K a month from my taxable brokerage acc count using QQQI, SPI, EIC, ARDC, PBDC, EMO, CLOZ, UTF, UTG, JAAA. overall this has a yield of about 10%. Now to get 5K a month form such an account you need to gradually over time depoist 500K into the dividend portfolio. The rewards of having this much passive income are worth it.
US government bonds are considered to be zero risk by most people. But the industry sees a risk of the US defaulting in the future and so there is an implied 0.5% risk. JAAA is just above that but stil about zero risk. Note JAAA invest in investment grade to senior operate loans which in the 30 years this category has been available zero defaults. JBBB and CLOZ (8% yield) invest BBB grade loans and has a 1% default risk. Even in 2008 BBB trade CLO funds had a default rate of 1.2%. Note the big problem in 2008 were mortgage backed securities which were marketed with a AAA rate that was way off the mark. mortgage backed securities had about a 50% failure rate. There is another asset you should consider is cooperate bonds. BBB rated bonds have a historical 4% failure rate. Many call these (Junk bonds). But when you roll bond from hundreds of companies in a ETF the combined risk is a lot lower. Junk bond funds typically pay a dividend of 7%. So overall all of these funds are excellent for short medium term savings. Not that is a serious market crash panic selling takes over. When people panic they sell everything regardless of how good or bad it is. So in a panic sell off the share price of everything drops by a lot. So even JBBB and JAAA saw price drops due to the april tarif news but quickly recovered as sanity returned to the trading floor.
S&P is popular due to its high growth. In economic downturn growth will mostly vanish. But growth stocks are not the only investments out there there are a lot very good dividend funds available. These don't have much if any growth but they pay you cash monthly or quarterly. Some good Examples are ARDC 9% yield, PBDC 9%, EMO 9%, PFFA 8%, CLOZ 8%, UTF 7%, UTG 6.3%, and JAAA 5.5%. You simply buy and hold the fund. The cash dividend is deposited into your account the market will go up and down but dividends keep paying. regardless of what the shar price is going. I currently get 5K a month from dividends.
I see. Yeah, SGOV is 4.4% YTD return and I don't know of a HYSA that's over 4.5% APY without some sort of temporary bonus. I've only seen JAAA suggested in other posts about SGOV. RN I only have under $20k in SGOV, so not enough to make a huge difference in return, and Im slowly teaching myself and asking kind folks like yourself about my options. I just need a reliable return for whatever cash I have saved
I think there won't be much difference between the HYSAs and the short-term treasury ETFs in 2026 compared to 2025, because basically they compete with each other, so when the ETF yields fall, the HYSAs don't have to offer as much. You might be able to eke out a few basis points more in some HYSAs if you can find them. Someone asked last week about JAAA and JBBB I think, I don't know if it was you, but if you look at older posts here or in r/Dividends you might find it and some opinions on them. I looked at JAAA and JAAB and they have higher yields but they are invested in corporate CLOs, so they're not going to be quite as safe. JAAA's NAV has been declining also. It was $51.04 on the last day of Jan and $50.73 on the last day of Nov. 31 cents doesn't sound like much, but that's 0.61%. It also took a (temporary) dive on Liberation Day, while SGOV didn't bat an eye.
I'm projecting onto OP, but I would also like to know if SGOV is a good "HYSA alternative" for 2026, or if JAAA or something else functions better? I wasn't going to chase APYs, so I switched to SGOV. I should have a 401k or more diverse investment portfolio, but work has been sporadic the last few years. I'm just trying make cash I have do some work too.
Saving on the NY state tax is nice, but you could just buy BOXX and not pay any tax. They’ve managed to avoid paying out distributions all but one month in their history. And it’s “yield” will be comparable to SGOV. I have used JAAA for cash I wouldn’t touch for 6-12 months. You could honestly use it for an emergency fund too, as long as you have probably 20% more than you think you’ll really need in that fund
rate cuts bringing cash yield down to 3.5 im slowly moving my SGOV into JAAA and so are the big bois check after hours 5 mil volume today alone been getting bought every single day in the AH div stocks will continue to pump as smart money positions into high yield assets while growth bleeds the rest of the year calls on div stocks are free money right now
I would gradually sell it off and reinvest it. yOU could reinvest some in JAAA 6% yield,9%.CLOZ 8% yield these are veritable reliable dividend payers, Keep each at 50K invested. Then add 50K in UTF 7% UTG 6%, PFFA 8%, PBDC9%, EMO 9%, ARDC. These funds produce income you could use to pay utility bills rent, mortgage. roth deposits or simply be reinvested in these funds. If you sick or injured injured or become unemployed for an extended period of time you can use the income to cover expenses until you can return to work. Or you could invest in growth index funds. If you have a big unexpected expense you can sell the growth shares you could get enough money to cover the expense.
I would put it in QQQI the high yield from this fund will generate about 1K of income a month. You can use this income to help cover living expense or used to make deposits into your Roth IRA. Or you could add more money to QQQI to get even more income. I did this and added more funds like SPYI, EIC, ARDC, EMO, PBDC, PFFA, CLOZ, UTG, JAAA. Today I have 5K a month of income from these investments.
AAA CLOs, still just over 5% (JAAA, PAAA, etc)
JAAA is pretty safe at near 6% but its not zero risk. if you went with a bucket of 40% JAAA + 60% SGOV or similar - you would average out near 5% and reduce the already minimal risk. (or throw 10% in sp500 and boost your risk and hopefully increase the return as well)
Any dividned ETF with a yield of 1% that pays monthly well generate JAAA 6% yield will pay $60per year in $5 monthly installments. And you don't have to sell shares to get the money. It is simply deposited into your brokerage account. CLOZ 8% yield $6.6 per month. QQQI will generate $10.8 per month.
Your at a point were you need torethink how you invest. You can keep in vin sting in growth index fund (all the fund you listed ar growth index funds. I would suggest investing you money in the taxable account into dividned ETF. Dividends are cash profit sharing payments to you. For example you could put money in your taxable brokerage account into CLOZ with a 8% dividend yield. 100K invested in that fund will generate all the money you need for your roth deposits. Or you could use the money to pay bills and other expense. You can get yield from 1% to 10% with about as much risk as your growth index funds. CLOZ actually has less risk than growth index funds, I have fund these dividend funds in my taxable account EIC 11%, PFLT 12%, ARDC 9%, EMO 9%. PBDC 9%, PFFA 8%, CLOZ 8%, UTF 7%, UTG 6.3%, JAAA 6%
buy age 60 most people become risk avers. So if you put him in VT and the market crashes he will likely sell VT at a loss. it happens all the time. Good bond funds are really a better investment for people 60 or older. government bonds are more stable plus they produce income which is what older people really want. As long as the income keeps coming in they will be hesitant to sell. But don't just rely on government bonds. there are some good cooperate bond funds and CLO funds you could add to. I currently like JAAA 6% and CLOZ 8% yield. Very reliable dividend payers.
What bonds do you have? At the moment I can’t bring myself to buy bonds over JAAA/SGOV
I did that and I am now retired at 55 and living off of my dividneds. Currently at 5K a month of income. Enough to cover my living expenses. I would like 100K in retirment and I estimated my tax for regular dividends with no other income and found my tax owould be 15K or 85K of income after taxes. It will be a few years before I get there. So it is possible to do it with just high tax regular dividends. Qualified dividends have a lower tax. But they are other low tax operations municiable bonds and ROC dividends. ROC means return of capital ( a tax classification) and freaks an out a lot people but A good fund can have ROC dividends by doing tax loss harvesting while earning a profit from your investments. This creates the ROC classification without returning any of your investment. The advantage Of ROC dividends is that you pay no taxes on the dividend. But when the cost basis of your shares reaches zero (which takes years you pay long term captial gains taxes which is the same as qualified dividend. Neos has some ver good covered call funds (see their website for a full list. But two of my favorit are SPYI 11% yield and QQQI 13% yield. You won't find qualified stock or ETF with this yield. And with these yields you can build up passive income faster than you can with qualified dividends of Note some other funds I hare (most are regular dividends) are : EIC 11% yield,, PFLT 11%,EMO 9%, PBDC 9%, ARDC 9%CLO 8%, UTF 7%, UTG 6.3, and JAAA 6%.
I see two basic mistakes people are making. >Completely ingnoring dividend investments and just investing just in growth. >Focusing only on retirment and investing taxable brokerage account that can help them cover living expenses now rather than later. Dividend play an important part in the overall market. And ignoring basically leaves potential earnings out of your investments. Growth can make you rich really fast but It can vanish just as fast without you doing anything. Dividend income is much more stable an can allow your Roth or 401K add more shares of stock while you are unemployed and the market is down with minimal or no growth. Also with all the focus on retirment many ignore the advantages of taxable brokerage account. Today many only only have money market accounts (that are basically HYSA) in a taxable brokerage. Frequently you see people post they yield of the money market account or HYSA is dropping and they are looking for a higher yield. And often the ammount of money list is well over the 6 month emergency savings recommendation. Most of these I got a higher heat at X brokerage or invest in SGOV. funds like JAAA 6%yield and CLOZ 8% yield are both very low risk funds that easily earn more than HYSA and money market funds. And there are some really good dividend funds with yield in the 9% range. In my opinion once you reach the 6 month emergency fund level you should invest for divines to slowly convert your emergency reserve to a dividend passive income fund. Keep the emergency reserve but add enough passive income from bonds and dividend fund to generate enough cash for your yearly roth deposit or use the passive income for you monthly bills. Passive income from bonds or dividends never runs out it is continuous income. The 6 month emergency fund only last 6 months.
If you're going to park a 'substantial amount of money' somewhere you should be able to look this stuff up and know what you're getting into. Else you're probably better off with SGOV or a HYSA instead of chasing a better yield. There's no such thing as risk-free, high return investments. PFRL is probably more risky than HFSI, but it's the type of risk that makes it interesting to me. The majority of their holdings are in senior secured loans from major institutional banks. My biggest concern is a 2008-style collapse and a wave of defaults. But relative to the market at large, it has not experienced wild price fluctuations. The biggest drop in price it has experienced in 3.5 years was Great American Tariff Day. While most of the market plunged, it dropped from about $50 to $46 and was back up within about 2 months. Otherwise it has been very steady - similar to funds like JAAA. The relative stability and utilization of senior-secured loans make it more attractive to me than something like PHYZX. But I am not a financial expert and you should do your own due diligence. I'm just sharing some funds to look into.
JAAA maybe - historically it has been pretty safe - but there are some warning signs in private credit (eg the implosion of Tricolor) that would make me hesitant to use it replace SGOV. Maybe a partial allocation? I have also thought about making a small allocation to TLT which might benefit more from deflationary pressure during a recession, but don’t feel like I understand enough about how the long bond market operates to understand wether that upside is worth the added volatility despite similar yield.
Buying SGOV does give 3.9% and doesn't require paying state income tax, although as an emergency fund it may take more time to settle and use it as cash. There are corporate bonds like PAAA and JAAA which give over 5%, although it requires more risk tolerance. Ideally you might prefer having the ability to quickly use your funds in an emergency without having to worry about any possible depreciation of their value. What I can probably recommend is to look around for the highest yield savings accounts on websites like depositaccounts.com.
What about something like JAAA?
The highest utility from investments comes from cash dividends. you can spend the cash on enacting you need or reinvest it. Growth is nice but it isn't real until you sell it and cover the income to cash. My roth is invested in BTCI 25%, QQQI 13% yield, PFLT 12%, ARDC9%, EMO 9, PBDC, PFFA 8%, ClOZ 8%, UTG 6.3%, JAAA 6%. These investment in my roth generate about 30K a year in the roth. Which I reinvest. IF you use a taxable account the money could be used to cover living expense ore reinvested.
At this point in like you should have about half of your IRA invest in bond or dividend funds that produce passive income to cover your bills. You want enough passive income to cover about 1.3 times your yearly living expenses. IF you don't spend all of it in a year reinvest the excess. Bond are nice and safe but the yield is low so you might be short on income if you just use government bonds. With dividend income from dividend ETF the yield is higher and you should be able to get the income you need. If you invest in finds like JAAA 6% yield, CLOZ 8%, PFFA 8%, PBDC 9% EMO 9%, you should be able to create a portfolio with an average yield of about 7% to generate 56K a year of income. As long as you are working you can reinvest the income to grow your portfolio even more. You might want to read the book The income factory and look at armchair income on youtube for additional fund ideas.
What are you taxes on the HYSA now assuming it has the ammount you want to invest? It isn't likel that much money. For HYSA you are now getting about 4% yield and it is likely dropping. You could open a taxable brokerage account and put your money in a dividend fund like CLOZ you would get 8% yield payed monthly with can be reinvested in the fund or spent. You can make adjustment with your work tax withholding to account for the extra income. if you slowly build up the money in the fund it will eventually produce enough to start covering some of your bills. And eventually it could cover all of your living expense. If you don't like CLOZ you can use QQQI 13% yield, SPYI 11%, EMO 9%, PBDC 9%, PFFA 8%, UTF 7%, JAAA 6%.
If you want to retire before age 60 you need to have taxable account to provide you with income until age 60. So this typically means people have a taxable account and retirement account. And sometimes just a taxable account. Now in a taxable acount the tax is generated by dividends, and capital gains from the sale of stock. Often dividends is what people worry about the most because that is taxed on the year it is received. Capital gains taxes mainly occur when you sell share with likely won't happen until you retire. Now an easy way to avoid dividend taxes is to use an ETF with a very low dividend. Growth index funds typically pay a dividend of 1%. So the dividend income on 1 million in invested is only about 10K. Since growth index funds average a total return of about 10% a year most people invest in these funds and then sell off about 4% a year for income when retired. At a 4% liquidation rate the income should last 30 years. 30 years is fine if you retire at age 60. You likely will die in 30 years. But if you retire at age 40 you need income for about 50 years. Which teams a withdrawal rate of 3% or less. Which also means you need to save a lot more money. These is another way to FIRE that doesn't involve liquidating stock for income. Invest for dividends. Using dividend ETF. You can easily get a dividendyeild between 5 and 10%. And dividned income doesn't involve selling shares. So if you save up 1.5 million and invest in a portfolio yielding 7% your after tax income would likely be around 80K a year. So you could focus on taxable account and build up a dividend portfolio using funds Like QQQI 13% yield, Spy 11% yield, PBDC 9%, EMO 8%, PFFA 8%, CLOZ 8%, JAAA 6%, and UTF 7%. you can do it . Now you likely would have to make quarterly 5K estimated tax payments to the IRS. But despite that you still have enough income for retirment. And if you take 7000 of that dividend income you could put that in a Roth to build up more tax free income. you can use after 60.
Most of your investment are growth funds. meaning 99% of your earnings comes from share price increase. There are fund that invest in companies with little to no growth but they produce a profit sharing cash payment to you about once per month or quarterly. So when the market crashed these stocks still (of at least most of them) still pay a dividned. You can get dividends from 1% yield to 100%. but for what the best rang is about 1% to 8%. Some of the safest don't even invest in companes. Bond (corporate and government), and Collateral loan obligations are some of the best. Some of these that I will probably be adding to my portfolio are JAAA 6% yield, UTG 6.3%, UTF 7%, CLOZ 8%, PFFA 8%, Inane bear market dividend producing assets do better than growth assets. In a bull market growth does better than dividends. Since about 1/2 the time the market in a bull or bear condition it only makes sense to have a protfolio that is a mix of dividend and growth.
Crash resistant fund are generally dividned funds that in vest in very stable assets. These funds will go up and down in share price with the market but even in a sever crash like in 2008 they likely will continue to pay a dividend. Some of the best ones I know of are JAAA 6%, UTG 6.3%, UTF 7% CLOZ 8%, PFFA 8%,
You chasing returns and constantly checking your portfolio as a reasult. most growth index funds average about 10% a year. You could rediscover what your dad did. Dividend stocks. Is your dad constant checking the market and stressing about when the buy and sell? Likely the answer is no. For example you could invest in JAAA 6% yield ,UTF 7%, CLOZ 8%,PFFA 8%, without doing daily checks. Also with dividends stocks like these you they alway pay a very stable and predictable dividend. dividend cuts are rare with these funds. And you can boost the dividend to about 10% buy adding some higher higher yield funds PFLT 12% PBDC 9%, EMO 9%SPYI 11%, QQQI 13%. For dividends you buy and hold. With many of the funds I have list they deposit cash monthly into your account. Others deposit quarterly. Also many worry about market crashes with many of the lower yeild funds will continue to pay even when the market is down a lot. I ha30K of dividned income before Covid. The market crashed and 50% of the stock price disappeared quickly. But my dividned chacks came in on schedul and I still got 30K a year. And after covid the shoe price recovered with the market. Today I retired early at 55 and have 5K a month of dividend income from a taxable account that coves all of my living expense In Fact I routinely invest 1K back into the market. You can get this level of income with about 500K invested at a 10% yield. Just invest what you can monthly and reinvest the dividends. It will take time but you will get there. If you want you can start with the higher yielding funds first and then switch to the lower yielding funds. and your can use the dividends from a taxable account to fund your Roth or pay regular monthly bills. day trading and growth investing is like making bets a a football game and watching the gave.. Dividend is like watching plants grow. you wanch and occasional trim.
Then you can't hold anything in your portfolio other than SGOV and maybe JAAA. There's always the possibility of a crash. Maximize your income, minimize your spending. Gambling on stocks is just as likely to make you less wealthy than you could've been by 38.
Moving assets to income producing securities should be done before you get to retirement to secure reduce your risk. BND is a good choice but there are many good choices. Funds like JAAA 6% yield, JBBB 7.8%, CLOZ 8%, UTF 7%, and UTG% 6.3%. All have higher yield than BND and other government bond funds and historically are very safe investments. less safe but still not terribly risky are PFFA 8% yield, PBDC 9%. But you also need to factor in your expected income needs. you need to have a good estimate of your income needs in retirement and then gradually work on configuring your portfolio to generate more than that income. IF your account generates more than you need and you reinvest the excess income you will never run out of money.
100k VTI, 20k VXUS, 20k QQQM, 10k JAAA
Park your current money in JAAA or similar until after the Supreme Court rules on the tariffs and the government is back open again and the picture is more clear. Or buy things that are devalued currently. Euro stocks you said yourself in particular in France due to political turmoil there are at a discount. Critical element miners may have room to run here and in Australia depending on how negotiations with China go. I don't know. I'm holding until the tariff ruling. It may be priced in already I have no idea but it's the next catalyst I see. Tech earnings will be in by then also and things will hopefully make more sense.
You’re very welcome. Yeah the timezone is a pain, but also forces me to be disciplined. The US market shouldn’t be doing what it’s doing, based on the actions of the current administration. Who knows where it will end, but it won’t end well. I’m now concentrating on the call side more than the puts, I’m now at around 10% cash and looking to get to around 30% over the next month or two. I also have some hedge contracts in place on SQQQ which will protect around 25% of the remaining portfolio in case of a market crash. I’ll continue with options right the way through, but honestly the senses are tingling right now haha. I’ve been sitting on 20% cash in my four fund portfolio (using JAAA to squeeze a bit of yield) but remain 100% invested in the dividend account. All have margin available for after whatever crash happens. I’m too close to retirement to be taking more risk than that. It’s been a fantastic year, I’m up over 35% across all accounts so I’m being super cautious from here for a while. Watch then, as the market continues to rip up another 25%!
Most peop le keep money money market fund or HYSA. This is find with 6 months of cash but if you are unemployed at the start of recession you could be out of work for a year or more. At that point your emergency fund is gone Now what? At some point it is better to invest the money into dividend fund that will provide continuous income. Say you have an emergency fund that has grown to 100K. If investing in a HYSA account yielding 5% you get 5000 a year of income. But if invested in a fund with yield 10% you are getting 10,000 a year. pu that to 12% and you now get 1K a month of income Enough to cover basic needs. It is not unusual to see people with 300K in a HYSA. That could generate 30K a year, just under 3K a month of income. Now if you need money you don't need to liquidate the fund for money. You can set up a brokerage account so that all the dividend money will go into money market account. So you can have a 6 month emergency fund. And if the cash fund is large enough you can reinvest the money back into the dividend fund for more passive income. The passive income could be a bond fund or a safe CLO fund (JAAA 6%, and CLOZ 8%). Or it could be a higher yield fund like QQQI 13% yield is a good choice. In addition to its high yield it is also tax efficient. With a good dividend fund you could keep your emergency fund full and grow passive income Eventually you could build the dividend fund to produce enough inocme to produce enough income to cover all of your live expenses.
No emergency fund. Take out margin against your assets if you need the cash Plenty of places to earn good interest like CLOZ, JAAA, etc
At that point I would go for JAAA which is practically like a bond but has over 5% returns
I like JAAA. It's above cash/money market on the risk score but the additional risk is compensated by a higher yield.
A mixture between stocks and bonds. like 60% VT + 40% BNDW. For corporate bonds, you may buy JAAA/PAAA/CLOA, but honestly BNDW is fine as it includes corporate bonds
Hold gold, bitcoin, and bond like stocks such as VZ. Also BDCs like MAIN or a BDC ETF like PBDC. These are not correlated to the equity market directly. On some red days I see all of these go up and vice versa. These will smooth out the volatility. Also hold corporate bond funds like JBBB or JAAA or even STRC which pays 10% and has stable nav.