JEPI

Striking-Block5985

try and income fund like JEPi/JEPQ. SPYI etc. They do all the covered call selling for you./ JEPI will give you $80'000 in income every year

yodamastertampa

SCHD has long term data but still performs poorly. JEPI also has a long track record in CC funds but underperformed all its peers.

Nuclear_N

Find the flow charts that tell you where your money should be going. You already have accounts, so you know how to save... So I guess you are asking what to invest in... The SP500 is the market. this is the baseline for your investments. FXAIX is one of the Fidelity mutual funds, but there are many. Bogleheads is a standard investment method which takes a split into more safe versions. At 40ish I think the 500 is a great option. I also do QQQM which is the nasdaq and more risky. FSELK is a chip mutual fund that is one of the top performers, but with that comes risk. I would stay away from bonds, and keep the HYSA, you could look into high income bond funds with dividends...JEPI is one of them. Remember...this is long term. If you are in the 500, stay there. do not panic when it falls...which it will. Do not sell. Just hold it for 20 years.

Pristine_Contact6451

Yes there are. And that is the basis of JEPI. Let them do the work and maybe always buy the dip. I just don’t have any disposable income because I shorted PLTR and now I work at Wendy’s.

_jasmin17

i think you have a solid list, but a lot of your ETFs overlap in strategy, and you can trim these down specifically, SPYI, QQQI, JEPQ, and JEPI all distribute monthly dividends by selling covered calls. i’d just hold JEPQ and JEPI because they are larger funds with lower expense ratios, and they are the same strategies as the other two ETFs similarly, SCHD, DGRO, and HDV all target dividend stocks. there’s effectively no difference between investing in a dividend ETF that distributes quarterly and investing in a regular index ETF and selling it yourself. personally i’d put all my money in VOO over these

Leungal

Easiest comparison to make is to look at all the ETFs that implement these strategies like JEPI, QYLD, CSPX. You can cherry-pick time-frames where they've done better but it seems like, in the aggregate, they have underperformed.

Nuclear_N

I am 58. 2.6m all in the market. Mostly index funds. Have 250k of AAPL just by luck and avoidance of capital gains tax. The way I see it in a couple years when I retire I am going to take 500k and put it in JEPI. It pays 8% dividend. Then just spend it down. The other millions is going to hang in the 500 and other funds I have. Plus I do some long term leaps on Spy and qqq. I refuse to take bonds beyond my 3-5 year immediate spending.

StatisticalMan

>I'm looking to have some monthly income. Why? Are you retired? Never going to contribute anything to investment from this day going forward. >To date I'm holding some dividend stocks (e.g. JNJ, Chevron). and a bit of JEPI and JEPQ. Seems like a good way to pay a lot of extra money in taxes in order to also underperform the broader market.

RookieMistake101

I use SPYI or QQQI. JEPQ and JEPI are probably the most known though.

PutItOnTheRitz

Interesting how often dividend ETFs came up in the last thread. Anyone here rotating into SCHD or JEPI specifically?

OhBenjaminFranklin

Day 27 of waiting for JEPI to drop back below 56 😐

SeeHowYouSki

JEPI and JEPQ. Look at the dividend.

PutItOnTheRitz

Solid choices…SCHD and JEPI are two of the most mentioned defensive ETFs I’ve seen lately, so you’re definitely not alone there…I like how they balance yield with some equity upside. Personally, I’ve been leaning more toward individual blue chips for that same stability/dividend combo.

charliekunkel

Yup. Instead of straight index funds like Ive held for decades, I recently switched to target date funds (VFORX) that hold some bonds, dividend ETFs like SCHD and JEPI, and VTWAX. I'm fine holding those for a few years. Maybe forever. The older i get, the more risk averse i become. And if we have a 20%+ drop, I'll switch back to more index funds for a while.

trumpdiego

I have a theory why we were up this morning — the JEPI / JEPQ and other high income covered call etfs paid out so those receiving those dividends reinvested them. After that initial pump, the bad news caught up.

FreeEnergy001

These options based ETFs (GPIX, JEPI, JEPQ) are pretty new. Not much history to them to know how they would handle different market conditions.

Significant-Sky-7186

Do you invest in any options related ETFS such as JEPI/JEPQ? How's the performance comparison if so (is the options wheel worth it)?

Akisu30

I like it.Just don't panic and don't sell it in few years if the market is down.Tech stocks will be great in 15 years. I'm thinking of front-loading $250k now, $100k next year, then $35k a year. Mostly Big Tech(Amz, Apple ,Google, Nvidia, Microsoft + S&P + SCHD, with JEPI/VYMI for dividends and some international balance. Everything reinvested, ignore the daily swings. If history rhymes, that's ~$4 to 6M in 20 years. People will say to just say to put in QQQ,VOO or S&P and forget it.But I would say just ignore it.If you are employed and in 20’s/30’s don't forget to maximize your 401k and if you have kids have 529 apart from tech heavy stocks.

Akisu30

I like it.Just don’t panic and don’t sell it in few years if the market is down.They will be great in 15 years. I’m thinking of front-loading $250k now, $100k next year, then $35k a year. Mostly Big Tech(Amz,Apple ,Google,Nvidia,Microsoft + S&P + SCHD, with JEPI/VYMI for dividends and some international balance. Everything reinvested, ignore the daily swings. If history rhymes, that’s ~$4 to 6M in 20 years.People will say to just say to put in QQQ or S&P and forget it.But I would say just ignore it.If you are employed don’t forget to maximize your 401k and if you have kids have 529.

D_Pablo67

Stocks: I would sell UNH and CRSP. The rest are excellent. Be ready to buy more of them on dips. ETFs: You have too many. Focus on QQQ and VOO. Fine to add JEPQ and JEPI if you want monthly income from covered call ETFs. Crypto: This will be the most volatile portion of your portfolio. I agree not to contribute more. Let it ride and trim a little on price surges. You are in great shape.

Objective_Plankton71

Leverage your investment with real estate. Buy three $600K condominiums in vacation areas with an eye towards short-term rentals, Airbnb, VRBO etc. 20% down payment for safety is $120,000 on each, so that's $360,000. I would plan on $30,000 to furnish all three, say Miami, Park City, Utah, and Honolulu. Plenty of available condominiums at $600,000 in those areas. Plan on professional property management. That would bring you four season unreasonably high rental income (not market). Then, with the other $100,000, just put it into a nice, safe ETF like JEPI, JEPQ, or SCHD. Your capital appreciation on the condominiums should be massive, even considering our current real estate market. The best time to get in was yesterday. The market for ultra-luxury vacations, or people that want to appear like they're taking luxury vacations, is not going anywhere. It's all about the gram.

Objective_Plankton71

ULTY is “Return of Capital Trash” Weekly distributions are not true yield: Most of what investors see as “income” is actually return of capital (ROC). They’re just handing back chunks of your principal, dressed up as a dividend. NAV erosion: Because the fund is bleeding itself with constant payouts, the net asset value (NAV) grinds down over time. Investors feel good getting weekly checks, but their underlying investment shrinks. Illusion of high yield: Quoting 120%+ TTM yield looks incredible, but it’s a shell game. Unless the fund is consistently outperforming the market (it isn’t), those yields are unsustainable. Expense drag: On top of that, ULTY charges ~1.3% expense ratio, which accelerates NAV decay. ⚠️ Real-World Impact If you held ULTY long-term, your “income” stream is offset by capital erosion. You’re eating your own seed corn: the fund pays you with your money, plus a bit of option premium, but long-term wealth doesn’t grow — it decays. ✅ Better Alternatives If you want actual yield instead of ROC gimmicks: JEPI / JEPQ – Covered-call ETFs that still retain NAV stability better, though capped upside. SCHD – Dividend growth ETF with lower yield, but real sustainable distributions. Laddered bonds / munis – Actual coupon income, not ROC.

eskhalaf

105M in SPYI, QQQI, BTCI, JEPI, JEPQ, VOO, SCHD and SCHG and couple other index funds would give you monthly dividends about 1M+ if not more. Sorry for your loss OP

Maleficent-Fennel250

Personally not a fan of dividends but I do SCHD JEPI JEPQ and VYM

oliveandgo

I don’t understand why so many question the original post instead of offering advice. Maybe you think that’s so wealthy, it doesn’t matter, but it’s all relative. There’s someone else right behind any of us envious of our extravagant wealth. This is a f’ing investing page. These are appropriate questions. I’d do a mix of state munis, treasuries, and equities. For equities, you could do a mix of JEPI type stuff for higher dividends and a bunch of SPY. The particular weights depend on your risk tolerance. I’d personally stay 70-30 toward equities in retirement too, but I’m also a little greedy and still want growth.

loldogex

Wouldnt the federal and state exempt munis be a good investment since they have such large assets? Maybe even better than JEPI since no tax.

managemoneywell

Go out a little further on treasuries to get the state tax exempt. I would have a little sleeve for pimco income and JEPI just to generate some yield. I would also look at a sleeve for high quality munis in your state. That should about cover it. And stay healthy

Old_Sock7485

rather than bond, why don't you look into CC etf, like JEPI/JEPQ, SPYI/QQQI. They provide monthly dividend, you can use them to reinvest or buy some good steak for yourself.

grokson02

30% of portfolio in $VOO is smart, $SCHD and $JEPI offer higher income.

sharpetwo

Covered calls = short puts, yes, but with an important asterisk. The equivalence holds when you are talking about a single strike, same expiry, fully funded position. JEPI, QYLD and friends are not that. Instead they are systematic overwriters, usually writing calls slightly OTM, rolling every month, and they hold the underlying long. So what is retail actually doing when they pile into JEPI? They are selling upside convexity every month in exchange for a yield stream. It is functionally short vol, but not the same as running a put-selling book. The inflows just create steady institutional call supply, which does two things: 1/ Flattens skew on the call side 2/ Pins the indices a little more in chop But it does not make long puts cheaper. If anything, the mechanical call overwriting depresses call wing vol, which steepens downside skew. In other words, retail is not making puts “more favorable” but ... the opposite. They are making crash insurance relatively more expensive by subsidizing the other wing.

Uniball38

JEPI and JEPQ dont actually sell calls. They enter ELNs with banks (which are the same thing in theory, but its not on the options market)

Voaracious

Covered call funds can generate a good dividend. JEPI is the famous one but there's others too. Think they're at 8 or 9%.  Brazilian stocks are cheap. But there's some political risk. VALE pays around 10%. I'm in PAGS which does about 9%. Plus they do stock buybacks on top of that.  I've said before here why I think VZ is good and safe. Pays around 6.5%. Write covered calls on it and earn even more.  Or you could always do bonds. Though with inflation looking foreboding maybe I'd hold off on that.  I like MO. I don't like PEP. 

Striking-Block5985

no not the same, seling put is a diff kind of risk entirely, you need to go and read the way the JEPI is stuctured. They don't sell calls directly

Striking-Block5985

JEPI, is structured diferently that the pure SPY, it doesn 't own all 500 of the SPY , and the % of each one it owns is different, it is done to hedge the ETF somewhat , The result is the JEPI' BETA is much less than the SPY beta

Axisl

Heres my unprofessional opinion: you have a crap ton of overlap in your etfs, pick maybe 3-5 and ditch the rest. For individual companies, I won't comment, but realistically, it would be easier to invest in ETFs for your future retirement if you prefer not to manage your funds actively. As for what I would do with the 700K I would: 1. Put 300K in something like SPY, and then put 100K in an etf that tracks economies outside of the US for diversity. 2. Put 200K into some ETF like JEPI that is income targeting to use to pay your mortgage. As an example JEPI is paying around 30-40 cents per share a month in dividends and has performed reasonably well for the past three years. 200K into JEPI will pay around 1.2K a month in dividends which could be used to pay the majority of your mortgage while the principle should maintain its value. This is inherently riskier than SPY and past performance is not indicitive of future performance. however when the house is paid off this becomes extra income. 3. For the remaining 100K this can be used as a travel/spending account allowing you to contribute more of your income to future savings such as retirement or future big purchases.

PapaCharlie9

Neither? Don't trade options on funds that trade derivatives. In general, look at the option chains for a ticker that you plan to trade. You want to see: * Frequent expirations, at least monthly. JEPI only has quarterly expirations. * Good intra-day volume (after the first 2 hours of market trading, or look at the average daily volume). JEPQ has decent volume around the ATM strike. JEPI has single digit volume across all strikes for the front contract (Sep). * Good bid/ask spreads (spread is 10% or less of the bid). Neither has what I would consider good bid/ask spreads at the ATM strike. The ATM JEPI call is .10/.15, which means the spread is 50% of the bid. Granted, it's nickel increment, so the spread can't get any narrower than that, but that's a problem in itself. Try to avoid nickel increment contracts when the bid is less than $.50.

Aggravating_Train235

I am planning to do option trading on JEPI/JEPQ, any suggestions which can be more suitable for it?

RefuseFantastic717

I would park 2.5m in JEPI and retire, play with 500k on whatever. But then, if you had this mindset, you probably wouldn’t have hit 3m…

ThinkingOfTheOldDays

JEPI is bright green.

StoicKerfuffle

Whatever one thinks of covered call ETFs, the substance of Eifert's complaints is about **options themselves**, and most of what he says is either a strawman or a misunderstanding of how options are used. He might as well be yelling that JEPI is a scam, the CBOE covered call indices are scams, etc, etc. There's nothing wrong with just trading stocks and never touching options. But the core of his argument, though he never seems to realize it, is that options are always fairly priced and thus not worth attempting to trade. That's no better than saying stocks are always fairly priced and thus not worth attempting to trade.

fpsstreak

Decent strategy. But I like monthly dividend paying ETFs. Curve balls are like BITO,YBIT. They are risky but with like 2.5k on each. $100 a month almost 98% guaranteed on each. From there a more secured option is BTCI…pays around the same as VOO monthly because again..bitcoin related. Invest a lot heavier because it’s a lot safer. Last time owning almost 180+ shares it gave $283 that month alone. I had to unfortunately sell since I changed investing strategy. For fast gains…putting a lot more money than I was comfortable having out there. I like a pile for unexpected expenses and all. So I met my goal and now I can invest on my next paycheck as much as my heart desires. $800-1k per paycheck. I am looking for the four towers of high yield dividend ETFs and stocks to push a strong money supply out of my investments early on. Then with my constant 2x a month investments of my own money to then start buying the good stuff easier with all the generated income. I stopped but this year I clocked in 1k in dividends with very low money in. 95% -SPYI -BTCI -JEPQ/QQQI -JEPI/O 5% MISC. -crypto: XRP,HEDERA,AVAX -weekly paying ETFs -curve balls: XOEF(dividend payments have not been announced for it being soo new to the market), calls, penny stocks with some DD. -crypto futures: BITO, BTCH. BTCH is two years old but does one payment of $20 a year…buy some 50 shares at some point and see if I get $1k Christmas gifts every year.

_Tyrus_

In your case, the fact that you bought JEPI instead of VOO is an aggravating factor in your dissatisfaction with your returns. JEPI is always going to underperform VOO from a capital appreciation standpoint on a long enough timeframe. You do you, but you're not giving ETFs a fair shake when comparing the capital appreciation of SCHD and JEPI since January vs. that of individual stocks that you've used hindsight to cherry pick and beat yourself up over. Plenty of individual stocks have massively underperformed the overall market this year so far.

Esoteric_Innovations

Yeah, I've been thinking about it a lot. Starting doing some due diligence on some classic names like KO & DE (up 13% and 22% YTD respectively), as well as your index funds like VTI, JEPI, etc. Still, there's that part of my brain that recognizes I've been consistently profitable for almost a year now. In October last year I was at 3k, now I'm nearly at 100k. So part of my brain says 'keep going' and see if we can race to a million in the next two to three years instead of waiting another ten. It's one of those things where I'm just weighing my options here.

Senior-Preference678

You’re not alone, hope it makes you feel better. I’m 48yrs, started investing January 50k…I put my money into SCHD, JEPI to get some dividends, wrong choice. The market felt and recovered and these ETF’s still down! I’m getting nothing, except from some small dividends payd by JEPI…I hope they can recover until December, then I can sell it and buy individual stocks!!!

AskGrok

Ah, the classic WSB paycheck YOLO query—because nothing says "financial responsibility" like dumping your hard-earned cash into a volatility blender. Tomorrow's August 8, 2025, and the market's in a mood swing: US500 dipped 0.17% today but it's up 1.75% monthly and 19% yearly per TradingEconomics data, with gains hogged by mega-caps like the Magnificent Whatever. Morningstar's August outlook flags opportunities in undervalued sectors beyond those five behemoths—think energy or small-caps if you're feeling contrarian. If you're dead set on YOLOing, skip the casino and consider high-yield plays buzzing on X: JEPI (around 11% yield with downside protection) or QYLD for Nasdaq covered calls, turning your paycheck into weekly payouts instead of instant regret. Or go full degenerate with Bitcoin ETFs like YBTC for that sweet crypto chaos, since posts there scream "income without working.

bullrun001

Lots of great advice from other posters, try to diversify on her investments, look for a monthly payers like JEPI and JEPQ together they should yield you around 9% start with 5k each, reinvest dividends and add monthly. Invest in DGRO a dividend growth ETF, SCHD as well. Invest together and let her know what you are doing with her money and that you have her best interest at heart. Good luck and best wishes for you and your Mom.

TheObsidianHawk

Lets go volatility! I want to see Jerome come out next week and say inflation is at 3.1% I also want my JEPI dividends to go up.

Spanthaki

# What do you think is a better plan please help me decide below Hey guys so I'm currently investing 1000 a month in vti and vxus im 27 years old but i'm planning on switching to investing in the other options below as my goal is to hit at least 10,000 a month in passive income by time im 40. I know i want achive with just a $1000 a month but its a start, but would love to hear people's opinion on why or why no this is a good idea || || |**100 % SCHD**|\~$260 k|\~3.8 %|**$10 k/yr**| || || |**70 % SCHD / 30 % JEPI**|\~$260 k|\~5.8 % (blended)|**$15 k/yr**|

15pH

If your thesis is CONSISTENT sideways movement, then covered calls win. Historically, that's not how the market works...it has significant periods of explosive growth that drive overall returns. QQQI will miss much of that upside while still suffering most of the downside. Your thesis is counter to historical trends. That doesn't make it wrong. QQQI if you are trying to time the market and make a bet. JEPI to fill a longer term role in a diversified portfolio, since it is almost as good sideways while providing much better stability and downside ballast.

RookieMistake101

Not with MSTY and other yield max ETFs. Your principal erodes so quickly, you have to constantly reinvest just to keep up. Or you can do the more stable CCETFs like JEPI, SPYI, XYLD. None are perfect but they’re fairly stable.

Cruian

>Say you're starting completely fresh and want to keep your investing simple, diversified, and long-term focused. You only get to pick three ETFs. Which do you choose, and how would you balance them? >I’m trying to find that sweet spot between growth, income, and risk management. For example, you could go: >VTI (total market), VXUS (international), and BND (bonds) for a broad mix This fits your needs then. >Or maybe a more aggressive trio like QQQ, SCHG, and JEPI How is this more aggressive? You may be mixing up realized recent returns with expected future returns. "Growth" as a style tends to under perform in the long run. Factor investing starting points: * https://www.investopedia.com/terms/f/factor-investing.asp * https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/fidelity/fidelity-overview-of-factor-investing.pdf (PDF) * https://www.cbsnews.com/news/the-black-hole-of-investing/ * But be aware that factor premiums can take a while to show up: https://www.reddit.com/r/Bogleheads/comments/1hmbwuw/what_every_longterm_investor_should_know_about/ * And from GwenRoll: https://www.reddit.com/r/ETFs/comments/1krd3fe/growth_does_no_one_know_what_the_hell_it_means/ >Or something income-heavy like DIVO, VYM, and a REIT like VNQ Why focus on income? It comes at the expense of share price. >What’s your 3-fund recipe? Curious how others think about diversification when forced to stay lean. https://www.bogleheads.org/wiki/Three-fund_portfolio Each "fund" has a specific role and helps with diversification: they don't overlap, and since uncompensated risks (like single country), give exposure to compensated risks (emerging and possibly smaller caps), and let's you adjust the safety by assisting the amount of bonds/similar.

Striking-Block5985

or JEPI/JEPQ might be better to TAKE THAT money from all those gamblers every month

VegasWorldwide

moving it now after 2.5 years of huge gains is pretty smart IMO. I wouldn't move it all, maybe 70% of it depending on your situation, but at your age, seems like consistent income would be good. I'd buy a very diverse group with dividends: JEPI, QYLD, QQQI, QYLD, KO, SGOV & SCHD. That other 30% you can invest in growth stocks like Mag 7. 70% of your portfolio invested in those stocks would net you about $56k in dividends annually.

iChaseGaming

At your age and what you hold, you should probably start thinking of having some degree of stability (more fixed income, less volatility in the event of a market downturn). If you're in the US, now would be a good time to consider shifting funds into things like SCHD and JEPI. If you're in Canada, then consider things like VDY :) basically good dividend income, so you won't have to touch your principal. Hope this helps! Oh and do speak to a fiduciary financial advisor, not some guy working at a bank (they just want to sell you high fee mutual funds)

RookieMistake101

Well, then this is a classic example of retail being retail. You’re literally buying an investment for the wrong reasons. If you don’t want the income then you shouldn’t be buying JEPQ. Look at how JEPQ or any of these covered call strategies have performed YTD in a highly volatile market(JEPI, XYLD, etc). Their total return is below their index. You need either down or fairly flat markets for these CC strategies to make sense. Or the priority is just income and you’re not as worried about total return as you’re not touching your principal.

Far_Lifeguard_5027

Moron should have bought QQQI, JEPQ, JEPI, and SPYI and had a nice early retirement.

NotUrMama2024

Long on MNMD, HOOD, NVDA, AMZN & HIMS. Not emotionally attached to any of them but I’m holding on unless fundamentals change or CC’s get them called away. Also long on dividend ETF’s JEPI & JEPQ.

taxotere

Only charlatans are those who buy the JEPx funds without understanding them and then complain. Knowing a guy who lives from JEPI - lives, not dreams to live from total return charts - he has a different story to tell.

somethingbytes

I'm frankly largely cash, just trying to get 5%. I have about 30% in the market now. That's is either short TSLA or in biopharmas since they were so beaten down (not that I trust them long term with RFK jr). Everything I loved (SOFI, SHOP, GOOG) have all gone beyond what I feel comfortable with. Costco has come down, maybe some dividend plays aren't looking too bad (O, SCHD, JEPI)

pharmd

YOLO on 0DTE options jk Continue to invest in index funds I bonds, can also consider muni bonds if you’re in the highest tax brackets Can even consider a portion into covered call Nasdaq/s and p ETFs for income. I plan to do this in retirement. Eg, QQQI JEPQ JEPI

HobbitFeet_23

SGOV is perfect for cash. SCHD and JEPI aren’t.

Omynt

I have no problem with being 100% equities until 40 or so. But if you want to be 100% equities, you need a justification for investing in JEPI or SCHD rather than more VTI/VXUS. My understanding is that these dividend-payers do not perform better overall, i.e., in terms to total return, then broad market funds. If you want some proportion not in equities, why not individual bonds, a bond fund, or CDs?

clock_skew

SCHD and JEPI are volatile, just like any other stock. You can’t store cash in them, you invest in them. Also, your investable cash should be invested in stocks you want to hold long term. Storing temporarily in SGOV, SCHD, or JEPI are all bad ideas.

AreWeMillionairesYet

Hmm, ok I’m undertaking this. I believe in the USA market so VTI and VXUS make total sense. Do you think JEPI or SCHD is a bad place to keep my investable cash then? Even though it yields like 8%+??

clock_skew

VT already contains all the companies inside VTI, at market cap weight, so there’s no need to have both. You can just buy VT. If you want to tilt towards the US then you should buy VTI and VXUS, which is the international portion of VT. That will let you control your ratio more directly and get a foreign tax credit (if this in a taxable account). SGOV is a great place to store cash, but SCHD and JEPI are dividend funds, not cash. If you want to invest in dividend stocks they’re a fine option, but they serve a completely different purpose than SGOV.

SirGlass

VT and VTI have overlap , VT is a world market it holds the entire world market including the USA Usually the classic 3 fund portfolio is VTI /VXUS / BND Or simply VT/BND SGOV is basically cash like a HYSA , its not really comparable to SCHD or JEPI

AreWeMillionairesYet

I’m 32. I have $87K in an S&P 500 index and $330k in SGOV because I’m so conservative. I’m debating about a sum of $100k into VOO and DCA $1k a week until another $100k is invested. In the mean time, keep all of it in SGOV/JEPI to make some type of return. What do you think?

AreWeMillionairesYet

Do you use JEPI just like SGOV?

charliekunkel

Yup. It all depends on your risk tolerance. 20% of my.portfolio is in JEPI for just such an occassion. It woyld be less if i were younger though.

Leungal

Money is fungible, at the end of the day it doesn't really matter if your "passive income" source is dividends or if it's capital gains from appreciation/growth. In fact, it's more tax efficient to fund your retirement on capital gains rather then dividends (that being said most dividend funds other than JEPQ/JEPI are qualified so the difference is truly minimal). In fact, if you're married filing jointly and only pulling a combined ~$120k in SS + capital gains + all other income you're actually in the 0% capital gains bracket, whereas unqualified dividends would be taxed at income tax rates.

taxotere

JEPI and JEPQ are not at all new, their distributions rise with volatility. You trade growth for income with them, and depending on where you pay taxes the taxation may be unfavourable or zero (eg in case of their UCITS counterparts in some EU countries). They are really good at what they do, but are not for those who’re still in the accumulation phase. If one consumes the distributions their growth is essentially zero.

DifferentSwing3149

Just retired, got JEPQ, JEPI, GPIX, GPIQ, SCHD, VIG, VOO, SGOV to collect some monthly passive income. Still have some growth funds but adjusted right before retirement to about 50/50 now

Adonlude

You could buy Tbills at auction on most trading platforms. Short terms still paying \~4%. I keep extra funds in GBIL which is an ETF that does the same thing and pays \~4%/yr with monthly distributions. Virtually 0% chance of loss in treasuries so you are looking at $70k a year on that sum. For some more risk/reward you can get into and ETF like JEPI or JEPQ which execute buy/write strategies within their respective markets and pay over double GBIL while moving nowhere fast in price (dropped 10% during the tariff crash).

FitAd9625

I bought more JEPI when it dropped to 56.30 and EPD at 31.28. Both are up now after 1300.

Saffuran

Just use JEPI, JEPQ, GPIQ, GPIX, or FDVV. ULTY is not the play. XD

Relevant_Shock6888

Don’t do JEPI or JEPQ.  They erode. 

reeksofdank

JEPI and JEPQ. JP Morgan etf’s that payout 6% and 11% per year. Dividends paid out monthly

NineAsiansAtSubway

Bro only buy JEPI if youre retired

OhBenjaminFranklin

Will JEPI ever go below 56 again so I can buy it? :(

AdLate4156

Sounds like you’ve thought this through really well. Having a paid-off house near work and simplifying your finances as you ease into the next chapter feels like a solid move. That said, the $240K in cap gains tax jumped out at me. I was in a similar spot last year and ended up using a tool called [**ProfiTree**](https://www.profitree-tax.com) to help figure out which tax lots to sell first. It helped me cut down my tax bill quite a bit by simulating the tax impact before I actually sold anything. Might be worth a look if you haven’t locked things in yet. Also agree on putting that $400K to work in something like JEPI or QYLD. Slow compounding + flexibility = peace of mind. All in all, seems like you're setting yourself up well. Hope the new role turns out to be both fun and fulfilling.

EI-SANDPIPER

O & JEPI - monthly dividends that I use to buy other stocks Disney - was undervalued and has multiple paths of growth, should increase their dividends Target - undervalued, solid dividend Reddit - one of a kind internet play AMD - PC business has steady growth with possible AI upside

OhBenjaminFranklin

How would you do that? Do you mean short JEPI to hedge?

IClosetheDealz

Hedge it with JEPI should average you 7+ year round, could be more.

newbienewb101

JEPI, SCHD, AAPL, FEPI, JEPQ I need the income to supplement my unstable business income. NVDA not too far behind and I betting on some NVDY to give me some more dividend income.

D_Pablo67

I do both. My largest holdings are JEPI and JEPQ, which are covered call ETFs You could easily swap those out for VOO and QQQ. My core four dividend holding are Enterprise Products (EPD), Energy Transfer (ET), Federal Realty Trust (FRT) and Realty Income (O), all but ET are Dividend Aristocrats (raised dividends every year for 25 years or more). My semiconductors are NVIDIA, Broadcom and Marvel. My big tech is Meta and Amazon. I like buying and holding great companies. ETFs like VOO and QQQ can be better tools for market timing.

Aggravating_Plantain

Just had the time to look into this more today, and it seems the smart money thinks JEPI is dumb, and that higher risk adjusted returns are to be had with passive equity + risk free. https://www.aqr.com/Insights/Perspectives/Rebuffed-A-Closer-Look-at-Options-Based-Strategies

yunghogungho

Try JEPQ or JEPI

Aggravating_Plantain

>Y's price recovers (again your unrealistically high dividend) to $5 and then another $1. Right--your hypothetical assumes y's performance recovers and is silent as to X's, there's implying that y's performance is better than X's. Of course if y recovers and x doesn't you're worse off. This would be another one of those "other reasons" to like dividend sticks I mentioned (if true--not sure it actually is). I feel like you also need to reread what I wrote multiple times. If you instead assume two identically performing companies (in percent terms) where one retains earnings and the other pays them out as dividends, then it really doesn't matter. a person can manufacturer their own dividends to match. Economically, the two are identical. As an aside, taxwise, the non paying company is better since the person can decide exactly how much "income" they want instead of being forced to "realize earnings" via the dividends paid to them. >What happens in the case of X with stock sales. Well I sold 20% of my position year one to get that $1. Then I had to sell 21% of my position year 2 to get the next $1 even with the increase in price because I have fewer shares. Who cares? Again, assuming identical performance it doesn't matter. You should be indifferent to having 1 share of X at $50 or 5 shares of Y at $10. All that matters is the total value of the position. I'd rather have half a share of BRKA than 1k shares of JEPI. I can sell fractional pieces of my BRKA to match the JEPI income (or not--see above re taxes). If I die with 0.15 shares of BRKA worth more than my original half a share, I'd call that a win.

JeffB1517

> That holds whether we're talking individual stocks or JEPI. Maybe you think JEPI is well managed or something else that affects its return stream - that'd be the "other reasons to like dividend stocks," but it's not like the assets held by JEPI are special and defy well known principles of corporate finance. JEPI is a covered call fund. Corporations aren't the sole source of value, other investors reducing volatility are. This was written about IUL not JEPI but: https://www.reddit.com/r/IncomeInvesting/comments/1drg63n/both_sides_of_an_option_are_profitable_more_on/ > In a drawdown, selling some of your position, or having some of it sold for you (in the form of a dividend that you don't reinvest), is mathematically the same. That's all I was saying. I undertand what you are saying and I'm saying it is false. It is not the same thing. Dividends are less volatile. Given a constant inflation adjusted draw the steady stream of sales from a dividend heavy portfolio will hold on longer. Dividends don't just act like a sale because the corporations internally structure themselves differently when it comes to dividends vs. shareprices.

ThisIsDystopia

Extrinsic value is decided by time and IV. JEPI IV is extremely low.

Aggravating_Plantain

I mean, you're saying a different thing though. In a drawdown, selling some of your position, or having some of it sold for you (in the form of a dividend that you don't reinvest), is mathematically the same. That's all I was saying. That holds whether we're talking individual stocks or JEPI. Maybe you think JEPI is well managed or something else that affects its return stream - that'd be the "other reasons to like dividend stocks," but it's not like the assets held by JEPI are special and defy well known principles of corporate finance.

JeffB1517

> If you work through the math, receiving a dividend and selling stock is exactly the same in dollar terms, regardless of volatility. No they aren't. And it isn't a question of simple math. Companies prioritize dividend stability more than they prioritize stock price stability. The company will disadvantage itself to maintain the dividend in many ways it won't for the stock price. So for example in 2008 under severe stress stock prices dropped by over 50% but dividends at their worst dropped by only 21%. Additionally, those two events happened over a year apart, so there was some time diversification. Reducing volatility increases geometric return towards the arithmetic return, that is math. Also the argument isn't really dividend stock vs. non-dividend stock in its purist form. OP is talking about funds like JEPI not just options like VYM. In other words investments where arithmetic return is genuinely lower in exchange for more stability. Of cours higher stability alternatively means that can be leveraged or equivelently maintain higher sustained draws. BTW Miller and Modigliani's paper is an excellent result. In broad strokes it has to be true. One thing I would caution though is there is an implementation time and restructuring involved that for purposes of the paper are assumed to be frictionless. We know from real life lending it isn't, it takes years and quite frequently changes in executives as business people hate and love various types of relationships.

JeffB1517

I run a sub on this r/IncomeInvesting which has some post that might be helpful. In terms of advice. Don't start with a discussion of what to do. Start with a discussion of why to do. All this stuff about JEPI vs. dividend stocks ... is about tuning a portfolio to accomplish objectives. You at aren't thinking in terms of objectives. Are you married, how is your health? That is how much longevity risk are you facing. You have it sounds like $1.3m. What is the draw structure you need through the next decades. Are there other income streams? Is the house paid for? Etc... Figure out how much you need to draw and when over the coming decades. Then we start discussing strategy in terms of tradeoffs. *Given objective W with Y risks I want to do Z to because I prefer W to V*. In answering your question I just discovered the RISA is now free (https://retirementresearcher.com/landing/risa/). Very strong recommendation to take that. That will help you start thinking in terms of why you would want to build. From there you get into which tools to use.

McKnuckle_Brewery

30% of your portfolio is in straight up cash (money market), so yes - that's got to be invested at least in something with higher yield and less susceptibility to rate cuts. But with that aside: Withdrawing is more nuanced than accumulating for sure. There are so many ways to structure it. And you ask fundamental questions about your allocation that again, are so open ended that you'll just get a pile of random opinions. It's important to research the asset classes you mention, understand them, and decide what you are comfortable with. The transition from pure growth to a more diverse portfolio consisting not only of stock index funds, but also dividend growth and dividend income securities (these are categories), plus bonds, is a journey - not a simple step. This being said, I'm retired 4.5 years and here's what I do. My portfolio is about 71% equities and 29% bonds, mostly corporate and high yield. There's 4% cash embedded in the 30%. My equities are comprised of 40% growth - index funds and tech - plus 19% dividend growth (classics like JPM, XOM, PG, JNJ, SCHD, numerous others) and 12% higher yielding dividend income (JEPI, ARCC, PFFA, etc.). I have 75 individual securities which is a lot, but I am an active investor who enjoys this as a "pragmatic hobby." I've set up my portfolio so that the total dividend and interest yield approaches a full 4% withdrawal. At this writing it's at 3.75%. In other words, I can pay for my expenses without selling shares. My highest yielding assets are kept in IRAs so that I can decide when and how much to withdraw. My taxable accounts hold a blend of growth and dividend growth. I take all dividends there as cash and have them deposited into a money market fund from which I pay bills. There's so much more to talk about, and I don't want to be overly verbose so I'll leave it here. If you want to explore some good intelligent content on income investing, check out Armchair Income and DividendBull on YouTube. These are mature, articulate investors (not Gen Z influencers).

fullsends

Check out MSTY. Its a fund that trades options on MSTR. The dividend yield is like 80% annually. JEPI has a decent yield as well but has much less upside or risk. Pure equity play, I would probably mix NVDA, TSLA, and a choice few other tech giants.

Aconyminomicon

I am in the exact same boat. I am mostly in SGOV right now and my plan is to buy into the dips of some solid ETF's like JEPI/VOO, the S&P, and some REIT's.

ThinkingOfTheOldDays

interesting that JEPQ / JEPI are trailing their benchmarks by so much. Lower than they were at the year open.

Designer-Book-8052

I have just checked, with Freedom24 (a EU broker based on Cyprus) JEPI (US46641Q3323) is available. I am in DE, though, not NL. Want me to check the availability of a few others?

Good_Design7876

Quite a lot covered on Dividend Investor channels on YouTube. For instance, the perhaps most well-known, JEPI - I can't buy that here in NL because of the stupid KID requirement. The EU mandates that useless document must be available in Dutch because I apparently do not understand English. It's infuriating to say the least. I hate that EU regulation crap with a passion. They don't want potential EU investment funds to flow into the US, that's the real reason they're doing this.

ptown2018

Diversification is part of risk management and risk takes various forms. Market risk, risk of default and risk from inflation are your main ones. Lower credit rated bonds have higher risk of default, long term bonds lose value if interest rates increase and dividend and other equity based income has market risks in addition. Short term bonds and money markets are the safest and should be held to cover your short term cash needs, equity based income has market risk but if you can hold for two to five years then you can ride out market swings. I am retired and keep about two years of withdrawals in my safe income bucket, I have most of my income bucket in riskier things like SCHD, JEPI, O, ARCC and smaller amounts in SPYI, QQQI and JEPQ. Tiny amounts in BTCI and MSTY to watch and learn these newer types of investments. I feel the diversity mitigates the risk and my small pension and SS also function as low risk fixed income. Spend some time learning about any investment, don’t just rely on internet self described experts.