PFF
iShares Preferred and Income Securities ETF
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How do you track the asset allocation of Preferred mutual funds like PFF and PFXF?
$POSH DD: A Recovery, Social Media, E-commerce, Short Squeeze and “Becky” Play - all in one
$POSH DD: A Recovery, Social Media, E-commerce, Short Squeeze and "BECKY" Play - all in one
$POSH DD: A Recovery, Social Media, E-commerce, Short Squeeze and "BECKY" Play - all in one
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Preferred stock, PFF has over a 6% yield. Should also appreciate if Fed follows through w more rate cuts.
UPDATE: decided to buy FSKAX/FSGSX/SPMO/PFF in a 70/20/10/10 split in the Rollover IRA. Next will be the Roth IRA and Investment accounts. Thanks for all the insights!
Most of the comment you have gotten are about people buying and selling stock for captial gains. If you only aim for growth and never sold you would never have financial freedom. The best way to get financial freedom is from a dividend stock. A dividend is profit sharing cash payment to shareholders. For example if you invested in preferred stock fund like PFF with its 6% yield 1 million in it would pay you $60,000 a year without selling any shares. Or you can use fund like SPYI and get $110,000 for 1 million invested. Note most people trying to retire early would never consider a portfolio of 1 million sufficient for early retirment. Instead many aim for 3 million or more and then slowly sell if off via the 4% rule. With dividend you need a lot less money to get the same financial freedom. A good book to read is The Income Factory. It goes into how to build a dividend portfolio for stable income without selling shares. Armchair investor on youtube is retired and he invests his money the same way and does detailed fund reviews of funds he adds to his portfolio. I retired in my mid 50s with a dividend income of 5K a month from a taxable account. When my Roth and 401K become available my yearly income from dividneds will be in excess of 100K a month.
PFF, lefties always being delusional. Shut yo bitch ass up
buy when the market is down 20% to 30% at that point it may not go much lower. The market has only lost 40% in a year 3 times in the last 100years. IF possible invest in dividend funds Dividend funds generally perform better in a recession than growth funds. She good dividend funds are QQQI, SPYI, PBDC, UTG, UTF, PFF.
Most economist are expecting higher inflation due to the tariffs and with growing world economic instability I would now focus more in on passive income investments. Such as these dividend ETFs: QQQI 13% yield, ARDC 12%, SPYI 11%, EIC 10%, PBDC 9%, UTG / UTF / SCYB all with7% yield, A.nd PFF 6%. These funds in a roth or 401K will compensate for the potential lower earning of index fund so your retriemtn account will do better than one without dividends. In a taxable account then income would help protect your from unemployment.
Call Fidelity investments. See if you can talk to a wealth planner. Tell them you’re considering opening an account with 200k. Dump it into a money market making 4%, there’s actually one giving more but you need 100k. Do you have a Roth? They have a good website. you can connect your new account to your checking. slowly put some into VOO with .03 expense charge. It’s all the top Mega names: NVDA, , alphabet, Meta, PFF is a preferred stock ETF doing about 6.5. QQQ is worth looking at is I have had a good run but similar. SCHD is schwabs dividend UD dividend etf check it out with .06 charge Download the Fidelity app and start learning charts and candlesticks, indicators like MACD, moving averages…. Learn about Dividend Artstocrats and who’s in the QQQ.
PFF on WealthSimple is $31. Is there a different marker?
with your uneven limited income for now I would put put money in QQQI. this is a income fund with a dividend of 13%. IF you build up the money in QQQI to 100K that one fund will generate 10K a year of income that goes directly into your rothand you still can contribute 7000 per year of your taxable income. Once QQQI is at 100K you roth is basically self funded. So it will continue to grow even if you don't have money to depoist into the account. Once you have 100k in the fund you can divert the dividend from QQQI and use it to buy VTI VXUS in the end you want 50% of your portfolio in index funds like V%I VXUS. with the other 50% in dividend funds. That way the dividend funds can supply you with income while the index funds can be used for unexpected emergency cash needs, or periodically harvest the growth in the invest funds and use the money to adjust your dividned income. For the dividend portion of my retirment I am using funds like PFF 6%,UTG 7%, SCYB 7%, PBDC9%, EIC 10% ARDC 12%, SPYI 11% and QQQI. you basically want enough dividend income to cover all of your living expenses with some extra cash left over every month. And reinvest any extra money.
PFF is 6.9% last time I checked, preferred stocks of high quality banks, junk bond etfs trade pay close to 7% dividends, some muni bonds are paying equivalent yield of 6-8%, zero coupon bonds, you could trade close ended funds trading below their NAV.
Thanks! I had no idea you could set up the automatic buying for CD's. I haven't personally ever invested in them but have been curious. I have O in my account (REIT). I think most of my stocks pay dividends. I'm gonna look into PFF and some dual mandate ETFs. I think I am creating balanced retirement accounts but I still want to find the best ways to create passive income/growth.
most brokerages will let you set up automatic buying on CD's, I've never played around to much with them but I know you can set it up that way. Bond funds and fixed income etfs generally hold an inverse relationship to interest rates, rates go up, bond fund values go down. Personally I like PFF which isn't really a bond fund but acts like one. It's a preferred bank stock ETF and pays a better dividend rate than a lot of funds. I find the preferred stock they hold to be better quality than whats held in a lot of other preferred stock etfs. If you want to mix it up and get dividend income, dividend etfs, CD's, bonds, REITS. There are dual mandate ETFs which have a portion for growth with the bulk going to income producing, growth/income etfs.
you could invest in in funds like PFF 6% yieldUTG 6.7%, SCYB 7%, PBDC 9%, EIC 10%,SPYI 11%, ARDC 12%, QQQI 13% All of tese funds produce dividends. Cash payments to you. Dsividens ar a form of profit chasing mnayestablied companes do. These fund invest in these companies or bond issued by theese compnaies or use trading activity to improve the yield. If you invest in these thees funds in a taxable account you cinould build up enough income over time to cover all of your monthly bills. higher income is also possible. You could also do this in a roth for retirement. I am currently retired and make 5,000 a month from dividends. This stratagy is outlined in the book The Income Factory. Armature chair income on you also invest in this way. And each lists funds they have used. The only problem with this is in come contras tax or don't tax dividend and Other my or may not tax capital gains. If you plan to move to another country you need to know the tax laws for that country.
An investor doing this basically gets their own money back, as share prices increase as the dividend payment date (ex-dividend date) approaches. Then when the dividend is paid, the shares drop in value as the dividend comes out of the company assets. There’s a bunch of ideas about this going into dividend investing. Now some companies must have substantial dividends. One example a type of US real estate stock called a REIT which by law much pass on 90% of profits as a dividend, which allows the company to pass the tax burden onto the investor. Another classic example is the utility stock (US) are these are highly regulated by the areas they service. Others may be in some sort of legal limbo like tobacco stocks. Then dividend but especially value investors need to watch out for companies that are essentially liquidating (aka those dividends are capital being returned to the investor). There’s also high dividend preferred stocks and even funds like PFF, but they act a bit like bonds too (par values, low to no growth, etc..). Also the higher the dividend the more interest rate sensitive a stock may be. Saw that recently, where why pay for a non-guaranteed dividend if far safer investment grade bonds are yielding more? Then there’s “dividend growth”, growing companies that also have a constant or even increasing dividend payout.
There are two basic options depending on it you want to avoid taxes or not. INvest în an index fund with a low yield. About 1% or less. (VOO, VTI are popular). The only tax you pay with these funds is the dividned you receive yearly. A 1% dividend is trivial and works out to a rounding error for many people. You could save a million in assets this way and it would only generate 13K of insomnia that would be taxesd. compared to your work income this is a trivial amount of tax. These investment also generate impressive capital gains averaging about 11% per year. But in some years it can be a lot lower or a lot higher. As long as you don't sell the asset there is no capital gains taxes due. Invest in funds with a higher yield. You will pay a tax on the yield every year but it will only be a small portion of the income you get from the investment. But that said not all dividends are taxed at teh same rate depending on how the money was earned by the fund.. My favorite right now are SPYI 11% yields and QQQI 13%. This dividend is very close to captial gains of option 1 but in dividends. High dividneds often mean lower captial gains. >Honestly I’d like some higher potential returns and would like to pick some stocks individually for some fun. Based on that statement I sould expect option 2 is your preference. Additionally you didn't mention an emergency fund. but your 100K in HYS account could be that. But the problem with an all cash savings account is the once the money runs out your emergency fund is dead. A better emergency fund is a high dividned fund. As long as you don't sell the shares of the fund the dividends will keep coming in. So I would recommend slowly start building funds in QQQI and reinvest all dividneds. Keep building until the dividneds it generates is enough to cover all of your living expenses. That way when your cash runs out you could simply stop reinvesting the dividends to collect the cash. QQQI pays out a 1/13th of the yearly dividned each month. So you only need to wait a month for cash to start building in the account. Once you have enough dividned income to cover living expenses you can use the money to start other investments. Some will be like option 1 would be low dividend growth funds you can use for long term savings. Or you can deversify your dividned income with other dividned funds like PFF 6% yield, SCYB 7%, PBDC 9%, ARDC 12 %. There are many options between the 5 to 20% yield range. Look at ArmChair income on YouTube. He has a similar investing style and lists all the funds he uses.
Hisotrically investing for dividneds has done better than investing for growth in the stock market. I have been i retired a couple of years ago and have been loading up on funds like UTF 7% GLU 7%, PFF 6%, PBDC 9%, SpyI 11%, ARDC 9%. With funds like this you can easily build up enough dividend income to cover your living expenses. This would make following the 4% rule optional and help insure your retirment income will last longer.
government bonds, CD, and money market funds all have low yields. given the limited funds most people have in there retiement account it would be best to get the highest safe yield you can get. Preferably you want enough income from your investments to cover all of your living expenses. With enough passive income you would not be required to liquidate your saving using the 4% rule and your retirment fund will last longer. If you invest for dividends you can easily get a higher yield with little to no additional risk. If you invest your money in funds like FAGIX 5%yeild, PFF 6%, SCYB 7%, PBDC 9%, SPYI 11%, ARDC 12% you can easily get a higher yield. I you put an equal ammount of money in each fund I listed you could get combined yield of 8%. For every 100K invest you would get 8K a year of income. I have been doing this for the last few years and currently have a projected income of 60K a year. Enough to cover al of my living expense. And the thing that yould surmise a lot of people is that all of the bad news hitting the market this year has not had any impact on my income. Yes the value of my portfolio is down a lot but the income is continuing to come in. My income has not dropped. Investing for dividends significantly reduces my concerns about the lower share prices. I am now paying more attention to my income. This invetemtn strategy is listed in the book the Income Factory. And the book list 68 funds the author has used for his personal account and accounts he has managed forfriends. The you tube channel Armchair investor also does this and he post his list and discusses how choses the funds he he invests in for his personal retirment acount. These have a lot of information you can use to develop your own regiment portfolio.
PFF invest in preferred shares which typically pay a higher yield. They have been in exstiance since before I was born( I am 53) Very stable. SCYB invest in high yield corporate bonds. There is a risk that the company issuing the bond default on the bond. But the average default rate is 4%. per year. So iit a fund manager buys bonds in 100 different companies the yield may fluctuate +/-2% per years. So despite the term "junk bonds" they have been a common investment for decades. PBDC were created by a law passed 40 years ago. These companes are required to pay out 90% of the earning So the yield is always high. Yet these companies often pay rather stable high yields. PBDC invests in the best of these copies. ARDC is a closed end fund which helps explain its high yield CEF unlike ETF have fixed number of shares, while ETFs issue new shares as the fund grows. ARDChas been paying a dividned for about 12 years. SPYI and QQQI are covered call funds while covered call funds are new covered calls have been in use for about 40years. Covered call funds have yields from about 5% unto (are you stilling down?) 100%. They yield can go up or down with the market. SPYI and QQQI are the ones I like the best. You have to look for high yield funds. If you don't look for them you won't see them. And there are a lot of people out there that just automatically list anything with a yield higher than government bonds as risky and just ignore them. If you go to R/ dividned you will see them more often than you do here. A good book is The Income Factory. The author lists about68 CEF that can be used for dividned investing. The Armchair income. Youtubechannel also focusses on this investment strategy. In my opinion the irskiest funds are those that pay very high yields (100%)or those that don't pay a dividend. The least risky investments are somewhere between these two extremes. To make a fund you need a lot of money to get it started. The means to start a fund you need a loan. Bank and other institutions will not loan money it they don't believe the fund will not last. give all the fund out there. I would say to stable yield range is about 1% to 20%.
One thing to keep in mind on investing is that the price of an ETF can go up and down a lot for no apparent reason at any time. Some stocks produce a dividend yield (similar to interest). The yield may go up or down a little bit. But most of the time it is very stable. So far this your the prices of stocks has been down between 15 6o 20%. However my dividend income has not changed. You probably have a low risk tolerance for change in share price. People like you typically do better with dividned investing. .Basically when I retired I started sell blocks growth of stock and reinvesting the money for dividends. For example I sold some growth stock and purchase AT&T I purchased enough to generate enough dividend income to cover myAT&T cellular bill. The share price of the stock has dropped some since the tariffs has been announced but my dividned income has not changed. So I see No reason to sell it. Overall I have buildt up enough dividned stock to cover my basic living expeneses which is an about $4000 a month. And so fare this year my income is stable. Some funds I am currently using are: PFF 6% yield, scab 7% yield, PBDC 9%, SPYI 11%, QQQI 13%, and ARDC 12%. In my fidelity account all of the dividends ae placed a money market account (similar to high yield savings (Currently earning about 4.5%) I have a fidelity debit card and checks. So I spend money to cover living expenses and then reinvest any unspent money back into my dividend funds. I have sold only one dividend stock because it didn't live up to my expectations. I have not sold any other dividend investments. In fact I am slowly aqumulating more. You can do the same with a high yield savings account. But your would need a million or more in the account. To get enough income to cover living expenses with the current interest rates. You should read the book The Income Factory. The Armshare investor on YouTube has a ver similar investing strategy.
The company has been in business for 35years and the dividend are consistent. So what is the risk verses teh risk of an index fund? If we are going to be able to answer your question we should know what you think the risks are. Most of us don't know the company as well as you do. Are you worried the dividend will be cut or your rent will go up while the dividend stays the same? or is it something else? But the one thing I can say is that is you have 600K to invest and your rent is $22,680 a month. You could earn a lot more than 22K a year. The ETF PFF has a yield of 6%, SCYB 7%,PBDC 9% or SPYI 11%. The lowest yield on this list will earn you 36K a year. The highest would produce 66K. Or if you invested an equal ammount in each fund Both of these would generate enough to cover the rent and the additional tax you have to pay for the increased income. With some left over to cover other cost such as your electric bill. And this income could last for the rest of your life. You could also use invest an and equal amount in each and get about 50K a year. And having multiple funds reduces the risk. What is the risk of this option?
Right now most of my pasive income comes from some individual stocks but most comes from ETF PFF 6%yield, SCYB 7%, PBDC 9%, and SPYI 11%. These are all in a taxable account. I won't be able to access my retirment accounts for about 5 years. There is another type of fund called Closed End Fund (CEF) In my Roth I just added my first CEF, ARDC 12% yield. ARDC invests in Collateral loan obligations. and other types of loan obligations. CEF are similar to ETF except in ETF the number of shares grows as more people invest in the fund. In CEFs the number of shares are fixed so that can cause teh yeild per star to be higher than many ETFs. .
I like PFF not sure why it never gets love here
but there are two ways for many to grow: Price appreciation. (Capital gains) Dividend income. As the last week has shown is that price pareciation can vanish quickly and it may take years for that to recover. in 2000 a bear market started and it tool 14 year for the S&P500 to recover all of its losses. Most people today are invested in index funds which mainly growth through price appreciation. Indes funds do pay a dividend but it is small about 1% and insignificant to most investors. The other mechanism is dividned income. May companes return a portion of their profit to shareholders by a cash payment known as a dividend. Bond pay interest. If you reinvest he dividend or interest from your investments are reinvest that into the asset that gene3rated it you portfolio will grow. Dividend payments are determine by last years profits. So current events mot of the time will no effect the dividned Payment. Current events may have an effect of dividend payments in a year or two. Especially if a company is seeing lower profits. Historically during bear markets the mean average dividned reduction is about 2% Not tbe nearly 20% capital gain loss we have seen in the last week. What I have been doing for some for about 5 years is creating a passive income portfolio by investing for dividneds I now have 4K a month of dividend income. The have been no dividend cuts since I reached 4 K a month.I used mainly assets that payed a dividned of 5% or higher. To my surprise I found quite a few stable yield up to about 10'5 or a little higher. Everything this year has has not bothered me because I have stable income. Some of the funds That have that have worked well are FAGIX 5% yield, PFF 6%, PBDC 9%, SCYB 7% and SPYI !!%. The higher the yield the less money you need to invest to get the desired income. To get eh same income from a S&P500 index fund with a yield of 1.3% But you would need need to invest 4 to 5 times more money that you would need with a higher yield fund.
Some companes have multiple classes of shares. Typically common shares that pay a low dividend. And a separate set of shares that pay a higher dividend. The higher paying dividend shares are often called preferred shares. They cost more do to the higher dividend. There are also some preferred shares that are structured similar to bonds. They pay a higher dividend but tha company can recall them at andy time and give you a preset cash amount for the shares. Some preferred shares may also have limited or no voting rights meaning then holders of the shares have no say in how the business is run. It can get very confusing so it is probably best for an individual to just buy an actively managed ETF that has people to to keep track of this. I know of 3 ETFs to deal with preferred shares PFFA 8% yield, PFF6%, and PFFD6%. These ETF also invest in BDCs and REITS which are generally not called preferred shares. PFFA has more BDCs and REITs than the other two funds. In your case you need to find out the specifics of the preferred shares you get. IF the shares are publicly traded you should able to buy and sell at any time. The fact they did this by investing in Crypto is a red flag for me. It might be a one time or intermittent dividend. It is also possible the company may go bankrupt if teh crypto market collapces.
What will you do with all the bags from your short strangles? How will your port react in a high vol spike when shit starts correlating fast. What type of margin do you use? assuming you use PM What type of portfolio optimization model do you use and why? What does high IV mean for you? How are you modeling the realized vol part? Or are you just guessing? How will your port react to regime switches? Why would you have all managed futures etfs? Why PFF & PFFV, did you just copy all the tickers mentioned in the Risk Parity Radio podcast?
Proffered stock EFT PFFD and PFF 6%yield. PFFA 9%, high yield corporate bond SCYB 7%
NO I have PBDC 9 % yield. SPYI 11% yield. and PFF at 6% yield. and there are other but I own these and they are reliable.
I have 50k a year of passive income. It is doable and practical. You can start with these funds PFF 6% yield, PBDC 9%, and SPYI 11%.
PBDC 9% yield, PFF 6%, and SPYI 11%. I have then and they are stable.
You will get a lot of replies that basically say it is too risky. Many believe anything above 5% is too risky. Furthermore most are not investing for income. But When I started looking at income investing I found quite a few good investments with yields of up to 10%. If you invest your 500K in a fund that yields 10% you will get about 50K a year of income. PFFA 8% yield, PFF 6%, PFFD 6% Some companes have multiple different shares they offer. Some have higher yields than the common shares. These funds target these higher yielding stock that are often call prefer stock. These fund target preferred stocks that and are highly reliable dividned payers. Some even pay monthly. BDCs funds BIZDn10% yield and PBDC. Business develoopemt corperatations were created by law about 40 years ago. These companes loan money to c9%ompany es. These companes are required by law to return most of their profit as dividend to investors. SEC also requires these ETF to list their expenses differently than regular ETFs. The . They must list The cany expenses tha the BDCs they hold as an ETF expense even through these expenses are never transferred to the ETF. PBDC for example list total expenses at 13% even through the fund itself averages 0.75% Many BDCs even payed there dividend through the 2008 market crash and the Covid Pandemic. Covered call funds KNG 9%, JEPI 7%, JEPQ 10%, SPYI 11%. Covered call ETF were approved by SEC only about a decade ago but are quickly becoming popular. These fund use a trading stratagy known as covered calls. Developed about 40 years ago have been in use by large trading firms and now some brokerages allow small investors to use covered calls. The main purpose of this stratagy is to oconver price volatility into income. Now some of the fund have become infamous for very high yield well over 20% and NAV erossion. But if you drop the yield down to a lower level NaV erosion is largely gone.N SPYI is notable in that it modified the covered call strategy to lower the tax on the dividend so your taxes are lower than they toerhwise would be. JEPI and SPYI write covered calls on the S%P500 JEPQ writes covered calls on the NASDAQ 100 index. Now covered call fund will not exceed there performance You can use mix of these fund to get significant income in a taxable account. As long as you don't sell the shares you the income will last indefinitely . If just reinvest the dividends you could have a million invested with a yield approaching Passive income is a great way to protect yourself from unemployment. Even the lowest yield of 6% I have listed will generate 3oK of income a year. I retired a at 55 using regular stocks and SPYI, and PBDC, and PFFD and now have an income of 4 K a month. with enough in growth funds to insure I can increase my income to compensate for inflation for some time.
I'd hold off and keep doing what you are doing for now, least through March and possibly through April. The S&P500 on average returns 7%.....however it rarely actually returns 7%. The returns last few years are 2024 23%, 2023 24%, 2022 -19%, 2021 26%.......The S&P has only returned close to 7% +/- 2% twice in the last 20 years. Just looks like it could be a rough go for 2025 least the first part until we get through April anyway. Might check out PFF depending on your opinion of bank preferred stock compared to US treasuries.
Dividends are bennifical but they are not loop hole. But funds that produce a dividend of 1.3% is too small to due much until your fund gets to about a million. But there are fund with a much higher dividend. For example PFF has a yield of 6%. 100K invested in hthis fund will result in a yearly cash deposit into your roth but you can still deposit 7000 from your work income.. that is a yearly deposit of 13k000. That is a 85 % increase in deposit. And there is PBDC with a yield of 9% 100K in that fund would produce 9000 a year With the 7000 deposit you have increased the deposit by 128%. This is very helpful to people that want to retire. You can use dividneds to creat a a passive income sufficient to cover more than you living expenses.Imagine having 100K of income tax free from your roth. And the nice thing about dividend income is you don't have to sell shares to get it.
Right now i would look for a guarenteeded return on investment if you could find it. While dividends are not guaranteed they are highly predictable and reliable. Much more than Captial gains from an index fund. Most companes continued to pay there dividned during the 2008 downturn,the covid 19 market crash, The three years (200 to 2003) were the S&P500 3 years of negative returns. . With a fund like PFF you could get % per year. BIZD has a yield of about 10% a year. And some newer funds like JEPQ and SPYI also yield about 10%.
An excelent option of CDs is dividend stocks Some companies return a portion of their profit to share holders as cash payment. Dividend yield very from stock to stock put can be from 1% up to and over 20%. Risk does increase with higher yields but the risk is quit low at the 1% to 10% range. For example ETF such as PFF and PFFD have a yeild of 6%. Funds like BIZD 10% an and PBDC 9%. And then there are covert call funds like JEPI 7%, KNG 9%, jEPQ10%, and SOPYI11% IF you had $100,000 in SPYI you would get about $11,000 cash payment. I currently get 50k a year from dividneds and I retired at age 55.
price growth in the S&P500 is inconsisitanct. Since 2010 it has generally been up and the prevues 4 years were really good. And sometimes growth is very low for decades at a time. From 1930 t0 1950 there was essentially no growth. Similar in the 1875 to early 80. Most recently 200 to 2010 were the average growth for those yours was about 5% My suspicion is that we cannot expect any growth as long as Trump is in office. The economy wan't so great in his first term either. The downturn in the 1930 was caused by a tariff passed by republicans in [congress.It](http://congress.It) was only on the books for 2 years but by that time many banks had failed and with no FDIC insurance e most bank customers lost everything. right now I would not put a lot of money into growth funds like the S&P500. Instead I would invest for Dividends Dividends are profits returned to investors as cash payments. Much more reliable than growth. you can get a 6% yield with funds like PFF or a 9% yield with PBDC.
you could take the RMD and invest that money in dividend producing funds like PFF, PBDC, SPYI and others to get pasive income from the dividneds. If done in a taxable account you could gradually build up enough pasive income to cover all of your living expenses. I invested in funds like this to generate 50K of income a year. Enough to cover all of my living expenses and retired early. Many prefer bonds for pasive in come put teh yield is low so it is hard to get enough income to cover all your living expenses. With stock dividend you can get double to triple the yield at little to no additional risk Meaning you need less money to get significant passive income. Hopefully by age 60 I will have 100K of passive income. IF you have enough passive income you wouldn't need to liquidate shares to generate income. So your retirement fund could last longer
Most retires prefer a much more reliable passive income because they want to preserve capital as long as possible Traditionally that was done with bonds. However at the long term average yield of SCHD and bonds that amount of money you would need is simply out of reach of many people. 4000 a month today would be good minimum income level for a retiree. But with SCHD you would need about 1.4 million to earn that much pasive income. This is simply out of reach with many peppy today making minimum wage. bonds also don't keep up with inflation. Today you can get a higher yield with dividned funds. Yields of 6% or higher are possible You an get a 6% yield with funds like PFF and PFFD. 9% with funds like KNG, BIZD, and PBDC, and with JEPQ and SPYI you can get 11%. And even higher yeilds are possible.
Buy 35 % IVV (S&P 500) Buy 25 % RSP (equal weighted S&P 500) Buy 25 % PFF (Preferred stock ETF) Buy 10% IEMG (Emerging Markets ETF) Buy 5% GLD (Gold ETF)
You might want to learn more avbout investing and do it yourself. .you could just half in VOO and the other half in VXUS and the money in good market conditions could double 1 million in about 7 years. But with everything going on in washington DC i thing the market will be flat or worse for the next 4 years. The other option would be to invest for dividneds 500 million with 33% invested in BIZD 10% yield, 33% in SPYI 11% yield, and 33% in PFF 6.2%. . 500K invested this way in a taxable account would generate about 45,000 cash payments to you. IF you are working you could reinvest the dividned to keep the amount growing, and gradually increasing the yearly dividned. If you should loose your job you could stop the dividend reinvestments and use teh dividends to cover your living expenses until you get a new job. Tax on rt k is would estimate at about 4,000 per if the dividends were your only soulce of income You would've to talk to a tax professional to to figure out what your tax would be. with you job income. This doesn't generate money for house in the next few years but if you just grow the just reinvest the money for 8 years your your yearly income would be higher possibly 90K a year which would make owning a home easier.
All stocks are not tanking. Half of my stocks and ETFs were up. VZ, PMT, NKE, UNH, DIA and PFF were up. Large cap tech is done because it’s overvalued. When a sector is overvalued it’s very volatile and sensitive to news.
You should have a minimum of one tax deferred retirement account and a least one passive income account. Retirement account ts are great but it shard to access the money until year reach age 60. It won't help you if you loose your job or have to take an extended period of time off to recover from an injury. Many recumbent a 6 month emergency fund. Not mucbbhelp if your are unemployed for more than a year. In comparison a passive income fund invests in companies that pay a dividned or in corporate or government bands. Basically instead of inviting fro growth you invest for income. Right now I am not working and have an income of 4000 a month. Enough money to cover all of my living expense. And I don't have to sell any stock to get the money. And the income will last indefinitely. You can use ETF like SPYI (11% yield), BIZD 10% yield, PFF 6%, SCYB 7% , SCHY 4.5%, and SCHD 3.6%. And there are many others. Your passive income account must be in a taxable brokerage account with no restrictions on the access to the funds. So you will have to pay tax on the income. Now many worry about taxers. But the government only taxes a portion of the income. So it you can set the money asside in money market account. And then when you need to pay the tax you have money to pay it. Additionally if you loose your job your only income might be your passive income. The IRS allows you to have an income 47,500 and they won't charge you any tax on it. IF you make a little more than that then you pay a little bit of tax. For my self I have calculated that if I had an income of 100,000 my tax would be about 10,000. Leaving me with 90,000 to spend. You can slowly build it up over time just like you do with Roth or 401K accounts. And reinvest the dividneds to help the account grow. Once you reach your target income level you can reinvest the dividends in index fund like VOO or VTI. Thes pay a minimal dividend so minimal additional tax. SCHG and QQQM are two growth funds withe lowest dividned I have seen at about 0.6%. If you have an unexpected expense that exceeds your passive income you can sell the growth funds to get the additional money. You can save several yours of money in growth fund and have minimal impact on your toes.
COLs like JAAA and preferred stock PFF and bank loans PRFRX. All carry some risk.
The the long term average uinflation in the US is 3.2%. When you factor in year to year fluctionation a 5% interest ate is barely keeping up with inflation. But when you factor in fluctuations in HYSA interest you are definitely not keeping up with inflation. So overal most of the safe investments people floc to are notS safe because of inflation. Some companies have issued Prefereed Stock These stocks pay a higher dividend than regular stock they have been around for ta long time (100 years +. PFF was one of the first ETFs created (created in 2007). that invest in Preferred stocks. It pays a consistent 6% yield. the nice thing about dividends is that if there is a market correction the share price might drop a lot but the dividend continues to come in. Most companies set their dividend pay out about early in the year an only change it in the next year.Companes only cut the dividend if the buisness is struggling to generate profits. While S&P 500 index funds may 20% or more of the share price in a abad year the mean average dividend reduction is only about 2%. So dividends are much more stable than share price. And most companes during the pandemic didn't cut the dividend.
NO. it still hurts. someone with 3.3M would be getting $42,9900 in dividends Most older people prefer to not work for income. And the dividend is not enough to have a very comfortable living off of dividends alone. So most would be selling stock to generate the income. And For if that 30% loss lasts a long time as it didd after 2002 you could reapply broach a net worth of less than 2 million by selling stock at a loss.. after 3 years of lossees the market didn't start revovering until 2013. If you are still working and not selling assets for income a 30% loss doesn't really mater. For this reason dividend investing is popular. Dividned are much more stable than share price. So for the S&P500 a 30% loose of share price exits to about a 2% cut in the dividned. By design index funds often have a very low dividend. because they buy companies that don't pay a diividend with companies that do and include stagnate companies or failing companies that don't offer growth in share price or dividned. So dividned investors search out the ETF that pay a decent dividend and yet have stable company performance. If the stock also has capital gains it is icing on the cake. By investing in these companies people have been able to dividned income 100,000 or more for a lot less money than it taxes to generate the me income with an index fund. Many retires would love an income of 100,000 in retirment. To do that with * :For the S&P5000 1.3% yie.d you wold nee 7.6 million. * For the ETF PFF (6%) you would need 1.6 million. * For the ETF PBDC (9%) 1.1 million. * For SPYI (11) you would need 0.9 million. So obviously if you are about to retie with a 401K that has 1 million in it who'll you want to liquidate $% every year to generate income for living expenses? Or would you invest in a ETF that produces a dividned of 6% or more? If you choose to liquidate there is the possibility that you will run out of money before you die. Or do you want dividned income that will probably outlive you? .
I would slowly sell winners in equity (1-3% per month) and buy a wide variety of bonds, prefereds, ETFs, REITS, and maybe some baby bonds. If you sell some stock every month or so, and buy into other areas that are closer to fixed income, you will eventually balnce your account. I would consider corp bonds, government bonds, and even some high yield bond ETFs. Having a variety of them will balance safety with higher yield. But REITS, an mlp ETF, SCHD, PFF or PFFA, and other areas will create a much more stable account.
For fire you want income. CD and municipal bonds have the lowest yileld so you would need a very large amount of money to invest to cover your living expenses. Bonds are not much better and don't keep up with inflation. You need a yield of 6% to safely stay ahead of inflation. The only way to get the yield you need is to invest in dividend stocks. There are also a lot of companies with yields around the 5 to 6% range. AT&T and Verizon are two good ones SCHY is an international dividend stocks with a yield of close to 5% There are also ETF that invest in preferred stocks like PFF, and PFFD each with a yield of 6%. And then there are covered call funds. A covered call is a trading stratagy that has been in use for about 40 years successfully. But only recently have covered call ETF become available. KNG produces a dividned of 9%, KEPII 7%, and JEPQ 10%, DIVO4.7% Some offer dividends of 20%. You can creat o mix of funds to target any yield you want. And you could add some corporate bonds bond or lower yield but long term very stable businesses Dividneds are generally less risky than index funds like S&P500 which can gain or loos 20 to 30% in a single year. During a major market correction or recession the average dividned payment only looses about 2%. During the pandemic I saw my portfolio loos e 50% of it value but the dividneds kept coming in. After the pandemic the share price recovered and the dividend payment continued. For a fire account I think it is best to have passive income equal to grater than your living expenses and reinvest anything you don't spend. Never sell you dividend stocks. You should also have some index funds for growth .You can periodically harvest the growth to increase your dividned income to compensate for inflation. Or if you get a big unexpected bill you can sell your growth funds to cover the expense. I currently have 4000 a month of dividned income with a large amount still in index funds for growth. .
US Treasury iBonds. I still hold some from 4 years ago when inflation started to gain steam. Granted they are not paying that much now, but if inflation does higher, iBonds will also go higher. Look at preferred stock and preferred stock ETFs. PFF is paying 6.3% now. PFFV, a variable rate preferred ETF is over 7%. There are products available, just hunt a little bit. Find a product that pays LIBOR plus a couple percent.
Without knowing what expected expenses are in retirement, this is a tough call to make. You can always go with less volatile investments like preferred stocks (ETFs like PFF yield 6.3%) or bonds. The big risk is not knowing what a Trump economy does in the next 1-4 years. None of us can predict what will happen. Higher interest rates because inflation goes up? Possible. I'm inclined to agree, a significant market correction or crash is very possible. We haven't seen one in a while. Since crashes are unpredictable by nature, we can't know how much, how long or what happens afterwards. For peace of mind, consider increasing your cash position and go for HYSA, MM funds or short-term T-bond ETF. You should easily get 5%. It is the safe play in a world that is inherently not stable.
Check out a podcast called Risk Parity Radio, it's great advice for saving for a house or retirees. Basically, it depends on how long until you need the money, but the fundamental idea is the same: invest in a few different uncorrelated assets. Say, 40% equities, 30% intermediate-term bonds and the last 30% distributed between other uncorrelated, alternative investments. Often, folks include things like managed futures contracts (DBMF), gold (GLDM), preferred shares (PFF) and REITS (VNQ, etc.). If your time horizon is 10 years out or more, consider some longer duration bond funds. The closer you get to needing your down payment, take the money from equities and slowly sell for treasuries or other short-term bonds.
PFF amateur I can do the opposite in a week
Quality preferred stocks or ETF funds like PFF
> But is there something in-between bonds and ETFs/mutual funds Preferred Stocks like PFF ETF But you should just have a percentage of bonds and percentage of stocks.
PFF is a better alternative than JEPI which in theory could implode.
I have much much more than 2m dividend stocks and dividend indexes also, but I wanted to do something with my cash that didn’t have a chance of dropping, only going up. And then before interest rates change, I will be shifting to dividend indexes, like more PFF
There are a number a good opportunities to capture fairly safe income now: - Long term investment grade corporate bonds (VCLT) are yielding 5.85% - iShares Preferred (PFF) gives income and some long term capital appreciation potential, and yields 6.41% - For a bond alternative which will give them some income (about 3.5% yields) but also growth over time, consider a Utility (VPU) or REIT (VNQ) etf.
PFFA and/or PFF are examples, if you must have a fund. Individual preferreds are very good buys right now, though.
PFF. Over a 6.3% yield and is much safer than many bond funds.
How to invest funds in an IRA that will no longer be contributed too? I have an old traditional 401k that I am currently rolling into a traditional IRA. I don’t particularly want to manage the roll over traditional IRA regularly. Prior to the roll over I had it 100% invested in an S&P index fund, which has been nice the last year and half but rough the years prior. My initial thought is high dividend yielding stocks/ETF’s, with reinvesting the dividends. Splitting between 6-8 of the major players; KO, HD, PFE, HON, CAT, JEPQ, KBWD, PFF, DHS etc. The roll over will be in the low $40k’s. Would this be recommended. Any other thoughts? Upside and downsides to this strategy?
So the answer from sofi is that even though I opted out of securities lending and had a non margin account, they still lent out my shares and will not make me whole for the extra tax liability incurred. I've filed complaints with the SEC and FINRA and am transferring all investments out of SoFi. "Good afternoon xxx I apologize for the delay in response as I was out of the office yesterday. Per Apex response the PFF dividend is reflecting as expected and do not make adjustments to items paid as Substitute Payments in Lieu of Dividends or Interest to be compliant with IRS. The logic provided stated that The account does not have to be in fully paid stock lending program to be selected in the substitute payment. Substitute margin logic is arrived by: Number of shares held short on the record date for the security at Apex level, number of shares loaned out or borrowed at APEX level. The members enrolled in share lending will receive the SDL first but any margin accounts are eligible to be receive dividends in the form of Substitute Payments in Lieu of Dividends or Interest. While you do not have margin enabled, to allow the instant funding feature all SoFi Active Brokerage Invest accounts are underlying margin accounts. If you have additional questions, feel free to reply to this email or give us a call at xxx. Have a great day!"
You may want to call back and maybe you will get a rep that offer more help. There should be a corporate actions team that can offer more information. I don't know the actual answer but that doesn't sound right. My guess is that an ETF like PFF will have some percentage of QDI (qualified dividend income) and some percentage that is unqualified. Since PFF does lend out shares like many ETFs but I would expect the income to simply be counted as part of the unqualified portion of the dividend.
Lol….all these high risk stocks being mentioned. Low risk plays in a dovish Fed era are PFF and PMT. Reliable consistent dividend payers. Their dividend yields are way above high yield credit and the prices are bound to appreciate 10 to 20%. Way less risk than buying BABA or some of these other low quality high risk plays.
Don’t start trading yet. With only $100 I’d buy and hold PFF, SPHY, ANGL, and KMI. Key word here HOLD. This way you have exposure across bond and stock markets with dividend income and some volatility with energy. Key point here is to sit back and watch how your holdings behave over time, especially when economic data released or policy is announced. You’ll also get a feel of emotional engagement. But in all honesty I would save my time and money and focus solely on my career if I could go back and start over. You’ll really need to trade through at least one, more realistically two, boom-bust cycles to grasp the repeating themes and attitudes that play out before, during, and after every rally, every crash. Do you see yourself trading into your 30s? 40s? Or do you see yourself in a different career? If you’re just getting started and really want to learn, then start by reading the terms from your broker and research every time you don’t understand until you can explain all of the terms you’ve agreed to a 5 year old. It will take a long time.
Bought some PFF, yield is over6.4%.
Here’s what I would do as I’m in a similar position liquidity wise. Forget home purchase, it’ll tie up your cash and extremely restrict your optionality. We only bought a home when we were about 5 months away from our 2nd child. Buy a house in the absolute best school district you can afford when it’s time, plus can can accommodate your in-laws too. I wish we had multigenerational child raising available to us, but my parents can’t be bothered to ‘raise someone else’s kids’ 🙄. If they are paying rent and also helping out with the kids, you are getting a non-taxed $150,000 benefit each year. You unlocked the cheat code to turbo charging your finances. If this high yield savings is in a regular account, which it sounds like, I would put half of it into a preferred securities ETF like $PFF. It pays a 6.86% dividend (pro rata each month) but qualifies for federal dividend tax treatment of 15% vs ordinary income of approximately 27%. Do the math: would you rather 1) earn 4.15% and pay 27% of it to the Fed, or earn 6.86% and only fork over 15% each year? There is security risk so I wouldn’t put more than 40% of your liquidity in this vehicle. Can I have your in-laws move in with our family? 😆
I hold O. While not an ETF it is a highly diversified REIT company that pays a monthly dividend which might appeal to you if you're looking for a "paycheck" like dividend. Alternatively you may look at PFF, a preferred shares ETF. Preferred shares have a required dividend and carry lower risk than common shares, but with less upside.
Bonds and preferred stock could be a potential alternative. Example ETFs to consider would be: TLT AGG, BND PFF PFFD PFEF If you just shoved all your money 50/50 into AGG and PFF, you'd do ok and with lower volatility than SPY. If things ever crash hard, you could always rebalance towards SPY at that time.
My shares of PFF that were purchased as far back as 2019 are still showing a 24% loss and the monthly income has actually gotten smaller and smaller. I have no idea when I will get to break even. Lesson learned.
> Preferred stock dividend ETF Can I ask you which one you like? looking through them, they all look kinda the same. PFFA PFF PFXF SPFF PREF PFFR etc.
Held PFF for years and have lost a lot
The PFF rebalancing is tonight. Blackrock’s massive preferred fund so they might end up dumping them or buying more but ether way a sharp move is possible.
XLV, XLP, CWB, EFV, PFF, LTPZ, XLU, and GLD. Most (if not all) of these will be poised for gains should the market “crash.” If you held these 8 and only these 8 in your portfolio you would essentially be in a recession proof fortress. I don’t think you would see incredible unrealized profits but at least you’d be heading up while the majority was crashing down.
There are preferred stock funds like PFF. They mostly pay qualified dividends (if held 90days). Most preferred stocks are perpetual and have lower credit priority than bonds, so they are more risky on both dimensions than a typical bond fund. But a bit less credit risk than stocks and they have fixed income (but can be halted, sometimes non-cumulative) like bonds.
I've been listening to Risk Parity Radio podcast which focuses greatly on the math behind diversification. They say that if you start with VTI, the best single diversification is TLT. If you start with VTI, TLT, the nest best diversification is GLD. If you start with VTI, TLT, GLD, the next best diversification is a money market fund or short term bond fund like SHY. Then, next is PFF. Then VIOV.
Ken has consistently donated to my fellow republicans and is in the top 10 for GOP donors in 2022. In return, we plan to allow PFF and continue to burry the GameStop story from January 2021. In Ken we Trust, Amen.
Ride it out until BBBY files for bankruptcy? This stock was a meme short squeeze trade not an investment and the fun is over. It’s time to cut your losses before you lose even more. Sell then buy some monthly dividend paying bond and equity etfs while yields are rising and asset prices are declining. HYG JNK ANGL PFF PGX SPHY SPHD etc. With dividends reinvested you’ll accumulate shares at a discount until markets begin to rise again and the profits will stack up quick. But dump this garbage stock and move on. Do you really think BBBY is a viable company to invest in? There’s a reason hedge funds and institutions were shorting this company into the ground!
He could ladder into CDs/bonds/treasurys. A bunch of CDs and Treasurys have passed the 4% mark. A/A rated corporate debt is over 6% five years out, and BBB is over 7%. He's not going to beat inflation, but it's not really about that at this point in his life. Depending on lifestyle, he could live off the yield and still preserve original capital. If he wants to stick with the basic market and go ETF, something like a preferred stock ETF, like PFF, FPE, or PGX would give him yield over 5%, and paid monthly. A managed bond fund like Pimco offers can get him 9%, but that's a little more volatile and not quite "fixed income." Still, their PCM fund goes back to the early 90s and has maintained stable distributions through dot com, '08, and '20. There are good CFAs out there, and at the worst, he could go talk to one (or several) without fully committing. Most brokerages like Fidelity, Schwab, or Vanguard offer services, he could go to a meeting and just talk to them before making a decision. I manage my money on my own, but I have family that have had good experiences with small boutique advisors. But that's just going to vary situation to situation. Even just a basic accountant could give him, maybe not investment advice, but some insight into how he can handle taxes efficiently. It sounds like OP doesn't have a lot of experience managing money, certainly not at the level he's currently at. I think he should at the very least meet with a couple people, just to take advice. People shop multiple dealers buying a car, he can and should do the same with a $1.5M nest egg. There's no harm in saying no.
I’m sure CRHC is trying to find a solution. I wouldn’t be surprised if Allwyn is holding them to the minimum cash condition come hell or high water. Sure PFF has more cash, but they’ve also got CRHC over a barrel. If I were them, I’d be trying to take them for every incentive warrant and share they have before I saved the deal. The bigger question mark is the owner of Allwyn. He’s already a billionaire. The market for de-SPACs sucks, and before the deal closed he saw his company’s market cap dump by 16%. I’m sure he’s not thrilled about that, especially after all the UK risk vanished. He can afford to wait for more favorable conditions and keep taking $100M out of the business every couple of years.
Then you're not really holding preferreds, which is a mistake in the first place. PFF has no par value, not to mention having a lousy yield.
In my case I have PFF (and other similar) which is down 10-15% on the year and with rates going up more I don’t see it getting better. So there is no point in getting 5.5% dividend when the fund is down that much. I’m now buying one year T bills that will give me over three percent with no chance of going down at all. (Not in accumulation phase for this account).
I’m starting to think you may be josh mcdaniels by the amount of bloweyyy you giving him Lil buddy, Mac Jones finished the year as PFF’s 12th best qb as a rookie lol and we retained our top 5 PFF graded players. Jc Jackson is already on PUP and the chargers over paid, pats are happy to let guys go a year early before the break down and bag holding happens (check ur portfolio and learn something). Defense will be a top 10 unit this year pats consistently coach up their corners and have a quality secondary, Duggar is a dog at safety. Go ahead and look up past pats cb’s, all came up through the system and got better with time. Go hop on the raiders sub Reddit mc jr 😂😂😂
Wow only 10 hours !! PFF you should be grinding 24/7 - pathetic !!
You should probably by a CD but if you want some more yield, what I do when I need money in a defined time is buy a whole bunch of PGF or PFF and sell options either at or slightly in the money. Pretty solid ~7% yield, I’ve never even come close to losing money, most annoying thing that has happened is it gets called early (and you make money on the security + options premium + yield)
This is very smart. I use a fair amount of cash to sell put credit spreads. In this market, my strategy has gone to only play with best of breeds and still sell/buy OTM. PEP, NKE, FDX, KO, etc. Return is about .2-.4% weekly which in this market is solid; cash gained is simply invested into VTI, SPYD, and PFF for long-term holds. Anything Cathy Wood or Cramer touches I stay away from - this is the cycle in which value/dividend stocks with staple products and profits will do well. But I've never liked them after I really looked at their LT recommendations.
Dividends are something you want to do AFTER your retired. It’s a good way to receive income without having to sell your holdings. The problem with dividends is you need a LOT of shares for it to make a difference. I have half of my IRA in dividend stocks. In conjunction with my pension I’m actually making more each month than when I was working. So it really depends on your situation. There’s even a fund that’s up 10% this year. GCOW Global Cash Cow. Or PFF (I think that’s it?) Could be PFFD?
That’s a difficult and complex question. Any answers would likely mostly be based on the relatively short history of those etfs. I vote for KISS, keep it simple. If you want to put 5 percent in QYLD or similar have at it. Etfs such as PFF or HYG might be okay at low percentages as well.
Looks like you now have more information. Why not move to a blended approach with a vanguard S&P500 etf, like VOO and a vanguard bond fund? Look up the boglehead approach. You mentioned a “safe” investment above, but, there is always inherent risk to investing, whether it’s equity, bonds, or commodities. That’s the beauty of it. It’s a risk vs. reward payoff. On another note, what about adding some preferred funds like PFF? Or adding exposure to a vanguard energy ETF? I would also look for a financial advisor. Reddit is good, but there’s a lot of stupid advice out there - an advisor can help you make the best decisions for where you are and what your goals are. There are several posts floating around with advice on finding a good financial advisor. Again, I’m just someone who has an opinion and is asking questions, this is not financial advice.
Their jealous, wish they’d been Vlad and stolen money via PFF. Oh and having president poopy pants kill xl keystone so they can haul the oil on their rail lines. Yup totally legit research and investment thesis. Fuckin dirty old bastards.
Preferred Share ETFs like PFF and PFFD as a riskier alternative to cash or bonds. I Bonds too but everyone is all over those in these subreddits now
I won't get into specific tickers but I typically focus on investment grade in defenses areas. Buying utilities or mid sized banks should work out well. If all else fails you can buy the ETF PFF. It pays 4.5% and if the FED is somewhat full of shit you will have locked in a 4.5% yield and if the share price appreciates from here you come out like a bandit. Again, PFF isn't where I'm putting my money now. I'm buying the highest credit quality stuff I can find paying 4%+ that is callable in 2-5 years
PFF might be more of a savings account?
>Are you owning those purely for the income? PFF and JNK will perform like equities during a downturn. If you are purely focused on generating income and don't mind the higher risk, ok, but if you want dividends and long term growth potential, you would be much better off in an equity income fund. and if you want income/growth, just buy equities.