PFFA
Virtus InfraCap U.S. Preferred Stock
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Moving assets to income producing securities should be done before you get to retirement to secure reduce your risk. BND is a good choice but there are many good choices. Funds like JAAA 6% yield, JBBB 7.8%, CLOZ 8%, UTF 7%, and UTG% 6.3%. All have higher yield than BND and other government bond funds and historically are very safe investments. less safe but still not terribly risky are PFFA 8% yield, PBDC 9%. But you also need to factor in your expected income needs. you need to have a good estimate of your income needs in retirement and then gradually work on configuring your portfolio to generate more than that income. IF your account generates more than you need and you reinvest the excess income you will never run out of money.
Like we said. In Europe we can’t have nice things… PBDC and PFFA and CLOZ are not in Europe. JEPQ is LSE and is available (fortunately)
Well than JEPQ is your best choice of the 3. can you get PBDC9% yield, PFFA 8%, or CLOZ 8%. These 3 plus JEPQ would get you to your income goal and leave you with
What I would do with cash is put it in a taxable brokerage account and turnoff automatic dividend reinvestment. The cash from the dividned can be placed in HSA, HYSA, or money market account. After that any excess can be used to used for personal needs mortgage, roth, or held as cash for emergencies. Or some could be invested With a fund like QQQI 13% yield your account could push out a lot of cask per year. 100K at 12 would generate $1000 a month. And QQQI is a tax efficient account. The fund takes steps to lower the tax on the dividends you recieve. SPYI is similar but 11%. EMO and PBDC 9%, PFFA 8% or you could just go with a utility fund UTF and get 7% IF you want to take risk There is BTCI which has a yield of 25%.
You can move the account to a brokerage without insuring taxes. I use fidelity. All you have to do is contact them provide them with he account number for the american express account number and fill outcome forms and they will mov the acount to fidelity. >I guess I realize I lost money by not putting it in stocks and by inflation. I just don't know what to do. IT is important to realize your fear of risk is is not based on your experience with your investments but your fear of not knowing what will happen. In most cases the fear is a lot larger than actual risk. In my IRA I have a bond fundFAGIX that ear a steady 5% yield but I also have JAAA 6%yield, CLOZ 8%, UTG6.3%, UTF 7%, PFFA 8%. All of these investments produce cash payments into your account regardless of what the share price will do.The share pirice may go down but the cash will still be deposited quarterly. Generally people like you do better with these investments. Now you can add up to 7000 a year into an individual IRA. I strongly suggest you do this every month. Over time as you get more failure with these funds your fear will drop. Some higher yields can be achieved with slightly more risk with funds like PBDC 9% yield, SPYI 11%. And you could put some money in VT. All of these do hold stocks. Start out small first and gradually increase the ammount. in them.
there are always people saying don't invest for X reason or invest for Y reason. Ignore all that and focus on understanding the investment your advisor is recommending read the prospectus for any funds an in general learn how to evaluate your investments. Your advisor can probably guid you or recommend classes or books to read to help you learn. Right now this is all new to you so I would ignore the news and focus on learning about dividend and growth investing and and evaluating 12K a month you are going to owe taxes on that. So keep that in mind and make sure you have have a tax advisor. But that said what i would do is invest the money in low risk dividend stocks. Such as JAAA 6%, UTG 6.3%, UTF 7%, CLOZ 8%, PFFA 8%. Eventually the money your are getting now will run out. When it does you want something to fall back on. All these funds generate cash dividends.
Buy some high yield bonds and treasuries if you are concerned about common stock valuations dropping. Bonds are senior to preferred shares and common stock. You can also look into preferred stock like PFFA.
You could invest the money in JAAA 6% yield and JBBB 8% yield and PFFA 8% UTF 7% and UTG 6%.Thes all invest in different assets and provide a much better yield. These are dividend funds that pay out quarterly or monthly. Some higher yielding options are PBDC 9%, ARDC 10%,EIC 11%, and SPYI 11% the lower yielding funds are safest while the higher yielding funds have slightly higher risk. YOU will have to use a taxable brokerage acount for these funds. Set dividend investment to off. Cash will show up in the account and from there you can move that to your bank account. The higher yield of these funds will probably double your income. Any money you don't spend reinvest it for more income. Your taxes will go up due to the higher income. So you probably will have to make some adjustments to your tax withholding. I strongly suggest you read the book The Income Factory. and look at Armchair income on youtube.
If you are worried about a major market correction coming try a preferred stock fund PFFA yields 8% which is better than bonds and preferred shares are resistant to share price change and dividend funds. Preferred shares have dividend priority over the companies common shares. So if the company has to cut expenses they will likely cut or stop paying the dividend 0n the common stock while continuing to pay the dividend on preferred shares.
You want safe reliable investements not get rich quick investments which frequently crash and burn.Palantir and Nvidia are excellent examples of get rich quick inveseents. Most people for retirement invest in funds like VOO, VTI, VT, VXUS and various government bonds. Some invest for dividned income using funds like PFFA, SPYI, or QQQI. With all of these investments the key thing separating investing from get rich quick is is buying the stock of the fund, and holding it until you retire.
If you invite in a combination of dividend assets with a yeild close to 10% you would have about 50k of income per year after selling the condo. Which is probably enough to cover most of your living expense or all of the rent for the appartment. Some funds you could use are PFFA 8% yield, PBDC 9% EIC 10%, SPYI 11%, ARDC 12%, QQQI 13%.
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).
PFFA is up 16.41% in the last 5 years in addition to paying monthly dividends in the 8-10% range that whole time..
Short selling may only provide occasional income. For cash you want regular earnings. I would put some of your cash in a fund like QQQI with a 13% yield. Or you could use UTF 7%, PFFA 8% PBDC 9%, SPYI 11%, EIC 10% or ARDC 12%, or BTCI 24% But keep in mind you loose some liquidity when investing in these funds. Meaning if you need to withdrawal all the money you would have to sell shares, which takes a few days, and pay taxes on any capital gains. There is the possibility that you might sell at a loss. But with dividends you can build a contininous stream of income. Using funds like this I have drevolped an income protfolio and gernates 5K a month. Most is used for living expense and any excess is reinvested. I retired at 55.
Dividend funds are not terribly expensive funds like PFFA 8% yield, PBDC 9%, SPYI 11%, QQQI 13% Have a higher yield than bonds and 100K invested at 10% yield will earn you 10K a year. Year after year.
Overall I don't think it's a bad idea at all, just a question of what's realistic to reach your goals. This statement is based on the belief the divinend yield is low. It isn't always. It is also based on the believe that high dividends are higher risk. Many people today only invest in growth funds and bond. With these investments highert yield you can ge is about 5%. but there are funds like PFFA 8% yield, QQQI 13% Or ECC 24%. So you can get higher returns than 5%. Yes higher yield means hire risk But in reality the this additional risk isn't really noticeable until you start to exceed about 30% dividend. And Even some very low and no yield investments can be very risky.Groth index fund have great returns but generally have very high short ther volatility risk. Often higher than dividned funds.
I actually love this approach. I’m 50’s (50) and have a kind of sketchy version of this, but it’s been something I’ve been thinking about. I def need more international, and less US. I’m a bit worried about being leveraged 15%, but I do have a very favorable margin rate. What do you get? What do you think about covered call ETFs, REIT’s, Preference Shares? My margin is significantly lower than the after tax yield PFFA and SPYI would give me, so leveraging myself with some of those would give me ‘free money’. Also IDVO gives me income and international exposure.
I’ve had a lot of cash since March. I’m reluctant to invest at these levels under this president, but I recognize that short term interest rates will soon start coming down. As a result I’m shifting small amounts to global bond funds like BINC, preference share funds like PFFA, and international funds like SCHY, IVDO and VEA. I’m retired so I’m trying to generate income from less US centric assets.
I think paying off your dept is probably your best option. But there are fund that return 6% per year. For example UTG 7% yield, UTF 7%, SCYb 7%, PFFA 8%, PBDC 9%, SPYI%, ARDC 12% QQQI 13%. THESE FUNDS ARE Different Than VOO. VOO earning come from the price per share increasings. They funds I have listed don't have much price appreciation, Instead they make quarterly or monthly cash payments to you. The money will go directly into your brokerage account Now you can set your account to automatically reinvest the money into the account that generated the money or you just leave it as cash and spend it. As long as you don't sell shares you will continue to receive the money. You could move your emergency find into a prokerage account and use a brokerage money market fund to earn interest on your funds (My fidelity money market account yield 4.5%. Then you could use one or several of the funds above to continuously add cash to your emergency funds. If you have more cash than you want you can invest the money for more dividends. I am retired and I get enough money a month to cover all of my living expenses this way without selling shares.
Everyone assumes saving for retirment is the only reason to invest. A 22 year old may be more interest ed on a secure source of income she wouldn't loose if she loses a job bra has to take care of a child alone. After the maxing out a Roth I would recommend investing for passive income. in regular taxable brokerage account. Strt investing in a high yield dividned fund. My recommendation is QQQI . This fund has a 13% yield so 100K invested in this account will produce 13K of income. With dividends set to automatic reinvestment build this up. As long as she is working keep adding to the account. Keep building this up until the dividend is about 4K a year. At this point if she looses her job she can stop reinvesting the dividends and live off of the income. At this point she can stop automatic reinvestment of the dividend and divert the income for other uses. * Build up a cash reserve. * Invest in a low dividned index [fund.You](http://fund.You) same more than a million dollars this way and pay very little in taxes due to the very low dividend these funds have. * Use the cash to contribute to a roth acount. * Continue to increase the dividend income so the can retire early. * Deversify the sources of dividned income by adding funds like UTG 6.7% yield. UTF 7%. SCYB 7%, PFFA 8%, PBDC 9% ARDC 12%. Now taxes is an issue that must be addressed. QQQI not only produces income but it also taks extra steps to reduce the tax you pay in the dividend income. For the first few years you can just cover the expenses from work income because The dividend income will be small. Or you could set some of the dividends asside to as cash and then in april you will have enough to cover the additional tax. You could also estimate your tax and make quarterly payments directly to the IRS like you employer does when they give you a pay check. You might want to read the book The Income Factory. And look at the youtube channel Armchair Income. Both discuss this investment style
An option other than bonds is dividend funds like UTG 6.7%, UTF 7%, scab 7%, PFFA 8% SPPYI !!%, QQQI 13% Yields are higher but The risks are higher because they are not backed by the government. But bonds don't keep up with inflations. Dividends of 6% or higher do keep up with inflation when the dividneds are automatically reinvested. Additionally when you retire you can simply turn off dividend reinvestment and use the cash dividneds to cover living expenses.
I think your best corse of action is to invest for dividends and grow that every year. Eventually it will produce enough income to eliminate most of your monthly bills. That would free up work money for a home and the dividends could be used to pay off a home loan you will need. And it could be used to pay for travel. I live in the US and I am assuming you can purchase US stocks or funds. If you put the $350K in QQQI which has a dividend yield of 13% and get 45,000 a year in monthly payments. But you done't want to put all your eggs in one basket which I understand. You could invest in UTF 7%, PFFA 8% PVDC 9%, QQQI 13%, ARDC 12%. IF the money is spread out equally over these funds you would get a yield of about 9% and get 31K a year of income if all is reinvested for about 7 years you would have about 700K invested yielding about 60K a year of income. Enough for travel. In about 14 year with reinvesting you could have 1.4 million with income of about 140K a year of income. But a couple of notes. the fund mostly grows by reinvesting the dividends. so you want to continue to do that as much as possible. Also if you have any excess money from work invest that as much as possible to accelerate the growth. Now you could automatically reinvest dividends from each fund back into the same fund. I this case I think it is better, to disable automatic reinvestment. This will cause the dividends to build up as cash in the account. set a series of 5 automatic investments into each fund. You could add more dividend funds if you want using a list of funds Armchair income on you tube. He has a list of 35 funds he uses. Also the book The Income Factory has a list of 68 fund you could use.
You might want to point other that here are some very good investments out there were he ca put money in like PFFA 8% yield SPYI 11%, QQQI 13%. Maybe if he sees how good these are he will be more willing to sell the stock to invest in a better fund. You might also want to mention to him the benefits of diversification. So he can see it is a bad idea to have all you money in one stock.
you can get the book The Income Factory. And has several incomes producing portfolios that could generate income from 60K up to about 90K fro the 1 Million you have to work with. The Author has invested his own money this way and managed the fund of some friends. He has a lis too 68 funds listed in th the book. Mostly from ETF and CEF (Closed End funds) There is also Armchair investor on you tube. similar investing style and he has a a fund list of about 38 funds he likes. You can do quite well on the income side with funds like PFFA6% yield, PBDC 8%, SsPYI 11%, ARDC 12%, QQQI at 13%. I am not a fan of gold so I don't have any recomendations there. And the low yields of bonds is not attractive to me.
MY head is spinning 20 years old and 500K net worth? At that age I was in college and my work income was barely enough to pay for rent and food. any way i would start putting you money in funds like PFFA 8% Yield, PBDC 9%, qqqI 13%, ARDC 12%. All these funds generate income you could get 65K a year from QQQI, or 40k a year from PFFA. So by buying these investements and siimply holding them would cover most or all of your living expenses. But Ideally you would spread out your income over many funds so that if one fund runs into issues you won't loose all of your income. You might also want to look at armchair income on yoututube, and read the book The Income Factory.
many people that invest for dividned s find they are less likely to sell because the income keeps coming in. Ehilr the young are often willing to take risks with investing those nearing retirment find they are no longer willing to take the risk. So you need to get in but don't imvet like you did in the past. Focus on good dividend funds like PFFA8% yield. pbde 9% SPYI 11%, SCYB 7% and ARDC 12%. I spent most of my life basically following wheat we now call the boglehead style of investing. Never gabe dividends a thought. until one of my minor investments started paying a dividend. That opened by eyes and I started investing for dividends. iI now find dividend much more interesting than I didd and I am not as worried about market crashes.
I wouldn't use any of the fund you have listed in your roth. All a very low yield. You could put those in a taxable account and pay almost no taxes. You are wasting the capabilities of the Roth account. I would use funds like PBDC yield 9%, QQQI 13%, and ARCC 12%, PFFA 8% I f all your money in the roth is invested in funds like this the money value of the fund would double every 6.5 year. It could be worth almost triple its current value by the time your retire. And the dividned income it generate couple help you cover most of your living expenses without selling any shares or paying any taxes. Basically at this point in time you should be setting the account to generate passive income to cover your living expenses using dividends fund and bond funds.
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.
Proffered stock EFT PFFD and PFF 6%yield. PFFA 9%, high yield corporate bond SCYB 7%
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.
the only thing you could do is sell your fund and leave the cash in the roth account. then buy into ab fund that doesn't have tesla. The only fund that i can think of is VXUS. VXUS does not invest in US stocks. It only invests in international stock but there are good dividend funds that don't There might be some small cap funds but I don't know of any the other option is to invest in a dividend fund. tesla doesn't pay dividend so it shouldn't been in a standard dividned fund. PFFA is a good choice. with its 8% yield,KNG, 9% or PBDC 9% These don't have nearly as much grwoth as index funds but but he dividned is quite high. So that are close to the long term average return for the S&P500 which is 11%
I have a variety of individual corporate bonds with coupon between 6-6.7%. Also tickers SPHY, JBBB, JAAA, JEPI, JEPQ, SPYI, PFFA. Cash is in FZDXX money market fund.
I'm mostly in equities + covered calls. Concentrating more on fixed income. JAAA, PFFA, MSDL. Sold ultra-short treasury funds & bought ICSH.
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.
Bear market just means dollar cost averaging time. Going in on SPYI and PFFA
Purchase mortgage REITs like AGNC or NLY., if interest rates go down slowly over the next one to two years as the Federal Reserve has promised then their profits will increase dramatically and the values of their underlying Agency insured mortgage backed securities on their books will rise a lot in value. if interest rates go down sharply due to a recession or global event. their stock prices will drop with the market, but likely only half as much and then will recover faster and their profits will rise dramatically with the lower long term yields, and while you wait they pay a 13 to 14% cash dividend. PFFA preferred stock ETF pays 9% and displays a much more muted response to market swings BKN, Blackstone leveraged MUNI fund ETF, pays 5.5% tax free and will rise as yields fall EDV, Vanguard 30 yr STRIPs, US treasuries ETF, pays 4.2%, but rises 25% for every 1% fall in 30 yr UST yield, I'm up over 30% in last 10 months on it, and pays decent dividend too IF you need zero risk, then USFR at 5.3% or SGOV about the same, but they will fall in yield as rates come down
Yes. There are equity based ETFS that are superior replacements to bonds. If you want stability, buy JEPI. If you want bonds and interest rate exposure there are a lot of options but I would suggest taking a look at PFFA. Not really bonds but they are very similar in practice. But really there’s no reason to hold boring old bonds anymore unless you have a risk tolerance of absolute zero. (Which you still get butchered in opportunity risk and inflation risk, but that’s hidden so people don’t think about it.) I would suggest replacing your bond allocation with a mix of JEPI and JEPQ.
PFFA and/or PFF are examples, if you must have a fund. Individual preferreds are very good buys right now, though.
When I got to $300k in assets is when I started feeling like my investments were doing some heavy lifting. At $300k a 10% return is $30k and that was about as much money as I could contribute in a year at the time. Now that I am over $1M it is insane. Making $100k+ in a year is pretty common and that is more than I ever made from my w2 income. My highest w2 income was $75k per year. Now here is the other thing about having assets. The more money you have the more money you can borrow and the cheaper the interest rate you pay. With $1M in assets you can go over to interactive brokers and borrow money at roughly 6% interest right now for a margin loan. So, what you do is you borrow say 10% of your portfolio which IMHO is very conservative. So that is $100k. Your interest rate is 6% per month. So what you do is you can be conservative and buy $100k of an ETF like PFFA which is an ETF of preferred stocks, which are quasi-bonds. With PFFA you make 9.45%. So, PFFA will pay for itself and give you an extra 3.45%. Also because these are preferred stocks the income is mostly going to be qualified dividends taxed at 15%. Anyway by the end of the year you own the $100k of PFFA free and clear and you probably made some extra profit off of it too. Your margin is back down to 0% and you can do it all over again next year... It doesn't have to be PFFA. That is just IMHO a pretty conservative option. You have tons of options. JEPI is 8.35%. JEPQ is 9.90%. JNK is 6.36%. SPYI is 11.94%. QYLD is 11.68%. TLTW is 19.79%. SVOL is 16.18%. Blah blah blah blah... tons of options all which will cover the margin loan rate. So at the end of the year you now have an extra $100k in assets. You can borrow up to 50% on a margin loan but I wouldn't recommend it. IMHO using 10% is very conservative and extremely unlikely to get you into a margin call. Even if your assets fall by 50% then you are still only using 20% margin, and you can always sell some of the assets back to reduce your leverage back to 10% or whatever. There is no need to sell though as what you purchased with the margin debt is going to cash flow enough to pay itself off and then some.
$PFFA, pays monthly till you decide.
> 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.
I use $PFFA to hold cash; has the volume, hovers around $20ish while it pays me monthly. Got a boatload when it went to $19 and below recently.
Not many, but GOF, PFFA and HFRO come in at 1% monthly, and they're actually decent (not ideal) buys right now.
If he dies, it'll crash; $PFFA is the same where it all depends on one guy.
Watertimes- I have a group of about 25 or so high dividend payers that I adjust as needed. Some good ones to consider are NRZ, AMZA, ABR, USA, ORCC, PFFA, and a few odd ones like SLVO and SSSS. I don’t chase yield, however my dividend incomes expectations are higher than many safer SWAN stocks. I have been a dividend investor since the DOW was under 2000. Good luck!
>Did BBBY 80C and its going back up. Do more of this ​ >Just did PFFA 23C this morning JFC. Even for WSB, that's pretty >!retarded!< Were you the guy who scooped up the 5 March 2023 $23 Cs for $560 at \~10:25 EST this morning? On a "Preferred Stock ETF" with 100K daily volume and **fifteen total calls traded today**? If so, I'd like to introduce you to my friend Ho Lee Fuk ​ I'm almost tempted to follow for the loss porn, but I'll just leave a preemptive **'F'** to pay my respects.
Now I understand how options are addicting. I bought BBBY and CLOV on Monday. both are down but only CLOV expires friday. Just bought PFFA 23C for Mar 2023 and it literally spiked 121% in the last 10 minutes! I've made up half my losses with one good option. I'm hosed aren't I? I will become an option degenerate won't I?
$PFFA is a preferred shares etf. Not exactly bonds, but it has treated me very well thus far.
This is the problem. It’s essentially taking MORE risk than the underlying, while providing worse return. I’ve been looking at getting into PFFA for my 401k, which pays around 9% a year in monthly dividends. Since it’s a portfolio of preferred stocks, you run a pretty low risk, and you get a solid monthly dividend. The one thing people forget about monthly dividend vs yearly return is the more frequent compounding. So 9% here is actually 9.38% after monthly compounding. It doesn’t always make up the difference, but still important to note.
Simplify, for your own peace of mind. A proper three-ring circus costs at least $1m per ring. If you would like your money to work for you passively, consider the following: ERC HFRO PFFA QYLD GOF (Feel free to DM me if you find other funds paying as well, with the same frequency.) If you are really managing actively, you'll need to read Ben Graham's book: The Intelligent Investor, as well as Brian Shannon's book: Technical Analysis Using Multiple Time Frames. Anyone who has read neither has no business trying to actively manage money beyond a checking account. They're foundational works, if neither riveting nor super up-to-the-minute. Active management should involve a thorough working knowledge of options Greeks, options strategies, and the use of options for hedging, income and growth. (As well as the above-mentioned books and enough general knowledge to pass the FINRA SIE exam - don't actually take the exam) Bonds are not the right place for this size portfolio. Instead, go in on some high conviction plays with very small amounts. You'll do better. (High conviction does not mean an idea that came from a wsb "dd". All wsb DDs are FDs in disguise. u/DFV did well because he was the party planner, not a fashionably late guest.) If you would like to hedge against major adverse events, utilize low-cost call options on leveraged inverse ETFs at extreme highs, or (smarter) just keep a substantial cash reserve for special occasions, like corrections and crashes. Buy stocks only at a fair value, or with very high conviction, using well established valuation/analytical methods and (if possible) the sale of cash-secured puts. Let the rest of the market gamble on overvalued nonsense for you. I would shitcan as many of those accounts as possible without penalties, then consolidate. Make sure you have one small cash account for new ideas that could be disasters. Oh, and make sure to screw up very badly once in awhile. It's good for you. I hope you achieve your FIRE goal, with the E being much earlier than expected. 🙏
>Bunch of different ways. ETFs that track an index and sell options on the basket and distribute the income, e.g. NUSI, QYLD. Some REIT ETFs e.g. SRET. Preferred stock ETFs like PFFA, PFFD. Master limited partnership ETFs like AMZA or MLPX. ETFs that focus on high-div yield stocks e.g. SDIV. Not a comprehensive list. i understood some of these words
Bunch of different ways. ETFs that track an index and sell options on the basket and distribute the income, e.g. NUSI, QYLD. Some REIT ETFs e.g. SRET. Preferred stock ETFs like PFFA, PFFD. Master limited partnership ETFs like AMZA or MLPX. ETFs that focus on high-div yield stocks e.g. SDIV. Not a comprehensive list.
Index funds like VOO are always popular. There are some good ETFs, too, that are often more sfable than an index. I like PFFA for long term consistent growth.
I like PFFA, which is an ETF consisting of preferred stock and currently yields ~8%.
PCI, PFFA, XFLT, NLY. They all pay major dividends and are priced below NAV. Long value and BIG, Safe dividends