QQQI
NEOS Nasdaq 100 High Income ETF
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I'd throw it all into QQQI and collect that 15% annual dividend. Then max our your retirement at work with 100% going into VTI or VOO.
One thing you can do in a taxable brokerage account. put cash in money market account.This would be for emergencies. Then I would start putting money in a fund called QQQI. this fund has a dividend yield of 13% and takes steps to reduce the tax you pay on the dividends it generates. The dividend payment occur monthly and will appear as cash in the account. You can use that to build the emergency fund to 6 months of living expenses. After that reinvest teh the money in QQQI. 100K invested in this fund will generate a little over 1K a month of income. You can build it up so that it can cover all of your monthly living expenses. That way if you loose your job you will still have income to cover your living expenses. It will take year to get there but once you do you will have some financial security. I would also recommend reading the book The Income Factory. You can use the information in this book to structure your your retiremnt investments to work much like the Pension your employer is offering. In the event you never get the pension you will have a backup pension in your retirment accounts. You can also do this in your taxable account to.
SPYI, JEPO, QQQI. just check out covered call income ETFs they pay fat dividends and capture some ( not all) growth
$430k in QQQI gets you this far, I'm guessing.
you could invest the 50k in QQQI and get 13%yield which would generate 6500 a month of income. You could then either reinvest the money back into QQQI and you would have about 100K in 5 years. If you add more money it could grow faster. Or you could use the income from qQQI to invest in other funds to generate more income from multiple sources i would also recommend reading the book The IIncome Factory. It discusses dividen d ncvesting and list 68 funds the author has used and provides example portfolios.
QQQI ex date will be around 19th-22nd. You know what to do.
Hell no. Get an investment that doesn't require you to work a second job. Dealing with tenants and maintenance issues is a nightmare. I'd rather throw the $ into QQQI and make a 15% dividend each year.
Good idea. A little late, but can still pull in a 14% yield on QQQI or 12% on SPYI.
The problem iwht bogleheads investing is you have to liquidate stock to generate income. Which means you could eventually run out of money. The solution to the problem that preserves captial is outlined in the Book The income factory. And Armchair income on youtube also discusses this. There are funds and company stocks that pay out a portion of their profits to you quarterly or monthly as cash to you. Say you invested 100K in a fund with 10% dividend yield of 10% and it pays monthly. Every month you will,$833. Dollars a month. while you are working you invest the money back into the fund. The fund will grow. in 7 years the fund will have about 200K deposited and will pay a dividend of 1,666 every moth. Over 30 years you should also have about 1 million in ht account producing about 10K a month of incomce. If you invest for dividends in addition to your growth index funds you should have substantial income when you retire. So you live off of the dividned income . IF you don't spend all of the income you reinvest the excess money. Hopefully you can reinvest enough to keep up with inflation. IF you have a bit unexpected expense in retirement you can sell the growth funds to generate the additionally income needed. Or you could periodically harvest 4% of the growth and reinvest the money for more dividend income to adjust for inflation. I retired and now get 5K a monty of income from dividends 4K covers my living expenses. and 1K a moat is reinvested. I also have growth funds I can tap if needed. It is working out very well. Some of the funds I am investing in for income are FAGIX 5% yield, PFFD 6%, UTG 6.7%, UTF 7%, SCYB7%, PBDC 9%, SPYI 11%, ARDC 12%, QQQI 13%.
Note I don't have any experience in operating a business or now the rules regulating buisness accounts. But 100K invested QQQI would generate 1K a month. of cash. It has dividend yield of 13%. My fidelity money market acount at about 4% currently. IF you are getting 0.01% your money is not in money market account. You also stated blow the the money has only been used once in 8 years and your companies typical expense are about 20K. In your case I would keep about 40K in a liquid money market account the then investtt the rest in assets with higher yield less liquid assets. If possible build up the low liquidity account until it produces 20K a year in to pay to cover operating expenses. . With operating expenses covered by the investment the profitability of the business would be better.
SEC yield does not include option income, which makes up almost all of the distributions from QQQI and SPYI.
about 500K. 5K a month is 60K a year. dividend that by 13% for QQQI.
I like dividends. I would put it in QQQI. it has a yield of 13% yield and would produce about 1000 in cash a month. If you reinvested all of the dividend the funds would double in size in about 5 year. If you don't reinvest the dividend you can buy other funds. In addition to the yield the fund also takes steps to reduce the tax you payoff the dividend. So in a taxable account it can be an alternative source of income I am retired with an income of 5K a month from dividends. Enough to cover all or my living expenses. I have the following funds UTG 6.7% yield, PFFD 6% UTF 7%, SCYB 7%, PBDC 9%, SPYI 11%, QQQI 13%, ARDC 12%.
Got to 1M off 35K before I turned 20. Lost it all by 23, made another another 1M at 27. Lost it all by 28. Humbled twice, won't be a fool 3x. Got to 1M again, put half into BTC, 25% into QQQI, day trading with the remaining 25%.
NEOS is using section 1256 index option contracts, meaning it's taxed 60% long term 40% short term cap gains. JEPQ is mostly if not completely ordinary income if I remember correctly, plus, JEPQ isn't even outperforming QQQI pre-tax, let alone post-tax JEPQ hasn't been around very long either, barely longer than SPYI, so I'm not sure why you'd trust one over the other, unless you have fundamental concerns about NEOS management vs JPM
F you leave the money were it is and assuming the interest (best case) is 5% your yearly tax on the interest would be about 8K a year. Which is not really a lot. And it might actually be lower depending on your income or tax filling status. Now if you move the money into a brokerage and leave it as cash you would also earn interest st and you would still pay tax on it. To lower your tax you willed have to invest it in stock or a fund or something other than cash. And this is were your thinking doesn't work. Then when you decide to buy a home you you would have to sell at the asset. When you sell you could either get a gains or loss on your money money. So you might not have 500K after the sail. You could easily have 400K or less. And then you would be reporting a loss on your taxes which may more may not save you any money. If you have captial gains. With captial gains you may or may not save any money on taxes. Yes the capital gains tax rate is lower. but with an unknown gain or loss you caannot know your tax payment So your are probably best leaving your money were it is. But there is another possible sinario. You invest it in an income fund like QQQI. This would generate and income of about 5K a month without selling QQQI. Then instead of buying the home you would get a loan to buy the home and use the 5K a month to pay gradually pay off the loan. This might be better depending on the home purchase price and interest rate one the loan. Since you are selling the stock you still ow tax on the income which would a little over double what you are getting in interest now. QQQI has a yield of 13% and does take steps to lower you tax on the dividend. I cannot say what your tax will be with this fund because the tax savings may vary year to year. But if you loose your job your job and don't buy a more you still hav the 5K a month of income.
QQQI would be a more tax efficient way to cover the loan cost and still get NAV appreciation and some additional income
I am but everything is in 4% Schwab money market. Slowly picking a few opportunities that appear promising. Picked up Lily and Abbvie on dip and sunk a little in QQQI to access a fairly stable dividend play. Still happy with 4%-plus in this environment on the remaining 80%. Still a much bigger downside than upside in my view. Disclosure: I am 68 so my horizon may be different.
Keep in mind VDIGX empisises growth more than dividned. Small increases in dividend will cause a corresponding increase in share price. So in the long term the yield will stay about the same. If you work out the math a small increase in dividend results in a larger share price increase. The yield of the fund you are looking at is 1.7%. So to get about 5K a month of dividend income run the fund it would have to grow to about 3.5 million. It will take a lot of time to get that much money. Many invest in S&P500 index with its 1.3% dividend and many never get to 3.5 million invested. VDIGX is not really a dividend fund. It is just another index fund. IF you however invited in UTG 6.7% dividend, you would only need about 900K to get about 5K a month. Or you could invest in QQQI 13% yield and retire with 500,000 in the fund with 5K a month of income. Most people with a roth or 401K can achieve 5K a month with 10% yield in about 20 years. Many say if you are young invest in growth funds. The main reason for this is the assumption that dividends will have a lower total return the growth funds. his is true if you assume the maximum safe yield is 5% But there are a lot of funds out there that reliably produce between 5 and 10% yields And at yields of about 10% the long term potential total return is about the same as the S&p500.
you could put the money in QQQI and then reinvest the money in other funds producing a pasive income stream you can retire on. QQQI is a dividend fund that has a yield of 13% and would generate about 60K a year of income.The book The income factory has 68 funds you could use and 3 example portfolios. Or you could invest in an index fund like VT that invest in all stocks in the world. With AI it is important to separate the hype and fiction from the scientific fact. IT will take a lot of time and and computing power to generate a true intelligent robot. And may require aa break through in computer designs to make it happen. So it could take 10 to 40 years to achieve. So we may be stuck with Chat GDP for a long time before robots appear.
Whenyou access your account online somewhere you willl find aa setting that will turn dividend reinvestment on or or off. If you want the money saved for retirment use a Roth IRA account IF you want the money to be available to handle unexpected expenses or emergencies use a taxable account. There are two styles of investing. * Investing share price apreaciatiom using growth index funds. like VOO, VTI, VT. As long as you don't sell the stock you will not pay a nociable ammount in taxes. This is because the dividennd from these funds is Tiny, about 1.3%. So the are resonably tax efficiently. yearly average growth is typically 11% but in any ne year is higher, or lower than 5%, or you could actually loose money in a year. * The second major way to invest is dividend investing. Dividends are cash payments to you. If reinvested your account will grow. A good fund to get started with is SPYI with a yield of 11%. Invest what you can afford monthly. If you invest 7,000 a year about 600 a month the account you would have 100,000 in the fund and it would generate about 1K a month of income. As long as you continuum e oto make monthly deposits and reinvest the dividneds you money will will double in value every 6 years. If you turn off the dividend reinvestment cash will appearing the account monthly. A good book on dividend investing is The income Factory. The book list 68 funds and several example funds you can use in your personal account. Armchair Income on you tube is another source of information. r/dividends is another good source of information. For growth investing a good place to start looking for information is r/Bogleheads. Both investment styles can be used in one acount and each has plusses and minuses and can be used in any account to achieve any particular goal. The reason I recomended SPYI is that its higher dividend will grow your account and dividend income faster. Also the fund takes steps to reduce the tax you pay on the dividend Another similar fund is QQQI with a 13% yield. For a taxable account I would go with dividend investing because the constant stream of cash deposits can ver very useful if you loose your job. could add a money market fund to the account and store 6 months of living expense in cash a larger than normal ammount of money to cover a medical expense or car repair. Also the combination of cash and dividned income could be enough to allow you to retire well before age 60.
Its risky but its like the Japan Carry trade, at that low you could put it in Treasuries and collect the difference. If you risky you could put it in QQQI and collect the difference. as long as the market does not tank
It is working for me, I currently get 5K a month in dividend income and spend 4K of that on living expenses and then reinvest 1K equally into all of my funds. I retired at 55. I don't have to see anyting to cover my living expenses. I wish I knew about dividends 20 years earlier. Slowly selling off excess growth I have to further increase my income. Most of my income comes from my taxable account right now. It will be about 4 years before I can access my retirment accounts. There are people other there that have much more taxable dividend income than I have. The book The Income Factory is a good guide on how to set this up Two good funds you can use to start this are SPYI 11% yield and QQQI 13%. The book also list 68 funds the author has used in his portfolio and account he manages for friends. On youtube Armchair Income is also a good source of information.
first max your your r01K. Then pay off all loans and credit cards For home loan it is often best to just increase the monthly payment on the home. After that open a taxable IRA account and work on the following: * Creat a cash reserves. * Then invest for dividend to earn enough to pay your bills. Total up your monthly expenses and start building up income from dividends to cover you basic monthly expense. This can free up more work income for additional investment. You can start out with QQQI with its 13% yield. This fund also takes steps to reduce the tax you pay on dividend you receive. * Deversify your dividned income with other funds. The book the income factory has good buildings on how to do this. If all goes well and you complete all of the above you might be able to retire early
Yeah, this is why I say "They always have fundamentally bad understanding of how it all works." because here you are right on cue. This constant repeating of not having to wait until you're old to enjoy your money is weird, as if you think all the gains are fake. If you have been invested in QQQ and selling on the same dividend schedule as QQQI, you'd take home the same amount. That's money for all those shits you posted about, right now. You have no idea where the dividends are coming from. And just so you know, I retired before 40. I have zero income producing assets other than the tiny dividends that some ETFs have that I'm forced to take. Every year I sell some for my spending money. That money pays for my mortgage, my car, my vacations. I'm living my life right now. All those stupid points you posted, I am paying for them right now with my "paper" gains.
QQQI is what I'm doing. 15% annual dividend. Slow growth.
That's what I'm contemplating. I have $500k cash to invest. Do I sell all my growth ETFs and YOLO into QQQI and SPYI and live the life now? We're both 44. Have good jobs, still funding 401k VTI $1500/month.
If he wants access to the money in 4 years he can put the money in a brokerage acount and invest it. QQQI would be my choice. It earn dividends with yield of 13%. Set the account to automatically reinvest thee dividends. While in the military he add more to the account if he wants. When he leaves the military he can turn off the automatic reinvest dividend feature. Then the dividends will appear as cash in the account. He can then use the cash to to establish his civilian live. As long as he doesn't sell shares of QQQI he will continue to get the money. If he is really aggressive and save most of his earnings he could be in great shape financially when he decides to leave the military.
As long as you don't spend the principle in QQQI the dividned well keep coming. And if you build it Up to 500K you can live off of the income in most places.
Don't for the dividend trap. QQQI is new and since its inception in Feb 2024, it's only up 1.5% an share price. Meanwhile QQQ is up over 20% during that time, while paying virtually no dividends. Where do you think the dividends come from? Don't take investing advice from people who focus on income but not understand how total return works. They always have fundamentally bad understanding of how it all works.
Just throw it all into QQQI and live now. Take those vacations, drive that nice car. Why wait until you're 70? lol
Just reinvest dividends from QQQI and don’t mess with VOO. QQQI tax advantages make that a no brainer
BTW - brought to you by the same firm that does QQQI - NEOS funds. I really like NEOS. QQQI gets a 15% annual dividend paid monthly.
Buy CONY in your Roth IRA. Get monthly dividend; use monthly dividend to buy other monthly dividend like QQQI. Once you generate an average of 700-1000 a month, buy ETF like VOO, or growth stocks. repeat until til retirement. easy.
QQQI is paying 13% in divi??
I got $400k in an inheritance. I put $100k into VOO at $520, $100k into AVUV, $50k into VXUS, and $150K into QQQI (13% dividends to pay for my car expenses).
ETFs that seem fairly common on reddit (SPYI, QQQI) are blocked. its allowed now, but i recall a time when JEPI/JEPQ were blocked. i recently wanted to add some CLO ETFs and almost all of those were blocked. JAAA is the only one i could buy in merrill.
Thoughts on QQQI, JEPQ, and SPYI? I’m thinking on putting 10-20k into those. Is it worth it if I’m already in SCHD and SPLG?
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.
I am doing this in my roth with QQQI and in my taxable with sPYI. I use the dividneds from these funds to make monthly deposits into each fund I own in the account. If you have 100K in one of these fund the income into the roth would be about 10K a year. More the 7000 deposit limit. So this extra money would accelerate the growth of your money. IF you used a S&P500 index fund instead the dividend for 100K invested would be only $1300 a year. Not enough to do much. These funds are set up to capture some of the growth of the index they follow in addition to the dividned. So the total return is quite earsonable but not as good as the index Basically these funds convert price volatility into income. So fare it is workings I intended. Hopefully this will allow my retiremment dividned income to grow at a rate equal to are larger than the average inflation rate of 3.2%.
That’s not necessarily true. SPYI yields more than 10%. Are you saying that’s a trap? QQQI? JEPQ?
For a good distribution yield you want a company that makes more in profit than it pays out as a diviedend. A bad distribution yield is one that pays out more than it makes. Or one that uses a loan to pay the dividend. Also don't use the yield as guid to a good or bad dividned stock. Many do this and they generally assume that if the yield is higher than the government b and rate it is unsafe. And yet you have compass OXLC that have payed a dividend it dividned for 14 years at a yield of 23% AR% And it is not hard to find companes that are struggling financially and pay a yield of 1% Basically you hav not look at the companies earning report and look at there profit and compare that to there expenses. The yield number honest tall you anythng about the stability of the company. Many buy individual stock but I like to buy ETFs that pay a dividend such as UTG6.7% yield, UTF7%, SCYB 7%, pFFA 8%, PBDC 9%, SPYI 11%, QQQI 13% ARDC 12%. I have a small ammount in individual stocks. My current income is about 60K a year. I don't automatically reinvest my dividneds. They go into a Cash account. 4K a month goes to living expenses. Mush of the rest in automatically spit up and use to buy a little bit of each fund I own. Generally I only sell shares when I don't wan the fund or stock any more.But am also moving funds from a 401k into a roth so I do pay capital gains on that. Since retiring I estimate my tax based on 401K roth convrsion ammount, may expected income, andanthing else I plan to sell. Make quarterly payments to the IRS and then in April I either get a refund or pay a little pit more.
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
https://preview.redd.it/284gnthcy14f1.png?width=3206&format=png&auto=webp&s=2d0b762e92efa86a9f284fa4c0014200c41761e6 My lines are prophetic bud. Nice 2300 share position in $QQQI with a 14% return plus a 1.46% YOC monthly go back to your hole fren
All of the post I see right now are for index funds. Index funds are tax efficient by them selves since the dividned is very small to nonexistent and you don't pay capital gains until you selll. Alstal o if you get injured or sick you will have a lot of medical epxenese with no liquid cash in the HSA. So using an index fund in HSA doesn't make sense to me. Funds like JEPI,JEPQ, SPYI, QQQI, and BTCI make a make a a lot more sense. Most or their total retune is in dividneds not captial gains. So you could put the money in high dividned fund and not reinvest the dividneds leaving a cash bucket in the HSA for immediate expenses. And then when that is depleted the cash bucket will gradually fill up. Then periodically when the cash ammount gets over ly large you can use the cash to grow the dividend income. Eventually you could get to a point we're your wouldn't need to addd any more money to the account because is will grow by itself faster than you could use it. At that point you could take the excess money and put it in an index fund for long term storage.
If using a Roth, look into high income ETFs like JEPQ/JEPI/QQQI. QQQI may be better to preserve the capital and experience growth while having high dividends.
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.
Investing in index funds is popular because he returns are good and there is very little tax with these funds in taxable brokerage accounts. But the problem with these funds is the only way to get money out is to sell (liquidate shares to ge the cash you need. VOO and VT are both good options for this. The other way is to invest in funds that pay dividends..Dividendds are cash payments to you. You can reinvest them into the fund that generated them, Or take the cash and spend in on that you need.The down side is you have to pay taxes on the income. But the tax is only a small portion of the total dividend. So you could put the money into a money market account or HYSA and then later withdrawal the ammount need for the taxes and then reinvest what is remaining. Fund you could use for this are UTG 6.7% yield, UTF7%, scab 7%. PffA 8%, SPYI 11% QQQI 13%, and AARDC 12%. My advice is do both VOO / and VTand then your selection of dividned funds. Set up two custodial accounts. one for each child with similar investments. I would also recommend reading the book The Income Factory.
My preference is to put it in dividend fund QQQI. This fund yields 13% and it takes steps to reduce your tax on the dividneds you receive. Your 100K in QQQI would generate $1000 a month . If you done't reinvest the dividned the cash will build up as cash in the account. So build up the cash to usable emergency level 30K is good and then build up money in QQQI. Since QQQI pays monthly when the cash runs out you still have the monthly income. When QQQI reaches 4K a month I would recommend stop reinvesting in QQI and instead max out your roth HYSA. At that point put any excess money in growth index funds like VT, VOO The very small dividend of these fund means you won't pay much in teases. So you could save up 1 million or more this way with minimal tax.
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.
If you're scared of risk, go 100% into QQQI and enjoy that 10%+ dividend for the year.
Just having fun and putting my earnings into VOO, SPYI, and QQQI
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.
I would put this in a high yield fund like QQQI. This would yield 13% per year. Money that you can put into other funds in a portfolio. If you put 750 in QQQI each moth you would have About 400K in the fund by age 70 which would great a dividned cash payment of about 50K a year about 4K a month. A roth account is ideal for this since the dividneds will not be taxed. While you are working deposit the money in the roth and reinvest the income. When you stop working at age 70 stop reinvesting the dividneds And within a moth chase will start to appear in your account. Now over time you probably will want to reverify to multiple funds so that if anything happens to one you won't loose all your money. The book The Income Factory talks about this invent method and list 68 funds you can use. Armchair income on you tube is another good source of income funds you can use.
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.
A taxable brokerage acount should have an emergency cash in money market account. for emergencies. Then I ould start investing in QQQI. This fund has a dividned yield of 13% and takes extra steps to reduce the tax you pay on the dividend. Use this to slowly build up enough passive income to cover your living expenses. If you loose your job or get injured and and have a long recovery your cash emergency fund will not last long. QQQI pays out monthly and if you invest enough in it you could live off of the dividend income. Once QQQI can cover your living expense you can divert the dividend to VOO or some other growth fund with a minimal dividend. VOO is with its 1.3% yield is actually tax efficient in a taxable account. Or you can use the excess dividneds to provide the funds for your Roth account.
Fidelity has a money market account available in a regular taxable brokerage account. Last I look it was about 4.5%. If she barrows money and pays it back put it in QQQI. QQQI is not liquid but it has a yield of 13%. Eventually you could build up QQQI to produce 10K a year which you could keep as aa ready cash earning 4.5%. And if it is not us ed at the end of the year reinvest the excess cash. The money market fund would slowly self refill.
Right now you only have one source of income. If you loose that HYSA willl be empty in months. Then what? I would set up a tax able brokerage and invest for dividneds in it. You can start out with QQQI which has a 13% yield. and built that up and reinvest the dividned. 100K in QQQI would ternate 13K of cash a year. IF you need income stop reinvesting the monthly dividend. and use the 1K a month of income. You could gradually build up QQQI and or invest in other income ETFs to eventually get enough to cover your living expenses The the monthly income would cover your expenses for good, housing, and utilities. Freeeing up more money to max out your 401K
I would set up an emergency cash fund that is easily accessible in money market CD orbudn funds. Then I would have more in a high yield fund say QQQI with a 13% yield. After the case fund is their build up QQQI to 100K. At that point QQQI would generate about 1K a month of cash. So If you tap the emergency cash the income from QQQI can be used to refill the emergency cash fund. If the emergency fund is full you invest the money from QQQI into an index fund like SPY, or VOO. The index fund is basically long term savings. OR you can use the income from QQQI to build a larger cash fund or buy more QQQI for more income.
I would go to a brokerage and just put 200k in an ETF. I am in the US so I don't know what ETFs are available there. But I can put 200K in QQQI and get a 13% yield (about 2K a month) and all for a fund feed or 0.68%. No other fees. Other similar funds in the US are JEPI, JEPQ, SPYI. Maybe one of these is available.
I bought some SPYI and QQQI specifically because of my thesis that we were entering really choppy sideways markets, which as you pointed out, are great for options.
VOO and SPY are basically the same. Many use VOO in a 401K. For a Roth there are no taxes on withdrawals So my preference is in the Roth isto invest for dividend income. That way at 60 you ca live off of the dividend income it produces which would all be tax free. I would start with QQQI 13% yield in the Roth and then gradually add other high yield funds such as PBDC 9%, ARDC 12%, Scyb 7%, UTF 7% GLU 6.7%
One good high paying dividend fund is QQQI which has a yield of 13%. 100K in this fund will generate 1 K a month of income. I am in the US and am not familiar with TFSA. But If the withdrawals are indeed tax Free I would convert your investments to QQQI and reinvest its dividend. The money would double twice Meaning if you have 100K now you would have about 400K in 10 years with a monthly income of about 4K a month. The growth is only from reinvesting the dividends. If you add money in a addition to the dividend it would grow faster. So in 10years you could use the dividends to pay the home mortgage.
I would sell off a chunk of it each year and invest the income in QQQI. This would generate about $6,000 in dividends every year Which you could use to cover bills or or other living expenses. Or you can us the income to invest in other ETFs.
For active ETF I would go with PBDC 9% yield, SPYI 11%, QQQI 13% these either pick the best investments or manage trading activity trading activity to generate income. Other than ETF there are CEF (very similar) like ARDC 12% yield, UTF 7%, GLU7%.
My preference for a security fund is a money market fund and money invested in a high yield fund like QQQI. The money gnerated in QQQI can go into the money market fund. You can get a Debit card linked to your money market fund to accesss the cash quickly and after withdrawing money the account would slowly refill.without you putting money into it.
For cash you need in a year you can't beet the 6% yield. However if this is a long term investment I would go with the stock market. For the stock market it depends on the tax you are willing to pay and if you want cash or share price apreciationn. If you in vest in an index growth fund LIKE VOO, SPYI or QQQM you would pay almost no tax yearly on the dividneds you receive (!% or less. You would only ow taxes on the gains when you sell it. If you want income and don't mind additional tax a a fund like QQQI is hard to bee. QQQI uses covered calls to convert price volatility to income. It also uses tax loss harvesting to reduce the tax on the dividneds it generates. Its yield is 113% which is double what the pbank pays. If you only spend the dividned it is constant source of income. If you reinvest the dividends your investment will double in value ever 6Years.
I've been considering JEPQ but so far only dipped my toes into JEPI. If you look at QYLD (pure covered calls NASDAQ100) it has not preserved capital over time. There is also the newer QQQI at even higher yield. I was concerned higher volatility on NASDAQ 100 could also prove to be challenging to JEPQ - but they've done okay -much better than QYLD. I think with more time my confidence will grow in JEPQ and I'll eventually accumulate some amount.
Ok here is my take, 45k emergency fund is on the high end unless your expenses are 7500-9k per month. I'd drop that to 35 and invest into index funds that I'll finish this comment with. Take the interest payments invest from the emergency fund and invest them in this order; Roth HSA Bridge account (taxable brokerage) Only hit your 401k to the match, invest the rest in the order above. Max out Roth before touching HSA Merge all of your finances, you're married, you're a team. Figure out what's in your wifes 401k and yours, make sure you aren't paying too much in fees. Ditch the mutual funds entirely and get into high yield ETFs, Examples here SPYI S/P 500 IRYI Reit IWMI Russell 2000 QQQI Nasdaq 100 VXUS Total International Setup a UMTA 529 for your kid You're doing fine buddy, comparison is the thief of joy
You could move your HYSA from the bank to a money market fund in a taxable brokerage. Then slowly add money but in a high dividend ETF like QQQI. Don't automatically reinvest the dividends. The dividends will slowly fill your money market acount. When you emergency fund has enough money in it take that money and invest it in QQQI. QQQI has a yield of about 13% which is equivalent to HYSA with a 13% interest. QQQI also takes steps to limit the tax you pay on the dividend. Or you could put the excess money in a growth index fund. Growth index funds are like long term savings in a bank account but the money grows 10 time faster or more. And you pay almost nothing in taxes to keep it there. So eventually maintain an emergency fund of 100K, Have enough passive income from QQQI to cover all of your living expenses (Food, clothing, housing, car maintenance, utility bills, and medical expenses. And several years of money saved up ib growth index funds. You would have access at any time You could also over time deversify your income so you have multiple finds pay a dividend. It might also be possible to retire early with the taxable account.
In my taxable brokerage account my cash is in a money market fund. I only keep about 6 months of expenses in it. The rest of my money in that account is growth invest funds or growth stocks, and the rest is in dividend funds Like QQQI that pay monthly so the fund is self refiling. In fact I now have enough income from dividends to cover all of my basic living expenses. So IF you have your emergency cash in brokerage account your can gradually convert it to Dividend income fund with a cash reserve and a long term savings inc egorth index funds.
Wealth and income are different. If you want income, consider JEPQ, JEPI, SPYI, QQQI, or SCHD. Putting into S&P500 will generate you great wealth
You have to run some calculations on how much you would save by paying off the mortgage against the potential earnings you could get from investing. For example you could invest the 100K in QQQQI and get an average yield of 13% or 13K a year of income. The yield is a monthly cash payment to you. The Yield form QQQI is higher thant he interest on your loan. So you might come out ahead by inviting. Depending of the size of your original loan and the monthly payment and your tax rate it might be better to pay off the loan than in vest there isn't enough information in your post for me to know.
Not true. QQQI didn't start until 1/30/24. It has total return of 16% in that time versus QQQ up 15.5%.
How safe is investing in QQQI just for dividends? The stock itself is 3% down in the last 5 years.
QQQI will have limited capital appreciation as the covered call strategy can cap upside potential, meaning QQQI may underperform in strong bull markets.
JEPQ dividends are taxes as ordinary income. QQQI is very similar but incorporates tax loss harvesting to lower the tax on the dividend and has a modestly higher dividned of 13%
JEPI produces regular dividends and is not a good choice for a taxable account. QQQI is similar bu better. It incorporates tax loss harvesting to lower the tax on your dividend and it produces a modestly higher dividned of 13%.
Pur the money in QQQI a covered call fund 2ith 13% target yeild. Typically the yield varies from The fundabout 11% to 15% depending on the market. This would earn you 210 a month. reinvest all the dividends and add more money. IT will quickly grow. This is snot quite he income you wanted but that would requires a a fund with a 30% yield. There are some but they typically suffer from NAV erosion and the yield are more unstable. So I don't recommend going over 13%. QQQI also takes advantage of tax loss harvesting in to reduce your taxes on the dividneds. So it is decently tax efficient. Now you could gradually build it up sot act the find produces enough income to cover all of your living expenses. At that point stop reinvesting the dividend and get a debit card to access the account. You can now use the income to cover basic living expenses allowing you to save more of your work income for retirement.
If it is in HYS put it in brokerage account in money market fund earning about 4%. Then take the 270K an put it in QQQI. QQQI is a covered call fund that converts market price volatility into dividends. Their target dividend is 13% but it can vary from 11% to 15% depending on the market. The fund also takes advantage of tax loss harvesting to lower the tax on the dividends you earn. Don't reinvest the dividends. Let the cash build up in the money market account When you have 6 month of living expenses saved up reinvest any amount over that level. The is refilling emergency fund that will earn 35K a year. So if you tap into the emergency cash the eufnd will refill itself over time. But one the cash runs out you still have 3K a month of dividnends common in. So if you get injured and cannot work for an extended period of time you will still have income. You could also increase teh ammount in the ETF so that it is generating enough income to cover all living expenses. Which could also you to retire much earlier than you expect. You could also put some of he money it generates in a S%P500 index fund for long term savings. Index funds like this only have a \`1.3% dividend so growth index funds are extremely tax efficient so you could save a year or more of emergency money this way. right now you are paying a tax on the 4% interest from you high yield savings which is probalnby about 12K a year. Now this emergency fund will probably increase your dividends somewhat but the money earned will exceed the taxes on it.
There are two parts to your problem: 1. You re buying ETF without understanding what they are invested in. So you have multiples funds that are basically identical. 2. You are letting your fear of taxes to stop you from taking action. As to taxes the solution to the problem is to estimate your taxes. The IRS has instructions on how to do that on their web site. Basically you decide what you want to sell then start calculating what the tax bill will be. Once you know what the bill will be You can sell the asset and set some of the money asside in a savings account. Or you can pay the money now to the IRS. Then in april when you know what all of prior years numbers are you calbulcate the final bill.. If your estimate was right you owe no additional money. iF you estimate is low you pay a little more, If you payed too much you get a refund You might want to work with a tax professional to fluid you through the process. Then all you have to do is sell the asset, set money aside for the tax, and then reinvest the excess money or spend the money to cover living expenses. As to ETF they have assets they hold for you. So you need to know what it is holding before you buy. What you want is each ETF being invested in different assets. That way if an economic shift occurs some business may have problems were others will not. So you might have one or two that won't be performing well. For example in my Roth I have SCHG, QQQI, PBDC, ARDC, SCHD, SCHY, fagix. One is a bond fund one is aa growth fund, one generates cash from trading activity know as covered calls, on invest in companies that pay a high yield, one yield growth fund and one international fund. and one fund that invests in loan obligations. The dividends from these investments are currently generating 20K of cash a year. Which is all reinvested. Since it is a roth I can buy and sell without paying tax. hopefully when I reach age 60 it will generate enough cash to pay all of my bills.
VOO, JEPQ, QQQI and then throw a sprinkle of MSTY in there and let it ride.
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.
I would put his emergency fund money in SPYI or QQQI. These are covered call funds that convert market volatility into cash dividneds. SPYI invests in the S&P500 and has a yield of11%. QQQI invests in the NASDAC 100 and has a yield of 13% Deposit half the the emgency fund money in one and reinvest the dividends automatically. the rest stays as cash. So if an emergency occurs use a credit c a credit card and the cash to cover immediate need and immediately turn dividned reinvestment off. In a month cash will start building up iin the account. 100K invest in one of these covered call funds will produce 1000 a month of cash. So if you build up the account with money automatic deposits while you are working the money will quickly grow Eventually the fund could get to 200K which would provide about half of his work income in an emergency (about 2000K a month But unlike a cash emergency fund the money will now run out. It just keep coming in. So If you son looses his job it could provide a very useful consistent flow of money. Furthermore you son could build it up to a point were it could provide 4K a month of income which is about what a $23 and hour job pays.
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.
I have a couple of friends who have similar hard-money loan business and have considered investing in it also. My only hesitation in the past was that the money is tied up for a while, so if you’re in a bind it’s not easy to tap into. Also; you’re paying income tax on the 11% also. You may want to consider alternatives such as covered call ETFs which give you some stock market exposure, about the same return %, and are more liquid. Some of them are tax friendly also (SPYI QQQI.)
Sold my upro and tqqq when we hit 567.5 on SPY. Dumped all those gains into JEPI, SCHD and a teeny lil bit on QQQI
There is one option you dividend list. Invest in dividend stocks that will sit you ld in loud sighing ghd 5 to 7 years. For example Let say you invested money in SPYI quirk its 11% yield. According to the law of 72 the value of the fund will double in 6.5 year. While we won't know what the sales price of the fund will be in 7 years. But we know based on its predictable dividned is 2 times its original size ini about 6 years.. Some funds I have in my portfolio with a high enough yield to double in a reasonable 7 years or less are SPYYI, 11% yield, QQQI 13%, ARDC 12%. I also have PBDC with 9% yield A little outside the 7 year window. I know there are fund that pay 20% but I don't have them and am note sure of the ticker. Now some will say that if you invest VOO your money will double in 6 years or less, in bull market. With the taariff and other political issues We likely won't have any growth for probably 2 years, maybe longer.
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.
What I soul do it sell the gold. Invest it in a fund with a 10% low tax yield. And then put the dividned income iinto VOO. The divide ed income will continue for many years and possibly decades SPYI 11% and QQQI 13% also incorporate tax loss harvesting lowering your tax on the dividendds. SPYI would return all of its original investment in 6 years and QQQI in five years. IF the fund continues to do well after that the ammount in VOO would continue to grow. from the sonstant flow of dividneds.
Vanguard total market Ex US 20%, gold 10%, bonds 10%, VTI 50%, QQQM 5%, JEPQ/JEPI/SCHD/QQQI 5% is what I’m currently doing for new money in
You’d be better off just buying a fund that does this like SPYI or QQQI
Could've just put that into QQQI and lived in SEA for the rest of your life off of the dividend or SCHD.
Thanks. I hold shares of quite a few solid companies and some sensible ETFs (SPYI, VXUS, VTI, COST, QQQI are my biggest holdings). and gambled away 6% of my brokerage and am glad it wasn't more and that i learned from it
Fuck me. Life savings down 30%. If I wanted dividends, I would buy SCHD or JEPQ or QQQI, depending on risk tolerance. That is not financial advice. That is simply what I would do.