QQQI
NEOS Nasdaq 100 High Income ETF
Mentions (24Hr)
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Is the wheel strategy a viable FIRE income plan vs. the 4% rule ?
Having to sell $10k to pay bills. Which one would you pick?
How are covered call ETFs taxed in an inherited IRA?
I am at a crossroad in my mid 20s of what I should do, I'd be very appreciative for some advice
What stocks should I invest my $1000 into (Roth IRA).
Thinking About ROC Heavy ETFs in a Zero Capital Gains Country
Portfolio is -80%. learn from me. Offer advice if you can
QQQI CC and Secured puts Strategy (looking for advice)
Just started investing at 19! A lot of things overwhelming and need advice.
Transitioning from the Accumulation to Distribution.Spend phase of life and generating income in retirement?
Investing Strategy: Dividends viable for living in low income countries?
QQQI vs QQQ/SCHG? Why does QQQI appear to be the better option due to market volatility and potential sideways action?
Investing Advice For A 38 YO Healthcare Business Consultant.
Feeling stuck in JEPQ - hold or take the loss to move to another fund?
anybody investing in these 10%+ dividend yield ETF's?
How can the SEC yield be so much lower than the distribution yield, and what does that mean for future dividends?
What’s better than MSTY for return on capital and dividends?
What’s better than MSTY for return on capital and dividends?
young buck looking for some advice from the seasoned veterans
Mentions
Yeah for sure, I don't know her so I'm giving the blanket advice I'd give any 15 year old You're right tho - she'd learn about risk and reward faster with QQQ or it's spinoffs If she wants to do something more active/engaged, I'd definitely go your route She can learn about expense ratios with QQQM or income strategies with QQQI
I'd be careful about dividend ETFs like QQQI. While the idea of getting cold hard cash might seem enticing, remember you're paying realized taxes on those dividends while if you instead just bought QQQ, it'd grow tax-free until you decide to sell.
Just watched the Kamikazi Cash video on QQQI, is it really a solid div paycheck?
ETFs are guaranteed = look at NEOS QQQI SPYI MLPI they play cash monthly around 12% annual plus. Modest expected appreciation. That’s 15% in my ROTH as I’m 85
Back during the pandemic, I got all in with the euphoria (i.e. ARK Funds) and got left holding the bag. Today, I'm trying to be patient and waiting for a significant drop before redeploying more for long term (SPCX, CBRS, even MSFT). Instead of building positions on single company stocks, been just dabbling in on dividend income funds such as SPYI, QQQI, PFFA, and MLPI that will have less volatility once the dip happens while still building income for this potential dip.
Typically you have to sell waite for the transition to settle and when the cash is in your account then you buy. But you could also invest in a dividned fund like QQQI 13% dividned yield, and turn off automatic dividned reinvestment. The monthly dividned payments will show up as cash in your account. And you care reinvest that cash as you see fit.
Anything is possible. You can have both and diversify, but definitely consider it more long term than anything. My biggest positions are NTDOY and SCHD, and I plan on keeping them in my Roth IRA so I don't pay taxes on the dividends. I'm a newer investor but these are the ones I see most value in based on how cheap they are currently compared to most other index ETFs doing the same thing. I'm also considering investing in QQQI/QQQM and one of the higher yield SPY ETFs. NTDOY is more so for diversification and the fact that they're just a solid profitable company in gaming that I personally see growth in for the next few decades. NVDA is solid, but I think all semiconductors and most tech is incredibly volatile and uncertain with AI development futures. Sure, it's going parabolic, but for how long? AI might be utilized well in the future, but it's getting a lot of push back for good reason, and is mostly unprofitable outside of the companies getting their stock bought out to build and run data centers that are getting cancelled left and right. Do what you feel is right though, do as much research as possible and take it day by day!
That sounds like a very good idea. I have no idea what QQQI is though. My thought is higher dividend payments equal company is going under and stock price will plummet.
consider putting your 300K into dividend funds. Not I live in the US so I may not know everything about UK ISA account. In the US I can invest in QQQI 13% yield 300K in this acount can generate 39K a year which you can either reinvest or spend. At 500k invested it would generate 69K year. having this much stable income from your investments could carry you and your family through periods of unemployment. Now QQQI is a US fund. For tax reasons you may want to look for a similar domestic fund. to avoid foreign taxes. Note dividends are cash profit sharing payments directly into your account. You don't sell shares of stock to get this income.
I live in the US but have read a bit about your account options. Give the deposit limit of your TFSA I would consider investing your entire TFSA dividend funds. For example QQQI is a dividend fund with 13% yield. You TFSA has a 100K deposit limit. So 100K invested in QQQI would generate 1K a month of income. IF you reinvest that income your account will grow beyond the 100K limit. And if you withdrawal only 50% of the dividend and reinvest the rest you could get monthly income and still grow the account. In the end you will have an account that makes montly deposits into your bank account. And eventually you could get 2 to 3K a month deposited into your bank account or more. Now QQQI is subject other tax withholding because because it is a US fund. So you might want to look for a comparable canadian fund.
If you have been investing for 25 years your are like 50 years old. Which means your subconious financial goals are changing form growth to capital preservation and income. I would look at investing in these funds JAAA 5.5% yield CLOZ 8%, UTF 7%, UTG 6.4% and ARDC 9%, FAGIX 6% UTF and UTG survived 2008 with no dividned cuts While JAAA and CLOZ and didn't exist the investments they invest in continued to pay out income when the market crashed. FAGIX if a 40 year old bond fund that has always payed a dividend. ARDC is only 15 years old but it has a very stable dividend. i have these funds in my roth and have QQQI 13% yield, SPYI 11%, PBDC 9%, EMO 9%, Right now my roth has 500K invested and generates about 5K a month which is all reinvested. IIt will be few years beforeI can access this income.
You could get overexposed to gold. But the bigger problem is you you're putting money into an asset that may never pay off for you. Gold has tendency to stagnate for long periods of time. And then for a short period of time shoot up and then quickly drops. Many miss these peaks and either sell at a much lower price or don't end up selling it. I could instead invest in IGLD. IGLD sells covered alls based on gold price. this fund Basically converts gold price volatility into steady income. Overall it will generate 10% yield of 10%This would be 1K a year for 10K investment. Note the yield is currently higher right now because here was a large special dividend recently. Eventually the yield will drop to its historical normal level. Ther are many funds you could invest in for income which generally is better invesmtnte than a shiny metal. Such as QQQI 13% yield SPYI 11%, EMO 9%, UTF 7%.
What you should do I open a taxable brokerage account and invest in QQQI and turnoff dividned reinvestment. It is not growth fund like VT. QQQI produces dividend which are cash profit-sharing payments directly to you. With automatic dividned reinvestment turned off these cash dividend will go into a money market fund. When there is enough cash in the account you can buy a car. 4 years of saving 1000K a month in QQQI will generate 7K a year or about $583 a mont of income. If you keep you investment going into VT for retirment in a retirment account. and then open a taxable brokerage account in invest in QQQI The retirment account if for the future when taxable brokerage is for now. Over time you can build up a passive income stream in the taxable account that can exceed the ammount of money you can get from side gigs. And it could eventually exceed your work inocme. You can keep some the cash for emergencies , cover you montly bills (utility bills, mortgage, rent, or car replacement and operating andmaintnence costs.
Inflation is definitely a thing. I guess it would depend on dates. So true, eventually yes. But $1m still has a lot of bite. it's my understanding that $1M invested in QQQI or GPIQ can generate over $10k per month. It's not going to perform better than an index fund over the long run. But it's a nice tool for somewhat steady monthly income.
With a new child not he way ai would focus on investments that can help you cover your expenses now instead of retirment. With QQQI 13% yield You cold get 1.8Ka month of additional income to hep cover your expense. The income from this fund is taxed at a lower rate than your work income so it is tax efficient. Now if you don't want all you money in one fund you could att EMO 9% yield , UTF 7% yield an. Also QQQI is a [NEOS ](http://www.neosfunds.com)fund and there are a number of good dividned funds you can use. such IWMI, IAUI. Dividnd are cats profit sharing payments made directly into your brokerage account.. You simply buy hold and collect the income once a month. now the earning from these funds may go up an down Due to market conditions and in a stock market crash it may take some time for the income to fully reocvered. The other main option you have is investing in a growth fund Like VOO. This fund has Tiny dividend which will not be useable. The only to make money with this fund it to hold it and waite for the share price to increase. And then the only way to get money from that is to sell it off. So this won't help you now but it great for retirment accounts. So I would with dividned funds you could simply collect the dividneds and hold cash in brokerage money market account for an emergency cash reserve or you could spend the income or reinvest the income for more dividned income.
I was doing QQQI for a good while, but it caps your upside and you’ll still get the same losses holding the same actual index, and i’m not looking for a CC ETF
I have an inherited IRA that I split between SPYI and QQQI. I get around $4,000/mo before taxes. Growth has exceeded the dividends so far so there’s been no NAV erosion. Since this was basically found money, I wanted to test this as an income stream strategy for retirement. I don’t have any complaints so far.
Generally you want to have about 6 months of expense save up as cash. Anything more than that Recommend investing it in tax efficient dividned fund. HYSA are very similar to money market accounts that brokerages have So I would move the HYSA into a schwab government bond money market account and then anything else I would put into QQQI 13% yield. And turn off automatic dividend reinvestments. US the money market account for any unexpected expenses or emergencies. the dividends will show up as cash in the money market account. then if the money market account gets above the 6 moth level use the excess money to buy more shares of QQQI. IF you get a bonus at work or a money gift put that into QQQI. QQQI will refill your money market account slowly. But the more you add to QQQI the fast the money market account will fill. Eventually when QQQI is worth 100K it will produce 1K a month of income Every additional 100K in will add an additional 1K a month of income.
Put it all in QQQI and collect the monthly premium and your young as hell last place you should be is in money market
If nothing else get into something like JEPI, JEPQ, SPYI, QQQI and start accumulating dividends while you wait.
buy SPYI and QQQI and go sit on a beach with 10k per month in dividends. Peace out world.
That a worry you have because you need to learn more. No, the NEOS Nasdaq-100 High Income ETF (QQQI) cannot literally "run out" of shares to issue. Because it is an **open-ended ETF**, its market makers can continuously create new shares to meet investor demand or redeem them if demand falls, effectively keeping supply matched with market needs
My biggest worry is that one day QQQI (or JEPI or JEPQ or SPYI) will suddenly say: that's it, we're out of shares. So, no more dividends for you! 😃
Depends on your goal. If you’re simply looking for money to appreciate over time for retirement, then put it in a simple index like others have recommended. If you are looking for another income, check out something like QQQI or Spyi. QQQI is yielding something like 13% on average. That’s an additional 50k a year of income assuming you put all the capital into it. The downside is the share prices don’t move too much, so there isn’t much upside in long term appreciation. However, an additional income of 50k on top of your salary is nothing to scoff at, might be worth looking into, just my 2 cents
I’m normally cursed with terrible luck with stocks, so I bought 1 share at $167 on Friday. I’ll sell tomorrow morning and some QQQI.
For a passive income over \~$7500/mo you’d need to have about $640,000 invested in something like QQQI at a 14% annualized return (which is definitely not guaranteed). There’s just no way you could possible grow $30k into that much money in 10 years
If you're over 50, do you want income from it? Do you wanna make sure to preserve capital? If you want income the CSPs and CCs are still a strategy to do that, but an easier route would be to put some in income focused ETFs. QQQI, SPYI, JEPI, JEPQ, SCHD are some of the popular ones. I am not a financial planner, so you'd want to consult one probably. Im just a guy a couple years away from retirement who has been looking into some of this stuff and running different scenarios/strategies through spreadsheets. There are tax implications on some of these things that I dont fully understand yet so talk to somebody that knows what they are talking about. Some of the returns on income ETFs are considered qualified dividends, some arent, some are considered return of capital. Etc. Way too much to get into here, but if anything Im saying is completely foreign to you they are things to go do some research. Or just get a financial planner. Which is probably the best advice
One angle nobody has pinned down here: you said you pay no tax on capital gains but 30 percent on dividends, so you are not US based. That matters because the short term income answer above assumes US tax treatment. In a lot of jurisdictions written option premium is taxed as ordinary income, which can sit above your 30 percent dividend rate rather than below it. If that is your situation the QQQI or JEPQ route is not clearly worse on tax, and the wheel loses one of the edges you are counting on. Worth confirming exactly how your country treats premium before you model 24k a month, because the after tax figure is what funds the life. Separate point: far OTM 5 delta QQQ calls pay almost nothing in low vol, and low vol grind ups are common. Your income gets lumpiest right when your expenses are fixed, which is the opposite of what the 4 percent rule is built to smooth.
I think you did your math on QQQI 14% >>> $24k a month. Yes I will do QQQI and TDAQ and call it a day.
I'm sure I'm going to get plenty in my jepq and qqq and QQQI. Yay...
Mi dispiace per le spese mediche, ma per fortuna hai le spalle copertissime con quel portafoglio. Quando devi smobilizzare una cifra piccola rispetto al totale (10k su 300k sono circa il 3%), la regola d'oro è toccare il meno possibile i motori della crescita e guardare l'aspetto fiscale. Io venderei SPY o QQQI, e ti spiego subito perché escluderei gli altri. MU, AMZN e GOOG sono i tuoi cavalli da corsa tecnologici. Hanno un potenziale di crescita enorme nel lungo periodo e venderli adesso significa rischiare di perdere il treno della ripresa e doverli ricomprare a prezzi più alti, pagandoci pure le tasse sopra. RKLB (Rocket Lab) è un titolo growth ad altissima volatilità: se la vendi ora che è nel pieno dello sviluppo rischi di mangiarti le mani, oppure di liquidare in perdita se l'hai presa durante un picco. SPY (S&P 500) e QQQI (il fondo ad alto rendimento sul Nasdaq) sono panieri ultra-diversificati. Togliere 10k da lì è l'operazione più indolore in assoluto. Non subisci l'impatto del crollo di una singola azienda e il tuo portafoglio non si sbilancia minimamente. Tra i due, ti direi di vendere le quote di SPY se vuoi mantenere intatto il flusso di dividendi mensili che ti garantisce QQQI (visto che hai detto che non potrai contribuire al conto per un po', quelle cedole potrebbero farti comodo per pagare le prossime bollette senza toccare altro). Prima di cliccare su vendi, dai solo un'occhiata a quali lotti di azioni sono in "loss" (minusvalenza) o hanno meno guadagno accumulato, così eviti di regalare troppe tasse al fisco quest'anno.
Inest the money in QQQI 13% dividend yield. If you reinvest the dividends in 2 years you will have 200K producing 26K in dividend a year. If you reinvest all the dividends for 10 years you will have 5K a month of inocme. And the ROC dividends means you owe no tax on the income foraobut 7 years. On the 8th year and every year after that you pay taxes at the long term capital gains rate.
QQQI will do it this month at 150k. Or very close to your target. Let it compound for your 10 year period and then take distributions monthly and you’ll quadruple that goal.
You can just about do that now in 50% QQQI, 30% SPYI, 20% BTCI. As for how sustainable that is. 🤷
So at 61 you're already heavy on income ETFs which makes sense. JEPQ, JEPI, QQQI, and SCHD all overlap a lot in what they're trying to do though — you're paying for four slightly different flavors of the same thing. On $3k I wouldn't add a new position. I'd top up whichever one you're most underweight in relative to where you want your income vs growth split. If you want more stability, SCHD. If you're okay with volatility for higher yield, JEPQ. Since it's a taxable account, keep in mind the dividend tax drag(something to think about) Canadian withholding on US ETFs in a non-registered account eats into your yield more than people realize.
Your 61 the priority should long term inomce at the lowest taxes. invest the money in QQQI in the US QQQI generates ROC dividends and as a result the dividends will not be taxed until the share cost basis reaches zero. It will take about 7 years for the QQQI cost basis to reach zero. At that point the dividends are taxed as long term vcpatial gains. tax rate. VTI and VUG don't genrate any meaningfulll dividend income. JEPQ and JEPI generate high yield dividend income but they are taxed as ordinary income (the highest tax rate). My understanding canadian taxes are similar toUS. so I am assuming for you it is taxed the same way as in the US.
Mos tpoeple are not paying no taxes on the ROC dividends this fund produces. QQQI generates tax free income for about 7 years. The stock is only 2.5 years old. and it pays the highest yield of all of his funds.
Maybe, Ive got a lot of cash for a dip but only picked up some PL and QQQI Going to wait and see tomorrow
Probably QQQI and SPYI.
Tax lots!!! Don’t just sell, dig into each security and check the tax lots because you want to only sell long term (over one year) holdings so your tax hit should only be 15% (assuming you’re making a normal human salary lol). Certainly gratifying to know you’ll not be in debt like many many fellow Americans for medical costs. Just don’t post Uncle Sam any more than you must. That said - be aware of QQQI, selling covered call funds may expose you to bigger tax hits. I don’t have specific details but due to their (NEOS, in particular) somewhat unique tax structure, you might want to not sell that.
Why sell any of them? Enable margin, negotiate your rate lower and pay the bills with margin. Let the dividends from QQQI payback the margin loan. Margin interest is much easier to manage than other interest. Then you don't any shares!!!
Why do you have QQQI in the first place?
Sell RKLB first. Analysts already see downside despite a 68% rally , and space stocks are sinking as the SpaceX IPO trade starts to break . It’s the most volatile name, furthest from a re-entry floor, and you said you may not contribute for a while — RKLB requires active management to trade well. Great stock, wrong time to hold passively. Sell GOOG second. Alphabet is raising $80 billion from stock sales  which creates dilution headwinds, and it’s in a confirmed downtrend off $408. Still a great long-term business, but you’ll likely get a better entry later. Keep MU if at all possible. Earnings drop June 24, with last quarter’s EPS coming in at $12.20 vs. $9.19 expected — a 32% beat . Expectations are high, and a strong beat-and-raise could deliver a post-earnings jump.  You’re holding through a dip right before a potential catalyst. Selling now could mean missing the move. Keep AMZN and SPY. AMZN is pulling back normally from ATH and AWS/AI tailwinds are intact. SPY is your ballast — you always want some broad market exposure. QQQI — if you need income to help offset the bills over time, keep it. But if you need a lump sum now, it’s near its 52-week high and that 52% yield won’t compound well sitting on the sidelines.
Picked up some SPYI and QQQI
SPYI and QQQI over here. The dividends are good
welp, time to sell all my QQQI shares.
Then I would use a covered call fund like QQQI 13% yield and tax efficient (your dividend are taxed at a very low rate). 100K in QQQI would generate 1K a month of income.
I hope so, I got some QQQI calls I sold about to be in the money
Dang you're lucky son, you can live anywhere that isn't crazy expensive then and not even work. I'm from California and I really miss it, but I wouldn't move back, at least to somewhere populated and thus expensive, unless I was making at least $100k/year, which you easily could. You just need to invest in enough dividend stocks/ETFs. Now obviously my favorite is CHPY, but I get downvoted every time I mention it, probably because people are scared of something too good to be true since the NAV keeps increasing while paying $.66 per share every week. So just to be safe you should diversify into other safe but high income ones like JEPI, JEPQ, QQQI, as well as safer ones like KBWY, DIV, SCHD, and VYM. After putting enough in those to get the desired income, the rest and future income can obviously can go into long term investments and options.
Thank you! You clearly know what you're talking about. 😃 I see these funds like JEPQ and QQQI or NVDY and wonder: what is the catch? How can they give double-digit dividends per year? In the near future I may be interested in investing in some of these for the income potential. But I want to make sure I am making an informed decision and not getting into some Ponzi scheme.
To see if a fund is returning your own capital, do not look at the S-1. You want the SEC Form N-CSR (the annual and semi-annual reports) or the fund's monthly Section 19(a) notices. The Section 19(a) is the exact breakdown showing how much of the dividend came from net investment income, realized capital gains, or actual return of capital. For active covered call funds like JEPQ or QQQI, return of capital is rarely a literal Ponzi scheme, but it is often a structural yield trap. If a fund writes call options, it caps its upside. During major bull runs, the fund cannot capture the full index gain, but during downturns, it takes the full hit to the downside. If they pay out a twelve percent dividend while the NAV drops, they are slowly eating their own seed corn to maintain the yield. The only way to verify if their options strategy is actually adding value is to track its time-weighted return against the underlying index or a simple index ETF. If the time-weighted return, with all distributions reinvested, underperforms a plain buy-and-hold of QQQ over a full market cycle, the manager is not showing skill. You are just paying an expense ratio for the illusion of monthly cash flow. Are you tracking the total return of these funds against a benchmark, or are you just looking at the monthly dividend payouts?
But what if it's not an index fund? What if it's a fund like JEPQ or JEPA or QQQI ?
Daaaamn whatchu got, some QQQI, JEPI?
You're not gonna get much in dividends with $150k even if you're in something like SPYI or QQQI. I would part part of that in couple ETF. Nothing in bonds or treasuries, fuck that shit. And buy LEAPS on those ETFs. And leave a little for dumbass trades like this one
I think I lost more than 5% on META before I sold it. I have MU and QQQI now for growth and establishing a baseline for appreciation.
Sorry I’m late to the party and have just discovered QQQI. What do you mean in your 2nd sentence, specifically “before taxes are due”?
Well like I said it worked out great for me, headaches and all. Worked out even better with the real estate craze, I got to dump all my "headache" properties for over double what I paid for them just a few years earlier. It is more peaceful collecting my GPIQ and QQQI checks monthly thats for sure...but i wouldnt be bringing in 150k a year in dividends if it wasn't for real estate.
Even with 4 million in taxes, that's still retirement money. Slap a few million in QQQI, invest the rest in growth.
You could put the money in aa taxable account and invest in a dividend fund Like QQQI 13% yield. Turn off dividend reinvestment That way the money goes into money markets account (similar to HYSA The dividend would go into the money market account and then when possible deposited ton the TFSA or FHSA and FHSA account. The 13% yield for QQQI is 13% so 100K will generate 13K a year. you can feed in those accounts. This means you are using your inheritance to to reduce the ammount of work income your are currently devoting to savings Now I don't live in canada and I don't know how QQQI with be taxed for you but in the use it generates ROC dividend which makes it a tax effacent fund. in the US. if similar tax laws exist in Canada it won't genterate much tax. Fut that said a portion for eh dividend from QQQI can also be set asside to pay any tax the fund generates.
Honest question: why would you sell CCs on QQQI? Seems against the point of that ETF, and premiums are low.
I accidentally sold JUNE covered calls on my QQQI shares thinking they were expiring and of week. They might be fucked
I would have told him he would have been better investing in QQQI and taking $1200 a month on dividend and enjoying some high yields or use the dividend and play options with that. Using divodends is just playing with house money.
Ok, I have 1.5M roughly, invested in a slew of dividend yield etfs and it is close to 20k a month. They fluctuate quite a bit on the dividend amount, but thats been about average so far this year. Here are some of the names. HIYY, GOOY, METW, MRNY, SPYI, QQQI, BTCI, and MSFW If you can't live off those dividends then I would be surprised.
And he will be paying taxes on interest earned, which would decrease the profit. Maybe doing the 200 in a ROC (SPYI, QQQI, IWMI) with a higher yield would help offset taxes on the income, and using the funds to pay the loan down quicker. Putting the rest in a HYS
People act like QQQI is super safe, but most stocks dropped 50%+ in drawdowns like dotcom and GFC. A 50% drop would bring your dividends down to $7k per month (which is a lower income than I can afford) and that doesn't account for the fact these companies would likely be slashing their dividends in a financial crisis. That happens and you're potentially down to $3.5k per month. Now maybe that doesn't ever happen. But if you need a six figure income and want to be truly safe, I would invest more like $2.5M in QQQI before "retiring."
Appreciate that I haven’t looked into QQQI much. How do they do it “tax efficiently” exactly?
1.2m in QQQI monthly is around 14k. And extremely tax efficient. Just saying. 14k is basically live like a king money in rural America especially where I live in Texas.
Hi All, I am hoping to save to buy a home and afford a surgery. Both huge expenses. 40s, 85k-125k year dep on part time job and bonuses. I do have a savings as well as 32k invested, and diversified. (25% growth inc VOO, QQQ; 25% div QQQI, F, O, and more, 50% in VUSXX and VMFXX. Only $85 a month div. I'm wondering if it's smarter if I get a $100k trailer and losing investment cash. Or keep renting at an absurb 2500 a month. The trailer at least only slightly depreciates now with inflation. Id expect it to resell for $95k in a year based on the others that have sold. It is trailer park with lot rent. With the trailer I'd lose up front money but have 1500 more monthly to invest. Homes here are 6-12% increase a year. Very hard to outpace. Thus far my investment is at 10% but kind of a weird market. My pay is up 45% over last year. What are your thoughts if you were in the situation? Not financial advice.
Oh absolutely! QQQI is paying about 14% APY and I have about $260K invested. Stock price has gone up about $20K in the past couple months as well. Or you could go the 0 risk route and put it all into PiBank which is a HYSA paying 4.4% APY!
Nah. Just have my retirement accounts in QQQI instead
QQQI look into the dividends and tax benefits.
Lads I have 110k in QQQI and it’s making me question my sanity, such a slow way to try and get rich
To get high yields and high liquidity means you need at minimum 2 funds. You also need to consider taxes because not all dividend funds are taxed a the same rate. And to have access to the money at any time it needs to be a taxable account. * At least one high dividend fund * A money market fund Basically you use the yield of the dividend fund to feed money into the money market fund. This means automatic dividend reinvestment is set to off. The dividends are gernerally not reinvested. But instead a portion is reinvested and the rest stays in the money market fund. So set a maximum limit on the cash level in the money market fund. 6 months of living expenses is a good level. If the money market fund exceeds 6 months of cash reinvest the excess into the dividned fund. A good dividend fund to shart out with is a quality covered call fund. Quality funds generally pay around 10% or a little higher or lower Say 8 to 13%. Some favorite are QQQI 13%, SPYI 11%, IAUI 11%, GPIX 8%, and GPIQ 10%. All of these fund generate about 90% ROC dividend that makes them very tax efficient. These funds are similar to growth index funds but the covered call strategy coverts the growth to income. The GP funds target more growth and lower dividned, While the NEOS funds (QQQI and SPYI) target more dividends and less but still positive growth. So the price of these funds will move up and down with the index they follow but have less growth and more dividend. IAUI (a NEOS fund is a bit different it follow the price of gold. You also want a maximum investment limit to the growth fund. You don't want to have all your money invested d in the same way You want to eventually have multiple funds generating income and feeding that into the money market acount. That way if you sector of the market has problems you still have income from other sectors of the market. This insures money will always flow in the money market account. So evernualy you will have multiple dividend funds and one high yield money market accounts. I started out the SPYI and QQQI in my fidelity acount. Now I also have UTF 7%, UTG 6.4% NAC 7%, PFFD 6% all feeding money into my money market account with 6 month cash reserve and montly dividend income feeding it. I also have a growth index fund in this account as a form of emergency saving with currently 4 times my living expenses. The dividned funds currently produce all of my living expenses in 1 year. This allowed me to retire in my 50s. But this type of account isn't just for the old. The young can and should start one as well as a standard retirement fund in Roth or 401K.
Personally all of it in QQQI and the dividends from that into SCHD
I would at least look into Neos funds like QQQI. That dividend etf is focused on tech so you could allocate some of your funds from a tech stock like NVDA, or MLGO and put it into QQQI for a monthly dividend. I would recommend doing this because per stock the ROI is around $.64; if you invest $6000 from a tech stock rather than just buying QQQI, you have less redundancy and more diversification, and, by doing so you allow the etf to snowball. Doing the math, $6000 invested gets you around 109 shares per $55 stock price; allocating around $60 in dividends causing drip. Just my opinion I’m just some guy.
Real estate involves a lot of expenses, mortgage, taxes, repairs. There is a way to generate income from market investments that doesn't involve selling stock or the expenses of real estate. Most investors today focus on share price growth in there investment accounts. There are stock and Fund that pay Dividneds. Dividends are cash profit sharing cash payments directly in your brokerage account. Now many growth index funds pay a dividend of about 1%. A dividend investor targets higher yields Typically 1% to 10%. Instead of investing in individual stocks you invest in dividend ETF. I am retired and living off of dividend income of 5k a month. I am not selling stock for this income. Since you want the money now and not in retirement you need other use a taxable account. And since dividends generate taxable income we need to invest in things that are taxed at a lower rate. Some good funds to use are QQQI 13% yield, SPYI 11%, IAUI 11% EMO 9% UTF 7%, UTG 6.4%. 100K invested in fund with a yield of 10% will produce 10K a year of income. And all of these make monthly payments. The three funds with the highest yied will be taxed at close to 0% for 7 years for QQQI and sPYI and IAUI are zero for 9 years. The other two will generate tax every year but at a very low rate. Generally you want to avoid using one fund for all of your income. Simply because if one fund develops issues you will still have others generating income. Now I also hive dividned funds in my Roth because they they are taxed at the work income tax rate. Putting dividends in a roth is a great way to to avoid taxes in retirment. My roth has all of the above funds listd plus AARDC 9%, PBDC 9%, CLOZ 8%, PFFR 8%, and JAAA 5.5% and FAGIX 5%. The dividend funds in my roth are generating 5k a month right now.whichis all reinvested right now.
I have 110k in QQQI and I’m bored of it, where to go?
Yes. Stocks/ETFs are pretty liquid too. I put significant portion of my investment in QQQI to generate steady 13% annual return, much better than what a bank will offer.
\> "help me understand, help me do better" I stated it clearly. Buy the underlying thing, not a covered call thing. Don't buy QQQI. Buy QQQ (or QQQM).
VOO is a growth fund if the market is down a lot when you need to sell VOO you could loose a lark ammount of money. If you are saving $500 a week over years you will have about 156K save up. What you need more than untying else is income form your investments and VOO is just a growth fund. VOO is great for retirement savings. But not a good choice for you right now. I you put all of your saving is in QQQI 13% dividned yield that 156K of possible savings would generate about 20K of cash a year. Just under 2Ka month. QQQI is very tax efficient fund so for about the first 7 year you won't pay any tax on the income. After that the dividend will be taxed at the long term capital gains rate which is a lot less than the ordinary or work income tax rate. If you then turn off automatic dividned investing the cash would show up in interest earning money market account. My brokerage fidelity gave me a debit card to asses the money in my money market accounts. SO you could then use the cash for income while you start up your business. And if you have a good year and make money you can invest the income to increase your dividend income.
QQQI going ex dividend tomorrow; like a mini Christmas 🥳
I’m building an income fund along with a growth fund. JEPQ doing fine for me in the income fund and will continue to reinvest the dividend. Plan is to have enough monthly to cover life. Take a look at QQQI too as its return of capital and works differently tax wise to JEPQ. Do a back test on both since inception and they come out positive. Of course nothing like the underlying but you are trading upside for income now.
Covered call etfs like QQQI and SPYI work best in sideways markets or for boosting morale. It feels great to recieve a steady amount of income even if it is suboptimal for long term growth. SCHD is a popular dividend generator with a very low 0.06% expense ratio for the relatively high 3-4% yield. The share price appreciation over time on top of that is surprisingly competitive around 13% annually and the past year was 21%. QQQI for example has a relatively very expensive 0.68% expense ratio for 14% dividend yield. The share price grew about 10% last year. If we compare investing $10,000 into SCHD vs QQQI for the past year and state tax was 4.95%: This is not exact but SCHD gained about 6.8% more than QQQI SCHD Total: +$2,417.17 Expense: -$6 Dividend: +$340 Tax: -$16.83 Gain: +$2,100 . QQQI Total: +$2,262.70 Expense: -$68 Dividend: $1,400 Tax: -$69.30 Gain: +$1,000 Past performance does not guarentee future results but the core principle remains where the expense ratio and tax can drag down the accumulation of wealth.
It's not inherently bad, obviously depends on the ratio and margin rates, but borrowing to buy a cash-flow generating asset is miles better than most loans I see around me (car loans etc.). Not sure about QQQI, I'd rather buy VOO, but all he needs is for VOO to yield more than interest rate on his loan - which has historically been the case majority of the time.
Specifically when it comes to covered call, return of capital, ETFs like JEPI, JEPQ, QQQI, SPYI, etc, you are not receiving a “dividend” from free cash flow, you are receiving the profits from selling the calls as a distribution or return or capital. This is a performance risk, or execution risk. Meaning, the active investors have to perform, execute correctly, and make the correct calls about market direction. If they mess up, and do not receive the expected income from the covered calls, the distribution will be cut. Only some 1-3% of the return of capital is actual dividend from free cash flow from the underlying companies. So this means, you are borrowing money, hoping the active investors don’t screw up, so you can have your capital returned to you. If they make a mistake, distribution is cut, margin doesn’t get paid back. Furthermore, when it comes to covered call ETFs, they are exposed to 100% of the downside, but cap the upside at some percentage out of the money. This means that in bull markets, the share price of the ETF does not go up as much as the underlying index (because they are selling covered calls to pay that return of capital distribution.) TLDR: Covered call ETFs are not free money hacks. If they were, everyone would do it. They are exposed to certain risks.
At your point in life you have benind college expenses, and near future home expenses. So righty now income is better than grwoth for your. If you invest 100K in QQQI in a taxable brokerage and turn of automatic dividend reinvestment you will get 1k cash deposited into your account monthly. Teh cash will show in money market account. half can be used to cover the Roth deposit each year. the other half can help cover your college expenses QQQI makes monthly payments. When are done with college you can use the inocme to help cover rent and other expense when you get a job.
Honest question, what does GPIQ and QQQI do for you that QQQM doesn't? Also, I'd lose DIA and the individual stocks for VTI, VOOG or QQQM or whatever.
I have UTMA and 529 for my son. Cant pick out individual ETFs in the 529 at Fidelity (like that everywhere?) so i chose some aggressive dividend funds and some classic growth funds for the UTMA (VTI/VXUS/SCHD and QQQI i think). Im keeping it low since it can affect FAFSA but at least itll compound a bit. Plus the first $1350 gains/income in UTMA is tax free. I'm putting more into 529 and nothing into UTMA at this point but any time I get any birthday/xmas money for him, I'll probably split it between the 2
I’d recommend to keep throwing signifcant investments into your tax advantaged retirement accounts. Then outside of that I would *also* recommend a mixture of growth investing with dividend investing. Maybe 50% growth, high gamma upside stocks you hold for a couple years at a time, the other 50%, consider a mix of safe investments, like diversified total stock market mutual funds like VTWAX and maybe even QQQI to pay yourself a monthly dividend (be careful with chasing dividends, there are really only a handful of viable funds unlikely to run into NAV erosion at high yields). Pay your retirement first, then pay your low-risk safe investments, then pay your high-risk growth plays. When you liquidate your investments, do so in order of the most tax-advantaged long-term holdings first, and for your non-taxable accounts, I recommend pulling from your lowest risk holdings first assuming all tax considerations are the same. Why? Because your retirement savings are *probably* in safe diversified investments, so for the short-term, it’s not affecting your total net worth risk significantly, where liquidating your higher-risk growth plays would be timing sensitive, wouldn’t be based on the fundamentals of the stocks performance (it’d be based on your immediate need for capital), it would cap your potential long-term growth to the averave, and significantly limit the potential growth of your overall NW. Personally, I tap into my taxable VTWAX for short-term expenses, because timing matters much less for the total stock market indices, it’s a sizeable pot, and my retirement savings are almost exclusively diversified index fund. My retirement to non-retirement investings are approximately on a 60:40 ratio, and I contribute to both on an approximately 70:30 -80:20 basis. Avoid taxes wherever possible.
OP, you’re making a flawed assumption. Look up SPYI and QQQI. Not all dividend funds suffer NAV erosion. They are great for having steady income when the market is not so steady as others have mentioned.
Dumped off a bunch of OKLO 80 may 22s for 8 grand profit then sold 10,000$ of June 18 100s Putting all the premium into QQQI for safe keeping
not a bad time to take some profits. Not saying to sell it all, but selling some is normal. Remember that Cash is also a position and 'cash-yielding-assets' like QQQI, BTCI, can make sense for a lot of investors too.
10 million into $QQQI , it's 13% you regard
FEPI and SPYT have nave erosion issues. CHPY XBCI and XQQI are also at risk of NAV erosion. I also believe CHPY XBCI XQQI. When After looking at a lot of covered calll fund with 20% yields or more the vast majority have serious NAV erosion issues. This list is full offered flags from. That said I like and have QQQI, SPYI They are solid performers the NAV growth.