QQQI
NEOS Nasdaq 100 High Income ETF
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I hold BTCI and QQQI and laugh all the way to the bank.
I wouldn't base the decision on the interest rate. If you don't like the money market interest you can always invest money into a dividend EFT and get bitterly whatever yield you want. One ofmy favorit ETF is QQQI with a 13% yeild. Yes it has more risk than a money market fund. Or you could with CLOZ 8% yield or JAAA 5.5% yeild, both are much safer than QQQI and both easily have higher yields than any money market accounts. I would base my decision
Step one is convert your old 40k into a rollover IRA and then convert that money into roth deposits. You will pay taxes doing this but one the money is in the root you can reinvest it as necessary for it to grow. For the low contribution limit there is one easy way to get around that. Invest for dividends inyourroth. Dividends don't affect the contribution limit. So you could set yourself up so that your investments are generating dividends. The dividneds are automatically deposited back into your Roth acount. So say you invest enough in QQQI 13% yield so that it generates 500 a month and you deposit the 7500 a year limit. 500 a month in dividneds is $6000 per year + 7500 = for a total yearly deposit of 13,500. per year. I have built up my roth to the point my dividend if about 4000 a month that is 48000 per year. I can reinvest that in the the funds that generated it or I can depoist it in other funds.
Using an interest calculator you need a dividend yield of about 10%. There are a number of funds that pay reliable yields. Funds I have that satisfy this requirement are QQQI 13%yield, SPYI 11%ARDC 9%, PBDC 9%, and EMO 9%. CLOZ8% Now You could put it all in QQQI 13%. But QQQI is a quality covered call fund that invest in Nasdaq 100 index. So if the market stays stable you will reach your goal. However if the market crashes you won't. because the share price will suddenly drop and it may take months to recover. You are probably better off having a little invested in all of the funds I have listed. Adjust the money in each to reach a yield of 10%. In one year or reinvesting all dividneds you will be at about j and in 2you should be at about 300K. At that point you could sell the funds to get the money to purchase the home. And if you decide to not purchase a new home in 2 years you can continue to reinvest the money. Invested this way in 7 years your 250K will be 500K . Additionally 250k invested this way will produce about 2K month of income. So you could conceivably buy the home with a loan and use the income from the fund to pay off the mortgage.
What are you trading? If 0DTE stop that. Instead try getting LVL 3 options trading. Start with monthly credit spreads. Never trade during earnings or if a company is getting ready to pay dividends. Or instead of VOO and chill. Look into investing in SPYI, QQQI, IDVO, and SGOV. All pay monthly dividends. SPYI and QQQI follow the index’s. IDVO is international exposure with great growth. SGOV is very safe it’s a bond ETF that pays monthly great place to park cash. 25% in each one will give you a nice passive income. Buy Monday while the market is still down. I lost $2600 lost $2600 last year mainly due to 0DTE trading and one bad Cash secured put options play. Study the charts. Pay attention to earnings reports. Pay attention to the Vix. If the Vix is up things are going to be RED. VIX is Down things will be Green.
RH is the best place to learn. You will need a margin account. With LVL2 trading. Start with Cash secured puts and covered calls. If you can get LVL 3 trading then credit spreads. Stay away from futures and 0DTE trading both great ways to lose your money. But before you start trading. Buy into monthly paying Index based ETF’s. SPYI,QQQI are 2 good choices. IDVO for international funds. I’m 48 started trading and investing at 45. Not a lot of time to build a nest egg. if you want ultra safe places to keep your money. SGOV,VOO,QQQ,SPY,SCHD and VTI are all popular ETFS. SGOV is a short term bond ETF that pays monthly but you balance never changes until you either receive dividends or add more money. The rest are growth funds that pay quarterly dividends.
It all depends on your goals. How much you have to invest right now. How much you can set aside each paycheck. Until you figure that out. Your best bet is SGOV. It’s a short term treasury Bond ETF. That pays monthly. It does not go down it does not go up. Pays a dividend each month. IDVO is another good one currently it’s also an ETF that pays monthly. I think around 5% but has great growth. Has done nothing but go up. It’s based on international companies. Or index based ETF’s like SPYI and QQQI. Then there is the cult favorites of ETF investing. VOO,QQQ, and SPY. There on the expensive side that’s their only downside. Any of these choices are good. If you want to trade options start with Cash secured puts and covered calls.
No: 1. The stock is overleveraged and over-concentrated in tech with TQQQ 2. The portfolio is very gold/commodity heavy with DBMF/XAUUSD 3. Covered call ETFs are not a substitute for bond income. They are not good investments. Your portfolio will almost certainly fail catastrophically during a liquidity crisis or general selloff. TQQQ is 3x leveraged, so it will implode. QQQI will lose money with the market selloff, but won't recover because it will write covered calls well below previous price. DBMF/XAUUSD may fall as well if liquidity dries up.
i bought from VTSAX today and opened a position on QQQI and SPYI
the long term average total return of S&P500 is 10% during the 2000 to 2010 lost decade it was closer to 5% per year. Also as we get older risk tolerance typically drops. So there are many like you that feel trapped because they cannot stomach the volatility of the S&P500 and yet they need to invest. One simple stratagy is outlined in teethe Book the income factory. It is worth your reading. Basically you are probably better off investing for dividends rather than growth. Good dividend funds don't have a the volatility of the S&P500. and dividend funds typically do much better than growth in bear markets like long decades. And seeing income coming in really helps calm peoples fears of the market volatility. I am aproaching age 60 and I am heavily investing in funds like EIC 11% yield, ARDC 9%, PBDC 9%, EMO 9%, CLOZ8%. that averages 10%. And everything political happening now has had no effect on on 5K a month of income from funds like these. IF you have a good job and can invest enough income you can get a decent income by age 60. But not you may have to use a taxable account as well as a retirment accountant. IRAs often has a rather low deposit limit of 7500 per year. 401K hav a deposit limit of about $21000 a year which has aa very big impact on the size of your portfolio. at 60. So you may want to have taxable account with no contribution limit or withdrawal date limit or penalties. Yes you will ba paying taxes but once you get start getting significnant income you can start usingN the income to pay bills and other expenses freeing up additional money for investing. And then you can use a Roth IRA to start building tax freedividend income you cause after 60. One advantage of investing fro yields around 10% is that the ammount of money you need to save up is generally smaller than the ammount you would need in growth index fund only portfolio. 500K invested at 10% yield is 50K a year of income. To get that income from a typical growth portfolio the 4% rule recommendation would require about1.25 million. Note I also have covered call funding my portfolio these funds are just as volatile as growth index fund bu the yield if also high and an they are also tax efficient so you pay less for the income I hav BTCI 30% yeild, QQQI, 13%, and SPYI 11%. I mainly use these to generate income which is mostly reinvested into other non covered call ETF to grow my stable income ETFs. And I also have some growth funds I can use at anytime if there is an issue with my dividned portfolio or I have a bug unplanned expense.
QQQI is the place to be in a sideways market
8k (cost of FSD) split between QQQI/BTCI pays $130 month. Subscription paid, 8k saved.
I am curious about QQQI, is there a risk to this if you were to take it out in 6 months?
I wouldn't mind loading up on QQQI under $54/share this week!
The general recommendation is to have bout 6 months of living expenses in cash and at least one retirment fund were you are maxing out the contributions. I prefer to use money market in my taxable brokerage acountfor the 6 month savings. Then beyond the I like to build up passive income from dividends to cover living expenses. For example you could put your extra cash in QQQI 13% yeild 50k in this fund would generate $500 a month the brokerage account. That would generate 6K a year which can be used to cover your most of your yearly roth deposit. build it up further to 100K which would generate 1K a mont that would cover all of your roth deposit and 5K can be used to cover utility bills and other expenses. Eventually you want to have enough dividned income to cover most of your expenses if you cannot work or loose your jobe. Having a constant stream of income is in many ways better than a savings account since ether dividned income will never stop commoning. Cats savings account have a tendency to run out of money when you need it the most.
Long term investing has been (relatively) easy for the last 100 years or so. Buying the S&P 500 and resisting to urge to sell when things feel uncertain was arguably the only advice an investor needed to succeed. The firs growth index fund became available around 1980. retirment funds also became available at about the same time. But both don't really become widely available until about 90's. Prior to 1980 the common investing stratagy was to invest for dividned stocks and and picking growth stocks. And what you are seeing today is not really different than what people were seeing in the late 90's if you subtract everything trump does. Investing and holding the S&P500 but good investors don't stoop there or stop at the 6 month emergency fund. Some people now are starting to add more bond and dividend funds. in Bear markets growth can be hard to find. But dividends keep common and pond keep paying. and don't limit yourself to fund paying a divined of 5%There are good dividend funds that pay %% to about 10%. I like QQQI 13% yield, SPYI 11%, ARDC 9%, PBDC 9%, EMO 9%, PFFA 9%, CLOZ 8%, UTF 7%, UTG 6.3%, JAAA 5.5. Another thing people do is after their retirement funds and 6 month emergency fund are setup people start investing for dividends in a Taxable account. Why we all have mostly bills to pay including home mortgages and rent. Everyone is hemorrhaging money monthly. So some people start investing for dividends in a taxable to with a goal of covering common monthly bills. It takes time but eventually you could get enough income to cover much or all or your monthly expenses.
the other 50K could be invested in QQQI instead of High yield savings or checking account. QQQI has a 13% dividend payed out in monthly installments and is tax efficient. In a taxable account 50k in this fund will earn about $500 a month.which you can reinvest in QQQI or VOO or just spend if you want.
In order to understand QQQI and similar funds you need to understand what a covered call is[.This video ](https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://www.youtube.com/watch%3Fv%3D4sdELtYxGTs&ved=2ahUKEwjh-uuLhpOSAxWEGDQIHWIMD2EQtwJ6BAgXEAI&usg=AOvVaw2hq0cwKpOOi5ci_hZVJMMb)should help. QQQI holds that Nasdaq100 index (often referred to as QQQ the first growth index fund based on it. So the share price of QQQI will move with the market. The dividend comes from the fee people pay to buy the call. Unlike dividend ETFs the dividend is costly changing the dividned can go up or down every month. So in a really bad market such as 2008 you could have a significant dividend cut. Also these funds do best when the market is flatter dropping raidly. During these conditions the fund is not loosing shares of the index due to people that payed for the call can get the stock at a lower price from the market. However if the market goes up rapidly the call price is cheeper than the market price so the fund loose shares of the index so the NAV (net assessed value of everything QQQI QQQi hold DROPS. It this happens the fund has to eventually replace what it has lost. Now QQQIis a good fund with a 13% yield. But there are many funds that are pulling in a lot of investors with 30% or higher yields. Many of these very high yield funds loose assets more often and as a result they they have NAV erosion. Were the short price drops, doesn't recover. or drops every month while the index they are tied to may goup. So when looking at covered call funds you want to compare the share price to the index of the index or stock that it writes calls on. IF the share-rice is dropping every month and rarely recovers the Fund is suffering NAV erosion and should be avoided. You loose principle and likely will never get it back, and the dividend payout drops while the yield stays high. The worst of these funds will do reverse stock splits to To prevent the fund from being delisted from the market The worst funds from a NAV erosion standpoint are yield mats funds, globalX funding Roundhilll . you simply cannot get yields of 30% or more consistantly from covered calls. QQQi generally recovered its NAV quickly the since inception has shown a gradula share price increase. QQQI is a NeOS fund and no news fund has persistent NAV erosion issues. All have have a consistant small share price precautions. No covered call fund can have total return higher than the index or stock it is followings. But if you need the income they are a great option.
you can have multiple IRA for 401K but you can only contribute to the one from your current employer. You can also have more than one personal IRA but you total IRA contribution is limited to $7500 per year, Converting To a roth IRA is probably you best option. But I would use SCHD in it I would instead use CLOZ 8% yeild. The cash dividend for 100K is $8000 per year. Or you could use QQQI 13% yield which would generate 13K A YEAR cash inflow into your account. So even if you cannot contribute money to the cash will still flow into the account.
QQQI is one of the better covered call funds out there. Pays roughly a 13.6% distribution rate, appreciates capital, and is tax efficient. It gained roughly 19% last year. Its a good fund, and the covered calls give some downside protection.
This is such a stupid post. GPIQ by Goldman Sachs or QQQI by Neos can’t yield OP up to $140k tax free annual income without selling anything. Sure a market draw down would hurt, but even a horrific 50% collapse in market would still yield around $70k for OP. $4M.. LOL, some of you want new Bentleys. The rest of us done.
They tend not grow in VALUE as fast as their index counterpart. The "I" at the end indicates this is an income fund (Neos figured they'd use covered calls to generate income, but that needs babysitting and that's why the expense ratio for QQQI is so high). I personally have BOTH SPY and SPYI. i don't know if that's the best strategy but when SPY drops, i now see two positions lose value. On top of that, SPYI (or QQQI) also doesn't recover value as fast as the index (if/when it does recover). QQQI is designed for income, not necessarily growth. It will grow but not as fast as QQQ.
I thought QQQI/SPYI had no NAV erosion.
I gave it a lot of thought since I recently bought a very large position in QQQI. I exited my position before receiving a dividend because 1) if qqq calls don’t work you could see nav erosion. They don’t aim to do so but this can well happen. Literally the price of the asset drops after giving the dividend 2) since the dividend is classified as roc you get lower and lower basis meaning that even if the price doesn’t appreciate and you get your dividend but need to sell, you will own capital gain taxes on what you have been paid. You essentially have lost money to inflation and get to pay taxes. 3) 1 and 2 above don’t matter if you hold the position for 5 to 7 years at which point there can no longer be roc because you know owe everything to capital gains but you still get a dividend so yes that is a plus.
I dont know about QQQI, maybe it’s too new to know, but JEPQ’s capture rate is 93-percent of the upside and 30-percent of the downside. Isnt that pretty good?
It's not structurally the same, but it also [doesn't work](https://totalrealreturns.com/s/QQQ,QQQI?start=2020-01-01). The total returns are lower.
can you expand a bit more on the ROC part? simple example: let’s say i have 1k shares of QQQI with a $50p/sh cost basis. are you saying every dividend paid out reduces my cost basis by the dividend paid out? and that eventually my cost basis will go from $50p/sh to $0?
>QQQI seems to give ~13% annual dividends. that 13% is annual YIELD, not annual dividends. dividends are typically paid from profits. Exxon sells gasoline, Proctor and Gamble sells soap and toilet paper, which earns a profit. as a shareholder in those companies, you get a bit of the profits. just for comparison: with high-quality companies whose stock you'd want to hold anyway over the long-term, the highest realistic dividends are generally in the 3-5% range. anything above that can be a bit of a red flag. in contrast things like QQQI generate yield partly through dividends, and partly through selling covered calls or equity-linked notes. these strategies have the upside of high potential income, but they have the downside of (for example) often being taxed at a higher rate than dividends or capital gains (from selling stocks). QQQI and similar things tend to have lower "total return" than other investments (total return means the return on investment if you re-invested all the dividends and capital gains, rather than taking them as income). https://www.morningstar.com/columns/rekenthaler-report/covered-call-stock-funds-like-jepi-are-popular-should-they-be
I ran a comparison of QQQI to VOO, and it seems to out perform VOO during up to sideways markets. I'm less sure that QQQI is really defensive in a down market though. Both were down about the same amount during the 2025 tariff scare, but that only lasted two months so not a great indicator.
Why JEPI as opposed to SPYI or QQQI? Neos’ dividend payout as RoC is better for cap gains tax purposes, right?
Hell yea brother! Congrats! Dump that shit in SPYI and QQQI. Get that 1%/month dividend
Some of these are good ETFs. I personally have QQQI and JEPI. BTCI is extremely volatile. Your biggest concern with these types of instruments should be NAV erosion, where you lose more of your underlying investment than what you receive in dividends. That’s what makes these types of investments riskier than say an index fund. I would avoid weekly call ETFs like GOOY for this reason. They have extremely high yield but tend to rob themselves of NAV in order to maintain their yield. As always, read the prospectus. This is not investment advice
The majority of people’s goal with investing into the stock market, is to grow your money. QQQI won’t really grow your money. It will generate income for you. If your goal is to generate a passive stream of steady income then it hasn’t been too bad for me. I understand though it isn’t gonna grow a lot. IMO it isn’t ideal for most people because they just want to DRIP the dividends.
^This is ridiculous lol. Yea avoid "shit tax treatments" , by selling shares of something else, thereby creating a taxable event every single time. QQQI distributions are consider ROC and are favorably taxed.
QQQI would be great in a flat-ish stock market, or even as a defensive position during a down market, since the dividends would help offset any market losses. I see that in 2025 it would have made you 18%, nearly all of that from dividends. Only about 2% came from price.
If you like QQQI at 13% - 14% div and 3% growth with 0.68 expense ratio - You should like QQQ more. Since it's been returning 19% average last few years. Plus a tiny dividend and 0.18 expense ratio. The underlying QQQ is always going to outperform the income fund (QQQI) and is a better fund to hold unless you are retired and living off the dividends - maybe it might make sense for some tax benefits? Even then it still might be better to hold QQQ and sell 1% of your holding here and there when you need to for income
You are taking roughly an equivalent risk as the underlying index it tracks, the S&P 500, and the total return (dividends and capital appreciation) of QQQI will long term under normal market conditions by a percent or so. In a prolonged sideways market or in stagflation it may over perform the underlying. Also, the dividends are return of capital, so eventually your basis will become zero and you will have a larger immediate tax bill when you sell, rather than selling little bits of QQQ constantly to simulate dividends
I’ve decided to go through with my idea, the plan is to max out my ROTH with VTI and VXUS in a ratio of 80/20. I would go with VT but doing VTI and VXUS would allow me to control the amount I would like to invest if US market or International Markets rise and fall. For my dividend portfolio I went with the good hard hitters like Realty O, QQQI and IAUI to name a few.
He listed QQQI, SPYI, and JEPQ. These fund have yield of 13%, 11%, and 10%. We are not talking about low yield fund with yields of 5% or 8%And in moderate bear market these dividend funds will easily have a higher total return. The growth funds he listed have an average total return of 10% so the dividend funds have a similar average total return. Yes growth funds can hit 20 occasionally but that cannot tdo that consistently and some years they loose money while dividned funds continue to pay dividends.
In general as the dividend of a fund increase the growth decreases. Dividend fund in general continue to pay even whine the market price drops. So by switching your investments a bit more into dividend you are erectly switching for fixed income instead of growth and reducing your risk. Also the S&P500 index has a long term average growth rate of about 10%. There are funds and stocks that do have dividends close to 10%. So in your roth you could add commp funds that invest in companes that are not a big part of the S&P500. For example ARCC is a BDC there are no BDCs in the S&P500. ARCC has a yield of 9% which is common for BDC and since the companes founding the stock has performed a bit better than the index. When the growth index has a down year ARCC keeps paying its dividend and pulls a bit ahead. The are a number of f=good BDC so I invested in PBDC and the other is BIZD. In my roth Ihave funds like QQQI 13% yield,EIC 11%, ARDC9%, PBDC 9%, EMO 9% CLOZ 8%. So if the index is down I can use the dividend to invest in VOO or any other growth index you have. And in years when growth does very well you could sell some of the growth and lock that money into high dividends funds with have a comparable return and reduce your risk of over concentatration in the magnificent 7. For 401Ks you are limited on your fund choices so for dividend you may be limited to bond funds so you may be forced to use lower dividend yields. One other advantage having dividned funds in Roth or retirment fund is that if you become unemployed you will still have money flowing into the fund. With now I cannot depoist into my roth because my income is too high but the dividend funds are depositing 5K a month of income into my roth.
VTI = Total USA market VOO/SPY are both S&P500 index funds. These are not growth , they are broad market and hold both growth and value (QQQI, JEPQ, SPYI) These are covered call ETFs, they are not even dividend focused , they sell upside to produce a premium . They will over the long term almost certainly under perform their underlying index of the Nasdaq 100 and S&P500 Simply buying VTI will give you a mix of growth , value , dividend stocks
I was in the same boat. Starting to turn it around. Depending on how much you have left. Start with weekly CSP’s or put credit spreads on quality companies. I have a credit spread going this week on Google. 225/222.5 is my spread. Once the week is done I will have received. $84 in premium. The deposit was $250 for the credit spread. Out of pocket I only had to put up $166. Last week did the same play made $71. In 2 weeks that’s $155 in premiums. I stopped 0DTE trading. That was my biggest issue. Just about 90% of my losses from last year was due to 0DTE/1DTE trading. If you plan on doing options 7DTE minimum. Max 30DTE. Take your premiums and put them in a good quality ETF that pays monthly like QQQI,IDVO,SPYI. Or SGOV. That way you are always making a little bit of cash each month
I’m right there with you but without 120k. That is about the exact amount I simulated to provide a passive way of investing. I recently thought about stable ETFS that pays monthly dividends, the high yield ones are all trash like YIELDMAX. Look into FEPI, SPYI, QQQM, QQQI, JEPQ. You can download Google Gemini and apply different strategies to have growth and compounding as well monthly income. Tell it to create a table of monthly and yearly cash flow. You can do a cascade strategy to use dividends from one ETF to invest the other. There are market risks of volatility but if you hold the QQQs on will eventually grow go back up. It’s kind of addicting to fine tune strategies that don’t feel like random luck. Take your time and good luck!
Some people don't tolerate market crashes well panic and sell at a loss.Typically this is common in those that are older and have no experience with investing. You know your risk tolerance but do you know your moms? Typically these people do bettrterwith dividend stocks or funds. In the US I like QQQI 13% yield, SPYI 11%, ARDC 9%, BPDC 9%, EMO 9%, and CLOZ 8%, UTF 7%, UTG 6.3%, JAAA 5.5%. The lowest yield funds are the safest and even the higher yielding funs a very good. She won't see big big gains but she will see consistant quarterly or monthly payments.
The down side is: * Your investment can loose a lot of money in a bear market. * Some pear markes last for years. * These are mostly growth funds. They produce tiny dividends. * The only way to get income from these funds is to sell shares. IF the market drops when you sell you could loose money. The first goal off a young investor to to develop: * a retirment fund (401K, IRA , Roth) and maxyout the contributions you are allowed to depoist every year. * Build a HYSA or money maker account of 6 months of cash living expenses (the money you tyicpally spending 6 months. Not your earnings. * And max your any other tax deferred investment opportunity you have such as HSA. Now typically fund like VOO and VTI are excellent choice for a retirment fund. For HSA a dividend fund may be a good choice. After that you should develops a taxable brokerage account: * You can invest more than 6 months of money in growth index funds like VOO and VTI. to supplement your cash emergancy fund. Growth index funds grow very fast potentially giving you sever years of living expenses. But you have to sell these fund income. preferably you want o only well when you can make a profit on the sail. You do not want to sell at a loss. * IFyou have a Roth IRA you have $7500 per year expense for the yearly deposit. Sao start investing hi high dividend fund for income preferably one with a low tax on the dividends you recieve.. A good choice is QQQI with a 13% yield. and you pay no tax for about 6 years on the dividends you recieve. You can build this up to cover the Roth IRA deposits. * After the roth expenses are covered start buildin up a different dividend fund to press other monthly expenses such as utility bills, insurance bills, and possibly enough to cover the monthly mortgage cost. Try to limit each dividned fund to about 50K invested. And try to make sure each fund invests your money differently. Keep this up until all regular monthly expenses are covered by passive income from dividends. Dividneds are cash profit chaser payments made directly into your brokerage account from the funds you invest in. now it will take time to build up enough dividend income to cover monthly bills but once you have it the loss of income for any reason from work would not result ins bankruptcy and loosing your home. And once your dividend income exceeds your monthly expenses you can consider retiring or reducing the number of hours you work each week.
Just dump it all in QQQI and get $11,000 by end of month.
ater you max out your roth and other retirment account and HSA and have a 6 month emergency fund. You should be investing some money for income to cover your roth deposits and monthly bills. This means investing for dividends. now it will take time but if you invest in QQQI for example a tax efficient dividend fund with a 13% yield you could build up QQQI to about 57K. With that much invested in QQQI it would generate $7000 in yearly cash payments to you without selling shares. You can use that money to cover the yearly roth deposits. If you continue build up the dividend investment you could start getting enough really passive income to cover bills in addition to your Roth account. Eventually you could have enough dividend income to cover all of your basic living expenses. And since it is your money with no restrictions on how you spend it you could retire early off of the dividned income. for more information on dividend investing read the book The Income Factory. And for other fund ideas look at Armchair income on youtube. he invests or dividend income in his retirement and posts his portfolio and does detailed reviews of funds.
I’m in $ETH $CCJ $QQQI and $PLBY is my only penny for now
Id put the 1m in QQQI and collect the over 136k a year in dividends
Yep, id put the 1m in QQQI and collect the over 13 and a half distribution yield
you could set up a custodial account and gift your daughter money. you don't have to report a gift of 19K to the IRS. The gift could also be stock you currrently own. Then invest the money in the custodial account. Many growth investors would just use growth index funds. The other thing you can invest in are dividend ETFs. you could slowly build up position in fund like QQQI 13% yield, ARDC 9%, PBDC 9%, EMO 9%. CLOZ 8%. IF you reinvest the dividend and make regular gifts to her. When she is ready transfer the fund to hear and she can use the money dividend to help establish her life. When she is an adult the monthly income could be several thousand a month for the rest of her life. Assuming she doesn't spend it al and liquidate the funds. So the other part about this is more difficult you have to teach her to manage money and investing. And a part of that is understanding how taxes work and how to estimate taxes. All the skils needed to be successful in life. 5
Look into QQQI instead. If you reinvest the dividends, it performs better than VOO and you pay no taxes
They’re not all bad. Take a look at this comparison of QQQ vs various QQQ-derived covered call funds https://totalrealreturns.com/s/QQQ,QQQI,QDVO,KQQQ,JEPQ,GPIQ QDVO handily beats QQQ in total return with dividends reinvested
Yeah. I saw with QQQI for every $100,000 you invest you get $1,200/month roughly. But not sure I want to put 25% in that.
you should read the book the incomefactorq and look at Armchair income on youtube. You could put that 50K in QQQI which pays a 13% yield. IF you reinvest that for 10 years you would have 182K and a monthly dividend cash payment of about 2K a month for you keep the 182K invested in QQQI. Since this is a dividend fund you don't have to sell shares of stock to get income. There are many funds to choose from with yields of 5 to 10% that would work for this.
When you HSY reaches 6 months of your work income there is no reason to keep using a HYSA. Anything above 6 moths would earn more if invested. Many use growth index funds. However many also like dividend funds. For example 100K invested in QQQI a tax efficient fund yielding 13% payed Putin monthly installments. So if you don't reinvest the dividends from QQQI you get $1000 for as long as you hold the shares of QQQI. So after 20years of holding QQQI you would still get $1000 a month. A cash emergency fund is nice but if you loose your jobe you would be basically out of cat after about 6 months. Now it takes longer to build up a dividned income stream but once you have it it is unbeatable if you cannot work for any reason. I only learned about dividend when I was 05. I converted excess growth in my taxable account to dividends and I now get 5K a month and retired at age 55. all my expense are covered buy my dividned income from my taxable acount. my 401k was full of growth and is not begin moved into a roth and invested for dividends. When done I will have tax free income for life.
Assuming it's a real human seeking an anonymous, unbiased opinion, let's cut him a bit slack. He's only 18 and wants some inputs (evaluation - as mentioned in title). For someone that age - again, assuming it's a real person, not a bot or sh1tpost - doing **covered call ETF** QQQI is impressive as well as a due lesson, which he will soon learn. He is advised to read up on "covered calls" more. With VIX so low, the income from written calls will be tiny and won't provide any meaningful cushion from downside. On the other hand, he will lose nearly 80% of upside, e.g. if markets go up 5% in a month, the ETF would only yield 1% in TOTAL returns. It's a lose:lose deal in most cases. Backrest - if you don't believe it.
Interesting. Thank you for the explanation. What would you say is the benefit of a covered call ETF then? Why would anyone ever invest in them if they consistently underperform over long periods (20yrs +)? Also, QQQI is taxed 60/40, with the 60 maxing out at 20%.
Im sorry but if you are worried about down side protection in pull backs - buy some bonds or treasury fund ETFs. If you are putting $500 a month in QQQI - you get what ? 9 shares. That's $5.10 a month in dividends.(Estimated) Do it for a year and by the 12th month, you get $65 a month in dividends. At that pace the QQQI stock price basically stays steady-ish (we hope) and your shares are worth the same amount as you bought them, more or less. So you did all that to make the dividend (13.7% gains in a year before taxes - less after you pay taxes on it) Meanwhile the underlying (QQQ) - is making 17-18% annual gains. If you don't sell you won't need to pay taxes except the miniscule little 0.5% dividend (estimated) If you want the dividend go for it. But i would always rather have the underlying (QQQ) in this case. I don't see the advantage in picking an underachieving dividend fund just in case the market drops. If you think the market is going to drop - buy bonds or just put your money in a HYSA and then, invest it all at cheaper prices when the market drops. I don't know when that will be. I hope it don't happen soon cause I am buying shares and ETFs as often as I can.
As a follow up question, would the dividend income from QQQI not offer some downside protection in pull backs?
Putting money in QQQ is always better than putting it in QQQI (QQQM is even slightly better than QQQ because it's slightly lower fees.)
Regarding QQQI - why? Why would a 35 yr old guy buy an income ETF when you can just buy QQQ or XDIV(sp500 fund that doesn't pay dividends) Any income fund is going to pay out excessive dividends that are just going to pay you a tiny bit each month and you have to pay taxes on that income - what's the positive about that? Just buy XDIV or QQQ and hold - they will both out perform QQQI including dripping the divs.
I would invest the 350K in dividend ETF like QQQI 13% yield, ARDC 9%, PBDC 9%, EMO9% CLOZ 8%. With an equal amount of money in each you would get an average yield 35of about 10%. This would produce 35K a year of income which would cover most of your monthly bills allowing you to divert more of your work into to investments in preparation for retirment. You are basically at a point in life that you should be investing for income. You are basically about one medical issue away from being forced to retire instead of working until you want to retire.
What I would first do is open an account at major brokerage fidelity, Schwab, vangard would be my top picks. then make sure you .have a money market account. with a decent interest rate. And then depoist the money in the money market account. At this point start tot use the money in the money market account to invest for dividends. a cash profit sharing payments to you. Similar to interest but you buy stock of the fund of your choice. The dividend are payed out quarterly or monthly and deposited into your money market account. A good dividend fund to start out with is QQQI 13% yield and it is a tax efficient fund meaning you pay less in taxes on the dividends you recieve. This fund with 100K in it would generate about 1K a month of income with this 1K a month of income you can keep some emergency cash in you money market account, or reinvest it back int QQQI or some other dividend fund there are many. Or you can invest in a growth fund.. Most growth funds only pay a dividend of about 1% so they are also tax efficient But instead of dividends growth index funds grow by share price appreciation. and you only pay taxes when you sell shares at a price higher than what you spent to acuare the stock. VTI is one commonly used growth index fund, but there are many of choices. The third thing you could do is to open a roth IRA IRA. Roth IRA are tax free retirment funds. you can depoist $7500 a year into it you could invest in QQQI and VTI in the roth. You cannot withdrawal it until age 60. But when you do withdrawal money it is tax free. Also andy buying and selling and dividends earned within this account is tax free.
QQQI is interesting. Forgive me if I'm wrong – but generally the value of the stock doesn't grow very much, but it gives you huge 14% monthly dividends, is that the gist of it?
I already have a handful of rentals. I've owned them all for more than seven years and I still get tons of depreciation. If it turns out to be 15.3% instead of 10 or 15%, I can eat that difference and just charge it to the game. I can still easily make 10 - 20% profit off a flip in only a few months, while the whole time the asset is fully insured and a market crash=another rental. Flips are easy as hell for me because I'm a home improvement GC, so it's basically what I already do for clients only I just make a lot more money and I'm in full control. Only hard part is finding the next flip! I wouldn't do another S-Corp (my gc business is), just a simple LLC. They just need to be dissolved either when you sell the house or if you want to do a quit claim. So back to my original question, which is where is the best place to stash the money in between flips. I will look into QQQI, thanks!
It was more of me saying to be prepared to pay the self employment taxes because the 15.3% always surprises people. Me personally, if I wanted to go more passive I’d park a bulk of the money in QQQI and O. For every $100k in QQQi you’d get about $1,200 a month. If you put all $500k in O you’d get $2,350 a month. If you want to keep flipping houses, I’d considered buying a short term rental to offset the income with losses. But this is really only good for a few (5-7) years because of the write offs for 5/7 year property from a cost seg study. Then you’d have to buy another one if you want to offset income again. I’d have to research to see about doing flips with an S corp. that might be an option. I know in general you don’t want to own real estate in an S corp because it causes issues getting it out. But I think that’s more for rentals. Not sure on flips.
The yield on government bonds is dropping so you may want the just by 30 years bonds with the highest yield you can find. 4% is probably doable which would require 450K. Or you can invest 138K in QQQI and get that ammount of income. another option is to have Vangard manage the account with a goal oof generating 1500 a month. We didi that with our mom when she got scammed. And later when it became apparent that she had dementia. So now we keep Vangard informed on what here care costs are and VAngard keep use appraised of how he retirment account is doing.
I don’t understand why anyone would select QQQI when VT VTI VOO vug and so many other good performing ETFs exist. Personally I’d pick VOO and add some vug for a time frame such as yours
QQQM would be a better comparison with VT and VTI. Lower distribution but greater total return than QQQI
If you want to retire at age 30 I would invest the money in dividend funds such as QQQI 13% yield, ARDC 9%, PBDC 9%, EMO 9%, CLOZ 8% dividend funds generate income and when you reach age 30 you are going to need that income the cover your living expense. Many in retirment sell off growth funds at 4% per year to cover living expenses but selling 4% per year will only provide you with income for 30 years. 30 years of income is fine for someone retiring at age 60 because most people die before age 90. But the 4% liquidation rate won't work if you retire at ago 30. Furthermore you will need to use a taxable brokerage account. Retirement account won't work because it is difficult to on withdrawal money before age 60. Also many people gocus on investing in growth index funds in retirement account and will tell you to convert the goth funds to dividend funds right at age 60. No that advice will work with tax deferred retirement accounts. But it isn't good advice for you because you will be paying a lot in taxes to convert growth to dividend. So the best advice for you is to star with dividends now and build up the dividend income and if you have enough dividend income at age 30 retire.
Except I think he said QQQI, which is up only 3% in the last year, compared to QQQ which is up about 20%.
I appreciate what you're trying to do, but I'm not sure you've fully thought it through. On the legal angle: there's not really a meaningful distinction between "one brokerage account" vs. "two brokerage accounts" vs. "a trust with one brokerage account" here. Once you're married, it's all going to be joint to some extent. Your state laws on community property may influence this, but they'd do so with a trust also. Honestly I would just establish a joint account, and get a prenup in place if you want mutual protection. On the financial angle: it will be very inefficient to build an income fund. Most anything that produces consistent income will also produce a relatively low amount of income, just a few percentage points. You'll need to stuff tons of money in there just to generate any meaningful cushion. Things like SPYI and QQQI will return less than SPY & QQQ in the long run - *and* they'll be significantly tax-inefficient to boot. It would be much wiser to just invest more in your brokerage account, and be ready to dip into that if necessary if you need a cushion. Don't get hung up on the principal vs. income distinction. It's somewhat meaningless for most stocks, like dividend-payers, but it's *especially* meaningless for funds like SPYI/QQQI, where it's really not much different than just selling your stocks over time.
As long as he’s “gambling” by buying things like GOOG and QQQI, he’ll be fine. No options, no meme stocks, no penny stocks.
Let’s put it this way. I won’t have to pay any taxes from my option wins LOL. Lost $2800 this year. Pretty much all my fun money. I use RH for option trading. I just opened up a MooMoo account and started a modest 4 fund dividend account. Using $100 to fund it. Ticker symbols DX, CWSC,AGNC. And QQQI. Keeping it pretty balanced by dollar amount.
Recommending what I buy: BTCI QDVO IDVO DIVO VXUS. Love the income building and considering more ROC heavy ETFs like QQQI and GPIX.
I’d have a fair amount split 50/50 in QQQI / SPYI
Does QQQI even have decent options liquidity? Sometimes rolling for profit isn't possible
I'm totally out of Yieldmax now after dropping HOOY the second week in December, which was the last one I held. They should be called yield trap funds. I now have it all in JEPI, JEPQ, SPYI and QQQI. Smaller divies and some small growth in price too. Good luck to you in coming back.
First step would be to increase if possible the amount deposited per month in your IRA. IF that is not possible you can open a Roth IRA at any brokerage That would allow you to save another $7000 for retirement. With both IRA and Roth their restrictions on whithdrawaling the money before age 60. IF you want access to the money at any time without restriction you need to open up a taxable brokerage account. Many with growth investments in their retirment accounts will continue with the same growth investments in a taxable account. But others prefer to invest for income in the taxable account. a good money market funds is equivalent to a bank High yield savings ac counts. I encourage you to keep 6 months of cash in brokerage money market account. But any additional money should go into a high yield dividend funds CLOZ is one very safe fund to use with a 8% yield Don't automatically reinvest the dividends. When the cash dividned is payed it will then show up as cash in you money market account. You can then use the money to pay bills or other expenses or reinvest the money in a Roth account or invest the money in CLOZ. Never sell shares of CLOZ. If you sell shares of CLOZ the dividends will stop coming. Now you can invest in other dividend ETF than CLOZ. QQQI has a yield of 13% and you pay less tax on the dividend income. QQQI has more risk than CLOZbutit has the very desirable yield. Now yields above QQQI are available but many of those funds don't last long and you gradually loose your original deposit. I am currently getting 5K a month from my taxable brokerage acc count using QQQI, SPI, EIC, ARDC, PBDC, EMO, CLOZ, UTF, UTG, JAAA. overall this has a yield of about 10%. Now to get 5K a month form such an account you need to gradually over time depoist 500K into the dividend portfolio. The rewards of having this much passive income are worth it.
I lost 30k as well. I just used it as a lesson, and DCA into boring VOO/QQQI now.
Generally speaking, at 19 you shouldn’t worry too much about prioritizing dividends. QQQM will almost certainly outperform its derivatives (like QQQI) over time. Even if you DRIP, you still owe taxes on the dividends you receive. There’s a lot to understand here though, I’d start by researching growth vs dividend investing.
Almost all investors have a cash account. And most of the time it is in bank or taxable brokerage account. Partially for emergencies and pratially to help handle the big unexpected bill. But that said the cash account is the first step in the a taxable account. A emergency cash fund won't last long is you loose your job in recession. It could take form than a year to find a new job. FPassive income is better because the money will not run out. A fund like CLOZ 8% will pay a dividend (passive income. It will take time to build up the money in CLOZ to get meaningful passive income from it. If you don't need the passive income simply reinvest the funds. Or use the money to fund your Roth account or pay monthly bills. But it things go bad turn off any automatic dividend reinvestments. The dividends will then show up as a cash depoist into your money market account. I realize this in my 50s and took some excess growth I had in a taxable account and built up pasive income of 5K a month and retired. I am currently suing the passive until my retirment account become available. Some People use SGOV instead of CLOZ. Others may use riskier funds like PBDC 9% yeid, EMO 9%, ARDC 9% UTF 7% or UTG 6.3%. Other other will use covered call bunds like BTCI, QQQI, and SPYI.
In FXAIX or if you need the income maybe QQQI and use the monthly income otherwise growth.
The easy way to do this is to invest in a fund like QQQI that does options for you and then months they pay out the profit as a dividend.QQQI has a yield of 13%
More and more, I like $DNN. I know it’s not as exciting as some of the other tickers here, but at least it has relatively steady and predictable movements. Still love $PLBY, can’t wait to load up more. Most of my account is in long term holdings so I can’t quite keep up with you fast paced traders, I just DCA a lump sum once a month, maybe that’s why I’m still standing. For anyone interested my port consists of $PLBY, $ETH, $VOO, $CCJ, $QQQI for now. Looking to add $DNN maybe around the $2.60-$2.70 range for entry.
Those are just covered call ETFs , if you hold VOO adding SPYI or QQQI does not add diversification
SPYI is a sister fund to QQQI SPYI invest in the S&P500 index. So with QQQI and SPYI you wouldn't hurt diversification.
Add QQQI, and SPYI to your portfolio. and if you want BTCI. to your portfolio. Setup each with an equal amount of money like you have with your current portfolio. Reinvest all dividends in growth. And then yearly rebalance everything By reinvesting the dividend into the growth you adding a lot more shares of growth. So when there is a good year your account will do better than it would without the dividneds. Eventually the dividends alone can add more money to your acc count than you you can.
VT for buy and hold. SPYI or QQQI for similar but with some dividends if you need cash. I would also suggest learning a basic strategy. Look up something like how to buy dips using EMA to build skills and learn your way around the trading software. Simple strategies can be used to help improve cost basis. Anything else is gambling until you have read a few books on fundamentals, economics, and FIRE type goals. If you are looking for passive income, that's a more advanced topic due to the exponential increase in risk.
No. However, I’ve leaned on this year towards income index funds, (a little riskier) which have done well—SPYI, JEPQ, QQQI. Algos (modern) are finally making these types of funds much more safe and profitable (my opinion). Always do your own research but I like these.
That’s actually the idea behind all these income ETFs , like SPYI QQQI and so on , they pick an asset and generate income on it to return to shareholders, if their inflows grow they will enjoy their expense ratio.
Im mainly SMH and some QQQI while reinvesting dividends. I think the AI narrative will continue into 2026 and remain bullish on technology and semiconductor focused stocks.
it is a resky way to make money. If you pay close attention to your portfolio it can work. But most people don't want to focus that much time on it. In the end it is just a way to make money. There are funds that use covered calls (a type of option) on the S&P500 and pay a dividend. SpYI is one and it has a yearly yield of 11%with monthly payouts. QQQI cells covered calls on the Nasdaq 100 index (QQQ). It has a yield of 13%. So 100K in QQQI will generate 1K of income a month. Covered calls cap the growth of the index by converting growth into dividends. If you don't want to use 0ptions there are many dividned funds with good yields. ARDC, EMO, and PBDC all have a yield of 9% PFFa and CLOZ have a yield of 8%. Buy inviting in these and some covered call funds I now have a monthly income of 5K a month from simply holding the stock of these funds. I don't closely monitor them. I treat them just like growth index [funds.Buy](http://funds.Buy),hold , ignore.