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I have my “cash” in SGOV and SCYB. As rates drop, will move more out of SGOV and into SCYB.
https://totalrealreturns.com/n/SCYB,SPY?start=2025-01-01
Holy shit if I full port SCYB I can get around 8k a month for sitting on my ass
Depending on your broker, SCYB is a Schwab high yield bond etf that pays out a monthly dividend currently at about 7.02%. It's generally pretty stable while still able to offer decent returns.
Is the gain on this purely dividends and low likelihood of value reduction? Quick look at SCYB shows a yield of 7% which isn't too shabby
\>=10% in Bonds/Fixed income? I like BIT and SCYB.
Should I move my big cash stash into bonds? SCYB for a while maybe? Or I’m I fucked if I don’t get it into VT promptly so inflation and devaluation don’t eat my savings?
If you like bond ETFs wait until you find out about this little goblin they call SCYB.
I am really interested in your post, but also a little confused on the details. If you wouldn't mind adding some clarification. >QQQI 13% Yield, ARDC 12%, SPAYI 11%, EIC 11%, PBDC 9%, UTF 7%, SCYB 7%, UTG 6.3%, PFFD 6% FAGIX 5%. * The above is only 50% of your portfolio, and the other 50% is in growth ETF not part of the list above? * Most important question: The 5K in monthly income you receive is based on what dollar amount invested in the above portfolio? * Those numbers add up to 87%. Where is the other 13%?
The solution to this cash reserve problem is not to use cash or growth index funds as a reserve for a market down turn. Instead consider investing your cash and taxa able brokerage holdings into dividend funds. For example if we take your 150K of cash and reinvested that for dividned. Now with 150K we cannot get enough cash to provide 9K a month. but with BTCI 25% yield you could get 3K a month of income Now normally I would recemond QQQI with its 13% yield due to my risk tolerance. BTCI is the maximum yield I would be comfortable with. But with your cash and taxable brokerage invested in BTCI you would bet very close to 9K a month. If you just use the cash in BTCI and reinvested all the money back into BTCI you will have 300K in BTCI and would have an income of 6K a month. If you don't need the money reinvest it in other funds to reduce single fund risk. or you could use the money to pay off a home loan or any debt you have. Reducing your living expenses. The key things to remember about dividneds is that the money is from the companies profits. And ever in 2008 and the dot. crash most companes were still profitable and still payed their dividends. I retired at 55 and I invested in QQQI 13% Yield, ARDC 12%, SPAYI 11%, EIC 11%, PBDC 9%, UTF 7%, SCYB 7%, UTG 6.3%, PFFD 6% FAGIX 5%. A mix high yield and lowe less risky yields And I still have 50% of my portfolio in growth index funds. My living expenses are about 4K and I currently get 5k from dividends so 80% of my income covers my living expenses with the remaining 20% being reinvested for more income. Now if there is a correction in the market most of my dividend income will continue. But if not I can sells some growth for additional income. A good book to read is the income factory. And armchair income on you tube invests the same way but does good reviews of funds that can be used for income.
right now you have two choices, open a a roth or a taxable account. I don't know if you have access to a 401K. I am assuming right now you don't. with 800 a month you and the roth depoist limit of 7000 you will have enough to open a roth and taxable account. Max out your roth every year. Most just invest in growth index funds Like S&P500 index funds. but with he deposit limit in 20 yours you would longly have about 500K available for retirment and it would not generate any meaningful income. In my opinion The best Roth investment is a high yield dividend fund like BTCI 25% yield. In 20 years you will have about 3.9 million in the acount producing 900K of dividned income a year. Yes there are some risks with a yield at 25% but it is the highest reasonable safe yield I know of. Realistically in 10 years i would start diversifying your investments in the roth. I am currently investing in QQQI 13% yield, ARDC 12%, SPYI 11%, EIC 11%, PBDC 9%, UTF 7%, SCYB 7%, UTG 6.3%, PFFD 6%. All would would make good additions to your roth when you start diversifying away from BTCI. And all are good choices for a taxable account. Once you reach the 7000 limit in the roth open a taxable account and start investing for dividends. The purpose of the taxable account is to give you a backup source of income. having a lot of dividend income is great backup in case your are unemployed or cannot work for medical reasons. I am following an investment stratagy similar to the book The Income Factory. Armchair income on youtube also follows this stratagy. Both list the funds they use or have used and that that is 100 in total. Armchair income also does detailed reviews of his investment choices. Which give you a good look at why he picks the funds he insists in.
your could sell it off slowly and reinvest the funds for dividends. Dependinding on the yield the reinvestment you could get yearly cash income generation of 50k up to about 100K of income from your investments. Cash generated in the 401K will have to stay in the 401K until you reach age 60. But you can reinvest this cash to grow your earnings. IF the stock is in a taxable acount you could replace a immergeny fund with a passive income fund. I would read the book the income factory. It is about investing for dividend income. and list 68m funds the author has used plus several example portfolios. There ia also Armchair income on youtube. he list 38 funds has has in his dividend portfolio. and does detailed reviews of some of them and other funds that may be of interest. He also interviews fund managers and did interview the author of The Income Factory. That should give you enough ideas to on how to invest the money. I am currently using QQQI 13%, ARDC 12%, SPYI 11%, EIC 10%, PBDC 9%, UTF 7%, SCYB 7%, UTG 6.3%, PFFD 6%. 5
Most economist are expecting higher inflation due to the tariffs and with growing world economic instability I would now focus more in on passive income investments. Such as these dividend ETFs: QQQI 13% yield, ARDC 12%, SPYI 11%, EIC 10%, PBDC 9%, UTG / UTF / SCYB all with7% yield, A.nd PFF 6%. These funds in a roth or 401K will compensate for the potential lower earning of index fund so your retriemtn account will do better than one without dividends. In a taxable account then income would help protect your from unemployment.
Target date funds gradually sift their investments from mostly growth to income over time. So when you retire you have enough income to cover living expenses with enough growth so that you can maintain that income over time. Ideally you want more income than you need in retirement with enough growth to insure you never run out of money. Target date funds as a result of their investment stratagy are actively managed. Most growth index funds are passively managed. Meaning more people are needed to select the income investments and trim investments that don't work out. More people means more expenses. 0.75 is actually normal for actively managed funds. while 0.3 or less is about normal for passively managed growth index funds. But if you want you could do it yours with say 50% growth index funds with the remainder invested for income from dividend funds. Many focus on bonds but the yield is often too low for that to work well. Bonds barely keep up with inflation. But excluding government bonds you can get much higher yields. 9%, UTF 7%, UTG 7%, SCYB 7%, PFFD 6%. And I do have FAGIX a bond dung that earns 5%. But the bulk of my earnings comes from yields greater than 6% With an average yield slower to 9%. My current income is about 5K a month.
This is why I switched from growth index fund to dividend ETF and CEF fund. I am currently invited in QQQi 113% yield, ARDC 12%, SPYI 11%, EIC, 10%, PBDC 9%, SCYB 7% UTF 7%, UTG7%, PFFD 6%. Overall these funds produce 5K a month of income. Most goes to living expenses including healthcare I retired at 55). But 1K a month is reinvested which will help minimize inflation. When the dividends come in they go straight into a money market. fund. So I always have cash on hand. But I plan on keep a sizable amount in growth index for emergency needs, Unexpected large bills, and if needed I can harvest some growth and use that to increase my income as an inflation adjustment. The funds can also be used to replace any fund if it starts having issues.
Personally I find I like cash dividends for income. I have minimal ammount. in government bonds because the yields are so low. Right now some my favorite investments are QQQI 13%, ARDC 12%, SPYI 11%, EIC 10%, PBDC 9% RLTY 8%, UTF 7%, UTG 7%, SCYB 7%. PFFD 6%. I am getting about 5K of income a month from these sources.
I would not useChat AI for invesment advise. i would rather read the book The Income Factory. And youtube ArmChair income is an excellent resource. I am investing in these fund with the following yields; QQQI13% yield, ARDC 12% , SpYI 11%, EIC 10%, PBDC 9%, RLTY 8%, SCYB 7%, UTF 7%, UTG 7%, PFFD6% That work out to an average yeild of about 9%.
Most investors seek investments that earn around 10% to maximize ether growth of there protfolio Gold right now can be sold at a decent price but most of the time it isn't worth a lot and it doesn't pay a dividend. In may case I invest in dividend fund which earn me about 5K a month of income. 80% covers all of my living expenses. The rest is reinvested to grow my income Hopefully enough to keep up with inflation.I am invested in QQQI 13% yield, ARDC 12%, SPYI 11%, EIC 10%, PBDC 9%, RLTY 8% SCYB / UTF, UTG 7%, PFFD 6%
I would not expect your taxes to be zero but I don't know anything about taxes in puerto Rico. After you cover any taxes you will need to invest it. I would look at dividend investing. Over the last few years I started using growth I had to build a dividned portfolio. I retired earlier than expected and now I have 5K a month of dividend income. I have money invested in these funds PFFD 6% yield, UTG / UTF / SCYB 7%yield, PBDC 9%, EIC 10%, SPYI 11%, ARDC 12%, QQQI 13%.
I would open a taxable brokerage account. and move your mo money into it. put the money into into a money market fund. Then slowly move money into QQQI which has a dividned yield of 13%. Do not automatically reinvests the dividneds. The dividend payments should go directly into your money market fund.Eventually you will have a cash account that is bing fead by the dividends from QQQI. You could over time graually add other dividned funds. I have PFFD 6% yield, UTG / UTF / SCYB 7%, PBDC 9% EIC 10%, SPYI 11%, ARDC 12%. Any extra cash gets reinvested. Eventually you could build up the account to get enough income to cover all of your living expenses, utility bills, bills, food, clothing, car cost, insurance. and housing.
with your uneven limited income for now I would put put money in QQQI. this is a income fund with a dividend of 13%. IF you build up the money in QQQI to 100K that one fund will generate 10K a year of income that goes directly into your rothand you still can contribute 7000 per year of your taxable income. Once QQQI is at 100K you roth is basically self funded. So it will continue to grow even if you don't have money to depoist into the account. Once you have 100k in the fund you can divert the dividend from QQQI and use it to buy VTI VXUS in the end you want 50% of your portfolio in index funds like V%I VXUS. with the other 50% in dividend funds. That way the dividend funds can supply you with income while the index funds can be used for unexpected emergency cash needs, or periodically harvest the growth in the invest funds and use the money to adjust your dividned income. For the dividend portion of my retirment I am using funds like PFF 6%,UTG 7%, SCYB 7%, PBDC9%, EIC 10% ARDC 12%, SPYI 11% and QQQI. you basically want enough dividend income to cover all of your living expenses with some extra cash left over every month. And reinvest any extra money.
You need to invest for pasive income. For example. you could open a taxable brokerage account and inis a dividned fund. QQQI is nice one. it has 13% yield and takes steps to reduce the taxes you pay.. IF you put the roth depoist limit in this account yearly ns ewincwar raw siciswnsa,. IN 10 years you will have $100,000 in the fund and the yearly earnings willl be 13,000 or about 1K month. IN about 20 years you will have 600K with a yearly income 75K a year6 K a month of in come. This is a simple example of what is possible. But you don't generally want just one fund generating income. IF one goes bad you could loose a lot of money and time. If you spread your money equally over 10 funds then the impact of one bad investment is only 10% of your income. It is not unusual for people to have 20 funds in a portfolio. I didn't realize this until I was in my 50s. But I have did built up investments in index funds and other growth stocks in a taxable account over the years. So I started converting that to dividned investments. suing ufund like PFFD 6% yield, UTF / UTG, SCYB 7%, PBDC 9% EIC 10%, SPYI 11%, ARDC 12%, QQQI 13% I now have 5K of income a month. 4K Covers my living expenses including health insurance while 1K a month is reinvested for inflation protection. It still will be several years before I can use my well funded retirment accounts. And I still have more assets still available in my taxable account to fix any issues with what I have and increase my income. I wish I had done this at your age! Now this extra income does does come with additional tax. So I make quarterly estimated tax payments to the IRS. But that issues comes with the benefit that I have retired early and don't have to work. Some good resource es to guid you on this is the book "The Income fFactory. And ARmChair income on your tube. Both invest this way and the book list 68 funds the author has used, and Armchair income list 38 funds. Armshair income also does detailed review of some of the funds he uses. Don't ever withdrawal money from your regiment funds and pay the penalty. It is notworkth it. But you can pause investing new money into them and use that money to build your passive inc ome. Now many people will say dividends are very risky or not worth it. But most of these comments are from people that have never invested for dividends. My dividend portfolio has had no issues other than the taxe. I am also reworking my Roth for dividend income that will not be taxed when I can use it. And moving money from my 401K into the Roth.
I am not relying on government bonds or HYSA for pasive income. Instead I am relying on dividends from funds like PFFS 6%, UTG / SCYB all with a yields of 7%, pbdc 9%, EIC 11%SPYI 11%, ARDC 12%/ QQQI 13%. All with yields higher than government bonds or HYSA. So I need a lot less money to get the passive income I need to cover all of my living expense in retirement.
you could invest in in funds like PFF 6% yieldUTG 6.7%, SCYB 7%, PBDC 9%, EIC 10%,SPYI 11%, ARDC 12%, QQQI 13% All of tese funds produce dividends. Cash payments to you. Dsividens ar a form of profit chasing mnayestablied companes do. These fund invest in these companies or bond issued by theese compnaies or use trading activity to improve the yield. If you invest in these thees funds in a taxable account you cinould build up enough income over time to cover all of your monthly bills. higher income is also possible. You could also do this in a roth for retirement. I am currently retired and make 5,000 a month from dividends. This stratagy is outlined in the book The Income Factory. Armature chair income on you also invest in this way. And each lists funds they have used. The only problem with this is in come contras tax or don't tax dividend and Other my or may not tax capital gains. If you plan to move to another country you need to know the tax laws for that country.
I invest in dividend stocks and have been buying PFFD 6% yield, UTG 6.7%, UTF 7%, SCYB 7%, PBDC 9%. SPYI 11%, ARDC 12%, QQQI 13%
The problem iwht bogleheads investing is you have to liquidate stock to generate income. Which means you could eventually run out of money. The solution to the problem that preserves captial is outlined in the Book The income factory. And Armchair income on youtube also discusses this. There are funds and company stocks that pay out a portion of their profits to you quarterly or monthly as cash to you. Say you invested 100K in a fund with 10% dividend yield of 10% and it pays monthly. Every month you will,$833. Dollars a month. while you are working you invest the money back into the fund. The fund will grow. in 7 years the fund will have about 200K deposited and will pay a dividend of 1,666 every moth. Over 30 years you should also have about 1 million in ht account producing about 10K a month of incomce. If you invest for dividends in addition to your growth index funds you should have substantial income when you retire. So you live off of the dividned income . IF you don't spend all of the income you reinvest the excess money. Hopefully you can reinvest enough to keep up with inflation. IF you have a bit unexpected expense in retirement you can sell the growth funds to generate the additionally income needed. Or you could periodically harvest 4% of the growth and reinvest the money for more dividend income to adjust for inflation. I retired and now get 5K a monty of income from dividends 4K covers my living expenses. and 1K a moat is reinvested. I also have growth funds I can tap if needed. It is working out very well. Some of the funds I am investing in for income are FAGIX 5% yield, PFFD 6%, UTG 6.7%, UTF 7%, SCYB7%, PBDC 9%, SPYI 11%, ARDC 12%, QQQI 13%.
50% FFNOX 10% SCYB 10% VGSH And 30% whatever degenerate bad decision is being hyped here.
I like dividends. I would put it in QQQI. it has a yield of 13% yield and would produce about 1000 in cash a month. If you reinvested all of the dividend the funds would double in size in about 5 year. If you don't reinvest the dividend you can buy other funds. In addition to the yield the fund also takes steps to reduce the tax you payoff the dividend. So in a taxable account it can be an alternative source of income I am retired with an income of 5K a month from dividends. Enough to cover all or my living expenses. I have the following funds UTG 6.7% yield, PFFD 6% UTF 7%, SCYB 7%, PBDC 9%, SPYI 11%, QQQI 13%, ARDC 12%.
For a good distribution yield you want a company that makes more in profit than it pays out as a diviedend. A bad distribution yield is one that pays out more than it makes. Or one that uses a loan to pay the dividend. Also don't use the yield as guid to a good or bad dividned stock. Many do this and they generally assume that if the yield is higher than the government b and rate it is unsafe. And yet you have compass OXLC that have payed a dividend it dividned for 14 years at a yield of 23% AR% And it is not hard to find companes that are struggling financially and pay a yield of 1% Basically you hav not look at the companies earning report and look at there profit and compare that to there expenses. The yield number honest tall you anythng about the stability of the company. Many buy individual stock but I like to buy ETFs that pay a dividend such as UTG6.7% yield, UTF7%, SCYB 7%, pFFA 8%, PBDC 9%, SPYI 11%, QQQI 13% ARDC 12%. I have a small ammount in individual stocks. My current income is about 60K a year. I don't automatically reinvest my dividneds. They go into a Cash account. 4K a month goes to living expenses. Mush of the rest in automatically spit up and use to buy a little bit of each fund I own. Generally I only sell shares when I don't wan the fund or stock any more.But am also moving funds from a 401k into a roth so I do pay capital gains on that. Since retiring I estimate my tax based on 401K roth convrsion ammount, may expected income, andanthing else I plan to sell. Make quarterly payments to the IRS and then in April I either get a refund or pay a little pit more.
Everyone assumes saving for retirment is the only reason to invest. A 22 year old may be more interest ed on a secure source of income she wouldn't loose if she loses a job bra has to take care of a child alone. After the maxing out a Roth I would recommend investing for passive income. in regular taxable brokerage account. Strt investing in a high yield dividned fund. My recommendation is QQQI . This fund has a 13% yield so 100K invested in this account will produce 13K of income. With dividends set to automatic reinvestment build this up. As long as she is working keep adding to the account. Keep building this up until the dividend is about 4K a year. At this point if she looses her job she can stop reinvesting the dividends and live off of the income. At this point she can stop automatic reinvestment of the dividend and divert the income for other uses. * Build up a cash reserve. * Invest in a low dividned index [fund.You](http://fund.You) same more than a million dollars this way and pay very little in taxes due to the very low dividend these funds have. * Use the cash to contribute to a roth acount. * Continue to increase the dividend income so the can retire early. * Deversify the sources of dividned income by adding funds like UTG 6.7% yield. UTF 7%. SCYB 7%, PFFA 8%, PBDC 9% ARDC 12%. Now taxes is an issue that must be addressed. QQQI not only produces income but it also taks extra steps to reduce the tax you pay in the dividend income. For the first few years you can just cover the expenses from work income because The dividend income will be small. Or you could set some of the dividends asside to as cash and then in april you will have enough to cover the additional tax. You could also estimate your tax and make quarterly payments directly to the IRS like you employer does when they give you a pay check. You might want to read the book The Income Factory. And look at the youtube channel Armchair Income. Both discuss this investment style
The issue with SCYB isn't so much that it's a high-yield fund. It's more that it's constant duration and the duration exceeds your holding period. If you want to hold something in the 2-4 year duration with higher credit risk - you may want to look at a target maturity high yield bond fund instead. You are also choosing 2 polar sides of fixed income with an ultra-short duration treasury fund like SGOV. You may want to mix in investment grade target maturity funds instead and just build a ladder that matures in 2-4 years.
Rate my portfolio, 30 years old with a 2-4 year time horizon because I’ll be buying a house. SGOV, SCYB, VT, 70/20/10. I’m thinking about ditching the VT and buying more SCYB, yes I understand that junk bonds are more risky.
many people that invest for dividned s find they are less likely to sell because the income keeps coming in. Ehilr the young are often willing to take risks with investing those nearing retirment find they are no longer willing to take the risk. So you need to get in but don't imvet like you did in the past. Focus on good dividend funds like PFFA8% yield. pbde 9% SPYI 11%, SCYB 7% and ARDC 12%. I spent most of my life basically following wheat we now call the boglehead style of investing. Never gabe dividends a thought. until one of my minor investments started paying a dividend. That opened by eyes and I started investing for dividends. iI now find dividend much more interesting than I didd and I am not as worried about market crashes.
It’s tough to decide. Part of me wants to let it ride for then chance of millions, the other says cash the fuck out and sit in SCYB and collect a cool 4k monthly mostly risk free forever
There are two basic options depending on it you want to avoid taxes or not. INvest în an index fund with a low yield. About 1% or less. (VOO, VTI are popular). The only tax you pay with these funds is the dividned you receive yearly. A 1% dividend is trivial and works out to a rounding error for many people. You could save a million in assets this way and it would only generate 13K of insomnia that would be taxesd. compared to your work income this is a trivial amount of tax. These investment also generate impressive capital gains averaging about 11% per year. But in some years it can be a lot lower or a lot higher. As long as you don't sell the asset there is no capital gains taxes due. Invest in funds with a higher yield. You will pay a tax on the yield every year but it will only be a small portion of the income you get from the investment. But that said not all dividends are taxed at teh same rate depending on how the money was earned by the fund.. My favorite right now are SPYI 11% yields and QQQI 13%. This dividend is very close to captial gains of option 1 but in dividends. High dividneds often mean lower captial gains. >Honestly I’d like some higher potential returns and would like to pick some stocks individually for some fun. Based on that statement I sould expect option 2 is your preference. Additionally you didn't mention an emergency fund. but your 100K in HYS account could be that. But the problem with an all cash savings account is the once the money runs out your emergency fund is dead. A better emergency fund is a high dividned fund. As long as you don't sell the shares of the fund the dividends will keep coming in. So I would recommend slowly start building funds in QQQI and reinvest all dividneds. Keep building until the dividneds it generates is enough to cover all of your living expenses. That way when your cash runs out you could simply stop reinvesting the dividends to collect the cash. QQQI pays out a 1/13th of the yearly dividned each month. So you only need to wait a month for cash to start building in the account. Once you have enough dividned income to cover living expenses you can use the money to start other investments. Some will be like option 1 would be low dividend growth funds you can use for long term savings. Or you can deversify your dividned income with other dividned funds like PFF 6% yield, SCYB 7%, PBDC 9%, ARDC 12 %. There are many options between the 5 to 20% yield range. Look at ArmChair income on YouTube. He has a similar investing style and lists all the funds he uses.
government bonds, CD, and money market funds all have low yields. given the limited funds most people have in there retiement account it would be best to get the highest safe yield you can get. Preferably you want enough income from your investments to cover all of your living expenses. With enough passive income you would not be required to liquidate your saving using the 4% rule and your retirment fund will last longer. If you invest for dividends you can easily get a higher yield with little to no additional risk. If you invest your money in funds like FAGIX 5%yeild, PFF 6%, SCYB 7%, PBDC 9%, SPYI 11%, ARDC 12% you can easily get a higher yield. I you put an equal ammount of money in each fund I listed you could get combined yield of 8%. For every 100K invest you would get 8K a year of income. I have been doing this for the last few years and currently have a projected income of 60K a year. Enough to cover al of my living expense. And the thing that yould surmise a lot of people is that all of the bad news hitting the market this year has not had any impact on my income. Yes the value of my portfolio is down a lot but the income is continuing to come in. My income has not dropped. Investing for dividends significantly reduces my concerns about the lower share prices. I am now paying more attention to my income. This invetemtn strategy is listed in the book the Income Factory. And the book list 68 funds the author has used for his personal account and accounts he has managed forfriends. The you tube channel Armchair investor also does this and he post his list and discusses how choses the funds he he invests in for his personal retirment acount. These have a lot of information you can use to develop your own regiment portfolio.
PFF invest in preferred shares which typically pay a higher yield. They have been in exstiance since before I was born( I am 53) Very stable. SCYB invest in high yield corporate bonds. There is a risk that the company issuing the bond default on the bond. But the average default rate is 4%. per year. So iit a fund manager buys bonds in 100 different companies the yield may fluctuate +/-2% per years. So despite the term "junk bonds" they have been a common investment for decades. PBDC were created by a law passed 40 years ago. These companes are required to pay out 90% of the earning So the yield is always high. Yet these companies often pay rather stable high yields. PBDC invests in the best of these copies. ARDC is a closed end fund which helps explain its high yield CEF unlike ETF have fixed number of shares, while ETFs issue new shares as the fund grows. ARDChas been paying a dividned for about 12 years. SPYI and QQQI are covered call funds while covered call funds are new covered calls have been in use for about 40years. Covered call funds have yields from about 5% unto (are you stilling down?) 100%. They yield can go up or down with the market. SPYI and QQQI are the ones I like the best. You have to look for high yield funds. If you don't look for them you won't see them. And there are a lot of people out there that just automatically list anything with a yield higher than government bonds as risky and just ignore them. If you go to R/ dividned you will see them more often than you do here. A good book is The Income Factory. The author lists about68 CEF that can be used for dividned investing. The Armchair income. Youtubechannel also focusses on this investment strategy. In my opinion the irskiest funds are those that pay very high yields (100%)or those that don't pay a dividend. The least risky investments are somewhere between these two extremes. To make a fund you need a lot of money to get it started. The means to start a fund you need a loan. Bank and other institutions will not loan money it they don't believe the fund will not last. give all the fund out there. I would say to stable yield range is about 1% to 20%.
HYT is yielding 9.79% and SCYB 7.18%.
The company has been in business for 35years and the dividend are consistent. So what is the risk verses teh risk of an index fund? If we are going to be able to answer your question we should know what you think the risks are. Most of us don't know the company as well as you do. Are you worried the dividend will be cut or your rent will go up while the dividend stays the same? or is it something else? But the one thing I can say is that is you have 600K to invest and your rent is $22,680 a month. You could earn a lot more than 22K a year. The ETF PFF has a yield of 6%, SCYB 7%,PBDC 9% or SPYI 11%. The lowest yield on this list will earn you 36K a year. The highest would produce 66K. Or if you invested an equal ammount in each fund Both of these would generate enough to cover the rent and the additional tax you have to pay for the increased income. With some left over to cover other cost such as your electric bill. And this income could last for the rest of your life. You could also use invest an and equal amount in each and get about 50K a year. And having multiple funds reduces the risk. What is the risk of this option?
Right now most of my pasive income comes from some individual stocks but most comes from ETF PFF 6%yield, SCYB 7%, PBDC 9%, and SPYI 11%. These are all in a taxable account. I won't be able to access my retirment accounts for about 5 years. There is another type of fund called Closed End Fund (CEF) In my Roth I just added my first CEF, ARDC 12% yield. ARDC invests in Collateral loan obligations. and other types of loan obligations. CEF are similar to ETF except in ETF the number of shares grows as more people invest in the fund. In CEFs the number of shares are fixed so that can cause teh yeild per star to be higher than many ETFs. .
I think what you are looking for is something like SCYB, or your broker's comparable high yield bond etf that has low expenses.
but there are two ways for many to grow: Price appreciation. (Capital gains) Dividend income. As the last week has shown is that price pareciation can vanish quickly and it may take years for that to recover. in 2000 a bear market started and it tool 14 year for the S&P500 to recover all of its losses. Most people today are invested in index funds which mainly growth through price appreciation. Indes funds do pay a dividend but it is small about 1% and insignificant to most investors. The other mechanism is dividned income. May companes return a portion of their profit to shareholders by a cash payment known as a dividend. Bond pay interest. If you reinvest he dividend or interest from your investments are reinvest that into the asset that gene3rated it you portfolio will grow. Dividend payments are determine by last years profits. So current events mot of the time will no effect the dividned Payment. Current events may have an effect of dividend payments in a year or two. Especially if a company is seeing lower profits. Historically during bear markets the mean average dividned reduction is about 2% Not tbe nearly 20% capital gain loss we have seen in the last week. What I have been doing for some for about 5 years is creating a passive income portfolio by investing for dividneds I now have 4K a month of dividend income. The have been no dividend cuts since I reached 4 K a month.I used mainly assets that payed a dividned of 5% or higher. To my surprise I found quite a few stable yield up to about 10'5 or a little higher. Everything this year has has not bothered me because I have stable income. Some of the funds That have that have worked well are FAGIX 5% yield, PFF 6%, PBDC 9%, SCYB 7% and SPYI !!%. The higher the yield the less money you need to invest to get the desired income. To get eh same income from a S&P500 index fund with a yield of 1.3% But you would need need to invest 4 to 5 times more money that you would need with a higher yield fund.
Proffered stock EFT PFFD and PFF 6%yield. PFFA 9%, high yield corporate bond SCYB 7%
A bond etf. SCYB pays 7%. Just relax. Collect dividends. Buy stocks when chaos abates. Watch the VIX.
I’d say you might be able to get better yield than SCHD, try a high yield bond etf like USHY, SCYB, or FALN
You should have a minimum of one tax deferred retirement account and a least one passive income account. Retirement account ts are great but it shard to access the money until year reach age 60. It won't help you if you loose your job or have to take an extended period of time off to recover from an injury. Many recumbent a 6 month emergency fund. Not mucbbhelp if your are unemployed for more than a year. In comparison a passive income fund invests in companies that pay a dividned or in corporate or government bands. Basically instead of inviting fro growth you invest for income. Right now I am not working and have an income of 4000 a month. Enough money to cover all of my living expense. And I don't have to sell any stock to get the money. And the income will last indefinitely. You can use ETF like SPYI (11% yield), BIZD 10% yield, PFF 6%, SCYB 7% , SCHY 4.5%, and SCHD 3.6%. And there are many others. Your passive income account must be in a taxable brokerage account with no restrictions on the access to the funds. So you will have to pay tax on the income. Now many worry about taxers. But the government only taxes a portion of the income. So it you can set the money asside in money market account. And then when you need to pay the tax you have money to pay it. Additionally if you loose your job your only income might be your passive income. The IRS allows you to have an income 47,500 and they won't charge you any tax on it. IF you make a little more than that then you pay a little bit of tax. For my self I have calculated that if I had an income of 100,000 my tax would be about 10,000. Leaving me with 90,000 to spend. You can slowly build it up over time just like you do with Roth or 401K accounts. And reinvest the dividneds to help the account grow. Once you reach your target income level you can reinvest the dividends in index fund like VOO or VTI. Thes pay a minimal dividend so minimal additional tax. SCHG and QQQM are two growth funds withe lowest dividned I have seen at about 0.6%. If you have an unexpected expense that exceeds your passive income you can sell the growth funds to get the additional money. You can save several yours of money in growth fund and have minimal impact on your toes.
Yeah I just told him about BUCK, AGGH, and SCYB. I do have like 30% of my Roth in SVOL actually.
Unless you're like 50, bonds aren't really recommended as they're more for stability, not growth. Though there are a couple High yeild bonds like SCYB, BUCK, and AGGH. VTI does encompass the whole market, but the majority of the market cap is the S&P which takes up most of VTI anyway. They both track the same, and both are equally good things. Some pick one for taxable and the other for Roth. Just keep maxing your Roth every year and you will retire a millionaire.
SCYB yields 7.13%. One year NAV +2.5%. Not bad at all.
Started looking into SCYB specifically for this. Corporate bond ETF with about 6%-7% annual return w/ monthly dividends. They should be churning out bad credit when they need to.
SCHB - Schwab US Broad Market SCHO - Schwab Short Term US Treasury SCYB - Schwab US High Yield Bond VEMY - Virtus Emerging Market Bond DNP - A CEF invested in Utilities, Infrastructure and MLPs
I’ve heard one investor using junk bonds to potentially identify under valued companies; I’d rather do a fund like ANGL, or SPHY, or SCYB instead of something THIS dangerously high
I'm starting to buy SCYB on top of my emergency fund so I don't spend my cash.
SCYB has a higher yield. That's Schwab's corporate junk fund.