SPYI
SHP ETF Trust - NEOS S&P 500 High Income ETF
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Came to say the same thing. Keep earning money working, stack it in safer stuff like VOO, SPY, SPYI, QQQ, QQQI. If you want a little higher risk/reward go for some BTCI but stop straight gambling.
The first think you shoulddo is max out your 401K. to get teh tax protection from your investments. As to savings anything above 6 month ofyour living expenses should be invested But i would not put the money in grwoth index funds. I would invest it in dividend ETF. A dividned ETF invests your money and it sends cash profit charing payments to your brokerage account. Much like a bond fund pays interest into your brokerage. A fund like SPYI has a 11% dividend. meaning if you have 100K invested in SPYI it will pay you $11,000 per year. you can use this cash to keep your saving account full and then Use the money to pay bills or reinvest it. Eventually ou could build up multiple Deviend ETFs and get enough passive income to cover your bills or pay for vacations or health insurance. you might want to look at Armchair income on you tube. He is retired and investing his money in dividned ETFs and CEF fund. He does detailed reviews of the funds he is i invested in.
85k in a HYSA is just wasting money to inflation and more than likely pays a measly 3-3.5% in interest. Might as well put it in SPYI which pays a distribution rate of 12% and is less riskier than VOO. You wont pay taxes with SPYI in a taxable due to the tax efficiency of ROC plus you will get a guaranteed return of 12% a year plus capital appreciation.
SPYI bro. 15% annual yield bro. It’s paid monthly tho bro it’s like a job where you don’t have to work
0.07% difference over 30 years is actually massive. SPYI is the easy pick tbh
If you don’t pay tax until you sell (and have a 3-year exemption), then tax efficiency becomes less critical for accumulation ETFs. That simplifies things. Fund size & liquidity For large, broad UCITS ETFs, I personally look for: –€500m+ AUM as a comfort floor –tight bid/ask spreads –high average daily volume All the ETFs you listed are well above the “closure risk” zone. VWCE is just the largest and most established, which reduces structural risk over decades. Replication method For broad global ETFs, full replication is common and fine. Synthetic replication would be a different discussion, but that’s not the case here. Tracking error You can check this in the annual report or factsheet. Over long horizons, differences between 0.12% and 0.19% TER are usually smaller than behavioral mistakes. If I had to choose purely for simplicity and long-term holding: VWCE or SPYI. VWCE for size and dominance. SPYI for slightly lower TER. Both are rational. The difference won’t decide your retirement. Consistency will.
When you’re buying globally diversified, simple ETFs with similar exposures, the differences you’re looking at (0.12% vs 0.19%) are fairly small. Over decades that *does* shave some return, but not so big that you should pick a worse diversification just for a couple of basis points. So in order of priority: Coverage and diversification, a true global all-cap that includes both developed and meaningful emerging (like China/Taiwan) is usually better for simplicity; Liquidity and tracking quality, tighter spreads and accurate index tracking matter in real markets; TER, lower is better *all else equal*. That makes something like SPYI (low TER, broad coverage) or VWCE/FWIA strong picks for a one-stop global ETF. If you go split (Developed ETF + Taiwan/Asia), that works too but adds complexity and tracking risk.
VOO,SPY,QQQ,SCHD,SPYI,QQQI,IDVO,SGOV,O, and CHPY. 10% in each. Growth with VOO,SPY,QQQ,SCHD and IDVO. Income with some growth with SPYI,QQQI and CHPY(as of now no NAV decay at all.)SGOV bond exposure plus it’s extremely safe and pays monthly. O gives you exposure to real estate. Yes there is some overlap but each one does it a bit differently. Something likes this is my ideal portfolio. If I was still in my 20’s and able to invest.
For a 3-5 year horizon you can do much better than a measly 3.5% distribution rate. Consider putting the 100k in SPYI, QQQI, and IAUI at equal weights. QQQI has a distribution rate of over 14%, SPYI at 11.8% and IAUI at roughly 12%. Set it to DRIP, so every month, the dividends are automatically reinvested and you'll pay no taxes because they're return of capital(ROC). Just keep doing that until you need the money down the road.
In 3-5 years I would invest in SPYI, QQQI, QDTE. mainly covered call funds with a high distribution yield..
What is the long term plan? At what age do you want to retire? What is your expected income from social security and retirement account? About how much are you short each month? Is there anyway to find a cheaper apartment or do a side gig to make the difference? Using these funds while 100% employed is not a long term viable solution. If you absolutely have to, then I will prefer some good dividend etf's instead of CC funds like JEPI. The dividend funds usually increase dividends every year. 45,000 is not a lot of money to generate passive income and if this is short term, you can buy funds like SPYI or QQQI. Long term these will probably will not maintain the purchasing power.
Anyone got any high dividend ETFs to recommend? Looking for something similar to xdte or qdte but better managed. I got GPIX and SPYI but want something else. SPY ain't gonna do shit for a while I see
Why not invest in miniciple bond funds like NAC 7% yield. 100K invested in this fund generates $7000 per year without taxes So 1 million iEMO 9% yield it invest in MLP but converts the tax unfrendly K1 tax forms with the common 1099 tax forms. MLP frequently generate tax free income Last year is was all tax free. And then there are covered call funds like SPYI 11% yields that routinely generate a lot of tax free income.
stand in for schx is SPY. There are also derivative based ETF's such as SPYI. SPY is the gold standard for liquidity. SCHG is a sector specific style ETF and harder to equate to a more liquid ETF, but XLK would be close. XLK is not that liquid, but does have a tradable options market. In the derivatives market there are only about \~200 or so tradeable underlyings. It's a self selecting market based purely on how liquid they trade.
YieldMax is a dogshit scam but yeah I get you. Neos funds have been great checkout QQQI and SPYI too, 13% and 11% yield
If you are looking for advice I was advise staying away from crypto and anything remotely associating with crypto. Not so much due to volatility but the simple fact that it's honestly just a ponzi scheme. I don't want to hear how any think's it isn't, it ticks ALL of the boxes so if it walks like a duck and talks like a duck.... Personally my portfolio is holding steady. It did go down about $100 because I withdrew about $100 instead of reinvesting it. I like QQQY, it's done well for me. I also have been investing is GPIQ and SPYI
SCHD/G, VOO, SGOV, SPYI or SPYT, QQQI, GLD And any individual stock that you think have a good steady grow (required research)
You could be making 34k tax free on 3 mil a month with a 50% 50% on QQQI and SPYI then just gamble with that while the 3 mil is stable in the broader market, but to each his own I guess.
SPY really is just gonna be flat the whole year, time to buy SPYI and be a theta bro lol
Buying PSLV, EPD, ASML and SPYI
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.
Spy hasn't done shit for 4 months, I'm just gonna full port SPYI and get a guaranteed 12% lol
All in on SPYI 2026, spy is just gonna theta all year, might as well get guaranteed 12% yield
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.
So, yes and no. If you live on just dividends and had to pick one, SPYI is a solid choice, but that yield will fall during bear markets. If you go with the 3% withdrawal rate, you’ll probably be fine until a few persistent bear market years. The whole point of bear market years as a silver lining is that you get 2-3 or more years of good low stock prices to buy in at, so that when the bull finally comes back, you make a shitload, take profit on 600k, and put the after tax amount into dividends or more growth and repeat. 1M is only 110k on the SPYI 11% yield. That’s enough to live in Oklahoma, but not California (comfortably).
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.
CDs or ETFs for three children? I am a single dad, one year out of a marriage with a partner who did not value saving money at all. I'm a little late to the game (early 40s) but so far I've got $10,000 in a 401(k) that grew about $3K this year (I have the risk slider at 7 out of 10) with max employer matching and a $1500 emergency fund. With my tax refund coming up, I was wondering if it would be better to set aside $1000 for each of my children (ages 13, 11, and 8) into a CD, or if I should just dump that into ETFs like SPYI. My 13 has a head start, with a portfolio mostly consisting of $400 worth of SPYI, SCHD, and SCHG. Any advice would be appreciated. Thank you.
CDs or ETFs for three children? I am a single dad, one year out of a marriage with a partner who did not value saving money at all. I'm a little late to the game (early 40s) but so far I've got $10,000 in a 401(k) with max employer matching and an emergency fund. With my tax refund coming up, I was wondering if it would be better to set aside $1000 for each of my children (ages 13, 11, and 8) into a CD, or if I should just dump that into ETFs like SPYI. My 13 has a head start, with a portfolio mostly consisting of $400 worth of SPYI, SCHD, and SCHG. Any advice would be appreciated. Thank you.
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.
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.
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
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.
52 here... I just asked in the dividend sub for better balancing ideas with focus in income - specifically, i wanted to reduce my super safe SGOV position and start a SPYI position for decent dividends (of course, in exchange for risk). I executed the plan and in the coming months, i plan to use the SPYI income for monthly bills and increase my Roth 401k contribution (catch up). Just my silly plan :-)
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
> What are you thoughts on investing roughly $5K each into these etfs and just dripping for the next 20-25 years? But why? They will almost certainly underperform their respective index. SPY will beat SPYI, especially over long time frames.
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!
Just buy a dividend ETF like JEPI/Q, SPYI, etc so that even if the market tanks, yours hopefully won't tank as much and you'll still make 8% in dividends
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.
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.
You should not keep income funds in a taxable account. You're just forcing yourself to pay more taxes every year. I believe SPYI is also mostly unqualified dividends.
I’d have a fair amount split 50/50 in QQQI / SPYI
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.
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.
I like how you think. Currently I have positions in QQQi, SPYI and BTCI with estimates at 14k a year. the 250k in MM will yield 10k. So that's 24k. I need to do more research on the risks and the tax implications of each fund.
Just gonna play ETFs man $SPYM for long term calls $SPYI for BTFD moments
There are ETFs that attempt to generate income from options trading. They are run by professionals that do only that, so perhaps that may be a place to start while learning more. Examples are JEPI, JEPQ, XYLD, QYLD, DIVO, SPYI, and more, most own shares of the underlying index funds and sell options on them to generate yields higher than the index provides. Options trading requires time and research to work well, and limits the capital gains on the underlying funds in return for more monthly income. I would also consider just moving more assets to equities if you are 10 years away from retiring. But that depends on your goals and plans.
Just wait for a decent-to-large dip, the buy $SPY/$SPYM/$SPYI LEAPs and never have to work ever again
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.
I would have bought SPYI and just lived off the dividends in Da Nang, Vietnam. At this point, I hope OP can learn to never risk more than 1% of your port for each trade. With a 33% win rate, you'd still be profitable & wouldn't blow out your port in an unsustainable way. But tbh, sometimes trading or gambling isn't for you. Move on to GA & find another side hustle.
SPYI and those other cc funds are less risky than the underlying. Lower beta. Steady income so that you dont need to sell shares during a bear market. Thats the tradeoff for less upside in a pure bull market.
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.
A custodial account in my makes sense to me. You control the acount until you transfer it to your grandson. I would invest in a mix of dividend funds and growth. That way when he get it it will produce some income he can use immendiently if needed. And the growth would be a good long term way to save money with low tax. For growth you could use funds lit VTI and VSUS. For dividneds you could use funds like SPYI 11% yield , PFFA 8% yield, and CLOZ 8% yield. SPYI is a tx efficient fund PFFA is reliable source of coperate dividned income. CLOZ is a very stable fund with an with a really good divined.
I would put it in QQQI the high yield from this fund will generate about 1K of income a month. You can use this income to help cover living expense or used to make deposits into your Roth IRA. Or you could add more money to QQQI to get even more income. I did this and added more funds like SPYI, EIC, ARDC, EMO, PBDC, PFFA, CLOZ, UTG, JAAA. Today I have 5K a month of income from these investments.
My current portfolio, M37. RR - 83% (pre covid buy, slowly reducing) VWRA - 11% (increasing) IAG - 1.5% (hold, small dividend growing) QQQI - 1.3% (drip) SPYI - 1.3% (drip) ABCL - 0.5% (speculative buy, hold) BTCI - 0.4% (drip) KSPI - 0.4% (speculative buy, hold)
I would put that money in SPYI. This fund has a dividend yield 11%. So this would generate $1100 a month you can apply to your mortgage or other bills or use it for your roth depoist. You could also put it in your HYSA to keep it full.
QDTE pays 36%, SPYI pays 12% - both well above 7.7% & 5.5% If your interest is well above 10%, then I'd say go ahead and pay them off now. Me personally, I'd let a combo of high income funds pay it off for me (QDTE, MAGY, GPTY, QQQI, SPYI).
How much does he have? That probably matters as much as how he invested. If he has $500,000 then you could just do an SPYI/SCHD mix and collect $3,000-5,000 a month in dividends and be relatively fine.
If you took a Time Machine to any random day in the last 100 years with a bag of cash, the best thing you could do is buy a house or dump it into the market THAT DAY. If you’re worried about more dips or a sideways 2026, put half in covered call ETFs and you’ll make money no matter what. QQQ/QQQI 50/50 or SPY/SPYI 50/50. I like the Qs a lot more but this sub focuses on S+P for whatever reason
There are a lot of people doing it the easy way, which is to buy into a covered call income ETF like SPYI or JEPI that converts monthly premium into a dividend. Has a similar risk profile to options but with diversification and a professional company managing the specific positions. Doing it yourself means a lot of stress and taking some painful losses, while the CC ETF’s are set and forget. You won’t get full upside and are susceptible to asset devaluation, but that is true to a much greater extent if you try to DIY options as a beginner with limited capital. The theory of allocating a portion of your portfolio to premium generation is exactly what those funds allow. DIY options trading for income is more about entertainment value for a lot of people. They enjoy the stock picking and managing of positions. And you mentioned taxes. Some of the covered call funds are able to offer tax advantaged dividends, so that too makes them more efficient than all the short term gains of DIY options. I used to do a lot with options, and still do a little, but I have started shifting more of that capital to these types of funds. Still riskier than traditional funds, but they offer a monthly cash flow with less volatility if that’s what you are after.
I did that and I am now retired at 55 and living off of my dividneds. Currently at 5K a month of income. Enough to cover my living expenses. I would like 100K in retirment and I estimated my tax for regular dividends with no other income and found my tax owould be 15K or 85K of income after taxes. It will be a few years before I get there. So it is possible to do it with just high tax regular dividends. Qualified dividends have a lower tax. But they are other low tax operations municiable bonds and ROC dividends. ROC means return of capital ( a tax classification) and freaks an out a lot people but A good fund can have ROC dividends by doing tax loss harvesting while earning a profit from your investments. This creates the ROC classification without returning any of your investment. The advantage Of ROC dividends is that you pay no taxes on the dividend. But when the cost basis of your shares reaches zero (which takes years you pay long term captial gains taxes which is the same as qualified dividend. Neos has some ver good covered call funds (see their website for a full list. But two of my favorit are SPYI 11% yield and QQQI 13% yield. You won't find qualified stock or ETF with this yield. And with these yields you can build up passive income faster than you can with qualified dividends of Note some other funds I hare (most are regular dividends) are : EIC 11% yield,, PFLT 11%,EMO 9%, PBDC 9%, ARDC 9%CLO 8%, UTF 7%, UTG 6.3, and JAAA 6%.
https://www.reddit.com/r/dividends/s/YD3PXPt7XL I'd add some layers to the overall strategy and split 90% into all three big firm CCs. GPIX/GPIQ (my favorites), JEPI/JEPQ and as you mentioned SPYI/QQQI. The NEOS funds have the highest yield and supposed best tax efficiency. The JP funds are more defensive in nature and will outperform in flat or slightly negative markets. The Goldman funds have the most capital appreciation while still delivering high yield. At the institutional level, there is the most trust (institutional ownership) in the JP funds, followed by Goldman funds and then very low ownership for NEOS funds. All three utilize similar but different strategies, plus they still have to execute on their strategies and some months, different firms will perform better. With all three you get increased diversification and variance in returns. You also get three pay dates per month. The remaining 10% into DIVO and IDVO, 30/70 split with IDVO being the higher allocation. Similar strategies to the big firm CC funds, but long track records and lower yield with emphasis of capital appreciation over time. Very high institutional ownership (>50%). Additional security in returns/distributions, one more payday per month and added international allocation. Then using the distributions, reinvest some back into each fund and use the rest for w.e. Id personally juice up the amplify funds with my big CC fund's distributions (doing that now). Also check out QDVO. Good luck 👍🏻
If you want income buy income investments like SPYI that pay you monthly distributions. You can also buy stocks like VZ or bonds.
I'd suggest checking out the Armchair income YouTube Channel [https://www.youtube.com/@armchairincomechannel](https://www.youtube.com/@armchairincomechannel) It should help you discover how much you might need to construct an income portfolio. Some popular income investments with $700k : * QQQI $98,000 / year * SPYI $84,000 / year * BTCI $196,000 / year I don't suggest going all-in on anything, but the example here can help give an idea on what some assets can yield.
there are ETF that use options with index fund to generate about 10% yield. NEOS has some of the best ones. QQQI sells covered calls on Nasdaq 100 index and SPYI uses the S&P500 index. QQQI has a 13% yield and SPYI 11% yield. And both funds take advantage of tax loss harvesting to lower the tax on the dividends you recieve. So these funds are actually tax efficient. These funds are actively managed so you don't have to watch the market, or worry about the complexity of that make it intimidating. NOSe also have covered call funds that write calls on crypto (25% yield!) gold, an international fund. Their website is worth checking out. Note many people warn about NAV erosion which is a big problem with covered call funds that aim for very High yields of 30 to 100%. Neos does everything they can to minimize this and other common. problems None of the Neos funds have NAV erosion.
What are you taxes on the HYSA now assuming it has the ammount you want to invest? It isn't likel that much money. For HYSA you are now getting about 4% yield and it is likely dropping. You could open a taxable brokerage account and put your money in a dividend fund like CLOZ you would get 8% yield payed monthly with can be reinvested in the fund or spent. You can make adjustment with your work tax withholding to account for the extra income. if you slowly build up the money in the fund it will eventually produce enough to start covering some of your bills. And eventually it could cover all of your living expense. If you don't like CLOZ you can use QQQI 13% yield, SPYI 11%, EMO 9%, PBDC 9%, PFFA 8%, UTF 7%, JAAA 6%.
Pick 100 things, put 50% in that, then 50% in sector ETFs and income ETFs such as GOOY QQQI SPYI or WPAY,
Buy S&p 500 ETF like VOO, SPY SPYM. Or NASDAQ ETFs like SPLG, QQQM. Or those with divs like QQQI, GPIQ. SPYI. Then before December you know how much gains you have and can guestimate the taxes for gains. Sell equivalent of your losing stocks to offset it. So that your net taxes for your stocks will be zero. Or better yet sell an extra 3000 and you can deduct it from your taxes ( if you are in the US).
You chasing returns and constantly checking your portfolio as a reasult. most growth index funds average about 10% a year. You could rediscover what your dad did. Dividend stocks. Is your dad constant checking the market and stressing about when the buy and sell? Likely the answer is no. For example you could invest in JAAA 6% yield ,UTF 7%, CLOZ 8%,PFFA 8%, without doing daily checks. Also with dividends stocks like these you they alway pay a very stable and predictable dividend. dividend cuts are rare with these funds. And you can boost the dividend to about 10% buy adding some higher higher yield funds PFLT 12% PBDC 9%, EMO 9%SPYI 11%, QQQI 13%. For dividends you buy and hold. With many of the funds I have list they deposit cash monthly into your account. Others deposit quarterly. Also many worry about market crashes with many of the lower yeild funds will continue to pay even when the market is down a lot. I ha30K of dividned income before Covid. The market crashed and 50% of the stock price disappeared quickly. But my dividned chacks came in on schedul and I still got 30K a year. And after covid the shoe price recovered with the market. Today I retired early at 55 and have 5K a month of dividend income from a taxable account that coves all of my living expense In Fact I routinely invest 1K back into the market. You can get this level of income with about 500K invested at a 10% yield. Just invest what you can monthly and reinvest the dividends. It will take time but you will get there. If you want you can start with the higher yielding funds first and then switch to the lower yielding funds. and your can use the dividends from a taxable account to fund your Roth or pay regular monthly bills. day trading and growth investing is like making bets a a football game and watching the gave.. Dividend is like watching plants grow. you wanch and occasional trim.
I’m 67 and recently retired in Texas. 30+years in public education. I’m looking for passive income through dividends. I’m currently looking for a new job so I can aggressively add to my portfolio and pay off my house. Right now I’m invested in KO, PG, MO, and KMI for growth and ETFs O, SCHD, JEPI, SPYI, ULTY, and QYLD. I literally just started in September and have gotten almost $40 in dividends to reinvest so far. I have a long way to go but I hope I’m on the right path. Any suggestions, critiques, comments, or anything else is welcomed!
I may have to check some of those out. I just started a portfolio for dividends because I want to be prepared to replace social security if needed. I have SCHD; SPYI; JEPI; O; ULTY; plus KO, MO, PG for growth. Only have a few thousand in since September but so far I’ve reinvested around $40 lol. So I guess off to a good start.
Wait cuz I still got 4 months on these $QQQI & $SPYI calls 🤑🤑🤑
The margins on having a rental property don't even make sense. If I was to buy a 500k condo here, I'd maybe get 3100 or 3300 a month for it. I'm better off putting that into SPYI or VOO.
I use a combination. So while I know I should have a bigger retirement savings. I am ok for a month or so, but I use FEPI which is in the Fang index and a combination of other high yield funds YMAG, QQQI, SPYI, DJIA, RYLG and some other ones for international, O&G pipelines, Defense, and REIT. But I prefer to have the dividends just deposit in my Robinhood account so I can gain interest on the balance and then when dips occur I load up on what ever I feel is appropriate. Then as a benefit the dividends paid also can be used in an emergency like now at the moment where my wife is out of work and unemployment is being difficult. So I can tap into the dividends paid when needed, gain interest on cash payments from said dividends when I don’t feel like it is quite right to buy, then load up in volume on dips. It has really helped keep my cost basis and overall return really in check and solid even on some riskier high yield plays. My plan is to then never sell any of the stocks and live fully off the dividends in a few years once I stabilize the holdings a bit for risk. But why like this is I invested heavily in FEPI, and YMAG first which has the highest payout and they basically keep my portfolio growing and expanding with out a ton of extra investment from my normal living expenses. I mean do your research and see what works for you. I know I eat a bit due to races from this strategy but I am ok with it and have a month of dividends each year pay that bill. But so far it has worked well to provide emergency funds and also be building to my retirement.
Yeah. Covered call ETFs suck. You can look at various periods of the underlying ETF vs. the corresponding covered call ETF (eg. SPY VS SPYI) and look at the performance with dividends reinvested.
Ok but what about 66% in SPYI
I don't think it's necessarily the covered call strategy that is broken, but many of those ETFs definitely are. In general selling covered calls will limit your upside in a bull market and reduce your downside in a bear market with overall reduced volatility. Mostly useful if you want income and are willing to sacrifice some returns. You can tell some funds are poorly executed. XYLD uses an S&P500 CC strategy as does SPYI, yet SPYI has 10% higher returns YTD. It also matters how the fund manages a shock like what happened in April. If they again sell short-term near the money calls before a sharp recovery you'd lose substantial gains. Better managers will just go fully long the asset in those cases or only sell calls on a portion of the portfolio.
I don't think it's necessarily the covered call strategy that is broken, but many of those ETFs definitely are. In general selling covered calls will limit your upside in a bull market and reduce your downside in a bear market with overall reduced volatility. Mostly useful if you want income and are willing to sacrifice some returns. You can tell some funds are poorly executed. XYLD uses an S&P500 CC strategy as does SPYI, yet SPYI has 10% higher returns YTD. It also matters how the fund manages a shock like what happened in April. If they again sell short-term near the money calls before a sharp recovery you'd lose substantial gains. Better managers will just go fully long the asset in those cases or only sell calls on a portion of the portfolio.
Savings- 6 months emergency in HYSA, rest in money market, buy some TBILLS or CDs and create a ladder.(if you have state tax TBILLs can be a better optiony, as they are not subject to state taxes. You can also just use SGOV or VBIL ETF for TBILLS or buy CDs through your bank.) Retirement- max out ROTH IRA, contribute to 401k and HSA (you can invest excess $$$ HSA after you've hit your cap.) Visit r/bogleheads for tried and true ETF's Personal Brokerage- create a dividend portfolio. I use QQQI and SPYI ETFS currently. It pays for my monthly spending. I also have a little gold just to hedge and put spare change towards BTC. And if i get excited about a up and company company ill bet on that if I have extra cash to toss around. DRIP- Enable reinvestment for your Retirement and savings positions!!! Set it and forget it. Also use DRIP methodology until you get your dividend portfolio where you would like it to be. LIVE BELOW YOUR MEANS and budget EVERYTHING (including tine) ! - No matter what stay humble and live far below your means. Don't pay above 25 percent of your income for rent, keep your grocery budget reasonable. Instead of eating out shitty every week go to one nice restaurant a month etc.. No one knows what tommorow holds. Dont piss away your hard work buy making your day to day bills eat up your whole paycheck. All it takes is a lost job and now you have lost everything.
Have a look into parking some of that MM cash into SPYI.
OP is asking about selling short term covered calls against SPY presumably for income. SPYI is more tax efficient than that assuming he is doing so in a taxable account. I'm with you though and do not own SPYI myself.
[That's massively worse than just buying SPY though.](https://totalrealreturns.com/s/SPY,SPYI) Even worse when you account for the tax drag.
May I introduce you to SPYI which is likely more tax efficient and requires less management/oversight.
Do ETFs less worries, more diversification. Depending on income needs there are much better choices then SCHD for income. SPYI was a good start
SPYI, QQQI or BTCI if you can stomach more risk.
The traditional advice for retirement accounts is to invest in growth index funds like S&P500 (500 companies) or a total market fund like VTI with thousands of companies. These funds tape into the average growth of hundreds of companes. FBTC basically taps into the growth on one thing bitcoin. Bitcoin is fare riskier than growth index funds because it is not diversified. Yes it has been consistently going up. But eventually anything in the market will go down. When at nd how much no one knows. For people that are retired they common adivce is to convert your growth funds to Bond funds for income. Others use dividend income. These assets generate a continous stream of income without selling shares. Many have a mix of growth index funds, bonds, and dividend funds. For taxable accounts many use bonds or money market funds or dividends for income in addition to work income. And often growth index funds are included. I wouldrecomend you go with a combination right now with VTI for growth and SPYI for income. Many
Bought GLD 2027 leaps at market close. Sold everything else except QQQI and SPYI