SPYI
SHP ETF Trust - NEOS S&P 500 High Income ETF
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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
I keep things as simple as I can for me. I'll reevaluate when I'm 40. I keep about 3-4 months of expenses in a HYSA for my emergency fund. About 90% of retirement savings in growth funds like VTI and VXUS (FXAIX and FSKAX in my 401k). The other 10ish% in income (SPYI and QQQI) and bonds (FBND). I started contributing $5 a paycheck and now I'm up to 28% of my salary. I also have an HSA to take advantage of that benefit and I recommend everyone I know to look into it. Anything helps so start as soon as possible, even if it's only $3 a month.
You can’t buy QQQI SPYI in Europe, except if you are a professional investor.
I live in the US. I don't know how your laws affect investing for you or the fund selections you use. So keep that in mind. JEPQ and QYLD both invest invest in the same index. So why both. Also these ar not the best ones in the US markets. JEPQ produces regular dividends so the income is taxed at a higher rate. QYLD is known to have NAV and share price erosion issues. I use QQQI 14% yield, and the fund does everything possible to so that the share price and NAV follow the index. So far no NAV erosion issues. Also in the US the dividend is classified as ROC and is taxed at a much lower rate the JEPQ and QYLD. QQQI is a NEOS fund. NEOS has another fund SPYI that invest in the S&P500 The yield is 11.7% has no NAV erosion and the same low tax are QQQI. XYLU also has NAV erosion issues. So over all I would replace JEPQ, QYLD, and XYLU with QQQI and SPYI. Neos has several good funds you might want to use check out their web site. Also SPYI and QQQI fallow ther index they fallow. so volatility should be similar to the Nasdaq 100 and the S&P500 indexes.
Options on CC funds and other high yield investments like BDCs and REITS, especially MREITS, typically have wide spreads like that I'd start by looking at JEPI or SPYI
"S&P 500" isn't a stock; it's a collection of 500 different companies. Rather than you investing in each of them individually, there are companies out there that bundle them together for you. SPY, VOO, IVV, FXAIX, etc all track that index of companies. There are also variations on the theme, but SPMO and SPYI are not tracking the index itself.
I degened 70k into a deep sea mining stock at .75 TMC and it went from .75 to 8.00 to 5.00, I sold 66% at 5.00 and put it into QQQI and SPYI, still have 23k shares at 9.50$ of TMC and still being a degenerate with about 150k margin on QQQI which I think is a safe bet.
The practical fix is a rules-based withdrawal plan with a 2–5 year cash/bond bucket so you don’t have to sell VOO in crashes. What’s worked for me: keep the core in VOO (or total market), hold 2–3 years of expenses in a T-bill/CD ladder and another 1–2 years in short/intermediate Treasuries. Refill the bucket in up years by trimming stocks; in down years, spend the bucket and avoid selling equity. Pair it with guardrails like a 4% start and adjust using bands (Guyton-Klinger) or VPW so withdrawals flex with markets. On SPYI: that yield is mainly option premium. It can cap upside in recoveries, payouts aren’t guaranteed, and taxes can be less friendly. I’d treat it as a sleeve, not the whole plan. Dividend funds can also cut payouts, so they don’t remove sequence risk. I use TreasuryDirect for I Bonds and a 24-month T-bill ladder at Schwab; for a 3–5 year income floor I’ve also used multi-year guaranteed annuities from gainbridge.io. Bottom line: a buffer and rules beat chasing yield for retirement income.
Since inception SPYI a covered call fund has been averaging about 15% With most of that from its dividend. Yes during that same period the S&P500 has been averaging close to 20% in the bull market we are in. But in bear markets the covered call stratagy tends to outperform the index.
For long term growth rate you want the since inception number. For SPYI this would be from 1993 to today. Which is 10.69% It is substantially lower because it includes the lost decade of 2000 to 2010 when the total return over those 10 years was about 4% Since the index was created 1957 it has averaged about 11% per year. Generally most index funds come in around 10%
Selling shares is one way to get income for retirment. The other way in a retirment account is to move money out of VOO and invest in a dividend ETF like QQQI 13% yield, or SpYI 11%yield. these payout monthly. So about 500K in SPYI would generate about 4K a month of income without selling any shares. And If you don't spend all that money in a month reinvest it. The issues with selling stock is sometimes you end up selling at a loss for income. This can lead to sequence of return risk. Without sequence of return risk you will generally run out of money after about 30 years. With sequence of return risk you could run out of money a lot less time. With dividend you are never selling shares. Some dividend investments have been paying a dividend for 100s. Some mutual funds and CEFs have been paying out for many decades. ETFs are relatively new but the older have been paying outdoor just over 30 years. As long as you invest in fund or company that swell managed you would have money for life. The book the income factory is a good guide to using dividends for retirment.
I have a big chunk of money in SPYI in my Roth IRA
Or put that 1 million in SPYI instead of VOO, over $8k a month without ever selling a share, invest whatever income not needed to increase the cushion, or save for taxes or emergencies in a HYSA.
I wonder how much more divided SPYI would pay if the market collapses over long period?? The covered calls should provide lots of premium
The optimum strategy would be to split it 50% VOO 50% SPYI. you generate 60k a yeak while you nest egg grows market tanks so what. you wait and recover. Say you income drop 30% you are at 42000 just a hair under what you need. you can get a gig job to cover the rest pretty easily until it recovers. the money you don't spend out the 60k when the market is doing ok. you reinvest using same split. growing income and growth. It is hard to lose in this situation.
It would do fine certainly better than garbage like SPYI. You seem to think SPYI is some guaranteed 12% annualized income no matter what happens. If stocks drop and remain depressed SPYI will end up eating up your wealth to produce that non-unsustainable income. Who needs 12% income anyways it is reckless and stupid. Here is a 3 fund portfolio "surviving" the GFC with a 4% real draw (draw 4% in first year and index to inflation) Despite 17 years of draws and starting right before the worst crash in modern history your wealth has increased 30% in real terms (inflation adjusted) https://testfol.io/?s=4F2EjSZQhVV
Informing your allocation which is … questionable I would keep SPY (covered call ETFs like SPYI are a retail fad and have considerable issues). I would just set up some automatic sale each month. If it’s not possible with your broker then just sell shares every 6-12 months and do automatic monthly transfers from the settlement account.
Right and there are ways to produce income that don't involve goofy crap like SPYI. Also if you were buying VOO for decades and sitting on a mountain in capital gains why would you sell the VOO paying a fortune in taxes to buy SPYI?
Neos S&P 500(R) High Income ETF (SPYI) Performance History - Yahoo Finance https://finance.yahoo.com/quote/SPYI/performance/
Most people in retirement are not 100% VOO or dumb crap like SPYI. US stocks, foreign stocks, bonds, and gold. Sell each quarter and rebalance.
Love that you’re actually letting go of the stock-pickng trap and leaning into funds, that’s way harder than people admit, especially when you've been hands-on for a while. one blnd spot though is you're kinda stacking U.S.-heavy funds (like FXAIX and SPYI) that ovrlap more than they help, so are you intentionally doubling down there or just playing it safe without realzing it?
Looks like maybe something that pays a monthly dividend? I know SPYI was on this sub like 9 months ago so maybe that 🤷♂️
Get rid of QQQI and SPYI and just buy the underlying index.
Covered call funds like SPYI and QQQI are how I am planning to hedge for a sideways market.
Check any tickers here https://totalrealreturns.com/n/TSYY,EGGY,SPYI EGGY has great total returns and yields about 24%. SPYI is solid and yields around 12% TSYY is not diversified and is a yield trap where you will lose money
What I would do with cash is put it in a taxable brokerage account and turnoff automatic dividend reinvestment. The cash from the dividned can be placed in HSA, HYSA, or money market account. After that any excess can be used to used for personal needs mortgage, roth, or held as cash for emergencies. Or some could be invested With a fund like QQQI 13% yield your account could push out a lot of cask per year. 100K at 12 would generate $1000 a month. And QQQI is a tax efficient account. The fund takes steps to lower the tax on the dividends you recieve. SPYI is similar but 11%. EMO and PBDC 9%, PFFA 8% or you could just go with a utility fund UTF and get 7% IF you want to take risk There is BTCI which has a yield of 25%.
Most of the comment you have gotten are about people buying and selling stock for captial gains. If you only aim for growth and never sold you would never have financial freedom. The best way to get financial freedom is from a dividend stock. A dividend is profit sharing cash payment to shareholders. For example if you invested in preferred stock fund like PFF with its 6% yield 1 million in it would pay you $60,000 a year without selling any shares. Or you can use fund like SPYI and get $110,000 for 1 million invested. Note most people trying to retire early would never consider a portfolio of 1 million sufficient for early retirment. Instead many aim for 3 million or more and then slowly sell if off via the 4% rule. With dividend you need a lot less money to get the same financial freedom. A good book to read is The Income Factory. It goes into how to build a dividend portfolio for stable income without selling shares. Armchair investor on youtube is retired and he invests his money the same way and does detailed fund reviews of funds he adds to his portfolio. I retired in my mid 50s with a dividend income of 5K a month from a taxable account. When my Roth and 401K become available my yearly income from dividneds will be in excess of 100K a month.
Just chilling with my $QQQI and $SPYI calls for Feb & March
SPYI, QQQI, and BITO in order from most to least allocation
You can move the account to a brokerage without insuring taxes. I use fidelity. All you have to do is contact them provide them with he account number for the american express account number and fill outcome forms and they will mov the acount to fidelity. >I guess I realize I lost money by not putting it in stocks and by inflation. I just don't know what to do. IT is important to realize your fear of risk is is not based on your experience with your investments but your fear of not knowing what will happen. In most cases the fear is a lot larger than actual risk. In my IRA I have a bond fundFAGIX that ear a steady 5% yield but I also have JAAA 6%yield, CLOZ 8%, UTG6.3%, UTF 7%, PFFA 8%. All of these investments produce cash payments into your account regardless of what the share price will do.The share pirice may go down but the cash will still be deposited quarterly. Generally people like you do better with these investments. Now you can add up to 7000 a year into an individual IRA. I strongly suggest you do this every month. Over time as you get more failure with these funds your fear will drop. Some higher yields can be achieved with slightly more risk with funds like PBDC 9% yield, SPYI 11%. And you could put some money in VT. All of these do hold stocks. Start out small first and gradually increase the ammount. in them.
SPYI And forget about it.
Just sitting pretty on these $SPYI and $QQQI calls for 2026
$16.5k in $SPYI calls for March ‘26 mmmm~
I’d take profit on ATCH. Wish I got in then. Bought at pre market sold at 50% profit. Bought back my initial investment in dollar wise. Instead of $0.87 a share I’m at $1.28 a share. Less shares now. But still profit is profit. Your up 620% time to sell at least half your shares man. But $5 a day. I like SPYI
try and income fund like JEPi/JEPQ. SPYI etc. They do all the covered call selling for you./ JEPI will give you $80'000 in income every year
Roth IRA are somewhat unique retirement accouts. The really contribution limit is 7000. 1/3 of the limit for most 401Ks. But when you retire the money you withdrawal is entirely tax free. Mathematically the more you put in in the first 10 years has a much larger impend on thesis of the fund when you retire. So the7000 depoist limit really hurts the growth of The fund. On solution to this problem is to invest in a good high yield dividend fund QQQI 13% yield or SPYI 11% IF you invested 100k in a roth in QQQI you would get about13,000 in a year into the account. And your yearly 7000 a year deposit is in addition to that. So 20,000 a year total. That is 180% increase in the contribution limit. You can turn off automatic dividend reinvestment and deposit the money equally in all the funds in your portfolio. or you could have QQQI plus your favorit growth index fund and read the money from dividends equally in each. The long term average total return for QQQI will be about 13%, The long term average total return for The S&P500 is 11% So in a bear market QQQI will likely do better than S&P%. But in a Bull market the S&P500 will do better.
Check each one for its total return first. Then check for nav over time. If the ETF has a strong total return and the NAV trades sideways or slightly grows then you have a winner. For example check out QQQI and GPIQ versus QQQ and SPYI and GPIX vs VOO https://totalrealreturns.com/n/QQQI,GPIQ,VOO,QQQ,SPYI,GPIX?start=2023-01-01 These are all strong performers without nav erosion.
i think you have a solid list, but a lot of your ETFs overlap in strategy, and you can trim these down specifically, SPYI, QQQI, JEPQ, and JEPI all distribute monthly dividends by selling covered calls. i’d just hold JEPQ and JEPI because they are larger funds with lower expense ratios, and they are the same strategies as the other two ETFs similarly, SCHD, DGRO, and HDV all target dividend stocks. there’s effectively no difference between investing in a dividend ETF that distributes quarterly and investing in a regular index ETF and selling it yourself. personally i’d put all my money in VOO over these
QQQI, SPYI, JEPQ - collect dividends and chill. SPX calls for more excitement
I use SPYI or QQQI. JEPQ and JEPI are probably the most known though.
5The ammount you need to invest can easily be calculated. Take the ammount of income per year you want and divid it by the yield of the ETF you are interested intwist. So if you want 12k a year from a SPYI with a yield of 11% you would need 109K invested. Now you don't need all that money before you buy the bund. I you put 7000 in a Roth account with SPYI and you reinvest all dividends you will reach 109K in about 9 years. in 30 years you will have 1.6 million in the Roth producing 170K a year of income. You could do the same in a taxable account if you wish. Read the book The Income Factory and look at theArmchair income on youtube. There are a lot of funds with yields between 6% to just above 10%. While SCHD is a good fund it is not necessarily the best choice if you want income. I took growth I had in a taxable account and started converting that to dividend income. It allowed me to retire at age 55. Today I get 5K a month from my investements.
I’m getting 12%+ with SPYI which allows me to keep a significant amount of easily liquidable dry powder for another dip if it ever comes. Practically zero tax liability as the stock gains are minimal, so it’s like having an incredible money market or cd account I can liquidate overnight and buy say NVDA @$94 back in April.
All jokes aside, these will work : QQQI SPYI BTCI SGOV
Yep, SPYI is terrible, but you should look at something like VYM, VIG, or SCHD for a "traditional" dividend ETF, not the covered-call ETFs. These are just normal ETFs that invest in dividend-paying stocks using some criteria or another. https://totalrealreturns.com/s/VFINX,VYM,VIG,SCHD But as you can see, the max drawdowns are very similar. VYM did a poor job of recovering after the pandemic dip, but the dividend funds outperformed in 2022-2023 before the S&P 500 recovered in 2024. I would argue that these are reasonable selections, unlike the covered call ETFs (jury's still out on the approach taken by XDTE and XDTY).
To honest, I was and am a bit tempted by SPYI because of the tax optimization and their claim their strategy minimizes losses after bear markets (I imagine this might going easy on the covered calls after the market has fallen). Yet I look at similar Eaton Vance funds like ETV and see how they were permanently nicked during the downturn - ETV is still down 20% from 2007 in *nominal* dollars, though it paid 8% or so for 18 years. SPYI and VYMI don't have a history going back to the 2008. Under efficient market theory, there should be no difference in expected returns of SPYI and SPY. But the same theory says 10 year T-bills have the same expected return as stocks. Oh well. On the, um, third hand, the ability to cash out 12% a year (as untaxed return of capital) means that if you hold on for four years, you're kind of covered for a crash. SPYI is paying 12%, so it is matching the overall market for the past decade. This is something I might buy in downturn.
I'm not sure what the point of a dividend ETF is. If you are referring to covered call strategy ETFs like SPYI and QQQI, they provide very minimal downside protection since the covered call value is so little compared to the value of the underlying covered shares. When the market goes up, your upside is capped. If the market whipsaws, you are going to lose too since the fund is systematically selling covered calls. Just look at SPY vs SPYI YTD performance and what happened after liberation day - it got killed.
Yes. QQQI and SPYI are even worse when you look at their risk adjusted returns. By employing a covered call strategy, your gains are capped in boom times. And since the covered call is nominally a very small amount compared to the covered position, you are exposed to most of the downside as well. These are terrible funds to own long term.
The strongest case I've seen for dividend focused investing is the potential to outperform when the market starts trading sideways for a long period. In times like that, you can take the dividends and invest them into beaten up growth stocks so when the winds change you come out ahead of everyone stuck sitting and holding for the turnaround. I don't know how the math works out, but the chances of us having a 1970s style period of stagflation doesn't seem like it's 0 to me. I just wonder how QQQI/SPYI would perform in that kind of environment...
Yes. I've heard several evangelists from the SPYI/QQQI camp come out and advocate for these ETFs. They suck. Compare their performance vs their corresponding SPY/QQQ etfs. They suck.
High-yield dividend ETFs seem all the rage right now, like QQQI and SPYI popping off 12-14% monthly
I would look at SPYI. You’ll get a decent return without blowing up
You could invest the money in JAAA 6% yield and JBBB 8% yield and PFFA 8% UTF 7% and UTG 6%.Thes all invest in different assets and provide a much better yield. These are dividend funds that pay out quarterly or monthly. Some higher yielding options are PBDC 9%, ARDC 10%,EIC 11%, and SPYI 11% the lower yielding funds are safest while the higher yielding funds have slightly higher risk. YOU will have to use a taxable brokerage acount for these funds. Set dividend investment to off. Cash will show up in the account and from there you can move that to your bank account. The higher yield of these funds will probably double your income. Any money you don't spend reinvest it for more income. Your taxes will go up due to the higher income. So you probably will have to make some adjustments to your tax withholding. I strongly suggest you read the book The Income Factory. and look at Armchair income on youtube.
Instead of going cash i full ported to SPYI and QQQI .
Currently I’m in SPYI QQQI FSCO ASGI BTCI QDTE ULTY MAGY NVDY. I’m keeping my on OMAH as well, I want to give it a bit more time to get a track record.
Quick question about target date funds and 401Ks: this is what I have 100% of my 401K in currently is just a 2055 (I think? maybe 2050?) TDF. Are there other things that would be good to add to my 401K, or am I good to just keep it as 100% the TDF? Also, would it be good to throw a TDF into my Roth IRA as well? I currently just have VOO in my Roth, probably will add one or two more ETFs into it like QQQ or SCHD or SPYI or something like that?
SPYI underperforms SPY significantly over time.
For a child you want money to be available for college. So in this case a dividend fund like SPYI is ideal. With growth index funds you would have to sell the share of the fund. Meaning after college there may not be any money left for the child.
529 have restrictions on how you use the money. Retirment accounts are the same way. I think the best option is taxable custodial account. You control the account but the child owns it. So eventually you can hand off control to your child becomes an adult and shows the ability to manage money. Invest the money in SPYI and set dividend reinvestment to off in the account. The dividend is payed monthly and will appear as cash in the account Keep 30% of the cash and use that to pay the tax in april. And dividend beyond what is needed for taxes can be spent: to help care for the child. Or reinvested the money to backing SPYI to grow the dividend and fund value over time. Reinvesting all of the money not used for taxes.will cause the account to double in value in about every 8 years.
rather than bond, why don't you look into CC etf, like JEPI/JEPQ, SPYI/QQQI. They provide monthly dividend, you can use them to reinvest or buy some good steak for yourself.
I had to look up SPYI - it's a buy-write find that sells covered calls. It's so new that there's no history of returns. I have some of the Eaton-Vance version because it's tax optimized - most of what it pays out is categorized as return of capital, so almost no tax until you get the initial investment back in dividends, then any dividend is classed as long term cap gains. The one have is called ETY I think. However, it pays substantially less than VYMI. Inside a retirement fund, the tax strategy doesn't matter, but outside, the taxation makes a huge difference. Caveat: ETY lost a lot of value permanently in the crash of 2008-9, falling from 20 to 8, and recovering to 15.7 today. It took a long time to get this this back in dividends (because you were getting 10% of 10, not 10% of the $20 you put in). Unlike the SP500, it didn't recover when the market bounced back. The lesson I get is that these buy-write funds don't recover nicely after downturns, unlike diverse stock funds. Because of the call writing strategy, they lose out on the gains of the recovery.
these are great, i didn't think of these though i did own brkb a while back. i should get those back for now and call it a day. SPYI is paying really well at 11% or something, I put 12 K. and it's paying $122 last month for instance. I just started with this one. This one looks promising. I'm planning to add my IRA contributions to this one for now and implement some of the advice that you provided as well. I'm just gonna research some of those options.
So this is all hypothetical, or are you asking for a friend? If they need a larger house, use $500k - $600k to do so and invest the rest in the S&P 500 index fund, plus a ETF that pays a decent dividend yield, north of 8% - GPIX/GPIQ; SPYI/QQQI Sell the old house and and recoup the investment and/or gains and invest it in the above funds and continue to growth that wealth.
My 2c. If you can afford to, do both. Max the 401k and max the taxable. The taxable can provide income for when you get laid off if you buy income investments like BDCs and CC ETFs like SPYI. Layoffs are extremely common and can be devastating. This taxable account can also help you retire early.
They provide the breakdown monthly; [https://neosfunds.com/wp-content/uploads/SPYI-19a1-Notice-8.20.25-Confidential.pdf](https://neosfunds.com/wp-content/uploads/SPYI-19a1-Notice-8.20.25-Confidential.pdf) HOWEVER, keep in mind that they have some wiggle room on how they categorize distributions because they can lose an options trade but make money on the underlying and then choose to hold on to the underlying while treating the inital options premium as ROC.
Yes, they are paying you back your own money nstead of investing htem into sp500, making it 1% worse return compared sp500 investment [https://portfolioslab.com/tools/stock-comparison/SPYI/SPY](https://portfolioslab.com/tools/stock-comparison/SPYI/SPY) "Returns By Period In the year-to-date period, SPYI achieves a 8.37% return, which is significantly lower than SPY's 9.09% return."
Any NEOS fund gang members here SPYI, IAUI, IYRI, BTCU
Just by VOO and or QQQM. Both SPYI and QQQI are counterproductive unless you are retired with lowish income.
sold some SPYI and moved into IAUI and IYRI market feels toppy