SPYI
SHP ETF Trust - NEOS S&P 500 High Income ETF
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The best solution to your problem is to invest for dividend. Is you want your monet todouble in 8 year and use the rule of 72 you the 72/ 8 -9% yield is what you need Now many would say 9% is not doable. But it is ARDCC has been paying 9 % for about 15 years BDC (business development companies have been paying 9% for a very long time. So in Addition to ARDC I have PBDC that invest in only BDC and it alohas a 9% yield Both are funds holding multiple asetsk EMO invests in MLP (companies that move oil and gas via pipelines. It yeild % BDCs have been around for 50years and MLP for about 40 years. These funds invest you money and than divi up the profits and send you monthly or quarterly check 100k in any of these 3 fund will generate 9K per year o income you can either reinvest odor use the money to cover wedding cost or college costs. Now you don't want to have all your income comming from one fund So 33K in ARDCC, 33K in PBDC, and 33% in EMO is a better combination. There are also good covered call fund with high yield and tax efifency and some growth. Some of the best ones are QQQI 13% yield, SPYI 11%, GPIQ 10%, GPIX 8% are also worth coonsidering.
It looks like for the last three years, SPYI has returned around $6. So an estimate of shares with current price would be around 2k shares, so close to 12k distributions. And then you have to pay tax on that. I dunno how much your rent will be. Risk is subjective.
Hello, I’m 31yo American still living with my parents and plan on either buying a condo or moving into an apartment in the next few years, but unsure. I have 180k in savings, but recently my hours were cut at work and i might only make 40k this year. I’m tired of seeing the market go up while my money sits in sgov. I recently decided to take risk and dropped 100k on SPYI, 20k on VT, and 15k on FMTM. If I were to rent when I move out I think SPYI would be a good pick for income. Do you think I’m taking too much risk?
If you can keep depositing the maximum possible in your 401K AND ROTH FOR 30 YEARS YOU SHOULD HAVE ABOUT 2 MILLION. 2 million is what I had at retirment. The lower deposit limit will mean the Roth will be smaller than the 401K. Having a high yield fund in the roth will add additional money from dividends which should increase the size of your Roth somewhat. A taxable account should be used to improver you life now. One of the easy ways to do this is to invest in tax efficient dividned funds. SPYI is a good one with 11% yield. For every 100K you have invest in this fund you will get about $11K per year. So you builcould build up dividend income in your taxable acount to generate income you can use now instead of waiting until you are 60 years old. You could gradually build the dividend income in the taxable account and use the money to cover monthly build such as utility bills gas or food money and eventually all of your living expenses. I started tocovnert excess grwoth I had into dividend income in my 50s any 55 I retired with an income of 5 k month from dividends. Enough to cover my living expenses. If I had started thong that at 25 I probably would have retired a lot earlier. I
JEPQ, JEPI, QQQI, SPYI you name it. But you will sacrifice the high yield for growth
you could take you 500k from the HYSA and put it in NAC 7% yield and SPYI 11% yeidkl with an equal ammount in each in a taxable brokerage. that would generate you will get 45K of nearly tax free inocme from your 500K HSA . And this income is payed in monthly installments. Since eat money if comming from a taxable account you can use the income to cover most of your monthly bills.
I'm about 3:1 leverage but it's 750k in SPYI then 250k leveraged on QQQI
I’ve posted similar comments in the past; I agree that GPIQ/X are totally slept on in the dividend forums. Slightly less yield than QQQI/SPYI depending on the % of options used but that allows greater price appreciation because they don’t have to sell as many options during a bull run which helps protect and grow NAV. If you’re nearing retirement or FIRE’ing I honestly don’t see any downside. I’m earnestly trying to find a downside but I can’t. ~9-10% yield, NAV growth & protection, Goldman’s name, preferential tax treatment. For the young investors I would still steer them towards purely growth funds but those seeking to allocate some funds to replace monthly income I see no downsides.
>It's not much money unless you have like 10s of thousands of shares, which is very expensive, but if you reach that point, you are retired and living off that income, but this costs millions. You don't need millions to get a sizable dividned income stream. It all depends on the yield you get. Many growth investors assume the maximum safe yield you can get is about 4%. To ge 5K a month you would need about 1.5 million invested. Yes a lot of m money. But in fact there are companes and ETF that pay higher yields year after years With a yield of 9% you can get an income of 5K amount (about 60K a year with only about 650K invested. A lot less than many growth investors assume. in in funds like ARDC 9%yeild , PBDC 9%, EMO 9%, PFFA 9%, SPYI 11% CLOZ 8%, and many others.
Just put 1 mil into SPYI and collect 7k tax free divs a month and retire as a multi millionaire at 40.
My side project is a lil' dividend income portfolio comprised of SPYI, QQQI, and SCHD. Something to take the edge off when I lose at options, which is all the time.
SPYI gives monthly distributions of about $.50 per share. Current price is under $50 per share. $3M/$50=60000 shares giving a $.50 per month distribution = over $30k per month
$3M in SPYI and get $30K a month with a NAV that has grown over the last 3 years.
I think this is fine in a retirement account. If this is a taxable account, then I would look at SPYI, GPIX or ROCY instead
I’m an options seller. Money is there. If you want to retire soon. Good time to stock up on ETF’s like SPYI,QQQI,IDVO, and SGOV. SPYI and QQQI mainly for income with some growth potential. IDVO for growth. SGOV to preserve cash and to deploy said cash when needed. All 4 pay monthly dividends.
Yes, I keep buying with every paycheck as usual. Also, while the orange monkey is in the office, I added some SPYI to my portfolio which, in theory, should perform well in a volatile market since the option premiums are higher. Time will show. Not financial advice, of course
On top of that, dividend funds tend to underperform their competition that don’t use thar selection factor, and covered call funds always underperform the underlying long term. Examples: SCHD vs SCHG, SPY vs SPYD, SPY vs SPYI, etc.
Geeze I'm 40 and have 600k but being a degenerate I have 250k in margin in SPYI and QQQI but I like the 8200$ in tax free dividends a month.
So for my Income portfolio, I did something really risky that I don't recommend. and that was have a >50% allocation to Yeildmax funds which I'm down overall about 15% in the entire portfolio. If I had to do it all over I would do definitely include QQQI, SPYI, ADX, ARCC, HTGC etc. etc. I would try and stay away from anything greater than 15% yield. Don't expect much price appreciation as those are just spitting out income to cover my baseline expenses. You can look up Armchair Income and Income Architect on Youtube to get some ideas. Those two channeIs and reading the book Income Factory are where most of my ideas come from in regards to income investing. I learned the hard way (as I guess most of us do on this investment journey) that managing your risk vs. return is supremely important.
SPYI QQQI SCHD. Simple, easy to manage, they meet my long term dividend portfolio goals.
Nope, I kept my cash position. It’s not quite ready yet. Tomorrow morning, though I think I’m gonna crunch some numbers and put it some limit buys. Probably just boring stuff like VOO and SPYI.
I want to know how the guy who took out a 50K loan to buy SPYI in Janurary is doing
What you are seeing right now is EXACTLY professionals advise for diversified portfolios. Yeah, it isn't the sexy huge gain screenshots people like to post, but like most gamblers, you only see the wins, not the losses. Pick a core position in good, solid companies with good fundamentals and in diverse sectors. (retail, manufacturing, tech, AI, defense, consumer goods, bonds, etc) and in a ton of solid ETF's (VOO, VTI, QQQ, JPEQ, SPY, SPYI) and some gold and silver. Sure, take some long shot bets if you want. I have taken some long plays that may make good money if they take off, but they certainly won't ruin me if they fail. Investing is a marathon, not a sprint unless you are very, very lucky.
I'm down 53k on QQQI and SPYI, and not worried to much its a long hold, divs are nice at least on those as the 8k a month offsets the losses. 33k div so far so losses are 20k I guess.
Pulled the trigger on $SPYI calls for September, might as well see how this goes in 6 months
There are also ROC dividend which are taxed at zero rate for years. For example if you buy and hold SPYI for 9 years you pay no taxes on 90% of the dividneds. After 9 years dividend are taxed at the capital gains rate which is the same as qualified dividends. And then there are municple bond funds like NAC 7%yield that are not taxed if you live in california
There are covered call funds that used covered calls to convert price volatility of gold and silver into dividend income. yields are about 10%. For gold IGLD and IAUI are two I know of. Additionally these are tax efficient funds meaning you pay very little (close to zero in) taxes you ib the duvudebd you recieve from the fund There is also a silver fund but I don't remember the ticker for it. IAUI is Neos funds and they have other covered calls funds and most are tax effect and have high yield. SPYI and QQQI are covered call funds that invest in the S&P500 and NASSDAQ 100 index. with similar yields and tax effficienty
SPY and SPYI has provided well for me. Tasty 12% dividends every month and I can easily move funds into an undervalued stock when it dips like it did last April.
DCA slowly with under valued stocks that I already have a position in. ( mostly) Tsco, UPS, AMT, Some tech stocks that are speculative. Oklo, SMR, circ, Mara, And sitting on a larger pile of cash to buy a crash if it happens ( I’d buy in JEPI , SPYI, or a total us market index fund)
Covered call ETFs like SPYI, JEPI and QQQI.
SPYI pays monthly *yield*, most of which is not dividends. >That means that if I had 10,000 shares, my dividends would be $5,200 per month, assuming that stays flat. it won't stay flat. those yield payments (**not dividends**) are not guaranteed. >Does anybody see a downside to this several problems. - investments like SPYI trade your potential upside for current income. but at the same time, they don't really protect from crashes/downside risk. - because SPYI generates yield with equity-linked notes, there are additional potential problems, such as counterparty risk. - most of the yield from SPYI is taxed at ordinary income rates, usually higher than capital gains or dividend rates. - moving to a country with lower cost of living may or may not be a good move: there might be political instability, currency risk, substandard medical care, and being perceived as a wealthy decadent American pig who is an easy target for robbery or worse.
Sounds nice, but it’s not really an infinite money glitch 😅 SPYI income can change and high yield often means slower growth or more volatility. I’d focus on total return, not just the monthly payout, market can be generous… until it isn’t.
There is no free lunch and no risk free 11% return rate, which is the current SPYI yield. If you want low risk dividends you'll get about half that yield.
I’m really appreciating this conversation, people! I just found out about SPYI last year, and getting these dividends monthly made me wonder what the downside was. I guess there are nuances, and a lot depends on my future spending habits.
How do you get the money out of your 401k to a brokerage where you can buy SPYI without avoiding paying income tax on the withdrawal? The only way to avoid income tax on the transfer would be if your 401k allows you to buy shares directly.
4% rule is where you sell 4%/year to spend. You have $100 of stocks. The stock goes up 7% and is $107. You sell $4 and spend it, now you have $103. And you repeat that forever basically. It’s more complex with down years and stuff. Or, you have dividend paying stocks that yield 4%. And you spend the dividends. The problem with SPYI is that the yield is great 10-11%, but it’s fixed to the s&p 500. If you have $100 of SPYI, getting $11/year, but the the s&p500 drops 20%, now you’re making 11% on $80.
So you need to read that "law" again. There may not be a 10% tax fee, but the withdrawals are still taxed as income out of a 401k. So if you intend to withdraw ~$500k for your 10k shares of SPYI you will be taxed at that income. Largely at 35% or close to $150k for Uncle Sam. Even if you do get that 10k shares and it doesn't crash, you'll need to consider income tax on the dividends plus the .68% ER fee.
SPYI as an ETF is actively managed. You're buying a share of a portfolio of equities that a manager is actively researching and rebalancing
SPYI has been around for less than 4 years. So as you said, in a down market, the fund may lose value or reduce dividend amounts, I have not read the prospectus. It has been paying out 11% dividends. There is a reason the 4% rule exists and I don't think SPYI has magically come up with a plan to indefinitely provide 11% returns when the risk free rate is closer to that 4%.
Also, this one is not a managed account. I bought SPYI on my own through a brokerage account in my 401(k).
In this case, there is a law here in the US where you can start withdrawing from your 401(k) at age 55 without paying the 10% tax penalty if you lose or quit your job. My plan would be to split my time between a few countries in Asia, where the dollar is really strong. I was just curious if I could do that using only the dividends from my SPYI investment.
My strategy is to get 20k shares of SPYI so I will have double infinity money.
SPYI can go down in value but yeah as long as the S&P 500 goes up you'll make money with this strategy
Yes, SPYI will crater in value compared to the underlying index over time
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.