SPYI
SHP ETF Trust - NEOS S&P 500 High Income ETF
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Funds like SPYI and QQQI yield 12-14% that is mostly return of capital, so its tax deferred. Once you get your initial investment back, then you pay capital gains. But if you keep topping up, you can essentially defer taxes forever
Short selling may only provide occasional income. For cash you want regular earnings. I would put some of your cash in a fund like QQQI with a 13% yield. Or you could use UTF 7%, PFFA 8% PBDC 9%, SPYI 11%, EIC 10% or ARDC 12%, or BTCI 24% But keep in mind you loose some liquidity when investing in these funds. Meaning if you need to withdrawal all the money you would have to sell shares, which takes a few days, and pay taxes on any capital gains. There is the possibility that you might sell at a loss. But with dividends you can build a contininous stream of income. Using funds like this I have drevolped an income protfolio and gernates 5K a month. Most is used for living expense and any excess is reinvested. I retired at 55.
Yes 100%. I converted my Roth to 100% VXUS in March, now I'm up 11% YTD even though everyone said I was an idiot for it. I also switched from SPY to SPYI for downside protection and saved ~3% losses from April 2nd, which I immediately sold and reinvested into SPY and made 3% more than SPYI. Currently I am 100% VXUS in my Roth still, I sold everything beside 500 SPYI in my taxable, and I forgot to mention my hedge puts which printed 300% in April so now I am hedged for a $450 SPY by 09/30 for "free" because I laddered down my hedge and kept profits. tldr: yes and I am outperforming u passibe investors handily YTD
you could invest in in funds like PFF 6% yieldUTG 6.7%, SCYB 7%, PBDC 9%, EIC 10%,SPYI 11%, ARDC 12%, QQQI 13% All of tese funds produce dividends. Cash payments to you. Dsividens ar a form of profit chasing mnayestablied companes do. These fund invest in these companies or bond issued by theese compnaies or use trading activity to improve the yield. If you invest in these thees funds in a taxable account you cinould build up enough income over time to cover all of your monthly bills. higher income is also possible. You could also do this in a roth for retirement. I am currently retired and make 5,000 a month from dividends. This stratagy is outlined in the book The Income Factory. Armature chair income on you also invest in this way. And each lists funds they have used. The only problem with this is in come contras tax or don't tax dividend and Other my or may not tax capital gains. If you plan to move to another country you need to know the tax laws for that country.
I invest in dividend stocks and have been buying PFFD 6% yield, UTG 6.7%, UTF 7%, SCYB 7%, PBDC 9%. SPYI 11%, ARDC 12%, QQQI 13%
Dividend funds are not terribly expensive funds like PFFA 8% yield, PBDC 9%, SPYI 11%, QQQI 13% Have a higher yield than bonds and 100K invested at 10% yield will earn you 10K a year. Year after year.
IF you took your large cash holdings and invested it in a dividend fund like SPYI you could probably get enough dividend income to cover your living expenses fore decades SPYI has yield 11% yield and takes steps to reduce the tax you pay on the dividend income. If you deposit 5,000 a month in this fund in 5 yours you would have about 44,000 of income year after depositing 100K into the fund. (100K is proably 1 years of income for most people. As long as you don't spend more than your income there is zero sequence of return risk.
Got mad i chose a $589 put earlier and lost $80 Revenge traded and sold off a load of stuff (mostly profits), and bought more RKLB to sell calls on. and MVST (some penny stock battery company that i like) And because I'm sensible also some SPYI
Lost $81 on a put and remembered why i quit buying options like a month ago lol I'm stupid 🤡 Put the remainder of it into SPYI
There are a few like this, cover call or synthetic covered call. These are ETFs that use those methods to generate income, I use SPYI in my 401k to generate dividend income. There is nothing worng with the approach, just the amount of risk willing to take on. I have about 1/3 in these kind of ETFs and it has helped weather some of the first part of the year.
Look into SPYI, QQQI, and other dividend ETFs if you want income. Houses require maintenance and you can’t micro manage tenants.
$SPYI, $QQQI, $XDTE time
In the accumulation phase your investments are mainly growing from the regulate deposits you make in the account. What you want to get to is to have enough dividned income so that the cash form the dividned s exceeds your the deposits you make. At that point your could stop depositing money. And the snowball effect takes over. For a Roth account you limited to 7K a year deposit. So if you get 7000 a year in dividned you could if you want stop depositing money and use most of the dividend to buy shares of other investments. 70K invested in QQQI would do that. But for a S&P500 index fund like VOO you would need about 500K invested to get yK in [dividneds.So](http://dividneds.So) it take more time to get the snowball effect with just VOO and it would be with SPYI.
It is a very good idea but SCHD is not the best choice for this. They yield is very small. 100,000 in SCHD would only earn about 325 a month. Only enough to buy a little food or and maybe cover your utility bill. I did what your are proposing. I would use QQQI. QQQI has a higher yield 13% and the fund management takes steps to reduce the tax you pay on the dividend you receive. This ould generate about 1000 a month from your 100K deposit. Do not automatically reinvest the dividends. Instead they will appear as cash in your acount My brokerage put the money in money market account. Use the cash to pay billls or rebuild your emergency fund. At this point you have self refilling emergency fund. it will refill slowly but it will rebuild. As as much money as you can to increase the income Eventually you will have an eveThe rmgency cash in the money market account. And you could get enough income to cover er all of your living expenses. In my case that is 4K a mont. Enough to cover my living expenses (I live in high cost of living area).For 4K a month you would need about 400K in QQQI There are many funds you could use such as UTF 7% yield, PBDC 8%, PBDC 9%, BIZD 11%, SPYI 11%, BTCI 24% and many more. The key is to get the highest you feel ocmfortable with and if possible use a fund that payshas a lowe tax on the dividend you receive. Most of the funds I have listed are taxed as ordinary income. But they are useful for the income they create. Once I had enough income I started adding more funds until I had enough to retire early at 55. Also I reinvest about 1K a month to gradually grow my income. Hopefully enough income growth to cancel out inflation. No mater which fund you will use you will genrate taxable income. The best way to handle this is to estimate the additional tax you willl pay with the assumption that all of the dividdends are taxed as ordinary income. The highest taxrate to insure you have more than enough. Then you could put the money asside in monoy market account and use it to cover the april tax bill. Eventually you will start to charged with a lat payment of tax penalty. At this point start sending quarterly tax payments to the IRS.IF the estimate is low you owe more. IFyou pay too much you get money back.
I actually love this approach. I’m 50’s (50) and have a kind of sketchy version of this, but it’s been something I’ve been thinking about. I def need more international, and less US. I’m a bit worried about being leveraged 15%, but I do have a very favorable margin rate. What do you get? What do you think about covered call ETFs, REIT’s, Preference Shares? My margin is significantly lower than the after tax yield PFFA and SPYI would give me, so leveraging myself with some of those would give me ‘free money’. Also IDVO gives me income and international exposure.
minus taxes minus inflation. What is SPYI's yearly return?
Put 50k into SPYI, get $500 a month in dividends. Reinvest $100 (can sell to pay taxes) and put $400 towards mortgage as extra principal. That’s $4,800 extra per year. Depending on your rate that $400 is close to double what your currently pay towards principal.
Understand, lost is really lost, there is no revenge trading to get it back. Almost trading is not suitable. You should have stopped when you lost 10%. Remove margin. Do not use options. Do not follow anyone in youtube. Save this 200k at least and invest in SPYI (or my choice TLT). If there is 4%-5% drop in SPX, you can sell 5% of SPYI (Or TLT) and buy QQQ. Keep continuing forever until you learn everything about stockmarket, trading and investments. Never be greedy, it takes many years to get back your lost money.
You can see my math in the other comment, but we've only see SPYI return 12% in a market where its underlying is up 16% annualized over the same time frame. That's unsustainable. If you think SPY itself will go up 16% forever - or even for the near future - just stay in SPY now. If you think it's going to trade flat - or if you want to manage the risk of that - you should apply a similar adjustment to SPYI's expected returns.
You're falling into the same trap. You're comparing 12% vs. other income investments, which is the wrong way to go. You always need to look at its baseline. What recent history suggests is that something like SPYI will return 12% *when its underlying is returning something like 16%*. That 16% return is far higher than the historical average for SPY or any other sector. In other words, in a normal market of \~10% average growth, and assuming SPYI seeks to keep that 12% yield, you would expect a fund like SPYI to suffer a gradual decline in price to sustain that kind of yield, until it eventually goes to zero. And long before then, of course, its returns would fall in absolute terms as well (12% on 50% is only 6% of your original investment).
Check out its asset price. It has barely budged in 5 years so the 12% is all you get. Sounds great … except SPY is up well over that. And those two numbers are correlated. You’d expect SPY to outperform SPYI on average, which is exactly what you see. People get excited when they think the CC-driven returns are uncorrelated, but in the wrong market your SPYI is going to underperform, possibly drastically.
Now I’m curious to know what would happen if I DRIP’d SPYI. This feels free-lunch-ish, but I’m not taking something into consideration here.
It’s fairly stable. It’s paid out between 0.48-0.55/share in 2024. It is highly correlated with market so as SPX does well, it does well. Lowest in past 18 months was 0.46/share which was April/ Liberation day. I don’t think it’s necessary if you’re running a comprehensive Options strategy, but if all you want to do is a version of Wheel on SPY, then let the pros do it with SPYI.
Irrelevant because OP is in Canada. ETFs like SPYI aren't very good either. They have to sell calls because they have to distribute cash, nothing else matters. They will sells calls way below the cost because of this obligation.
It may work but it’s not as likely to hold up as a standard stock/bond portfolio in all markets. The problem is that you’re significantly limiting price growth, which limits your ability to increase annual withdrawals. You’re likely to be more stable in the short run but to underperform in the long run, which could leave you poorer in your later years. After 30 years of inflation your annual withdrawals may need to double what they are now. How are you going to do that with CCs? The traditional benchmark for retirement funding is 4% per year. This is a conservative figure but it accounts for both inflation and the risk of sustained market downturns. The CC approach offers no organic way to easily increase withdrawals and its arguably more at risk for turbulent markets. You can see the performance of CC-based ETfs for yourself to verify. Look at XYLD or SPYI vs plain SPY. SPY has a higher total return.
If thats all you want to do, just invest in SPYI. They will run the cc campaign and give you 12% yield. Buy a bit $1M of that and leave rest of it in a good mix of fun and you’ll get your 10K of monthly income.
Many people of reddit assume two thing about investing. * People only invest for retirment * that the best return possible is always index funds which pay almost nothing in dividends. which have an average retune of about 10% per year. Both of these assumptions are not true. There are dividend investments that produce returns of 10% or more ARCC is one example. The company has been paying a 9% total return of about 9% for about 20 years. OXLC pays dividned off 24% since 2011. And you can make money trading covered calls indefinitely. SEC only recently started allowing ETF that focus on using covered calls for income. SPYI has 11% yield, QQQI 13%.BTCI 20% Now granted some of these funds have not been around long enough so we don't know if they will last as long as the index funds many prefer. So some dividned ingvestor assume that some of there funds will fail. So they have 20 fund or more for income that way if one fails or has problems it represents only 5% or less of the investments. Fortunately fund failures are very rare. Also not everyone is investing for retirement. So they put their money in taxable accounts so they can access the money at any time. Some people want supplemental income in case they loose their jobs. Others may want enough income to cover bills mortgage payments or other things. Funds like SPYI and QQQI are very useful in these cases because the high yield lower the amount of money needed to reach the goal and these funds take extra steps to lower the tax on the dividends you receive. So the recomendation to use growth funds until you are old is totally outdated advice. Use dividend income whenever it suits your needs better than growth investing. IN my case I was burned out from work and had a healthy retirment fund and had a lot of growth in taxable account. So I reworked the taxable for dividends for income using dividneds I now generate 4K of income to cover all of my living expenses. With another 1K of income that is reinvested to allow my account to adjust for inflation. I retried at age 55. but others have done this at age 40.
Yes it is worth it to have dividends in a roth. The dividneds allow you to get more cash into the account without violating the 7K deposit limit. Let say you add a dividend fund that adds 7000 to your account per year. This would double the amount of money going into the fund. And this would double the growth rate. There is however one group of companes you don't want to add to to a Roth The earnings from MLP are taxed in a roth. So you want to void those. However everything else is not taxed. Fund you should consider re PFFD8% yield, PBDC 9%, SPYI 11%, QQQI 13%, UTF 7%, Onenot of PBDC this fund list an expense ratio of 13%. This is not a real expense number for the funds. SEC rules requires this fund list it expense ratio + the expenses the companes it invests in. The ETF never pays the expenses of the companies in the fund. So if you correct for that the expense for the funned 0.75. This fund invests in comapanes that are required by law to pya out 90% of their earnings. So the dividend is always high.
SPYI, JEPO, QQQI. just check out covered call income ETFs they pay fat dividends and capture some ( not all) growth
The is a lot of excitement about bitcoin but it is legal tender in only one country. you can barter with it but the other person may not accept it. The only way to make money with is is buying and selling. So rather than buying or mining it I would ratter by a fund like BTCI. This fund uses covered calls to convert price volatility into dividend cash payments to [you.it](http://you.it) aims for a yield of about 20%. Cash you can use to invest in other assets or cover living expenses Berkshire Hathaway is a good investment but its shares are expensive and it pays no dividend. With no dividend it is a tax efficient way store money Any since it is lightly traded the share price is very stable with a little bit in growth. There are many other companes out there that don't pay a dividend you could use to save money index funds like VOO and VTI are a common choice low tax way to saving money More volatile than BRK-B but still goo growth.SPYI is also a good covered call fund, it holds the S&P500 index but rights covered calls on the index produce a good dividend of 11%. Covered call funds are great way to make income if you have a good reliable fund. There are fund that produce much higher yield (in at least one 100% yield) But that very high yield comes with a lot of risk The risk associated with BTCI and SPYI is much lower I also prefer to not automatically reinvest the dividends for the funds. Instead I collect the cash and invest it in other dividend funds that don't use covered calls.
Good idea. A little late, but can still pull in a 14% yield on QQQI or 12% on SPYI.
The problem iwht bogleheads investing is you have to liquidate stock to generate income. Which means you could eventually run out of money. The solution to the problem that preserves captial is outlined in the Book The income factory. And Armchair income on youtube also discusses this. There are funds and company stocks that pay out a portion of their profits to you quarterly or monthly as cash to you. Say you invested 100K in a fund with 10% dividend yield of 10% and it pays monthly. Every month you will,$833. Dollars a month. while you are working you invest the money back into the fund. The fund will grow. in 7 years the fund will have about 200K deposited and will pay a dividend of 1,666 every moth. Over 30 years you should also have about 1 million in ht account producing about 10K a month of incomce. If you invest for dividends in addition to your growth index funds you should have substantial income when you retire. So you live off of the dividned income . IF you don't spend all of the income you reinvest the excess money. Hopefully you can reinvest enough to keep up with inflation. IF you have a bit unexpected expense in retirement you can sell the growth funds to generate the additionally income needed. Or you could periodically harvest 4% of the growth and reinvest the money for more dividend income to adjust for inflation. I retired and now get 5K a monty of income from dividends 4K covers my living expenses. and 1K a moat is reinvested. I also have growth funds I can tap if needed. It is working out very well. Some of the funds I am investing in for income are FAGIX 5% yield, PFFD 6%, UTG 6.7%, UTF 7%, SCYB7%, PBDC 9%, SPYI 11%, ARDC 12%, QQQI 13%.
SEC yield does not include option income, which makes up almost all of the distributions from QQQI and SPYI.
Thanks for the rabbit hole dive into chatgpt on this. It sounds like SPY beats SPYI, bottom line. Is there any other advantage beside the slight less risk of the SPYI?
Put it in SPYI and retire
I like dividends. I would put it in QQQI. it has a yield of 13% yield and would produce about 1000 in cash a month. If you reinvested all of the dividend the funds would double in size in about 5 year. If you don't reinvest the dividend you can buy other funds. In addition to the yield the fund also takes steps to reduce the tax you payoff the dividend. So in a taxable account it can be an alternative source of income I am retired with an income of 5K a month from dividends. Enough to cover all or my living expenses. I have the following funds UTG 6.7% yield, PFFD 6% UTF 7%, SCYB 7%, PBDC 9%, SPYI 11%, QQQI 13%, ARDC 12%.
NEOS is using section 1256 index option contracts, meaning it's taxed 60% long term 40% short term cap gains. JEPQ is mostly if not completely ordinary income if I remember correctly, plus, JEPQ isn't even outperforming QQQI pre-tax, let alone post-tax JEPQ hasn't been around very long either, barely longer than SPYI, so I'm not sure why you'd trust one over the other, unless you have fundamental concerns about NEOS management vs JPM
We were discussing [growth vs value stocks](https://www.fidelity.com/learning-center/investment-products/mutual-funds/2-schools-growth-vs-value), which is a categorization based on various fundamentals of a company. A fund that's growth or value is one that's a collection of companies that each meet that criteria. SPYI is a fund that owns a wide selection of large cap funds, like SPY does: value, growth, and blend. So it's not particularly relevant to the discussion at hand. The special thing about SPYI is that it uses calls. I happened to be reading [a good thread about that](https://www.bogleheads.org/forum/viewtopic.php?t=405649) the other day. I find this quote helpful as a summary: > The simple answer is there is no free lunch and selling covered calls does not 'generate income', it reduces volatility at the cost of reducing total return.
Say you have 100K in a roth invested in the S&P500. You invest the limit 7000 and the invest provides an additional $1300 So the dividned boost the money inflow a small amount in this case. However if you invested the money SPYI 11% yield. the same 100K would produce $11000 in cash. So your total cash deposit is 7000 +11000 or 18,000. Your roth grows a lot faster
I read the words of what you’re doing and kind of understand in a very basic way, but I honestly really have no idea what you’re doing how you’re doing yet but it seems like you’re making money so tip of the cap to you, sir I’m just a regular old school investor I’ve had an index fund through Vanguard of VIGAX for a long time that I’ve added through the years and it’s grown really nicely I own a few staple stocks, Walmart, Amazon Visa, and they’ve done fine through the years I have a couple hundred thousand dollars in SPYI for dividend purposes I made a nice little purchase of Spotify back last January and it has done really well over the past 18 months or so. It’s up nearly 200%. I currently have a little over a quarter million dollars wrapped up in VG and ET I’ve only had ownership of their shares for about the past 6 to 8 weeks I think I’m about dead even on ET but I own a little over 8000 shares and I am pretty sure it’s gone to pop and at least be a double up within the next 12 to 20 months I have just under 9000 shares of VG and as of today I think I’m up about $65,000 on my original buy in at various entry points the past six or seven weeks Wishing I had waited for all my purchasing until it got down to $6.95 where I think I bought 2000 shares if I remember correctly But I was buying the fall and drop starting it around I believe $8-9 a share all the way down to $6.95 a year I’m a pretty simple guy and have zero debt and just recently retired in the past couple years All this talk of calls and puts and all this other weird stock market language I just don’t really understand it but no enough about it to stay away because it sounds real risky I just accumulate and purchase things that I think will make money moving forward and hold onto them
Items one and 6 are nearly identical. The S&P500 is the 500 largest companes in the US. I would drop the S&P500 index and keep 6. And I would consider adding SPYI. IT is a fund that uses covered calls to generate income form price volatility of the S&P500 index. With this change when you retire your fund should have sufficient dividend income to cover living expenses and enough growth to maintain you inome or increase your dividned income if neceaasy.
Whenyou access your account online somewhere you willl find aa setting that will turn dividend reinvestment on or or off. If you want the money saved for retirment use a Roth IRA account IF you want the money to be available to handle unexpected expenses or emergencies use a taxable account. There are two styles of investing. * Investing share price apreaciatiom using growth index funds. like VOO, VTI, VT. As long as you don't sell the stock you will not pay a nociable ammount in taxes. This is because the dividennd from these funds is Tiny, about 1.3%. So the are resonably tax efficiently. yearly average growth is typically 11% but in any ne year is higher, or lower than 5%, or you could actually loose money in a year. * The second major way to invest is dividend investing. Dividends are cash payments to you. If reinvested your account will grow. A good fund to get started with is SPYI with a yield of 11%. Invest what you can afford monthly. If you invest 7,000 a year about 600 a month the account you would have 100,000 in the fund and it would generate about 1K a month of income. As long as you continuum e oto make monthly deposits and reinvest the dividneds you money will will double in value every 6 years. If you turn off the dividend reinvestment cash will appearing the account monthly. A good book on dividend investing is The income Factory. The book list 68 funds and several example funds you can use in your personal account. Armchair Income on you tube is another source of information. r/dividends is another good source of information. For growth investing a good place to start looking for information is r/Bogleheads. Both investment styles can be used in one acount and each has plusses and minuses and can be used in any account to achieve any particular goal. The reason I recomended SPYI is that its higher dividend will grow your account and dividend income faster. Also the fund takes steps to reduce the tax you pay on the dividend Another similar fund is QQQI with a 13% yield. For a taxable account I would go with dividend investing because the constant stream of cash deposits can ver very useful if you loose your job. could add a money market fund to the account and store 6 months of living expense in cash a larger than normal ammount of money to cover a medical expense or car repair. Also the combination of cash and dividned income could be enough to allow you to retire well before age 60.
SPYI pays dividends monthly on it's s&p ETF.
It is working for me, I currently get 5K a month in dividend income and spend 4K of that on living expenses and then reinvest 1K equally into all of my funds. I retired at 55. I don't have to see anyting to cover my living expenses. I wish I knew about dividends 20 years earlier. Slowly selling off excess growth I have to further increase my income. Most of my income comes from my taxable account right now. It will be about 4 years before I can access my retirment accounts. There are people other there that have much more taxable dividend income than I have. The book The Income Factory is a good guide on how to set this up Two good funds you can use to start this are SPYI 11% yield and QQQI 13%. The book also list 68 funds the author has used in his portfolio and account he manages for friends. On youtube Armchair Income is also a good source of information.
That's what I'm contemplating. I have $500k cash to invest. Do I sell all my growth ETFs and YOLO into QQQI and SPYI and live the life now? We're both 44. Have good jobs, still funding 401k VTI $1500/month.
ETFs. Stick to monthly dividend payments and disable reinvesting. 1. The ETFs don’t go crazy up or down. 2.search dividend history with high yields 3. Invest. I’m a 9-5 so I do crypto ETFs and futures. Get like $200 a month in dividends. I found even riskier ETFs and I’m hitting those. You tell me what makes sense… 134 shares of SPYI makes Around $20 a month 134 shares of BITO makes around $134 or more if crypto is good. Even at its worst moments it’s still higher than $20….i guess I forgot to mention that for said market conditions. 134 shares of SPY is like $6,000 134 shares of BITO is like $2,500 tops This is more sustainable for my wallet. I used to be heavy on crypto and it paid out a lot of fun evenings. But the losses at times her also heavy. The collapse of AVAX, XRP recently from the glorious $3 Now I use dividend money to buy crypto in a passive wallet away from Robinhood and just stockpile it. If the train ever goes up again..I will be loaded.
I well know how SPYI works. ETFs definitely count.
pls check how SPYI works. Im talking about single stocks with yields above 10%. ETFs dont count
ETFs that seem fairly common on reddit (SPYI, QQQI) are blocked. its allowed now, but i recall a time when JEPI/JEPQ were blocked. i recently wanted to add some CLO ETFs and almost all of those were blocked. JAAA is the only one i could buy in merrill.
Thoughts on QQQI, JEPQ, and SPYI? I’m thinking on putting 10-20k into those. Is it worth it if I’m already in SCHD and SPLG?
I think paying off your dept is probably your best option. But there are fund that return 6% per year. For example UTG 7% yield, UTF 7%, SCYb 7%, PFFA 8%, PBDC 9%, SPYI%, ARDC 12% QQQI 13%. THESE FUNDS ARE Different Than VOO. VOO earning come from the price per share increasings. They funds I have listed don't have much price appreciation, Instead they make quarterly or monthly cash payments to you. The money will go directly into your brokerage account Now you can set your account to automatically reinvest the money into the account that generated the money or you just leave it as cash and spend it. As long as you don't sell shares you will continue to receive the money. You could move your emergency find into a prokerage account and use a brokerage money market fund to earn interest on your funds (My fidelity money market account yield 4.5%. Then you could use one or several of the funds above to continuously add cash to your emergency funds. If you have more cash than you want you can invest the money for more dividends. I am retired and I get enough money a month to cover all of my living expenses this way without selling shares.
That’s not necessarily true. SPYI yields more than 10%. Are you saying that’s a trap? QQQI? JEPQ?
Most people start out with a retirment account, Some use taxable and some have both for various reasons. Many start out with index funds Like a S&P500 fund. These are good and reliable but they don't produce income so you have to sell shares to get money. But if you have to sell when the market is down you could loose money. Because they produce very little income your yearly taxes are small. You can save up 2 million in index funds and pay ver little in taxes. For the Most part you pay most of the tax when you sell. r/ Bogleheads is a good site to discuss index fund investing. Others want income from their investments and if they want this income before age 60 they have to use a taxable brokerage account. r/dividends is a good site for discussing dividend investing. There are also books like The Income Factory which is a good reference. Armchair income on you tube is also good. In europe you can still invest in ETFs or funds. EFTs are exchange traded funds Maning they show up one exchanges were people by hand sell shares of stock VOO, PBDC , SPYI are some examples. Now use funds are typically listed on USE exchanges so in europe you may not have direct access to USE exchanges. Only European evangel. But there are still ways to do it. But I live in the US and don't know much about that. There are also CEFS that trade like stock but are also funds. And Europe has some european specific funds.
For a good distribution yield you want a company that makes more in profit than it pays out as a diviedend. A bad distribution yield is one that pays out more than it makes. Or one that uses a loan to pay the dividend. Also don't use the yield as guid to a good or bad dividned stock. Many do this and they generally assume that if the yield is higher than the government b and rate it is unsafe. And yet you have compass OXLC that have payed a dividend it dividned for 14 years at a yield of 23% AR% And it is not hard to find companes that are struggling financially and pay a yield of 1% Basically you hav not look at the companies earning report and look at there profit and compare that to there expenses. The yield number honest tall you anythng about the stability of the company. Many buy individual stock but I like to buy ETFs that pay a dividend such as UTG6.7% yield, UTF7%, SCYB 7%, pFFA 8%, PBDC 9%, SPYI 11%, QQQI 13% ARDC 12%. I have a small ammount in individual stocks. My current income is about 60K a year. I don't automatically reinvest my dividneds. They go into a Cash account. 4K a month goes to living expenses. Mush of the rest in automatically spit up and use to buy a little bit of each fund I own. Generally I only sell shares when I don't wan the fund or stock any more.But am also moving funds from a 401k into a roth so I do pay capital gains on that. Since retiring I estimate my tax based on 401K roth convrsion ammount, may expected income, andanthing else I plan to sell. Make quarterly payments to the IRS and then in April I either get a refund or pay a little pit more.
All of the post I see right now are for index funds. Index funds are tax efficient by them selves since the dividned is very small to nonexistent and you don't pay capital gains until you selll. Alstal o if you get injured or sick you will have a lot of medical epxenese with no liquid cash in the HSA. So using an index fund in HSA doesn't make sense to me. Funds like JEPI,JEPQ, SPYI, QQQI, and BTCI make a make a a lot more sense. Most or their total retune is in dividneds not captial gains. So you could put the money in high dividned fund and not reinvest the dividneds leaving a cash bucket in the HSA for immediate expenses. And then when that is depleted the cash bucket will gradually fill up. Then periodically when the cash ammount gets over ly large you can use the cash to grow the dividend income. Eventually you could get to a point we're your wouldn't need to addd any more money to the account because is will grow by itself faster than you could use it. At that point you could take the excess money and put it in an index fund for long term storage.
Investing in index funds is popular because he returns are good and there is very little tax with these funds in taxable brokerage accounts. But the problem with these funds is the only way to get money out is to sell (liquidate shares to ge the cash you need. VOO and VT are both good options for this. The other way is to invest in funds that pay dividends..Dividendds are cash payments to you. You can reinvest them into the fund that generated them, Or take the cash and spend in on that you need.The down side is you have to pay taxes on the income. But the tax is only a small portion of the total dividend. So you could put the money into a money market account or HYSA and then later withdrawal the ammount need for the taxes and then reinvest what is remaining. Fund you could use for this are UTG 6.7% yield, UTF7%, scab 7%. PffA 8%, SPYI 11% QQQI 13%, and AARDC 12%. My advice is do both VOO / and VTand then your selection of dividned funds. Set up two custodial accounts. one for each child with similar investments. I would also recommend reading the book The Income Factory.
ING--sleeper. I'm also in META, SPOT, COST, SPYI and YBTC. I'm up 13% YTD.
I'd rather farm the work out to an ETF. SPYI, JEPI something like that. I added those as I pulled the FIRE trigger. I own some AMZN that's way up, too. Rather than sell options against what I own, I added AMZY to the mix as well.
HYSA are for the most part money market funds. SOM yield a little bit more than others. So rather than moving from bank to bank to get a higher yield. Put the money in a taxable brokerage account. Fedelity offers 3 funds you can use. And there are other not associated with fidelity that can be used. You can also invest the funds in various bond funds.. And you could invest in dividned funds that pay comparable or higher yields. For enable SPYI is a dividned income fund with a yield of 11%.the money is not as liquid as money market accounts but you can get some very good returns you will never get from a bank.
Just having fun and putting my earnings into VOO, SPYI, and QQQI
You might want to point other that here are some very good investments out there were he ca put money in like PFFA 8% yield SPYI 11%, QQQI 13%. Maybe if he sees how good these are he will be more willing to sell the stock to invest in a better fund. You might also want to mention to him the benefits of diversification. So he can see it is a bad idea to have all you money in one stock.
SPYI is a covered call ETF. A brokerage owns a bajiokion SPY shares and sells covered calls, pays the premium in monthly dividend. Since they sell OTM calls it captures upside of SPY. I would do this strategy but the only problem is I don't own enough APY shares to effectively do this strategy because I am a poor. So I buy SPYI because they do it for me. If the SPY goes up SPYI owners win, if the SPY goes sideways SPYI owners win, if the SPY goes down SPYI owners lose slightly less. The only downside is if SPY goes up a lot, say 10% in 1 day because the pres tweeted, your gains are capped at 1% monthly dividend + whatever price the covered calls strike price is.
Do you mind explaining more? How does one invest in SPYI and not sure how the growth of SPY is connected to it.
yeah SPYI pays 12% annual and captures SPY growth so no NAV decay
if u put $1m into SPYI you would be earning $120k dividends a year, paid out at $10,000 a month. Couple this with the growth u receive from SPY and u likey could have retired. Instead u lost $300k. Yeah u belong here u idiot.
many people that invest for dividned s find they are less likely to sell because the income keeps coming in. Ehilr the young are often willing to take risks with investing those nearing retirment find they are no longer willing to take the risk. So you need to get in but don't imvet like you did in the past. Focus on good dividend funds like PFFA8% yield. pbde 9% SPYI 11%, SCYB 7% and ARDC 12%. I spent most of my life basically following wheat we now call the boglehead style of investing. Never gabe dividends a thought. until one of my minor investments started paying a dividend. That opened by eyes and I started investing for dividends. iI now find dividend much more interesting than I didd and I am not as worried about market crashes.
Made $517 (187% and 218%) on my 580 and 582 puts (should have sold at open). Closed my unh put and qbts put at a loss Bringing my realized options loss total to -$326 for the year. No more buying options for me i am so bad at it!! Time to lock in at work, find better distractions during down times, and let my calls i sold do their thing, plus covered call ETF (GPIX and SPYI) and VXUS Glad i didn't blow my portfolio up, 1% up YTD https://preview.redd.it/2wzddf7bgj2f1.png?width=1008&format=png&auto=webp&s=1de307112c3c352c36e913e9ca692073cf385171
A call on SPYI is crazy work. You def belong here, in a way that makes no sense.
Appreciate the details about the default rates and risk. I was missing that. >What I have been doing is a money market for for Cash A mix of high yield stock dividend funds and loan obligations with a goal of about 10 separate funds. Like a mixture of VMFXX, SPYI/JEPI, and JAAA/CLOZ? Here is my updated scenario based on your info: name | old | new | change ----|---|---|------ SGOV | 50K | 40K | FLOT | 30K | 0K | dropped, underestimated JAAA's stability JAAA | 20K | 40K | CLOI | 20K | 0K | dropped, redundant JBBB | 10K | 0K | dropped, redundant CLOZ | 10K | 20K | SPYI | 0K | 40K | replaces some CLOs, tax efficient vs. JEPI/Q total | 140K | 140K | still 100K in fixed, now 40K in high-div. volatile stocks yield | 5.3% | 7.5% |
I would go to a brokerage and just put 200k in an ETF. I am in the US so I don't know what ETFs are available there. But I can put 200K in QQQI and get a 13% yield (about 2K a month) and all for a fund feed or 0.68%. No other fees. Other similar funds in the US are JEPI, JEPQ, SPYI. Maybe one of these is available.
I bought some SPYI and QQQI specifically because of my thesis that we were entering really choppy sideways markets, which as you pointed out, are great for options.
IF you invest in an index fund like SPY and VOO in about 20years you will have about a 1 million at which point you could start selling it off. OR you could invest in a high yield fund like SPYI 11% yield. With all dividends reinvested you will have about 1 million in 20 years. But you will also have about 100K of yearly income, about 9K a month to cover living [expenses.YOu](http://expenses.YOu) would not need to sell shares of the fund for income. All of these funds spy, VOO, AND SPYI invest in the S&P500. VOO and SPY just by the index and hold it. Nothing else. SPYI however uses covered calls a trading stratagy to convert price variability to incom You will pay tax on the divided income But the fund also does tax loss harvesting to minimize the tax you pay on the dividend If necessary you can not reinvest some of the dividends to cover the the additional tax bill. But you will be able to live off of the dividneds and possibly retire early in 20 years. IF you add any excess cash to the fund it will grow faster.
I would put the 100k in SGOV (because that's your key amount). The rest you can just go 50% JAAA and 50% CLOI. I wouldn't personally go with your choices here. I have a similar need in one of my accounts so what I did was I put the needed money in short duration treasuries and the rest went to more complicated income etfs like SPYI.
Go look at the history of Dow Jones, Nasdaq, and S&P500 over the last 50 years and you will have your answer. I suggest you invest and put a specific date in mind like 15 years so in May 2040 you sell whatever. The market loves panickers like you it's how they make money. Stop beating yourself up over a loss, everyone has them. I do believe another dip in the market is on the horizon, so wait and buy back in, but then again it may not happen. Find companies you like and use like Costco, Kroger or Walmart etc, and then put $$ in emerging markets like Ai, or Quantum Computing. But you really want diversified portfolio buy ETFs like QQQ, SPYI, or MAIN and just let it ride. I daytrade extremely successfully and you need nerves of steel somedays. Do your research, don't try to reinvent the wheel, and most of all never listen to your brother in law trying to get you to buy XYZ company because they will make you a millionaire. Buy solid companies with proven track records over time of making money like Coca Cola, Colgate and Johnson & Johnson.
Back in january trump wasn't inspiring any confidence and his antics were not affecting the market yet. So I sold 200K of growth stock and purchases a a bond fund and SPYI. The intent and dividends from the two fund now equal to about 17K of additional income a year.
For active ETF I would go with PBDC 9% yield, SPYI 11%, QQQI 13% these either pick the best investments or manage trading activity trading activity to generate income. Other than ETF there are CEF (very similar) like ARDC 12% yield, UTF 7%, GLU7%.
Invest your money into $SPYI it pays 12% dividend, it’ll pay you 1% a month, use that to pay your mortgage
Unironically i have no buying power left to buy the dip  too busy buying SPYI and GPIX and NVDA calls on the run up 
For cash you need in a year you can't beet the 6% yield. However if this is a long term investment I would go with the stock market. For the stock market it depends on the tax you are willing to pay and if you want cash or share price apreciationn. If you in vest in an index growth fund LIKE VOO, SPYI or QQQM you would pay almost no tax yearly on the dividneds you receive (!% or less. You would only ow taxes on the gains when you sell it. If you want income and don't mind additional tax a a fund like QQQI is hard to bee. QQQI uses covered calls to convert price volatility to income. It also uses tax loss harvesting to reduce the tax on the dividneds it generates. Its yield is 113% which is double what the pbank pays. If you only spend the dividned it is constant source of income. If you reinvest the dividends your investment will double in value ever 6Years.
Holding SCHD and SPYI (which has delivered 12.9% dividends the past year).
How can I really have this many swings and misses? Obvious answer you are not good cat evaluating the stocks you invest in. Less obviousis is that you are only investing for captial gains. and very little deversification in your investments. investing in index funds isn't going to help much because you are still investing for captial cains. Have you ever thought about investing for dividneds using ETF orCEF. Dividend funds typically are professionally managed to identify the good and the bad an invest in many stocks. Alos if you reinvest the dividend your money will grow even if the stock price doesn't move. So you don't have to worry about shar price as much. How long a stock needs to double in value is determined by the law of 72. so you take 72 and divided by the yield7.2. So for a fund with a yield of 10%. your money would double in 7.2 years. For exaple ARCC, a BDC. This stock and its shares price has been constantly around 20 dollar with major drops in 2008(The bank crisis) and 2020 (Covid) 52 week high and low is 23.8 and 18.3So other than the market crashes the price is stable. So not much capital gains. However ARCC pays a yield of 9% and they have payed quarterly for about 20 years. Sao if you just bought it and held it for 8 yours you would have doubled your money. Which means they parted the dividend through each market crash. Yield does very a little bit nut not a lot. I have this stock but I am not buying any more. Why it is only one stock. Instead I am buying PBDC that invest in the Best BDCs it can find. It has about 20 BDCs in its holding and pays a yield of 9% this speads out the risk over 20 stocks so it one goes bad you might not notice. I also Have SPYI 11% it invests in the S&P500 and writes covered calls..to convert market volatility. into dividnends. The target yield is 11% but can very a bit. 9% to 13% yields are normal. I now make 1000 a month off of my investment in that und. I have no interest in seeing my dividend stockSs or funds. Yes the protfolio value dropped a lot during covid and dropped some since aapril. But I am making 50K a year of income from dividends. So that is not enough to encurage me to [sell.So](http://sell.So) I will hold them for as long as possible. I will only sell if there is really bad new related to one fund or stock
Ok here is my take, 45k emergency fund is on the high end unless your expenses are 7500-9k per month. I'd drop that to 35 and invest into index funds that I'll finish this comment with. Take the interest payments invest from the emergency fund and invest them in this order; Roth HSA Bridge account (taxable brokerage) Only hit your 401k to the match, invest the rest in the order above. Max out Roth before touching HSA Merge all of your finances, you're married, you're a team. Figure out what's in your wifes 401k and yours, make sure you aren't paying too much in fees. Ditch the mutual funds entirely and get into high yield ETFs, Examples here SPYI S/P 500 IRYI Reit IWMI Russell 2000 QQQI Nasdaq 100 VXUS Total International Setup a UMTA 529 for your kid You're doing fine buddy, comparison is the thief of joy
I used to have a several dividend paying stocks. But I decided to dump the ones which were mostly flat performing and keep the ones that had captial appreication. Instead of picking individual stocks I went with an ETF called SCHD. It holds roughly 100 stocks and yields about 4%. Over time the captial has appeciated as well. Keep in mind the fund is managed and not tracking any index, so in sense you are relying on the managers to do a good job. My thought process was many high yield diviend stocks are very high debt and operating and distributing solely on cash flows. Any hit the cash flows could be detrimental to the bussiness and the stock. So why risk captial used for dividend income on few to several companies, when I can get a more diversified basket? Other dividend income I have is from ETF's UTG and JEPI. They both yield roughly around 7%. UTG is a focused on utility stocks such as energy and telecommuncations. It pays a higher rate because they use some leverage with those same companies. But this is about as safe as leveraging gets. JEPI primarily sells covered calls like many other covered called based ETF's. But unlike most others, it has other activities to help mitigate risks and protect capital. If you compare it to pure covered call ETF's, it seems to preserve capital much better - but at lower yield. If you want to review pure covered call ETF's check out SPYI and QYLD.
The problem is most limit three investment choice to rowth index funds. and most only think about retirement. There are other safe funds to put money that don't have a lot of growth but generate cash income. And I aam not talking about bonds. SPYI is a covered call fund with a 11% yield SPYI is an improved generation of funds that have been reliably generating income at low risk If you put had 100K in a roth and you put that money in SPYI it would produced 11K a year in addition to the 7K a year you can deposit into the account. It would more than double the flow of money into the account. You don't have to do and it is just as passive as any fund you use. And when you retie you don't have to sell share to generate cash. Because SPYI generates cash monthly.
Wealth and income are different. If you want income, consider JEPQ, JEPI, SPYI, QQQI, or SCHD. Putting into S&P500 will generate you great wealth
Listen if I was you……. Pay that dumb ass house down… if you miss your money so badly open a Heloc….. use that money to make big boy money and not 4% on t-bills Open Heloc once your house is paid and you’ll be allowed to borrow 80% of your homes equity at a high interest rate “due to current interest rates” but who cares… you make enough to pay back the money easily… 105k / 26 4038.46 before tax Go find a good dividend paying etf or stock that you would stand by… don’t worry nobody will agree with your choice everyone has their own risk opinions but you should borrow low and ladder up Personally SPYH, SPYI, OMAH, JEPI, ISPY would be a good start, you’ll be much happier if your money works with the market rather than t-bills, just because the market goes down every now and then doesn’t mean you stop the plan, keep at it… that’s how your 401k works and yet you keep investing in it and it keeps growing
40k is considered a cash pile? I’d throw it into HYSA for sure. If you’re more risky you can throw it into SPY or QQQ or even SPYI
I’m adding to some core positions in both ETFs and individual tickers. Adding JEPI JEPQ SPYI VZ CCI SCHG SCGD VTI VOO QQQ Pretty much all the stuff I should’ve bought instead of weed stocks over the past 5-6 years lol
You could do 2 things. I would take 7000 from that each year and put it in a roth. The rest can stay in HYSA until it is tranfered to a roth. You could put the 40K in a brokerage and invest in SPYI. Set teh account to reinvest all vidiedends in about 24 years you would have about 600K with yearly dividned income of about 6 K a year.
The data in this post is highly misleading. Yes there are funds with very low expenses. Like VOO at o.03%. But keep in mind VOO management expenses are very low because all they do is manage money going in and out of the index fund. SPYI however is different. It also manages money in and out of the fund but does trading activity to generate income. A lot of additional work requiring more employees and insuring higher cost. SPYI has an expose rate of 0.68%. And then you have fund that artily search out the best investments to income in the fund which adds even more costs. which can push the expenses up to about 1%. No the author says fund prices have dropped dramatically since the 1990s. But he failed to mention that in the 1970 fund expenses were typically 2 to 3% and in some cases went as high as 6%. Back then a new Fund Vangard started searching for ways to lower costs. And they have been dragging the industry cost down for about 40 years. I don't know what the money market costs were back in 70s but they were likely higher than 1%.
There are two basic options depending on it you want to avoid taxes or not. INvest în an index fund with a low yield. About 1% or less. (VOO, VTI are popular). The only tax you pay with these funds is the dividned you receive yearly. A 1% dividend is trivial and works out to a rounding error for many people. You could save a million in assets this way and it would only generate 13K of insomnia that would be taxesd. compared to your work income this is a trivial amount of tax. These investment also generate impressive capital gains averaging about 11% per year. But in some years it can be a lot lower or a lot higher. As long as you don't sell the asset there is no capital gains taxes due. Invest in funds with a higher yield. You will pay a tax on the yield every year but it will only be a small portion of the income you get from the investment. But that said not all dividends are taxed at teh same rate depending on how the money was earned by the fund.. My favorite right now are SPYI 11% yields and QQQI 13%. This dividend is very close to captial gains of option 1 but in dividends. High dividneds often mean lower captial gains. >Honestly I’d like some higher potential returns and would like to pick some stocks individually for some fun. Based on that statement I sould expect option 2 is your preference. Additionally you didn't mention an emergency fund. but your 100K in HYS account could be that. But the problem with an all cash savings account is the once the money runs out your emergency fund is dead. A better emergency fund is a high dividned fund. As long as you don't sell the shares of the fund the dividends will keep coming in. So I would recommend slowly start building funds in QQQI and reinvest all dividneds. Keep building until the dividneds it generates is enough to cover all of your living expenses. That way when your cash runs out you could simply stop reinvesting the dividends to collect the cash. QQQI pays out a 1/13th of the yearly dividned each month. So you only need to wait a month for cash to start building in the account. Once you have enough dividned income to cover living expenses you can use the money to start other investments. Some will be like option 1 would be low dividend growth funds you can use for long term savings. Or you can deversify your dividned income with other dividned funds like PFF 6% yield, SCYB 7%, PBDC 9%, ARDC 12 %. There are many options between the 5 to 20% yield range. Look at ArmChair income on YouTube. He has a similar investing style and lists all the funds he uses.
> SPYI SPYI looks awful man, jesus. Just do VOO lol.
The more money you invest the better. Right now you don't earn much. But once you are on your own you should be aiming for about $500 a month. I would go with 50% in SPYI and 50% in VOO. Both invest in the S&P500 but they are very different funds. SPYI payoff dividned (basically interest) of 11% far higher than any bank savings account. VOOboesn't produce much in the way of dividends (11#%). But when the market is good its share price will grow quickly. Bun in a Bad market like this year it won't earn much if anything. SPYI in comparison earn 11% per year consistently.
I would put his emergency fund money in SPYI or QQQI. These are covered call funds that convert market volatility into cash dividneds. SPYI invests in the S&P500 and has a yield of11%. QQQI invests in the NASDAC 100 and has a yield of 13% Deposit half the the emgency fund money in one and reinvest the dividends automatically. the rest stays as cash. So if an emergency occurs use a credit c a credit card and the cash to cover immediate need and immediately turn dividned reinvestment off. In a month cash will start building up iin the account. 100K invest in one of these covered call funds will produce 1000 a month of cash. So if you build up the account with money automatic deposits while you are working the money will quickly grow Eventually the fund could get to 200K which would provide about half of his work income in an emergency (about 2000K a month But unlike a cash emergency fund the money will now run out. It just keep coming in. So If you son looses his job it could provide a very useful consistent flow of money. Furthermore you son could build it up to a point were it could provide 4K a month of income which is about what a $23 and hour job pays.
Surprised no one has said covered call ETFs like SPYI