High Yield = NAV Erosion? PART 2! Tips to Reduce Capital Decline + Portfolio Example
ฝัง
- เผยแพร่เมื่อ 26 ก.ค. 2024
- Join the PII Inner Circle for Exclusive Videos, Livestreams & Perks:
/ @passiveincomeinvesting
Details on the PII Inner Circle Membership:
• PII Inner Circle Membe...
Download Blossom: A FREE Mobile App for DIY Investors! - Follow my Portfolio LIVE & earn $ by completing short courses
blossomsocialapp.page.link/pa...
Purchase The Ultimate DIY Investing Package: FREE Lifetime updates Included!
A companion and reference tool to help you build a Portfolio according to your Goals
passiveincomeinvesting.ca/pro...
Book a 1 on 1 coaching session with me & ask me anything:
www.passiveincomeinvesting.ca/
Get $50 worth of Commission Free Trades when you open a Questrade Account:
questrade.sjv.io/PII
Questrade Review Video: • Switching to Questrade...
Organize and Manage your Portfolio more efficiently using PASSIV:
Get 50% OFF Passiv ELITE Membership (for 1 Year)
passiv.com/?ref=LCGFQDNGSY
Passiv Review Video: • Passiv: The Ultimate S...
Download my entire Portfolio in Excel for FREE:
passiveincomeinvesting.ca/fre...
Socials:
Facebook: profile.php?...
Instagram : / passive_income_investing
LinkedIn: / adriano-starinieri-55a...
00:00 Intro
02:53 Tip #1: Diversified vs Niche
04:36 Tip #2: Covered Call Strategy
07:17 Tip #3: Add Regular Funds
09:41 Tip #4: Reinvest!
10:56 Portfolio Unveil/Review
17:07 Final TIP #1: TIME is your Friend
18:00 Final TIP #2: Beyond the Ticker
19:37 Final TIP #3: Modify Portfolio
20:09 Final TIP #4: Its OK to Realize Lossses
21:25 Final TIP #5: Don't give up
MISSION:
Help everyday people to invest on their own, in order to create their own source of Passive Income to enhance their quality of life and reach Financial Independence
GOALS of this Channel:
1) To share my Personal Investing Journey & Strategy with the world. Everybody needs to make their own investing decisions. I am NOT against any style of investing and I will NEVER claim my Investing strategy is the “best”; its the best FOR ME
2) Educate you about Income Oriented Investing with a particular focus on Covered Call ETFs listed on the Canadian & U.S. Stock Markets
DISCLAIMER:
The videos and opinions on this channel are for informational and educational purposes only and do not constitute investment advice. Adriano Starinieri is not registered to provide investment advice and as such does not provide recommendations - those looking for investment advice should seek out a registered professional. Adriano is not responsible for investment actions taken by viewers.
#passiveincome #investing #dividendincome #financialfreedom #livingoffdividends #covered call #high yield #income
I began doing this 2 years ago. I’ve reinvested every penny.y portfolio shakes out to 11%, including owning VFV, XIU and few other index funds. I’m heavily weighted in EIT. Unfortunately I did have some niche positions like BMO’s ZW….Adrian, with all that, I’m getting killed on capital. My book value to market value is down 20%. Yes unrealized. Bottom line, when you enter the market matters.
I would say how long you Stay in the market matters even more. Time is so important with any investment.
What I’m wondering is what would ever make the market value of these funds increase? He mentioned it can increase as well. What would make that happen? I’m curious about that.
Thank you. I believe as time goes on we all see the problem with covered calls. Don’t get blinded by the high dividend. It comes at a price. Thanks for levelling with us on covered calls.
The problem is people are investing in these Covered Call ETFs and are disregarding the fact the underlying asset is overbought.
@@Alphahydro
Exactly.
the point is some people are willing and more than happy to pay the price.... you cannot put a price on financial freedom and independence , , or retiring 5, 10 or 2 years earlier ....can you?
but with these stock market sell-offs, would these not be oversold at the moment? @@Alphahydro
@@PassiveIncomeInvesting Unless the ETF goes way down and can eventually become delisted because it is so low. Those High Yield ETF are quite new and who knows on long they can last. If TSLY give 1$ divivend next month, the ETF will go down 1$ at ex date again. That is not retirement proof investing.
The person's total return over three years is $100k on a $1m portfolio. Average annual return is just over 3%. That is a very poor return.
what about all the vacations and experiences he took thanks to the passive income?? did you count that in the "total return"?
I’ve made my own 60/40 strategy by investing in 60% diversified covered call etfs and 40% in sector specific. Keeps things simple and still able to achieve 11.55% yield. Thanks for covering the topic, solid video.
100% equity funds? Any fixed income? 11.55% is distribution not yield.😀
Thanks Adriano - while I do agree that capital “erosion” does exist - that term is often misused. Erosion implies a permanent downward trend in a funds value. That can and does happen - but sometimes things are down simply because they are down along with the market. Along with diversity as a form of protection, reinvesting and averaging down costs also provide some benefits to counter the downturn ( and increases yield ). When the market goes back up - your gains will go up more.
Like you, I am primarily income focused - so the most important metric for me is my monthly income ( currently reinvested each month ). I don’t really focus on or worry about my overall portfolio value - rather track my moving average income/yield, and for each position I hold - track the income paid to date relative to the amount invested. Monthly income is used strategically to lower costs of the funds down the most.
Another suggestion is if you need to take the monthly income - if you can - reinvest at least part of it ( 80/20 or 75/25 for example).
Keep at it - and the portfolio value will take care of itself in the long run.
Agree 100% people think that they will get 40% income and should be up 20% capital wise. They are giving you your profits and gain in the form of dividends early instead of waiting for your capital to grow to a certain amount to utilize it and then they have to sell shares which lowers their income over the long run. I average 30% and use 7% and reinvest the rest at lower prices
Thanks for this adriano, your timing couldn't have been more appropriate. After last week's performance where I was down about 10% in just a week, I was kinda freaking out. I still have the trader mentality and haven't completely switched my brain to PII mode.
This post did a great job in calming me down.
I'll sleep better tonight thanks to you 😅
This was a good video. I listened to it 2 weeks ago while driving up to North Western Ontario. I figured I watch it. I had already started making some of these adjustments. Instead of investing large amounts at a time, I am shifted to smaller amounts and into some of the items discussed. It is not great that split funds have taken a beating. As long as they pay, I will wait it out and invest elsewhere. I am still hoping to retire (ish) in 2024 with just doing some teaching and consulting on the side. Which is what I do now anyway. Looking forward to downsizing and using PII to fuel my next adventure.
Big thumbs up on these type of videos, please do more of this type of videos! LOVE them!!
Question for you, would you recommend Preferred shares as part of the mix for retirees would they not be considered more safe and with today's high 7-8% shouldn't they also be part of the mix for us Retirees who are concerned with Capital decline?
I would just hold enough in these income funds to pay for your bills + some, then put all other funds in (dividend) growth stocks / funds
Love the these updates always great explanation. Really shows how a portfolio works in real life. Always great detail thanks
Excellent information!! Perfect timing needed this!!
great topic and question from your viewer.
I am in the exact same situation as that question, retired living off PII
Thanks for doing this video !!!
Thanks for talking about this and explaining it really well. It would appear than the most ideal situation would be 1)Share appreciation 2) Good Dividend . Obviously this is hard to get and hard to predict. However it is not impossible. Could you review some tickers that fit this criteria? For example my folks have been invested in $SLF (Sun Life) well over 20 years. It's paid a dividend the whole time and also has had it's ups and down but the general trend has been up. It would be great to analyze a few examples like this that some of us could look at in which we currently don't need the income and could benefit from the dividend reinvestment plus the potential share appreciation.
Great and necessary video. People need these assurance COACHING videos once in awhile. Great timing for this one Adrian. I follow Macro economics to help me understand the underlying stocks and opportunities. Eyes wide open. Thank you and good luck.
Thanks Adriano! Yes 🙌🏼 since I want income & some growth I’m currently doing aprox 50% index funds & 50% covered calls and income type funds as I follow your advice 🎉
Excellent video! Thanks for stepping through the example portfolio. That was really helpful, and much appreciated.
Glad you enjoyed it!
I'm in a similar situation, retired at the height of the market when I reallocated my portfolio from a dividend growth strategy to income generating. I started at around $1.1M (US) now around $730K but I have received approximately $300K in distribution so there is still a loss but just a paper loss. Because of PII I do not have to liquidate any positions because I can live off the dividends. Many months I don't need all the dividends so I reinvest but putting the money into 'safer' funds such as JPST or more recently HIGH, this reinvestment is for capital preservation. If I want to use money for a vacation I take it from these funds so I don't have to sell off other positions, now making the loss real. I agree, time is on my side so eventually funds will come back and I will regain value that has been lost. No one likes to see loss in a portfolio you spent your life building but it's just paper loss, I'm enjoying my life and I sleep well at night. Thanks Adrian !!
thanks for sharing my friend! good job
Hi, Excellent video. It would be great to summarize that info in a tableau: % of covered call in the fund, with leverage, without leverage, niche, not niche, etc...I am not an excell expert but I think it would help to vizualise the hole picture. Really appreciate your work. 😁
Good video, thanks for taking the time to help us figure this stuff out. Constantly educating ourselves is key and you're right, you do you, we'll own our decisions. Your process is very helpful for us to newbies to understand what to watch for etc. Thanks!
Good video! Covered call is essentially a spread trade, sometimes the return can come from the option side of the spread sometimes the long underlying side, sometimes a combination. If a fund is selling a large % of calls and they are at the money then it is more likely that the underlying side will decline in value and the returns will come from writing options. You have to consider slippage as well, when your underlying is being called away often there are costs to that...bid/ask spreads, commissions etc. I prefer the cc and put write funds that trade less often, write calls on cash settled indexes, and write a smaller % then some of the funds that advertise these large yields. With the super high yield funds the nav will likely decline over time and the returns will come from the option side of the spread. Of course asset allocation, diversification etc. is still important because, yes, you can lose money with the covered call strategy.
Thank you.. Any examples please
@@ourvid5480 jepq and jepi, or horizons funds, but there are others as well.
Excellent video, bit even more important, a very reassuring video. Thank you Adrian 😊
Glad it was helpful!
Great video. This is what I'm faced with due to the current market. I had unrealized gains on Tesla ETFs and got hit badly just a few days ago to unrealized capital loss. Still going to buy more at a cheaper NAV valuation.
EIT is excellent. The monthly distributions are mostly capital gains, dividends and sometimes of capital.
Have paid every month and have never reduced payouts since 1997.
That said, I am not as much in high yield CC funds but a blend of growth, CC and dividends. As I approach retirement probably move more into EIT.
TUED and TGED are great diversified funds for growth and income.
HTA is an excellent tech focused fund for income and growth. Some volatility but great track record over time.
Great topic…four great points the two main ones is to be diversified with dividend growth stocks and etfs the other is when you retire you should not be in just these aggressive funds that makes no sense …have a diverse mix that will help a great deal…
It souds to me like NAV erosion does exist - for the FUND. If the fund pays out more in dividends than they make in income, the fund will eventually fail when their NAV goes to $0, right? Even if they deliver positive total return, a fund could still bankrupt itself by paying out too rich a dividend?
That's the right question. Is the fund responsible enough to use a long term strategy or the fund has an expirarion date?
thank you adrian. very well said.
Thank you, i just keep learning and i love it,
How does one know how much they have made total in dividends? (Eg over 3 years) Do we have to track in excel? Or does passiv help with this?
Interesting video. I was pissed off for losing so much of my portfolio value to nav erosion. I didn't understand how it worked when I first started dividend investing. After Yieldmax funds came out, I literally sold everything else and diversified across all yieldmax and defiance funds and guess what? For the first time ever, I'm no longer seeing my account go down. The way the strategy works along with the massive dividends has just been working especially when you diversify across all of them and the average return is 47%! What are your thoughts on yieldmax funds?
Isn't $100k over 3 years a loss after inflation?
The nominal CAGR works out to around 3.2% while an S&P500/TSX blend is 6.5%. That's less than half the market return. This CC portfolio probably won't participate much in the coming recovery either.
inflation can mean different things to different people , its a vector, its not the same for everyone.
Your best video yet.
All sectors will experience bust & boom cycles - however I like holding both cover call ETFs and individual stocks /
I do focus on dividend resilience - and so I hold - Hmax / T / CM - BUT I also reinvest my dividends when I can
... just my thoughts 😅
Good video. I would say look into adding some non leveraged government bonds into your portfolio. Another thing is that if you don't want to sell that is where PII is good because you can adjust the % of your portfolio into some fixed income without selling anything.
I'm not familiar with all those funds but there needs to be more tech. Less than 2% in TXF? I'm guilty of this too. You want more upside load up on TXF/HTA/HTAE. Gold just hit 52 week lows a few weeks ago. GLCC is a great buy for any portfolio. Even with income investing one can get upside but you need to be strategic about it.
I don't think anybody's portfolio is up at the moment unless they started investing in the last year or have a tech rich portfolio.
Thank you so much for this video
Interest rates are at a 30 year high this is why the capital is down. Don’t sell
Really good video, can you make a list of all funds you recommend if one wants to mostly avoid covered calls? Call it a more conservative one than your own portfolio.
Also do you think that sector-specific covered calls ETFs (like CALL for example) are best to get in when that secor is down in general?
of course the best time to get into sector specific is when the sector is down :)
Started doing PII as a first time DIY invester. Thanks, you touched on everything I'm going through and has me feeling a lot more comfortable.
Your last chapter in this video...Well said !
Hcow looks good for some upside using fcf div growth strategy and higher yield
Could you please do this video for US investments to use?
can we get our questions asnwered on our portfolio
I really like this real case examination of a portfolio for someone who is retired. The gentleman's portfolio can definitely use some consolidations IMO. But I am not a financial advisor so I will just be quiet. 😁 Personally, I do not want my portfolio to be too diversified. The most important tip from Adrian is "Time is your friend" which means we are in this for the long game. Stayed invested and stay passive.
Btw, if the market is down, then everything is down. It does not matter what you own unless you are short. So, this is not PII specific.
While the overall market is mostly down for the last (almost) 2 years, this gentleman's portfolio is from following Adrian's portfolio 2 years ago (some of which he later modified/sold). "Learning experience" indeed.
He mentioned the type of call strategy impacts the capital decline potential. Which strategy is less risky? At the money? So less downside for the capital but less yield potential ? Thanks
it depends on how you see RISK? if you want to reduce the cap on your upside potential you would want, more OTM calls and/or less portfolio coverage % . this gives you more upside, but less yield.
I ve had all the bmo "zw?", sold out on all of them,as their performance over time and return dividend (distribution)wise have been less then ideal.
nav erosion at the moment is the name of the game, hence reason why I DCA, down manually but I do not drip due to market volatility.
I ve seen people bitching pardon my FRENCH about tsly etf , I advised them that thank god they did not hold underlying Tsla shares or they would be de[ressed and on top of it would not receiving month;y dividends.
Imo is a question of perception and lack of patience, like you ve mentioned market is generally more up then down, although I do not agree with your method of investing due to the lack of 0 growth opportunities and the way you jump all in a investment (instead of DCA in a fund0, I respect it and 2 it works for you and your wife.
All the best, love your breakdowns and your content, and keep doing you
I have a question. Most people talk about generating income, which for some I think is for retirement. If you reinvest the dividends you really don’t have the income you were after. Is it unusual for cc etf investors to actually take dividends and not continually reinvest them?
What about say selling DS for INC or vice-versa? Reason being a) streamlining b) improving yield and lowering average book cost as a tradeoff for realizing a loss, but of course long term the hope is it will be offset upon recovery. Or a similar play to consolidate DFN into DGS or vice versa. Thoughts?
closed end funds: the key is always the NAV. i think DS is at a discount now and INC.UN still at a premium
Thanks for sharing
I can't explain why I'm not worry but I can say I'm buying niche more than index for many years and I'm very happy
With niche fund I have more monthly income
Let's say I added a lot of every fund I've
I'm quite old and half of my income reinvest but from half living my life
I can show you I'm not losing big and not eroding also always I have growth fund too
The financial are life time opportunity
So in Canada BKCL, BANK, CALL great time to buy
Let's talk in 2025....
Wish you all only the best of the best
All mentioned is friendly opinion not a professional advice
My favorite lazy income portfolio for USA investors is SCHD/Jepi tilt to your liking and that's it 👍
quite lazy! but that will work. JEPQ /SVOL would be good too
@@PassiveIncomeInvesting that makes a lot of sense. Jepq and svol would balance each other's volatility.
Great video 😊 i Just have 1 specific question for myself as you mentioned time is your friend. Should i do DCA for DFN while it is still down ? Will it come up after interest rates cuts. I am ready to wait but just want to know your thought 😊
I ask myself the same question... all my other positions (agressive yield portfolio v3) are paying still, except for this one. I'm prepared to wait it out -- no question of selling at a loss -- but is the DCA reasoning valid here ? Basically, DCA could be catching a falling knife. Then again, we've seen signs of life on DFN recently, with a 5-6% up day... bewildering, really :/
it will go back up when the holdings go back up. dca could be good idea for sure
Thank you very much 😊 @PassiveIncomeInvesting
Over the past year, the big 7 US stocks have represented the majority of the S&P gains. If you compare your portfolio to an equal weight index you will get a more relevant comparison (ie VUN vs RSP/EQL). Most of the portfolio shown would not have these big 7 stocks. Most investments are down. Its not just CC ETFs.
I'm an amateur, but perhaps consider some funds that short the S&P/NASDAQ. When markets go down, you make a capital gain that you could use to buy more div stocks at cheaper prices. In saying this, you need to use some dry powder.
I invest in PII stocks including REITS, my gain from dividends and cap gains from swapping put me at over 50% ROI, my challenge is 40% of my total portfolio invested in high risk HMMJ ETHY BTCY, so praying for that high risk high reward to materialize and I also learned a valuable lesson 4 yrs into my PII journey
that's the best attitude to have. you learn your lessons, adjust going forward. think like a stoic, not like a sheep
But I have a question. One can consider one of YieldMax ETF as a FInance Operation Company with certain amount of Net Assets at the starting. It will have monthly operations associated with call or put writings, depending on its strategy and at the end of the month it will distribute the earnings in the form of dividends, and of course the ETF's share price will diminish accordingly. It is possible that it will also have loses it certain bad months, that is also understandable and in this scenario it will diminish net asset in the accounting balance, hopefully, I assume they will recoverit it when there be profits. My question is, are these type of ETF at least preserving their staring net asset value? Becasue I understand and I am OK with "losing" what's distributed as dividend in the share price, becuase you receive it as cash. But whats important here is, is the ETF being able to have a sustainable operation? that is, is the ETF at least preserving its initial net asset value? Or in a worse case scenario, recovering its initial net asset value?
are there ETFs that sell Puts? would be the opposite of a CC fund
PAYF, ZPAY ZPW
Excellent video 💯💯💯
The thing with DFN is that they are having an enormous competition from all these leverage ETF's and yield maximizers which have no risk of not paying VS with DFN having a risk of not paying when NAV < 15, more and more people prefer these competitors from DFN now, when that happens, DFN's total asset is going to get smaller and smaller, and I would say that's the same for all split funds that have high risks of not paying, these split funds are going to get smaller and smaller in terms of their total assets as people are shifting away to the ETF's. If these split funds don't change how they operate, they are going to get crushed.
you could be right, but remember, competition or NOT, that does not change the NAV, it only changes the stock price
No it doesn't, but these fund companies make their money based on their MER's, the smaller the fund, the less money the fund manager makes until they say they no longer want to continue the fund because they are not making enough to sustain the fund. Will that happen short term? No, but I do see this is a greater risk in the long term if these split fund managers stay content.@@PassiveIncomeInvesting
Good tips, but i didn't see my #1 strategy to prevent nav loss which is selling ITM call options on every ETF that has options, as a hedge. Or said another way: writing covers calls on covered call ETFs. I aim to at least break even on the sold call option, and reap the full divident of the underlying each month. If my shares get called away, i just reset the strategy and build the setup again.
that could work, but most people don't trade options. but i see how it could simply generate more income . thanks for sharing
You must be mostly in the US etfs then. None or very few of Cdn etfs have options. Even with US, option trading volume can be very thin (Yieldmax for example)
Adrian hi
How come all your recent videos' color is greyish and not high resolution?
i wish i knew :)
I have a very similar portfolio, only diff is that i have no div profits since i started few months back, so carrying only losses 😢
Can you please explain why GDV is down significantly when most of the holdings are up (MSFT, AAPL, MA, MCD, etc)?
th-cam.com/video/JxSYrJexZuU/w-d-xo.html
Awesome explanation. If you have the tolerance and a 5+ year time horizon would you do 50% of your portfolio in split share funds? GDV & SBC?
It helps if you buy them when they're down.
Would EQCL be a good option?
oh yeah
@@PassiveIncomeInvesting Would enjoy an analysis on it, if possible. After all, it's the first leveraged, all in one CC ETF to my knowledge.
In the USA market i own Jepi, Jepq, Divo, SPYI , UTG, UTF , RQI, Rnp. And it has done well for me almost no capital erosion
Private Facebook group? I clicked your Facebook link below. I don't see anywhere to sign up.
yeah its private lol. LIKE the page to get an invite (your profile must be set up to receive invites automatically when you LIKE private group)
Why do people not talk about NAV erosion with the single stocks? Only with the income oriented funds? The market is down at the moment.
I think the answer here is most single stocks that pay a dividend, rather than a distribution, are issuing net income profits to shareholders and retaining a portion to grow the business. Second, many of these businesses are growing on an annual basis, including raising their dividend.
@@James_48 100% agree. Also, dividends only depend on the business fundamentals, not the stock price. CC ETFs depend on the stock price (NAV). If NAV is down, distribution is going down too.
lol exactly. its because people cannot grasp the concept that the income is part of the total return and all they look at is stock prices and stock charts .
@@PassiveIncomeInvestingexactly! That was my point. COUNT the INCOME 💥
@@James_48you are receiving ongoing monthly income. The income must always be factored in.
Hoping there are more USA options mentioned - just started listening…
JEPI, JEPQ, DIVO etc - look for OTM strategy, less aggressive and more chance for capital appreciation
i got a playlist dedicated for U.S. Listed funds.
Where can I find it?
FEPI is a niche, correct?
Why doesnt someone do a up coming cc, example pltr, sofi, im sure they can think of some. Example buy 50k shares and do cc on 30% of them otm, similar to arkk but with cc
Edit: they should also pay 11/12 months
I think consolidating the Canadian bank positions would be an option for this portfolio
And adding more tech. You want upside in your portfolio you need tech, whether that's through covered calls or not.
Great video Adrian. I have been following you and was alarmed to see that I’m down $180,000 but you have calmed my fears and I will tweak my portfolio and wait it out. Thank you.
Fantastic!
What about writing a covered call on your covered call ETF? lol
Second
still no word from quadravest hey?
nope, only one in Canada left. Literally interviewed everyone else (except TD, RBC and a few small players who have recently joined the covered call game)
First
I think these high yield ETF's are a good tool to use for a small percentage of my portfolio. One does not have to go "all in" with every dollar. Learn how these investment products work.
You can potentially make quite a bit of money with these funds if you take advantage of times like today. Buy these funds while they are down. You will get capital gain when they rise again and benefit from that much bigger dividend yield in the process.
yup, you can say this for every investing strategy as well
@@PassiveIncomeInvesting Thats true. I just feel like people buy these funds at their peak, then it drops significantly and it turns them off the strategy. If you are a bit more patient with your entry point you can avoid that.
if he could just get the clm drip at nav he'd be golden
$1M in SCHD will yield nearly $50,000 per year in income.
3.7% yield? SCHD lost 8.27% this yr.
Yeah that's fake news lol
I would negotiate my margin down to 6 percent learn to live off 5k a month and just stay in margin debt while my portfolio drips forever creating more wealth. Buy borrow die
What will the Chicken Littles do when the markets begin to recover? The value of their portfolios will begin to rise and the dividends will keep paying.
whose chicken littles? lol
Lots of truth in this video, Learn how to work your portfolio. If you absolutely do not want to lift a finger buy index funds.
Covered calls are not just brainless investing. You still need to follow the market and pay attention to what's happening. If banks are at a 52 week high for example maybe it's not a good idea to invest in any bank funds at the moment. Wait until things cool off.
@@jumbothompson hit the nail on the head buddy ,100%.
I think a bigger concern I have for Ive WasHere is, even with the distribution reinvestment recommendation, his resulting income may not be able to keep pace with inflation over 10-20 years. There is risk of his buying power eroding over the long term.
what will then?
@@PassiveIncomeInvesting investing in single stocks, or an ETF with a consistent history of increasing dividends. In my opinion, he transitioned to living off passive income too soon by not realizing that, with his portfolio, it was virtually a necessity to reinvest a significant portion of his distributions. If I were offering advice I would say the percentage of reinvestment required to account for inflation, as well as the reduction in capital, is probably closer to 30% or even higher, but that will potentially impact the lifestyle he expected in retirement. But, when you consider that today you can get 7.56% from Scotiabank, 7.26% from CIBC and 8.04% from ENB (just examples) with the knowledge those companies raise their dividends on a consistent (even semi-annually for the banks) basis, then perhaps, at the very least, they are where distributions should be invested (or even consider moving some of the portfolio outright).
There’s no such thing as NAV erosion. The etf just can’t keep up with the rise and takes 100 % down fall
Tip 6: Unrealized losses are also losses
lol no they are not, hence UNREALIZED , they are real losses if and when you sell.
@@PassiveIncomeInvesting the lolest of lols indeed
Chefs kiss on final tip #2🤌