Thanks for your feedback. I'm encouraged by the positive response and will put together more Q&A videos in the future :) Regarding my portfolio, I'm working on a format to share more details and update it monthly. Videos are out of date so quickly!
5 good questions and 5 very good answers. I see SCHD as a stock screener and not as a basket of stocks. It re-screens every March which has worked well over the lifetime of the ETF. Lots of folks are upset that AVGO got canned. If you want AVGO, buy it individually. Though I wouldn't be surprised if it crashes and gets included back into SCHD in March 2025 or 26.
You summed it up a lot more efficiently than I did! People fall in love with stocks and/or companies and SCHD has no emotions, that's part of its value :) AVGO is a good company but not at any price.
7:03 LOL when SCHD made their changes I saw a lot of big TH-camrs make videos about how they "changed" their strategy or now focusing on X more than X....No they are not, it is all an algorithm!
Love this format! Highly informative. Especially appreciated the scenarios used to illustrate the ramifications of certain funds, strategies and actions. Safe travels!
Thanks for your feedback. I'm encouraged by the positive response and will put together more Q&A videos in the future :) Loving the travels so far...more to share.
Discovered your channel recently. Have learned a great deal about how to research income producers just from watching your videos. Thank you for sharing your knowledge!
Thanks for your feedback. I'm encouraged by the positive response and will put together more Q&A videos in the future :) The algorithm says thank you ;)
Thanks for your feedback. The weather in Asia is ideal for travel at the moment (not much rain) so I'm taking advantage! Currently in Danang and loving it :)
Great explanations. I also like strategically that you don't automatically drip and are selective about where you reinvest some of the dividends. This can be very helpful and I've found with my own portfolio the results do show up. Just takes some time but can make a big difference.
I have a similar investing strategy and style. I don’t hold SCHD either, but may do so in the future. I appreciate your content and thoughtful stock reviews. Thank you!! Those spring rolls look 😋
If you do another video like this, here’s my question: your current yield of 11% seems very high (unsustainable?) by historical standards. While the free money era was far from the norm, what were these investments yielding before the fed funds rate rose by 5% recently? Thanks!
I agree. 11% is higher than normal, after all we're in a high interest rate environment. When rates drop, the yields will too. I can't predict the future yield but I would estimate that it would be closer to 9% and perhaps I'll be withdrawing more like 7%. Fed isn't in a rush though so I'll keep collecting 11% for now :)
Thanks for the video. I’d like to see more of these Q&A videos. I’m new to the idea of this method of investing, so the more I learn the better. While I also enjoy your videos about specific stocks, learning about your methodology and thought processes is better in the long run.
@@armchairincomechannel totally good as long as your giving good entertainment and info some guys go an hour and don’t say nothing, but self promotion when I see that stuff I just click off
On the stop loss order: sometimes it's hard to determine to sell or not to. In one of your videos, you mentioned you sold ABR because of some report suggesting ABR may get into some sort of trouble so to play safe, you sold them. And ABR, I think, is considered a well managed mREIT with a very high dividend yield. Just recently, an Seeking Alpha article mentioned lots of insider selling HESM due to irs uncertain future after the Cheron acquisition, and HESM share price has fallen considerably for a while. Since I don't monitor my portfolio every day, I didn't know its falling prices until it's already down to $34~. Had I had stop loss order in place, i may have sold it sooner. But then HESM is an excellent midstream stock, Would I have sold it had I had a stop loss order in place? It don't know. But per your comment on the stop loss order, sometimes the story may not always be simple and straightforward. Just to share what comes to mind after hearing your comment on that.
Thanks for your feedback. The use or avoidance of stop loss orders each have pros and cons. My avoidance of stop loss orders relies on monitoring the portfolio to ensure that my reasons for holding the companies remains unchanged. On the other hand, many stop loss orders are triggered by changes in macro sentiment rather than a weakness of the individual stock or fund.
Since I have not seen any update on your Armchair Insider that you sold any of your HESM shares, I assume you still have them in your portfolio intact? Thank you for the reply.
Thanks for this, please do more QA in future (but don't stop your other great content, which is so very helpful!). I had been pondering stop loss orders too. Warren Buffett said something to the effect of, "Losing gains is sad, but losing capital is devastating." My IRA is so small (yet must last me for so many decades!) that losing any sizable amount of my capital can have serious long-term future consequences. I wonder about setting a stop loss around not 5% but maybe 20%. Losing more than that of my capital, it seems to me, could prove hard to regain/recover from.
It's a good point. Buffett said something to the effect of "Rule 1, don't lose money. Rule 2...see rule 1". I prefer to focus more on diversification than stop losses, based on the assumption that 35 different investments in different areas won't all take a massive hit at the same time (and if they do...ie pandemic....they will recover). It's partly an emotional question...what allows you to sleep well at night. If you know that you won't lose more than 20% and that makes you feel good then it can be the right thing for you. That kind of volatility doesn't bother me so I don't use stop losses.
Great to see you back! I did enjoy this. I'm interested if your top 10 is still the same or if you've made any changes. Has SVOL creeper into that list yet?
Thanks for your feedback. My top 10 has hanged slightly and it’s difficult to keep up with changes via videos, or playlists of videos. I’m working on a format to provide a simple list that I can update easily. Timing should be in the next 1-2 months.
Thank you for sharing your knowledge and time. Every video is full of real info without the hype. I've recently been adding these types of ETFs to my retirement portfolio. TUA is one addition and I'm wondering if you can find and explantion for March's dividend rate decrease 0.10 to 0.02? Is it a trend or specific event? Thank you.
Can you do a video on expense ratios since you are heavily invested in income funds? TH-cam inventors constantly say watch out for those high expense ratios that are over .5%. Are they really that expense to invest into over time? Also if you had to start over with your investment journey would you start out with the growth method, dividend growth, income investing or do a mix of all? I constantly go back and forward on which should I do. I prefer income investing, but seeing how growth stocks and ETFs compound so much so quickly draws me towards that.
A lot of good questions in there. When you're young and the investment journey is long, growth offers more tax efficiency and higher total returns over the long term. Also, over decades, minor differences in expenses make a difference. As retirement approaches, income becomes more important than making the biggest "pile". If I had my time again I'd start with growth (which is what I did) and then I'd transition to income gradually about 5 years before retirement (instead of waiting until the last minute). For expenses, the net total return is more important to me than trying to pay the lowest possible fees. Each asset category and fund is different so its hard to make sweeping rules that cover everything. I'll try to address these topics in more detail in future videos.
Wonderful content! Proud new subscriber here…quick?, you have said in previous videos you don’t invest in Defiance etfs, I personally own shares in IWMY….thinking about moving some into SVOL….are you a fan of SVOL?
Thanks for your feedback. I'm encouraged by the positive response and will put together more Q&A videos in the future :) I'll focus more on my own portfolio in future content.
Do you have a video that shows all of your holdings? I’m not looking for dollar details just all of the ETF symbols. Thanks and enjoy Vietnam! It looks beautiful.
My top 10 playlist covers most of my larger holdings but I don't have a video that runs through my portfolio. I'm planning to do that in the near future. Vietnam is wonderful!
Thank you for the insights armchair guy I certainly wouldn’t mind you doing more of these if you can find enough valuable topics. I have one question and one that seems to have some potential controversy. I follow Adrian of passive income investing he like you has retired but even younger. One thing he says is that NAV erosion is bullshit. He’s made two videos about that I’d love to hear what you think about his argument, I think it’s partly just the term🤔 as apposed to lose of investment capital. Interesting interpretation either way. Enjoy the pho love that stuff😜 safe travels !
I like some of Adriano’s investments and ideas but not all. He’s willing to accept more dividend cuts and NAV erosion than I am. His blended yield is probably higher than mine. Both approaches can work. I don’t know his exact stance on NAV erosion but it shouldn’t be ignored. If NAV erosion continues indefinitely then eventually there will be no principal left to generate income (assuming no reinvestment of dividends). 1% NAV erosion and 10% dividends is still a net of 9% total return but requires reinvestment to be sustainable. Flat to rising NAV is my preference but ultimately, Total Return is the best measure.
Thanks for the suggestion. BUCK is new and its payout history is volatile. The 12% is the result of them recently doubling the distribution. Haven't done a deep dive on that one but based on the performance of HIGH (which I jumped into too quickly and later sold), I'll wait to see if the 12% is sustainable.
Very good video! Interestingly, IToo retired in June of 2017 due to my husband passing away and since he had been paying for everything with his accounting practice which went to my son, it was time for me to take the savings and brokerage accounts abd make them pay me while growing the corpus simultaneously. Had a rough start of 5 months in 2022 and gave not quite returned to my November high in 2021 but with the new option based ETFs I think it won’t be long now. I pull out about $80-90,000 per year from this portfolio annually. Are you Canadian? Not sure about that accent! Agree with most everything you said!
I’ve been to Sydney and Manley beach for a short stay before cruising to New Zealand and ultimately cruising back from Sydney to LA and enjoyed my South Pacific adventures. I have a strange portfolio with 34% in very high dividend monthly payers many of which are option based and 65% in Short term CDs and SNAXX with Schwab. I might eventually add more to equities !
Excellent video I’d like the format. Please give us more of the same one quick question have you read the income factory by Steven Bavaria and your thoughts if you have
Thanks for your feedback. More to come. I haven't read Steven's book but I've been reading his articles for many years...long before I retired. I don't agree with every investment he holds but the basic principals he teaches were a huge inspiration for me and opened my eyes to the potential of income investing.
@@armchairincomechannel maybe you can confirm that he posts his portfolio on seeking Alpha which you have a link to which I could purchase through your coupon on your channel thank you
Newbie question here - is the yield of a fund calculated net of fees? For example, if JEPI has a yield of 8%, should you then subtract the fee % you pay? Or is the yield your total yield after fees have already been subtracted (hope that makes sense).
Good video. I am pretty sure SPYI is going to behave different than your JEPI example in way of distributions over the years with NAV not recovering during pullbacks in S&P vs the vix for JEPI. I know I go against the grain saying SPYI is going to upset people, but if people like their distributions to decrease over time then hold SPYI. No need to debate it just watch. SPYI will go up as well with nav upside but nav will staircase down over the years.
Good question. I asked why the SPYI distributions are constant and Garrett explained that they manage it that way using various levers including the portion of the portfolio they write options on. See our most recent interview.
We shall see. I'm simply follow the data. So far SPYI is delivering on its strategy as outlined in the prospectus. If that changes, I'll make adjustments. At the money funds like QYLD exhibit some of the behavior you're describing so I don't hold those.
So, do you withdraw 8% no matter if you need it or not? We are retired and mainly living off our SS and the cash we saved for when we retired. We are allowing the investments to grow and add to them as the dividends come in. So, I don't plan on taking out any funds unless I need them. I don't want to expose my returns to taxes when I could leave them until I need them. Thanks
If my expenses were low one month and I needed less than 8% then I'd reinvest it into the portfolio to help it grow faster. I don't keep a large cash allocation because I'd prefer to put that cash to work earning 10%+. However, keeping a cash position is desirable for some people because it gives them a sense of security, or perhaps they have some possible/probable large expenditures to plan for. I don't receive a pension or any SS. Thanks for sharing your strategy, it sounds like its working well!
@@armchairincomechannel My cash is in money market making over 5% so I don't mind having my rainy day funds sitting there. I tend to keep my costs down by not buying things I don't need. God has richly blessed us and we seem to be able to live mostly off of SS. I have been investing in good dividend-paying vehicles. Thanks for all the work and videos.
So with your 8% rule for a fund like SCHD that doesn't pay 8%. Does that mean you take the 3+% dividend and sell enough SCHD to make up your 8%? And then sell about 4% (assuming a total annual return of 12%) to invest in something else? Thanks
The person below is correct. My blended yield is higher than 8% so I don't sell anything unless it 1/ Goes up in value so much that the yield is too low or 2/ Changes the business plan and becomes an undesirable investment. I don't sell to pay bills or based on short term price fluctuations.
That's partly a personality question. If dividend investment makes you more happy/motivated, and keeps you on track with allocating funds to investing then that's great. When you're that far out from retirement though the tax efficiency and long term growth are better with growth stocks. So in general terms, growth is better for accumulation and I prefer income for preservation/distribution (ie paying the bills).
I'm in Asia and the health care is excellent. I pay out of pocket for everyday medical expenses (its affordable) and I have a policy that covers hospitalization in Asia or Europe. It costs $280/month.
My top 10 playlist covers most of my larger holdings but I don't have a video that runs through my portfolio. I'm planning to do that in the near future.
I don't...just Facebook. Maybe I'm too old but I don't like using Discord. Facebook isn't ideal but the best platforms (Skool and Circle) aren't free and I don't want to have to charge for a community.
➡ Snowball Dividend Tracker (Create a Free Account, and the 10% Discount will appear under "Subscribe"):
armchairincome.link/snow
The best channel on youtube by far for income investors!
You just made my day :)
I loved this Q&A format! Would you ever do a video where you cover your entire portfolio?
Thanks for your feedback. I'm encouraged by the positive response and will put together more Q&A videos in the future :)
Regarding my portfolio, I'm working on a format to share more details and update it monthly. Videos are out of date so quickly!
Loved this format. Please keep these coming.
Will do!
Thanks for your feedback. I'm encouraged by the positive response and will put together more Q&A videos in the future :)
5 good questions and 5 very good answers. I see SCHD as a stock screener and not as a basket of stocks. It re-screens every March which has worked well over the lifetime of the ETF. Lots of folks are upset that AVGO got canned. If you want AVGO, buy it individually. Though I wouldn't be surprised if it crashes and gets included back into SCHD in March 2025 or 26.
You summed it up a lot more efficiently than I did! People fall in love with stocks and/or companies and SCHD has no emotions, that's part of its value :) AVGO is a good company but not at any price.
Well done Sir. You are exceptional and I expect that I will see much more of you in the future.
Thanks! I appreciate your support.
You’re back! Officially the best day of the week for me! Thanks for all you do…
You are so welcome! I was traveling a lot but now I have some time to research again. 😀
@@armchairincomechannel awesome and can’t wait!
7:03 LOL when SCHD made their changes I saw a lot of big TH-camrs make videos about how they "changed" their strategy or now focusing on X more than X....No they are not, it is all an algorithm!
We are of the same mind :) Thanks for being one of the first to comment (again). Enjoyed your 100% yield video ;)
Must not of seen you in the comments ;) haha i think you upload right when i start my work day@@armchairincomechannel
I just check the webcam I installed next to your desk...easy!
The Q&A format is a nice change. Helps me understand your logic and investment choices. One every few months would be great!
Thanks for your feedback. I'm encouraged by the positive response and will put together more Q&A videos in the future :)
really good explanations on covered call ETFs and SCHD strategies 👏🏻
Appreciate it!
Another great video. Clear. Concise. I love the q&a format along with your regular videos highlighting specific stocks and funds
Then it shall occur again :)
Thank you for the Q & A segment. Much appreciated.
Love this format! Highly informative. Especially appreciated the scenarios used to illustrate the ramifications of certain funds, strategies and actions. Safe travels!
Thanks for your feedback. I'm encouraged by the positive response and will put together more Q&A videos in the future :) Loving the travels so far...more to share.
Discovered your channel recently. Have learned a great deal about how to research income producers just from watching your videos. Thank you for sharing your knowledge!
Glad it was helpful! I appreciate your feedback.
Enjoyed the format. Commented for the algorithm. Keep up the good work
Thanks for your feedback. I'm encouraged by the positive response and will put together more Q&A videos in the future :) The algorithm says thank you ;)
I like that you brought up bdc fund fees. Please address it with a video soon
It's on my list :) Can only talk about fees for so long before I have to change the subject but I'll get to the BDC fee topic.
Looks like you have some summerrolls. I love them. Sure good in Vietnam. Video good like everytime!
You're right and I'm currently addicted to them!
Your answers to investment questions was very helpful. Would love to see more.
Thanks for your feedback. Glad it was helpful 😀
Another FANTASTIC video chock full of common sense and great info! :). thank you!
Glad it was helpful!
I’d love more Q&A sessions. At 50 and retirement is not too far off in the distance so I’m Learning as much from your channel as I can!! 😊
Congrats on your approaching retirement, its an exciting time! After the positive response, I can say that there will be more Q&A videos :)
Thank you for the video. I enjoy hearing where you are in the world as well. Lots of good info here!
Thanks for your feedback. The weather in Asia is ideal for travel at the moment (not much rain) so I'm taking advantage! Currently in Danang and loving it :)
@@armchairincomechannel I have been to Danang. It is a fun city! I am in the US now but I used to live in Asia for many years.
Danang keeps getting better each year with new restaurants and cool hotels. Above all, the people are wonderful.
Really enjoyed this Q&A episode. Lot of good info thanks!
Glad you enjoyed it!
Excellent video! I like hearing your methodologies. Good sound logic.
That makes two of us! Glad you liked it.
Good to see you. Always appreciate your videos.
I appreciate your regular viewing :)
Great explanations. I also like strategically that you don't automatically drip and are selective about where you reinvest some of the dividends. This can be very helpful and I've found with my own portfolio the results do show up. Just takes some time but can make a big difference.
Yes, DRIP can often mean buying more of an expensive stock just because its "easy". Thanks for your feedback!
This was great; thank you very much for all you do. Please keep 'em coming.
Glad you liked it. More on the way :)
I agree I manually reinvest also
Its more work, but worth it.
I have a similar investing strategy and style. I don’t hold SCHD either, but may do so in the future. I appreciate your content and thoughtful stock reviews. Thank you!! Those spring rolls look 😋
I'm addicted to spring rolls and Banh Mi. I need to learn some more local dishes. Loving the food here!
If you do another video like this, here’s my question: your current yield of 11% seems very high (unsustainable?) by historical standards. While the free money era was far from the norm, what were these investments yielding before the fed funds rate rose by 5% recently? Thanks!
I agree. 11% is higher than normal, after all we're in a high interest rate environment. When rates drop, the yields will too. I can't predict the future yield but I would estimate that it would be closer to 9% and perhaps I'll be withdrawing more like 7%. Fed isn't in a rush though so I'll keep collecting 11% for now :)
Thanks for the video. I’d like to see more of these Q&A videos. I’m new to the idea of this method of investing, so the more I learn the better. While I also enjoy your videos about specific stocks, learning about your methodology and thought processes is better in the long run.
Thanks for your feedback. I'm encouraged by the positive response and will put together more Q&A videos in the future :)
Thanks for sharing.
You're most welcome!
Yes good episode I also like the short concise format
Thanks, although I was aiming for 10 minutes and it turned into 15 ;)
@@armchairincomechannel totally good as long as your giving good entertainment and info some guys go an hour and don’t say nothing, but self promotion when I see that stuff I just click off
You and me both!
On the stop loss order: sometimes it's hard to determine to sell or not to. In one of your videos, you mentioned you sold ABR because of some report suggesting ABR may get into some sort of trouble so to play safe, you sold them. And ABR, I think, is considered a well managed mREIT with a very high dividend yield. Just recently, an Seeking Alpha article mentioned lots of insider selling HESM due to irs uncertain future after the Cheron acquisition, and HESM share price has fallen considerably for a while. Since I don't monitor my portfolio every day, I didn't know its falling prices until it's already down to $34~. Had I had stop loss order in place, i may have sold it sooner. But then HESM is an excellent midstream stock, Would I have sold it had I had a stop loss order in place? It don't know. But per your comment on the stop loss order, sometimes the story may not always be simple and straightforward. Just to share what comes to mind after hearing your comment on that.
Thanks for your feedback. The use or avoidance of stop loss orders each have pros and cons. My avoidance of stop loss orders relies on monitoring the portfolio to ensure that my reasons for holding the companies remains unchanged. On the other hand, many stop loss orders are triggered by changes in macro sentiment rather than a weakness of the individual stock or fund.
Since I have not seen any update on your Armchair Insider that you sold any of your HESM shares, I assume you still have them in your portfolio intact? Thank you for the reply.
Thanks for this, please do more QA in future (but don't stop your other great content, which is so very helpful!). I had been pondering stop loss orders too. Warren Buffett said something to the effect of, "Losing gains is sad, but losing capital is devastating." My IRA is so small (yet must last me for so many decades!) that losing any sizable amount of my capital can have serious long-term future consequences. I wonder about setting a stop loss around not 5% but maybe 20%. Losing more than that of my capital, it seems to me, could prove hard to regain/recover from.
It's a good point. Buffett said something to the effect of "Rule 1, don't lose money. Rule 2...see rule 1". I prefer to focus more on diversification than stop losses, based on the assumption that 35 different investments in different areas won't all take a massive hit at the same time (and if they do...ie pandemic....they will recover). It's partly an emotional question...what allows you to sleep well at night. If you know that you won't lose more than 20% and that makes you feel good then it can be the right thing for you. That kind of volatility doesn't bother me so I don't use stop losses.
Great to see you back! I did enjoy this. I'm interested if your top 10 is still the same or if you've made any changes. Has SVOL creeper into that list yet?
Thanks for your feedback. My top 10 has hanged slightly and it’s difficult to keep up with changes via videos, or playlists of videos. I’m working on a format to provide a simple list that I can update easily. Timing should be in the next 1-2 months.
I was thinking the same about TSLY right before you said it, I almost dipped my toe in it 😅
Those are some choppy waters for dipping a toe :)
Great stuff! Thanks
Glad it helped!
Thank you for sharing your knowledge and time. Every video is full of real info without the hype. I've recently been adding these types of ETFs to my retirement portfolio. TUA is one addition and I'm wondering if you can find and explantion for March's dividend rate decrease 0.10 to 0.02? Is it a trend or specific event? Thank you.
Thanks for your feedback. I don't follow TUA...the yield is lower than the range I'm looking for. I don't know the story behind their dividend change.
Great info. Thanks
Glad it was helpful!
You always deliver........WELL DONE
Thanks for your regular comments and support :)
Really like this format. My vote is yes.
Thanks for your feedback. I'm encouraged by the positive response and will put together more Q&A videos in the future :)
Loved the video!
Thanks for your feedback. I'm encouraged by the positive response and will put together more Q&A videos in the future :)
Can you do a video on expense ratios since you are heavily invested in income funds? TH-cam inventors constantly say watch out for those high expense ratios that are over .5%. Are they really that expense to invest into over time? Also if you had to start over with your investment journey would you start out with the growth method, dividend growth, income investing or do a mix of all? I constantly go back and forward on which should I do. I prefer income investing, but seeing how growth stocks and ETFs compound so much so quickly draws me towards that.
A lot of good questions in there. When you're young and the investment journey is long, growth offers more tax efficiency and higher total returns over the long term. Also, over decades, minor differences in expenses make a difference. As retirement approaches, income becomes more important than making the biggest "pile". If I had my time again I'd start with growth (which is what I did) and then I'd transition to income gradually about 5 years before retirement (instead of waiting until the last minute). For expenses, the net total return is more important to me than trying to pay the lowest possible fees. Each asset category and fund is different so its hard to make sweeping rules that cover everything. I'll try to address these topics in more detail in future videos.
Income Investing + ASEAN living + knowledgeable information = New Sub ⭐ and Liked 👍
Welcome to the Community :) More investing info and asian travels to come!
Wonderful content! Proud new subscriber here…quick?, you have said in previous videos you don’t invest in Defiance etfs, I personally own shares in IWMY….thinking about moving some into SVOL….are you a fan of SVOL?
IWMY price is falling like a rock so the high dividend doesn't tempt me. I like SVOl a lot and have a few videos about it. Currently holding it.
Awesome video more of this please!
Thanks for the feedback. I already have a long list of more questions to address for the next version of this format.
Long SCHD 40% of my ROTH IRA
That's a big portion! Thanks for watching and best wishes for your investing journey.
Like the question & answer video but would like viewing your personal portfolio more often!
Thanks for your feedback. I'm encouraged by the positive response and will put together more Q&A videos in the future :) I'll focus more on my own portfolio in future content.
I liked the format-------------
Thanks for your feedback. I'm encouraged by the positive response and will put together more Q&A videos in the future :)
Love the knowledge. Thanks for sharing.
Thanks for watching!
Do you have a video that shows all of your holdings? I’m not looking for dollar details just all of the ETF symbols. Thanks and enjoy Vietnam! It looks beautiful.
My top 10 playlist covers most of my larger holdings but I don't have a video that runs through my portfolio. I'm planning to do that in the near future. Vietnam is wonderful!
really appreciating your videos. thanks
My pleasure!
Thank you for the insights armchair guy I certainly wouldn’t mind you doing more of these if you can find enough valuable topics. I have one question and one that seems to have some potential controversy. I follow Adrian of passive income investing he like you has retired but even younger. One thing he says is that NAV erosion is bullshit. He’s made two videos about that I’d love to hear what you think about his argument, I think it’s partly just the term🤔 as apposed to lose of investment capital. Interesting interpretation either way. Enjoy the pho love that stuff😜 safe travels !
I like some of Adriano’s investments and ideas but not all. He’s willing to accept more dividend cuts and NAV erosion than I am. His blended yield is probably higher than mine. Both approaches can work. I don’t know his exact stance on NAV erosion but it shouldn’t be ignored. If NAV erosion continues indefinitely then eventually there will be no principal left to generate income (assuming no reinvestment of dividends). 1% NAV erosion and 10% dividends is still a net of 9% total return but requires reinvestment to be sustainable. Flat to rising NAV is my preference but ultimately, Total Return is the best measure.
Which state are you from? Your accent is so clean even for non native speakers like me.
Victoria. But I lived in the US for 22 years so that took the edges off.
Excellent video thanks
Glad it was helpful!
BUCK is another interesting ETF. It now has a yield of almost 12%.
Thanks for the suggestion. BUCK is new and its payout history is volatile. The 12% is the result of them recently doubling the distribution. Haven't done a deep dive on that one but based on the performance of HIGH (which I jumped into too quickly and later sold), I'll wait to see if the 12% is sustainable.
Very good video! Interestingly, IToo retired in June of 2017 due to my husband passing away and since he had been paying for everything with his accounting practice which went to my son, it was time for me to take the savings and brokerage accounts abd make them pay me while growing the corpus simultaneously. Had a rough start of 5 months in 2022 and gave not quite returned to my November high in 2021 but with the new option based ETFs I think it won’t be long now. I pull out about $80-90,000 per year from this portfolio annually. Are you Canadian? Not sure about that accent! Agree with most everything you said!
Thanks for sharing your story. I was born in Australia, but have traveled a lot so my accent is mushy.
I’ve been to Sydney and Manley beach for a short stay before cruising to New Zealand and ultimately cruising back from Sydney to LA and enjoyed my South Pacific adventures. I have a strange portfolio with 34% in very high dividend monthly payers many of which are option based and 65% in Short term CDs and SNAXX with Schwab. I might eventually add more to equities !
Good video, thanks. Assuming you're in Thailand?
I'm currently in Danang, Vietnam.
Excellent video I’d like the format. Please give us more of the same one quick question have you read the income factory by Steven Bavaria and your thoughts if you have
Thanks for your feedback. More to come. I haven't read Steven's book but I've been reading his articles for many years...long before I retired. I don't agree with every investment he holds but the basic principals he teaches were a huge inspiration for me and opened my eyes to the potential of income investing.
@@armchairincomechannel maybe you can confirm that he posts his portfolio on seeking Alpha which you have a link to which I could purchase through your coupon on your channel thank you
Hmmm...interesting idea. I'll look into it. Thanks for the suggestion.
Need to hear more about QQQI
More coming soon (this month).
Newbie question here - is the yield of a fund calculated net of fees? For example, if JEPI has a yield of 8%, should you then subtract the fee % you pay? Or is the yield your total yield after fees have already been subtracted (hope that makes sense).
The fees have been subtracted before the yield is calculated. You receive 100% of the advertised yield.
Great video! How was Thailand?
Thanks for the feedback, glad you liked it. Bangkok was wonderful. The food is incredible!
Good video. I am pretty sure SPYI is going to behave different than your JEPI example in way of distributions over the years with NAV not recovering during pullbacks in S&P vs the vix for JEPI. I know I go against the grain saying SPYI is going to upset people, but if people like their distributions to decrease over time then hold SPYI. No need to debate it just watch. SPYI will go up as well with nav upside but nav will staircase down over the years.
SPYI is outperforming JEPI now, and in a market correction SPYI holders could switch to JEPQ which rises faster on any upturn.
Fact that distributions don’t change despite lower volatility gives me pause. I’ll stick with my JEPI and JEPQ.
Good question. I asked why the SPYI distributions are constant and Garrett explained that they manage it that way using various levers including the portion of the portfolio they write options on. See our most recent interview.
We shall see. I'm simply follow the data. So far SPYI is delivering on its strategy as outlined in the prospectus. If that changes, I'll make adjustments. At the money funds like QYLD exhibit some of the behavior you're describing so I don't hold those.
@@armchairincomechannel I saw all your videos that why tested all SPYI distribution.
Awesome vid sir 👌 👏 👍
So nice of you to say that! Thanks for your feedback :)
So, do you withdraw 8% no matter if you need it or not? We are retired and mainly living off our SS and the cash we saved for when we retired. We are allowing the investments to grow and add to them as the dividends come in. So, I don't plan on taking out any funds unless I need them. I don't want to expose my returns to taxes when I could leave them until I need them. Thanks
If my expenses were low one month and I needed less than 8% then I'd reinvest it into the portfolio to help it grow faster. I don't keep a large cash allocation because I'd prefer to put that cash to work earning 10%+. However, keeping a cash position is desirable for some people because it gives them a sense of security, or perhaps they have some possible/probable large expenditures to plan for. I don't receive a pension or any SS. Thanks for sharing your strategy, it sounds like its working well!
@@armchairincomechannel My cash is in money market making over 5% so I don't mind having my rainy day funds sitting there. I tend to keep my costs down by not buying things I don't need. God has richly blessed us and we seem to be able to live mostly off of SS. I have been investing in good dividend-paying vehicles. Thanks for all the work and videos.
Great video, do you invest in CEF ?
Not many at the moment because high interest rates make their debt expensive. I have UTG and ARDC.
Beautiful backdrop where was that?
Danang, Vietnam. 🇻🇳 Wonderful place!
So with your 8% rule for a fund like SCHD that doesn't pay 8%. Does that mean you take the 3+% dividend and sell enough SCHD to make up your 8%? And then sell about 4% (assuming a total annual return of 12%) to invest in something else? Thanks
No. He doesn’t hold assets that yield that low. MAIN is exception in the 6% range.
The person below is correct. My blended yield is higher than 8% so I don't sell anything unless it 1/ Goes up in value so much that the yield is too low or 2/ Changes the business plan and becomes an undesirable investment. I don't sell to pay bills or based on short term price fluctuations.
Correctamundo!
When is 3rd part of qqqi coming please?
Later this month. Just needed to find a reliable and fast wifi location. Mostly likely within the next 14 days.
is it okay to invest like this 10-20 years before pulling the income, basically creating the growth from reinvestment?
That's partly a personality question. If dividend investment makes you more happy/motivated, and keeps you on track with allocating funds to investing then that's great. When you're that far out from retirement though the tax efficiency and long term growth are better with growth stocks. So in general terms, growth is better for accumulation and I prefer income for preservation/distribution (ie paying the bills).
@@armchairincomechannel thank you so much, 5 years before i will start accumilating income funds, thats sounds like a balanced approach
How do you pay for health insurance
I'm in Asia and the health care is excellent. I pay out of pocket for everyday medical expenses (its affordable) and I have a policy that covers hospitalization in Asia or Europe. It costs $280/month.
Do you share your portfolio makeup?
My top 10 playlist covers most of my larger holdings but I don't have a video that runs through my portfolio. I'm planning to do that in the near future.
do you have a Discord channel?
I don't...just Facebook. Maybe I'm too old but I don't like using Discord. Facebook isn't ideal but the best platforms (Skool and Circle) aren't free and I don't want to have to charge for a community.
I think you moved to Asia
I think you're correct. I love Asia! The world is a big place and life is short :)
Nooooo HIGH just did a big dividend cut from .20 to .16 :////
Yes. Glad I sold it a while ago. Thanks for the update.