Would I Choose PII if I was Young Again? Income Investing BAD for Young Investors?
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- เผยแพร่เมื่อ 26 ก.ค. 2024
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00:00 Intro
01:28 My answer...
02:19 Reason #1
03:25 Reason #2
05:05 Reason #3
05:39 Reason #4
06:55 Reason #5
08:08 Reason #6
09:55 Reason #7
12:14 Real Case #1
13:47 Real Case #2
14:55 Real Case #3
16:39 In Summary...
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
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One thing with growth style investing is it’s literally just numbers on a screen until you sell your shares. You derive absolutely ZERO tangible benefit from your investments until the day you sell. Dividend/PII investing allows you to have tangible benefits month after month after month if you so choose to withdraw your cash flow instead of reinvesting! I’m 24 and personally, with a combination of 70% growth and dividends / 30% PII, I’m using my $450 / month cash flow to save up for some new furniture before I move into my first apartment in January 2024:)
The psychological aspects can't be ignored. People think they'll just ride out the storm when a big crash happens like in 2008 or the uncertainty of today but reality is different. Dividends/ income gives a big mental edge.
Here Here, perfectly said! took me 30 years to figure this all out...never to old to learn.
Yes it's just a curve on the computer! For example Tesla stock (TSLA on Nasdaq) grew up 100% in first half of 2023 then lost the same 100% at end of 2023. If you didn't sell, you made no gain.
Getting a 1% dividend can be chopped up to the exact same as selling 1%. :/
I'd argue that it's even better for younger people - the longer the time horizon - the greater the effect of compounding! And potentially longer until you "need" the income unlike a retired person.
love that compounding effect!
I still have some growth stock in my portfolio. I'm 58 and I receive about $40k a year in income. Overall my portfolio is down by about %15, but with the income I will make it back. Life is short... I agree with Adrian. Life can change in a minute. Plan to not have to work for the man.
The market is going down again. So happy I have my income instead of relying on unrealized money. Thanks again! Btw you are still young 🙂
I went into business for myself when I was 20 years old in 1973, that's when I learned about cashflow. I started investing in 1980 & I looked on it as a business, so I invested in income producing securities, which I collect income for long periods of time to produce cash flow. It is the only way I have invested for the past 43 years.
❤ this!
Great video. I have been following the PII style for about 12 months and now make significant dividends over $2K per month. Appreciate the personal video. I agree PII provides more flexibility and the ability to eventually quit the corporate work life for me within the next few years if I wanted to. Thanks Adriano for introducing me to PII.
I defenitely agree on the motivation part. I had never invested in anything for 30 plus years, but to see your nest egg building month after month 100 150 now at 650 a month in PII . Making your money work for you and making better decisions with your money eliminating bad spending habits is key. Great video Adrian 👍
Adrian your right it is the easiest way to fire i wake-up everyday and thank God for answering my prayer for sending you to help me and my family God bless you and your family
Thanks Adriano !! I absolutely love how encouraging it is to see income coming in each & every month.. and sure it can be mixed with other styles as well 🎉
I completely agree with these 7 statements . I'm 22 and currently have a 60-40% allocation of PII-growth investing. Seeing the monthly cash flow building motivates to invest more of my monthly take-home. I've gone from only putting away about 10-15% of my monthly take-home income back in 2021 when I was solely focused on growth index funds to now putting away about 30-40% of my take-home from seeing my monthly cash flow snowballing. Motivation is key to staying in the game for the long-term, not just numbers.
Wish I started when I was that age. I had no idea about the stock market back then. You'll probably be retired by 40 at this rate.
When I was that age, markets where flat...ETF did not exist and for investing you needed an account with a broker....@@jumbothompson
thanks for sharing!
The single reason why PII beats growth: Our time on this earth is finite. Growth investing does not put a roof over your head, put food on the table, and most importantly, doesn't allow you enjoy the finite time on this earth without first selling your investments. PII does. PII FTW.
One thing that I love about PII is that you can set your portfolio up to play you once per month or once every 2 weeks or once every week or twice per week so if you badly need the money. Another thing is that you can make your portfolio have etfs based on each sector instead of just making the core holdings something like to 500 or what ever companies.
When the markets are dropping but your dividends don't drop as much that lets you buy more shares with the dividends + money you put into the account.
Just think about this.. I am investing money every single month from the money that is given to me ! The money that is given to me,is in dividends .. just wrap your mind around that.. my income is growing every single month from that money that is given to me .. amazing !!😊
Great points there. I think best way is to find a balance by focusing on covered call etfs that write on lower precentage of portfolio like 20-50% for more sustainable growth. A good example of bad way to do it is QYLD which writes on 100%.
Ft cboe etfs have low cc percentage of the portfolio and still higher distribution rate
@@barandekinteresting new product, thank you for sharing.
Awesome content! I would have liked it 5 more times! Would it be possible to touch on this topic yearly? I hope you'll be able to interview those young people so I could use the video to encourage my young nieces and nephews to become a PII like me.
Thank you for the valued content !
well, I would say that this strategy has allowed you to be a retiree at a early age....so it looks like a good strategy for those that want to retire sooner rather than later. maybe its a good idea to uncouple 'retiree' from 'old'.
Adrian. Thank you for all your wisdom. Even though in Australia we do not have the same maturity of products and ETFs, it’s improving.
Just know that you are changing lives and creating quiet achievements for people all over the world. Cheers from Australia.
Well put my man, kept nodding along with every point made. Such a killer time to get into this style of investing. Keep sharing the message!
Adriano, thank goodness I choose PII when I first saw your video. My retirement is a lot less stressed now and I'm a happier person. To young people, listen to Adriano's opinion, and you might retire younger than you think you would, and happier because you did.
Wonderful!, and yes a HUGE advantage many don't think of
Great vid as always Adriano, so thankful for your take on this often asked question. 🍻 Cheers!
Great video Adrian. Keep up the great work and content 👍
Thanks 👍
Hi, good video. The problem I see for younger people is the abondance of information and the difficulty to determine what product to choose. Just consider those new CC ETF, some have leverage, some not, some just on a small part of the portfolio, some on much more, some have CC on a small part, some on larger part, some just on the leverage part, etc...etc..etc...There is a lot of marketing techniques out there so that companies can sell their products! I suggest some kind of table or tableau to help distinction between all CC ETF, CEF and Split Share one to help people select the best one for their needs. Thanks again. 😁
i would say this is a good problem to have :) - its up to each person to find the best solution for their situation
Excellent content, the messages in the video are totally on point. Thank you Adriano.
My pleasure!
Definitely one of the best, educational and encouraging videos ever!!
Thank you Adrien.
nice comment, thank you :)
One year for BMAX and I love it. Great fund. Thanks Adrian.
I'm 36 and I'm working a job I hate. While I'm maxing out my TFSA right now with high yield stocks solely to pay for a few surgeries I need that I can't get in Canada, I plan to reup what I need to withdraw for those surgeries, max out my TFSA contribution limit, and have a basic income so I don't have to be coerced into work I despise.
i wish you good fortune , you will prevail
Priceless 🙂
Great video. Well said
Glad you enjoyed it
i never really like Growth style, takes too long to realize my gains and basically you have to time the market because "buy low sell high"; This is the main reason why i didn't like investing. Finding out about income investing in my mid-late 20s, this is what got me into investing.
Recently the prices of most of my cover call etfs went down a lot. I feel like I’ve been spent my own capitals instead of dividends
the same here my friend , i don’t if it’s causel i was new in this , but it’s good to see someone is honest about it
A lot of others on TH-cam who do dividend and income investing came to the same conclusion. Sure, our total return won’t be as much according to the stats but we give up the difference for flexibility, ease of mind, and cash flow now if we need it. In my mind I think the ability to have extra cash flow now is worth way more than any more potential upside.
The point of the dividends later on is to live within your means. Total returns don’t matter when I can work around the income I’ll be making. There’s a chance I won’t even need the extra money from the growth stocks.
exactly , many of the benefits of PII cannot be measured with numbers.
If you are young or older you might look at PII. Just open a TFSA account (Non Bank) and let it drip.
Arrange to have your bank send a fixed amount to your trading account. It will add up quickly!!
The returns would have been the same for both styles of investing, it only feels PII has a lower return because all those high dividends are being taken off the ticker prices, that's why you feel that way. But in reality, if you are not using these dividends, you can choose to re-invest these dividends into the sectors you feel undervalued, and I prefer this way because I get to choose how I deploy these dividends rather than mind killing DRIP plans at whatever ticker price.
We support you Adriano
Thanks for sharing your investing knowledge to us! Keep on helping and inspiring us in our investment journey!👏👏👏💪😊
My pleasure!!
If you invest in index ETF's knowing when to time to sell at all time market highs and buying back the ETF to maximize returns is next to impossible. Lets not forget that index ETF's can drop by 40% and can be discouraging. For young investors covered call ETF's on drip is hard to beat.
yes, index funds are great if you get the timing perfect but nobody ever does. that's the holy grail
2 words... make sens !
Thanks for that great vidéo
another great video Adrian thank you! Will you consider doing a video for late investors, like when someone who inherits some funds and is only beginning and interested in the income factor due to age and life goals.
Great suggestion!
Super - I just joined the Member's circle so will watch for it Thank you....@@PassiveIncomeInvesting
Watching my monthly income from my investments continuously grow is a huge motivator.
Hey Adrian. Just wondering why my previous comment regarding "Not Caring About Stock Price" hasn't appeared in the Members Comments section?
I hope I'm wrong, but it kind of feels like since I bring up difficult topics, I don't get the recognition Membership (in my case, Plus Membership) is supposed to convey.
I just feel that you're an upfront guy and you welcome tough questions and observations and want to meet them head on.
Hope it's just an oversight.
Please let me know if my comments have been incompatible with the Channels values in any way.
replied in the other thread
i dont understand it either, passive income every month is still BETTER than money sitting idly in a savings account. at least with pii youre getting something regardless of age...
geeze, while listening to you I went to check DGS, because you mentioned split funds... 3.83 vs a NAV of 4.26! Still no distribution, but that is a pretty good deal ( assuming it gets above 5, and gives distributions, that is!). I sold my DGS but maybe I should have put it into DGS.PR.A...
yes deals always happen during FEAR
@@PassiveIncomeInvesting I’m thinking DGS when they pay distributions, then switch to DGS. Pr.a when they are not.
Or just get cncl and get paid always
Further to #4, less stress: Successful growth investing assumes that people wont sell when there are down turns. Everyone says they won't panic sell but its not that easy. With PII you are much more likely to be able to weather the downturns and not sell into bottoms. Staying power is crucial to long term success in the markets.
100% TRUE! it does get easier with experience but also lets be honest... its way harder for emotional people
I agree with all the points you said. PII investing is not trying to beat the index return, nor trying to have an enormous amount of capital when you want to retire. PII is for a consistent monthly cashflow, peace of mind, and it's much easier for us to plan out our future knowing exactly how much I get monthly.
I'm not looking at being super rich later on, I'm looking for the financial freedom where I don't need to keep climbing up that corporate ladder, slave myself away in the rat race for the next 30 years.
Yes, the index (sp500, nasdaq100) may give me a better return 15, 20 years from now, but would I still be alive/healthy at that point to enjoy my wealth? Or am I ok with having less but enjoying my freedom at earlier stage when I'm still young and kicking ass. I choose the later but it's up to each of you to decide what's best for your style.
well said! thanks for sharing this very smart comment
Cash flow over net worth for me any day of the week!!!
same!
I started a fund with 10k each for my 2 kids and I bought the PII US funds. Qyld. Xyld, svol etc... my kids are literally 10 years old so the time line is basically unlimited. Does anyone have any examples to look at that are solid growth-index funds for maybe half and half of each?
If you were just starting and had $46k to put into your TFSA, how would you allocate it? Just asking your thoughts so I can do my own research.
depends on goals . this is why i offer a 1 on 1 coaching session :)
@@PassiveIncomeInvesting awesome! How do I get that?
You can go growth make better returns and switch later to pii.
And you can still invest in the same PII funds with a DRIP. But the problem with that is you would pay tax on the income in non-registered accounts. That can be problematic if you are employed in a high tax bracket. Under those circumstances, I would prefer to be in growth funds that pay as close to zero as possible.
if the market agrees with you in that time frame!
@@PassiveIncomeInvesting if the market doesn't agree with you it's going to really not agree with pii
@@endysdoodooPII, you still getting paid regardless of market down or up. With growth, you better hope you cash out at the right time.
How about a "my PII mistakes" video?
i got a lessons learned video which is about the same thing but thanks for the suggestion
The value of money will go down, long term growth is also needed, maybe snowball will help, not sure
Of course you would use a Pentium II. With windows 95.
100% agree with you. Especially reason #2 👌 A big thank you for creating this TH-cam channel
If I were young again, I still choose PII. I use money to buy freedom.
Adrian here basically solves the biggest problem of Cash Flow here. The moment I listened to him I was ALL IN. And allocate part of the income it in some Index funds,Growth funds. My Stocks are basically being paid by the Dividends I receive. I have always said I am Cash Poor as I have a lot of financial Commitments I am mid 30s guy. I literally invest $25 a day from my side hustle into Cashflow generating assets. Love the EIT.UN and HYLD. They are my go to . Honestly love your content. Thanks bro :)
glad its working out for you my friend! thanks for the support. HYLD changes coming! stay tuned
@@PassiveIncomeInvesting Yes watched SMAX and QMAX getting added in HYLD.
Can you do a video on investing in ENB vs ENS?
i think i did 2 or 3 of those already lol . use the search function to find em
That thumbnail......
lol
You aren’t going to transition later to PII or dividend investing. You would have to sell everything, pay all the taxes on your capital, then reinvest and start paying taxes on your passive income. That makes absolutely zero sense.
Not if it is in an RRSP or TFSA.
You would not pay anything in a registered account
Transitioning means doing it slowly (like during years of no employment) to minimize the tax liabilities
When you’re close to retirement most of your money will most likely be in a taxable account.
I’m using my cash from my dividends for the first time in 3 years. It’s going towards my car maintenance. It feels good not having to pay from my savings account and I will get the room back in my TFSA in January.
1
One thing I disagree is 5% interest rate is not the normal rate based on today's debt level for all countries in the world, we will for sure go back to 0% interest rate and QE, it's just a matter of time. Companies and families are struggling for high interest rate, everybody is cutting back spending to service high interest debt when they roll over their debt into another term at high interest rate. Recession is just around the corner, and when that happens, they are not going to hold rate at 5%, there is just no way.
Well exactly, the whole point of the struggle is to stop you from spending and borrowing , thus bringing inflation down to their 2% target, and you are right rates will absolutely go down once this happens, and there will be relief. Its all just a cycle and its going to happen again.
The debt levels of today were created by low interest rates. The rates we have today are normal and have been the average for the last 30 years. If rates go back to near zero, high inflation will continue and assets like housing will continue to rise.
@@raytailor9251 You are right on your first comment, but how do you fix that problem? You can't fix high debt by high interest, that's going to bankrupt the nation. The rates have to come back down and there will be stagflation just like the great depression. The high inflation was not all caused by QE and 0% interest, it was mainly caused by global supply chain break up.
Just my opinion - but whatever the inflation rate is when we reach target - say 2 to 2.5% - the basic interest rate will be around 3 to 4% , in 🇨🇦 & 🇺🇸 which is where it’s going to be in a somewhat ‘normal’ economy! Having ‘zero interest rates’ in the recent past - is not just normal - and not sustainable - and I would not bank on this happening again in our lifetime! Having a PII portfolio and getting Distributions paid up front every month - reinvested where your budget will allow you to - will allow you to be all well ahead of inflation! Just my opinion!
Am I being shadow banned? My comments aren't appearing. I'm a really nice guy, but I think it's ok to make critical observations. It's feeling like the only comments permissible in the channel are positive ones. Could you reply please Adrian?
no, you are not my friend. its not in my control really.
@PassiveIncomeInvesting Ok. Thanks Adrian. I didn't think you would ban comments that have some honest critiques, that's not the kind of guy you are. My guesses are that TH-cam doesn't like :
1. Timecodes : TH-cam doesn't like timecodes included in comments. It's odd though because I've included Time Stamps using other accounts without issue
2. Length : TH-cam doesn't like my often lengthy comments, though I have made them without issue before (my question in the last Q&A for example)
3. CCP Critique : I commented months ago about my personal decision to not invest in KLIP because I don't want to invest in companies with ties to the CCP (essentially all Chinese tech companies). My personal decision of course, but I felt like sharing it. We cherish Free Speech in the West after all.
I take time to post my comments and feel it's only fair that others can see them, even if it's just to ignore them, or think that this Beloved Surfing guy is irritating.
I follow the TH-cam guidelines. I post my honest and politely expressed opinions.
My comments should appear. The rules need to apply equally to everyone.
Really relieved it's not you Adrian. My instincts say you're genuine and a good guy.
I'll keep wrestling with TH-cam to figure out how to make sure my Comments reliably appear.
Hope you and Erica have a nice TGIF. 🍺
@@PassiveIncomeInvesting Ok. Thanks Adrian. I didn't think you would ban comments that have some honest critiques, that's not the kind of guy you are.
I take time to post my comments and feel it's only fair that others can see them, even if it's just to ignore them, or think that this Beloved Surfing guy is irritating.
I follow the TH-cam guidelines. I post my honest and politely expressed opinions.
My comments should appear. The rules need to apply equally to everyone.
Really relieved it's not you Adrian. My instincts say you're genuine and a good guy.
I'll keep wrestling with TH-cam to figure out how to make sure my Comments reliably appear.
Hope you and Erica have a nice TGIF. 🍺
@@PassiveIncomeInvesting Ok. Thanks Adrian. I didn't think you would ban comments that have some honest critiques, that's not the kind of guy you are.
Young again you look like your in your 20's. Lol
lol thanks
My biggest problem with your reasoning is that you ARE young. :)
PII is better than growth in most cases for an average investors. 1) you do not need to be competent. Just buy one of these all-in-one ETFs, then you will have instant diversification. 2) no need to be mentally strong to handle market turbulence which may cause one to sell at the wrong time. 3) future is unpredictable, therefore getting paid now is better than potential capital appreciation down the road. 4) ok last, PII portfolio is much easier to manage and understand than individual stocks.
In conclusion, stock picking is hard and PII is easy. The more time you have, it's better to go with PII.
I agree I have had mixed results with stock picking. PII can be a simpler process to choose what to invest in instead of obsessing over a company's market cap and P/E ratios with stock picking which can be complicated. For example, if I want to invest in the overall Canadian economy, I'll choose HDIV. If I want to use in the overall US economy I'll choose USCL and HYLD. So, there is less guesswork.
i agree!