60 here. Sold out of the majority of my taxable brokerage growth investments in 2023 and now redeploying proceeds for income while enjoying the low risk 5.3% from ST Treasuries. I ended up with 7 of your 19 listed as part of my income portfolios after watching your initial reviews and doing my own validation this year. As you mentioned, many of these are too new to inspire confidence. Everything else is going into proven multi sector dividend ETFs (DGRO, SCHD, VYM, HDV) and a short list of dividend paying stocks. I'm slowly DCAing into all of them over the next 2 years so I'll have my "salary" replacement ready to go at 62. Thank you for this investing for income series. It's been very helpful this year. I'd like to put PBDC on your radar for a possible future review if have any interest.
Would be a cool analysis to show the effect of tax drag in a taxable account at different tax brackets and its effect on total return vs just holding growth focused index funds. Then same analysis in a simulated retirement situation where you’re drawing down the portfolio. Might be a good approach to have a solid base of index funds like SPY, QQQ, SCHG, SPGP, etc and then as you approach retirement, build a 20-30% allocation to a basket of high yield funds with the goal of an overall portfolio yield of 5-7%. Rebalance annually to keep income in line with needs and minimize unnecessary taxes, tax loss harvest, etc. Churning high income during accumulation causes really painful tax drag on funds and stocks that already underperform market benchmarks by a wide margin. Definitely something to consider close to retirement, and even then, only a small allocation most likely.
I agree. If you can stay in good funds and handle the additional volatility you will come out ahead. Simply sell as you need the income and pay lower long term rates. I will likely do a video to illustrate that in the near future. You still need those other products for growth.
As a retiree with monthly RMD requirements I have found that those etfs that maintain relative capital preservation such as JEPI, Jepq, and SVOL throw off sufficient monthly income to satisfy my RMDs. In this way I can reinvest dividends in all my other positions
Excellent job. I was waiting for a whole orchestra to join in with that bloke who is playing Sax in the background at the sign off but it didn't happen !
Good Stuff!! How about a SPYI vs GPIX video? Discuss each of their strategies, pros/cons of each, how each would perform in a bear and bull market...etc
Thanks! Are you concerned about what will keep you moving forward if you "retire" at 45? That is one reason I struggle to give up what I do. Or is it that you are moving to a different career?
@@wealthadventures I’m a professional musician so I’ll keep doing that of course, but I want to permanently retire from bartending and do more traveling etc. Love your channel!
65 here not retired, not rich, been building two income div portfolios (taxable and Roth)... 4 categories: Risky monthys. Safe index/ income growth funds. Safe single stocks. REITs and BDCs.
With a continued pause or lowering interest rates by the Fed in 2024-25, I believe TLTW will continue its high distributions and recapture some of its degraded NAV seen over that past few years. It is my #1 pick because of this.
If they lower interest rates, you would want to be selling puts instead of calls. Wrong side of the option chain! Wish they were more flexible with the strategy.
Wouldn't a lowering of interest rates result in an increase in value of the underlying (TLT), thus capturing more premium AND increasing the NAV? Basically the opposite of what has happened over the recent past with good distributions but a depletion on NAV.
Great list and always very good breakdown, have quite a few of those and also have $BOXX very tax friendly and have $MTBA from simplify, thank for the great content
Yo-yo yo, I got a very important question for you. First off, let me say I respect your financial analysis. Now with a question; if you were forced to choose between.TLTW and TMF which would you choose? Keeping in mind that you’re retired but don’t need the money. This is a very serious question. Thanks for the quick and honest reply. Keep up the good work.
I would likely cheat my way around your question and buy 50% TLT and 50% TLTW. I get the upside and some income. Or I would buy 50% TLTW and start selling TLT Puts to build out my 50/50 position. Can I do that?
That is correct. ET is quarterly. I fixed it on my spreadsheet. However, I would say that it is tax efficient. The distributions I have received are largely return of basis so I have paid little tax over the years. Plus I already have other K1's so toss one more on the heap!
I like the portfolio ,when you speak about total return you should also have a bucket outside of your expenses for total return Stocks, so that you do not miss out on bull markets
I am building a bdc fund w 32 of them and a senior loan cef fund and 2 pays every week of the year funds and a cef cov call fund w every one of them in it. As you can tell I was bored over Christmas break but in the process of funding them. Should be interesting
What’s your take on having all your money in an S&P and NASDAQ index fund, and selling a certain amount each month to live off of versus the other approach of having only income producing ETF’s and closed and funds that pay income each month for a retiree, with overall goal to keep the portfolio value at about the same level for 10-20 years of retirement . ?
I like that idea and in the long run it will typically win out. Especially for those that have plenty saved for retirement. That is my plan but I will also have a small % in monthly paying income "fun" funds.
I'm retired and invest in IVV, an S&P 500 ETF with expense ratio of 0.03%. It is in a Roth IRA. I would recommend young people use a Roth or 401K at work. This is not financial advice, it's what I would do if I was younger.
First off, great sheet and video. Thank you. Secondly, I’ve been trying to work out if it makes sense to buy JEPI/JEPQ and use at least some of the distributions to purchase say shares of SCHD. I caught that you mentioned this is the intro but just wondering if you researched it at all. It would be motivating to purchase shares each month but I don’t know if it would be actually worth it I put together a basic spreadsheet and if it’s correct it basically would give more yield at the end but less overall balance. I could of course be completely wrong so looking to see what you think? Thanks for all your videos!
You could do that but after paying for the taxes it will likely be less efficient in the long run versus just buying SCHD or another quality ETF. In a retirement account it makes more sense. However, I will add, It is a fun idea and something I do a bit in my M1 account... Part of investing should be fun (Not financial advice lol!).
Hi, Happy New Year! Thanks for all the great content! Of the 19, which ones, if any, are the most appropriate in a Roth account for a “senior” portfolio? Also, what about QYLD bothers you? Thanks so much.
I think they would all be fine in a Roth except for the MLP (ET) and the municipal bond ETF. Unless it has changed, QYLD sells ATM calls. I'm not a fan. That will produce high income but cap the upside completely. If you do have a down month in the underlying, you will essentially lock in the loss the next month by selling ATM again. I believe JEPQ > QYLD and it shows in the performance this past year... Maybe that will change next year but not my preference.
Great video, not sure if they are all supposed to be monthly paying but I don’t think ET is a monthly payer. I have O and SPYI on this list and EPD which is similar to ET.
SVOL has performed well. I own a small amount. It was interesting to see the VIX spike and how it responded. If that spike lasted longer it would have been a bigger issue for SVOL.
Hi or should I say HELO? 🤭 Brand new to me but looks similar to HEQT on the options side which I have reviewed: th-cam.com/video/2w4k1ghVY6k/w-d-xo.html Looks like it could be decent... I'll take a closer look!
@@wealthadventures Started buying at $22 and stopped at $25.... got up over 3000 shares and decided to trim when it hit 45ish .... it was a 10% dividend in the low 20's but not now. Still decent with room to run, especially when Fed cuts start....
SPYI should be about 10%. SPYI has been solid, out performing JEPI since creation date. Take from ET, REITs & all of BKLN. BKLN 10 year Total Return w/ distributions, a horrible 3% per year. Dump it. SVOL should be 10%+, outstanding results in up & down markets. Very high distributions.
Hey I really love the videos and the information you provide it's really awesome stuff and you make it where it's not so boring so please keep on doing what you do. This video that you did about building a dividend portfolio I loved but what happens if you're small time like I am trying to build one up with low amounts of money and reinvesting the dividend money into it to make it grow so I can have income in 10 to 15 years. You were kind of against that because of taxes but a lot of us don't have $100,000 + to dump what would be a good way to build up one from scratch with low income if you were to put $100+ a month and building something like that? If there's any information that you could share I know a lot of us out there would be grateful for that. Thanks again for all you do appreciate it. P.S I already have other 401k,457, brokerage accounts and pensions but just looking to build something with dividends. Thanks
Hi. With plenty of time on your side, I would look at dividend stocks and/or dividend ETFs. Some popular ones are SCHD and VYM. Those will not pay as much but the dividends will be qualified and you will pay less tax. I would also buy some growth funds like VUG, QQQ, or VGT. Or keep it simple with VOO. Just keep buying your $100 each week/month and it will build up. I still do this and it works. Thanks for the question!
@@wealthadventures thanks man really appreciate it, feel free to do a video for us simple folk regarding this issue if you ever get bored or run out of video ideas.... No pressure lol anyways thanks again for all you do and please keep it up you are greatly appreciated. Take care
If you are retired why wouldn't you put 50% in covered call (DIVO, JEPI, JEPQ, SPYI, QQQI) for monthly income and the other half in VOO, VYM, SCHD, QQQM for growth and inflation protection?
Great video and recommendations, thank you for sharing. How are you determining estimated tax rates, literally? I use Seeking Alpha as well and it seems how the income is distributed, ordinary divs, etc. and even expense ratios are hard to find. Thanks.
That is hard to determine so I went with what made sense for my personal situation in a taxable account. It can change so much person to person. I lumped option income and other short term capital gains like REITs in what would be ordinary income. Long term / qualified dividends in another bucket. You also have some using index options which have some advantages. I'm certainly not a tax pro!
That is a good question. You lose some of the benefits but you don't have to mess with a K1. Info can be found here: www.globalxetfs.com/content/files/MLP-Tax-Primer-2018.pdf
With ET they issue a k-1 do not put this in an Ira. Substitute for the etf AMLP as the fund pays the taxes while you receive the income and don’t get a k1
I like REITs for 2024 including LTC. I have been conservative with it. I'm following my LTC video advice and selling ATM and ITM calls which have been working well. LOL. That is, I'll buy at 32 and sell 30 calls. Currently I have 30 and 35 calls working and enjoying the distributions.
How about someone that wants to retire in 3 to 5 years? I’m 39 years old, 220k portfolio that I plan to retire in the near5 years , I just need to make 6k a month in income to retire in Thailand. My expenses would be no more that 4k a month but I want 2 k extra to pay taxes and whatever life throws at me .
Happy new year coach , from all these 19 which ones are anti-fragile ones ?? what I mean if a black swan event happens ( like China attacks Taiwan ) which ones keep its value THE MOST ( or drops much less) and which one can rebound faster after the black swan event ??? for example , after 2020 black swan event everything collapsed by 40 % but GOLD came back to pre -covid price in less than 6 weeks , but most other took almost 2 years .and my SECOND question is : if a black swam event happens and EVERYTHING collapsed by 40 % or 50 % , do I still get my monthly return or my monthly returned get affected by 40 % ?
Tough question. Depends on the event. After the fact, if the equity market blew up, the CC strategies would likely yield more from increased volatility but at the new price.
Still adding to SCHD routinely but I put that in a different category. If I was building a real portfolio, this video would be a portion. ETFs like SCHD would be the main building blocks.
Trying to buy "good" stocks trying to time the markets all of these ideas are very idealistic.... think sears intc enron all were good stocks.... i think a nice dividend paying etf thats indexed and actively managed and rebalanced on a schedule to adapt to market conditions ... you could of bought tsla split adjusted at 18 bucks but who in at 18 held to 400 and sold perfection prefectly who bought it every paycheck all the way up? And is now lossing hair and years off their lives? When they could of jumped on that dividend calculator and followed a plan.....
ET (assume you meant ET) is an MLP and they pass through many of their expenses, such as large capital purchases, to shareholders via a K-1. This allows you to get your basis back as a return of capital (ROC) from their distributions. Often 80%+ will be a ROC and tax free. If you plan to hold the investment for many years it can be a good investment, especially during peak earning years. Here is a video about it if you can survive the intro: th-cam.com/video/LY4LCZbUEd8/w-d-xo.html
Hi. VOO, QQQ, or several other growth ETFs (VUG, XLK, VGT for example) would be good for kids. Great way to teach and show them some of the basics. I told mine to pick individual stocks. No ETFs. I wanted them to feel max pain when it didn't matter as much. Lol! They have done okay with it.
So the SPY gave a much better price return for the 1 yr / 3yr / 5yr but not counting in the dividend. Why take the risk and invest in so many different assets when u can get 1 that is (almost) well diversified. Nice comparison though, good job.
Hi. For most of the "income ETFs" that I own, I'm using them as an alternative source of income. You could re-invest but I would personally only do that in a retirement account for tax reasons.
I really wish you would elaborate a little further on why you are so negative about TLTW? in the video all you say is, I don’t like it. i’m just curious why you would turn your back on over 13% yield after tax?
I just wish it had active management behind it. Selling calls with the FED teetering on the edge of interest rate cuts killed the return. Active management would have likely been on the put side of the option chain and raking in the money. Since start of October, TLTW total return is 3.89% versus TLT total return of 14.87%. Do nothing and get an extra 11%. Or sell puts and probably be up 20% over that period. Here is what I was thinking: th-cam.com/video/bzIObFNlWPg/w-d-xo.html
@@wealthadventures thank you for taking the time to express a more concise reason for your dislike of TLTW! also, I really appreciate your content on your videos.
I sold my positions with TLTW and LQDW (I have a selective allergy to red ink in my portfolio). I'm looking at UTF BXSL & BST. (I didn't think ET paid monthly?).
I personally would still be in growth stocks and ETFs versus income ETFs. However, you could always start building a position in some that you like in the coming years. I just setup a separate account and started buying a few shares.
Is it possible that you made a mistake for 3 and 5 year Price Return for at least fund such as SVOL? I do not remember this fund being having these negative returns and it's also a relatively new fund. There is no history for 3 or 5 years. Can you check please if possible? Otherwrise. great spreadsheet.
Yes. The blue/gray boxes on the spreadsheet are assumptions. SVOL has not been around long enough but it is down about 9.5% since inception so I went with that. After the first year it has stabilized nicely.
By the way, ET pays quarterly distributions and not monthly as presented. Thanks for watching!
Need this type of compilation more often!
I'll keep adding!
60 here. Sold out of the majority of my taxable brokerage growth investments in 2023 and now redeploying proceeds for income while enjoying the low risk 5.3% from ST Treasuries. I ended up with 7 of your 19 listed as part of my income portfolios after watching your initial reviews and doing my own validation this year. As you mentioned, many of these are too new to inspire confidence. Everything else is going into proven multi sector dividend ETFs (DGRO, SCHD, VYM, HDV) and a short list of dividend paying stocks. I'm slowly DCAing into all of them over the next 2 years so I'll have my "salary" replacement ready to go at 62. Thank you for this investing for income series. It's been very helpful this year.
I'd like to put PBDC on your radar for a possible future review if have any interest.
Thanks and good luck! I will take a look at PBDC.
@@wealthadventures PBDC which holds BDCs would be a great addition, and diversifier w/ high yield.
Would be a cool analysis to show the effect of tax drag in a taxable account at different tax brackets and its effect on total return vs just holding growth focused index funds.
Then same analysis in a simulated retirement situation where you’re drawing down the portfolio.
Might be a good approach to have a solid base of index funds like SPY, QQQ, SCHG, SPGP, etc and then as you approach retirement, build a 20-30% allocation to a basket of high yield funds with the goal of an overall portfolio yield of 5-7%. Rebalance annually to keep income in line with needs and minimize unnecessary taxes, tax loss harvest, etc.
Churning high income during accumulation causes really painful tax drag on funds and stocks that already underperform market benchmarks by a wide margin. Definitely something to consider close to retirement, and even then, only a small allocation most likely.
I agree. If you can stay in good funds and handle the additional volatility you will come out ahead. Simply sell as you need the income and pay lower long term rates. I will likely do a video to illustrate that in the near future. You still need those other products for growth.
Thanks man. Good insight to ponder. Screenshot this portfolio!
Thanks!
As a retiree with monthly RMD requirements I have found that those etfs that maintain relative capital preservation such as JEPI, Jepq, and SVOL throw off sufficient monthly income to satisfy my RMDs. In this way I can reinvest dividends in all my other positions
Interesting take! Thanks for sharing.
I have 14 out of 19.i will be adding 2 more thanks to you.Great video sir
Thanks! Keep it growing!
Well done. Good ideas thanks
Excellent job. I was waiting for a whole orchestra to join in with that bloke who is playing Sax in the background at the sign off but it didn't happen !
That is my son playing... I will need him to bring in the extras!
I am all in on SPYI for the high yield, tax efficiency, and diversity in one 👍🏽
Ditto!
I'm still giving it time. I have a small position.
Wow great video, visualizations and content! More please - maybe a monthly review of this chart?
Thanks for watching! Always appreciated ideas.
Super video! And, the downloadable spreadsheet is really helpful. Thanks!
Thanks!
Happy new year happy holidays Dave you’re doing a great job.. Please keep it up. I look forward to hearing from you.
Thanks Ron!
Good Stuff!! How about a SPYI vs GPIX video? Discuss each of their strategies, pros/cons of each, how each would perform in a bear and bull market...etc
Always appreciate ideas! Let me mull that one over.
BXSL - not monthly, but a real winner!
Appreciate it! Will take a look.
Love videos like this! I’m going to be “retiring” around age 45 or so and want a portfolio like this with consistent and reliable income.
Thanks! Are you concerned about what will keep you moving forward if you "retire" at 45? That is one reason I struggle to give up what I do. Or is it that you are moving to a different career?
@@wealthadventures I’m a professional musician so I’ll keep doing that of course, but I want to permanently retire from bartending and do more traveling etc. Love your channel!
@@pyramazekeyboardist Nice. Great to have a vision.
65 here not retired, not rich, been building two income div portfolios (taxable and Roth)...
4 categories:
Risky monthys.
Safe index/ income growth funds.
Safe single stocks.
REITs and BDCs.
Good luck Cliff. Keep it growing!
Appreciate your help, love watching these videos!
Thanks for watching!
With a continued pause or lowering interest rates by the Fed in 2024-25, I believe TLTW will continue its high distributions and recapture some of its degraded NAV seen over that past few years. It is my #1 pick because of this.
If they lower interest rates, you would want to be selling puts instead of calls. Wrong side of the option chain! Wish they were more flexible with the strategy.
Wouldn't a lowering of interest rates result in an increase in value of the underlying (TLT), thus capturing more premium AND increasing the NAV? Basically the opposite of what has happened over the recent past with good distributions but a depletion on NAV.
Great list and always very good breakdown, have quite a few of those and also have $BOXX very tax friendly and have $MTBA from simplify, thank for the great content
$BOXX not a pure monthly more like a daily 😊
I will check out BOXX.
How about GPIQ and GPIX could you cover that?
I will. Thanks!
Yo-yo yo, I got a very important question for you. First off, let me say I respect your financial analysis. Now with a question; if you were forced to choose between.TLTW and TMF which would you choose? Keeping in mind that you’re retired but don’t need the money. This is a very serious question. Thanks for the quick and honest reply. Keep up the good work.
I would likely cheat my way around your question and buy 50% TLT and 50% TLTW. I get the upside and some income. Or I would buy 50% TLTW and start selling TLT Puts to build out my 50/50 position. Can I do that?
ET is not monthly its quarterly, personally i wouldn't call it 'tax efficient' as the K1 and K2 they will send you will add some hassle to your taxes
That is correct. ET is quarterly. I fixed it on my spreadsheet. However, I would say that it is tax efficient. The distributions I have received are largely return of basis so I have paid little tax over the years. Plus I already have other K1's so toss one more on the heap!
I like the portfolio ,when you speak about total return you should also have a bucket outside of your expenses for total return Stocks, so that you do not miss out on bull markets
Absolutely! Totally agree.
@@wealthadventures do you know what the beta is for that portfolio? Thank you.
I am building a bdc fund w 32 of them and a senior loan cef fund and 2 pays every week of the year funds and a cef cov call fund w every one of them in it. As you can tell I was bored over Christmas break but in the process of funding them. Should be interesting
Ha! Sounds good. That's what the holidays are all about!
Have you ever done SMH? I’d love to see your breakdown on that. Has crushed even QQQ over 5-yr window. Love your videos! 💪🏻
I have not but SMH is a good way to play semiconductors. With the performance over the last year by NVDA and AMD... and now TSM it has taken off.
What’s your take on having all your money in an S&P and NASDAQ index fund, and selling a certain amount each month to live off of versus the other approach of having only income producing ETF’s and closed and funds that pay income each month for a retiree, with overall goal to keep the portfolio value at about the same level for 10-20 years of retirement . ?
I like that idea and in the long run it will typically win out. Especially for those that have plenty saved for retirement. That is my plan but I will also have a small % in monthly paying income "fun" funds.
I'm retired and invest in IVV, an S&P 500 ETF with expense ratio of 0.03%. It is in a Roth IRA. I would recommend young people use a Roth or 401K at work. This is not financial advice, it's what I would do if I was younger.
Certainly! Fill those retirement buckets up
First off, great sheet and video. Thank you.
Secondly, I’ve been trying to work out if it makes sense to buy JEPI/JEPQ and use at least some of the distributions to purchase say shares of SCHD. I caught that you mentioned this is the intro but just wondering if you researched it at all. It would be motivating to purchase shares each month but I don’t know if it would be actually worth it
I put together a basic spreadsheet and if it’s correct it basically would give more yield at the end but less overall balance. I could of course be completely wrong so looking to see what you think?
Thanks for all your videos!
You could do that but after paying for the taxes it will likely be less efficient in the long run versus just buying SCHD or another quality ETF. In a retirement account it makes more sense. However, I will add, It is a fun idea and something I do a bit in my M1 account... Part of investing should be fun (Not financial advice lol!).
@@wealthadventures I agree! Thanks!
Happy new year sir 🎊
Happy new year! Cheers!
Hi, Happy New Year! Thanks for all the great content! Of the 19, which ones, if any, are the most appropriate in a Roth account for a “senior” portfolio? Also, what about QYLD bothers you? Thanks so much.
I think they would all be fine in a Roth except for the MLP (ET) and the municipal bond ETF.
Unless it has changed, QYLD sells ATM calls. I'm not a fan. That will produce high income but cap the upside completely. If you do have a down month in the underlying, you will essentially lock in the loss the next month by selling ATM again. I believe JEPQ > QYLD and it shows in the performance this past year... Maybe that will change next year but not my preference.
Great insights!! Thanks so much!!
Great video, not sure if they are all supposed to be monthly paying but I don’t think ET is a monthly payer. I have O and SPYI on this list and EPD which is similar to ET.
Good catch! ET pays quarterly. I updated it on my sheet.
Wow finally you consider about SVOL. I thought you consider it as a high yield trap.
SVOL has performed well. I own a small amount. It was interesting to see the VIX spike and how it responded. If that spike lasted longer it would have been a bigger issue for SVOL.
@@wealthadventures so you think its good for long term?
@@stevantantra5541 I think it is okay as a small % of a portfolio. I certainly would not get carried away with it.
You should look at USOI. I own it and like it so far. It rides the oil market so it is volatile.
Will do ! Thanks.
Thank you for the amazing content that you make. Any thoughts on HELO?
Hi or should I say HELO? 🤭 Brand new to me but looks similar to HEQT on the options side which I have reviewed:
th-cam.com/video/2w4k1ghVY6k/w-d-xo.html
Looks like it could be decent... I'll take a closer look!
SLG - monthly REIT - made a ton on this the past 8 months.... still room to run up...
I have not looked at it in awhile but will take a look.
@@wealthadventures Started buying at $22 and stopped at $25.... got up over 3000 shares and decided to trim when it hit 45ish .... it was a 10% dividend in the low 20's but not now. Still decent with room to run, especially when Fed cuts start....
@@ronaldreagan6756 If rates come down in 2024, REITS may thrive.
SPYI should be about 10%. SPYI has been solid, out performing JEPI since creation date. Take from ET, REITs & all of BKLN. BKLN 10 year Total Return w/ distributions, a horrible 3% per year. Dump it.
SVOL should be 10%+, outstanding results in up & down markets. Very high distributions.
There are a few fans of SPYI on here. I'm still giving it time. I think REITS could have a solid 2024 pending some rate cuts.
Hey I really love the videos and the information you provide it's really awesome stuff and you make it where it's not so boring so please keep on doing what you do. This video that you did about building a dividend portfolio I loved but what happens if you're small time like I am trying to build one up with low amounts of money and reinvesting the dividend money into it to make it grow so I can have income in 10 to 15 years. You were kind of against that because of taxes but a lot of us don't have $100,000 + to dump what would be a good way to build up one from scratch with low income if you were to put $100+ a month and building something like that? If there's any information that you could share I know a lot of us out there would be grateful for that. Thanks again for all you do appreciate it. P.S I already have other 401k,457, brokerage accounts and pensions but just looking to build something with dividends. Thanks
Hi. With plenty of time on your side, I would look at dividend stocks and/or dividend ETFs. Some popular ones are SCHD and VYM. Those will not pay as much but the dividends will be qualified and you will pay less tax. I would also buy some growth funds like VUG, QQQ, or VGT. Or keep it simple with VOO. Just keep buying your $100 each week/month and it will build up. I still do this and it works. Thanks for the question!
@@wealthadventures thanks man really appreciate it, feel free to do a video for us simple folk regarding this issue if you ever get bored or run out of video ideas.... No pressure lol anyways thanks again for all you do and please keep it up you are greatly appreciated. Take care
@@curtstick1 Working on it now!
If you are retired why wouldn't you put 50% in covered call (DIVO, JEPI, JEPQ, SPYI, QQQI) for monthly income and the other half in VOO, VYM, SCHD, QQQM for growth and inflation protection?
You certainly could do something like that. I like the combination of having some straight growth ETFs and some of these CC type funds.
Good portfolio structure.
There are some BDCs that pay nice monthly dividends. MAIN, PFLT & GLAD come to mind.
I'm looking at MAIN now.
Great video and recommendations, thank you for sharing. How are you determining estimated tax rates, literally? I use Seeking Alpha as well and it seems how the income is distributed, ordinary divs, etc. and even expense ratios are hard to find. Thanks.
That is hard to determine so I went with what made sense for my personal situation in a taxable account. It can change so much person to person. I lumped option income and other short term capital gains like REITs in what would be ordinary income. Long term / qualified dividends in another bucket. You also have some using index options which have some advantages. I'm certainly not a tax pro!
Great analysis ❤
Thanks!
I see you have ET for an MLP. What are your thoughts on Global X MLP ETF (MLPA) and what would a persons tax liability be on it?
That is a good question. You lose some of the benefits but you don't have to mess with a K1. Info can be found here:
www.globalxetfs.com/content/files/MLP-Tax-Primer-2018.pdf
With ET they issue a k-1 do not put this in an Ira. Substitute for the etf AMLP as the fund pays the taxes while you receive the income and don’t get a k1
Yes. ET is for taxable accounts.
Thanks for the video I never knew ET was tax efficient that will go on my watchlist now.
Agreed, fantastic info.
MLPs can be a good option for those with a large tax burden. Here is some info on ET:
th-cam.com/video/LY4LCZbUEd8/w-d-xo.html
And as someone else pointed out which I missed... ET pays quarterly. I added that to the spreadsheet.
What are your thoughts on the future state of LTC? I’m at a slight loss since owning it since I have a wash between the price drop and the yield.
I like REITs for 2024 including LTC. I have been conservative with it. I'm following my LTC video advice and selling ATM and ITM calls which have been working well. LOL. That is, I'll buy at 32 and sell 30 calls. Currently I have 30 and 35 calls working and enjoying the distributions.
Sold out of JEPY, div to low and I am going to buy either SQY, MRMY or CONY. Which one would you guys buy, bitcoin kind of scares me!
Why so focused on yield?
SPYI should have less than 33% tax rate since they pay out more of the div. As an ROI.
I would agree.
Please advise where I can download the spreadsheet. Great video, thanks!
Link is in the description above.👍
I am going with seven stocks. I might add a bank loan ETF to my portfolio.
Mag 7?
TYLG seems to now have a 12% div as well
I will add it to the list. Thanks for the idea!
Curious on your thoughts of BST and MAIN
I suggest you replace BST w/ STK. With the exception of yield, STK is far superior. Compare the Total Returns. STK is crushing BST in TR.
I'm not a fan of CEFs so BST is not really interesting to me. I will need to look closer at MAIN to give you a good response. Adding it to the list!
How about someone that wants to retire in 3 to 5 years?
I’m 39 years old, 220k portfolio that I plan to retire in the near5 years , I just need to make 6k a month in income to retire in Thailand. My expenses would be no more that 4k a month but I want 2 k extra to pay taxes and whatever life throws at me .
You will still need to grow the nest egg till retirement to get to 6G's/month for the long life you have ahead of you... Not financial advice! Lol.
Happy new year coach , from all these 19 which ones are anti-fragile ones ?? what I mean if a black swan event happens ( like China attacks Taiwan ) which ones keep its value THE MOST ( or drops much less) and which one can rebound faster after the black swan event ??? for example , after 2020 black swan event everything collapsed by 40 % but GOLD came back to pre -covid price in less than 6 weeks , but most other took almost 2 years .and my SECOND question is : if a black swam event happens and EVERYTHING collapsed by 40 % or 50 % , do I still get my monthly return or my monthly returned get affected by 40 % ?
Tough question. Depends on the event. After the fact, if the equity market blew up, the CC strategies would likely yield more from increased volatility but at the new price.
@@wealthadventures thank you for responding ,
Doesn't ET issue a K1 tax form?
Yes. An MLP like ET will send you a K1 at the end of the year.
What do you think about VICI? Didn't see it on your list. I have been doing well with it.
VICI is a decent REIT. I don't own it but it could fit in well.
Out of my 6 BDC's and 3 REIT's, ADC(REIT) is kicking it! PLUS it's share price has room to run in '24.
Other options include BCDs such as MAIN and ARCC.
Or grab them in a ETF basket (PBDC).
Thanks. Will add them to the list as well.
You should do a video on GPIQ and GPIX
As... you... wish...
th-cam.com/video/jMN-MgVrpuc/w-d-xo.html
I know you like schd and it might have been a nice base in this portfolio. Was the dividend to low to make the cut or did it have to be monthly?
Still adding to SCHD routinely but I put that in a different category. If I was building a real portfolio, this video would be a portion. ETFs like SCHD would be the main building blocks.
Trying to buy "good" stocks trying to time the markets all of these ideas are very idealistic.... think sears intc enron all were good stocks.... i think a nice dividend paying etf thats indexed and actively managed and rebalanced on a schedule to adapt to market conditions ... you could of bought tsla split adjusted at 18 bucks but who in at 18 held to 400 and sold perfection prefectly who bought it every paycheck all the way up? And is now lossing hair and years off their lives? When they could of jumped on that dividend calculator and followed a plan.....
I missed why you said EP would have lower taxes. Is that specific to you?
ET (assume you meant ET) is an MLP and they pass through many of their expenses, such as large capital purchases, to shareholders via a K-1. This allows you to get your basis back as a return of capital (ROC) from their distributions. Often 80%+ will be a ROC and tax free. If you plan to hold the investment for many years it can be a good investment, especially during peak earning years. Here is a video about it if you can survive the intro:
th-cam.com/video/LY4LCZbUEd8/w-d-xo.html
Thanks. I'm looking at it. @@wealthadventures
How would you go about kids accounts, SPLG, VOO, or SPY?
Hi. VOO, QQQ, or several other growth ETFs (VUG, XLK, VGT for example) would be good for kids. Great way to teach and show them some of the basics. I told mine to pick individual stocks. No ETFs. I wanted them to feel max pain when it didn't matter as much. Lol! They have done okay with it.
Please review OMFL, SPGP, OEF, EQAL, COWZ, CALF, DSTL, RWL, XLG etf. They all are outperforming S&P 500. Thank you
MOAT is one to lump into your list.
Good video
Thanks!
So the SPY gave a much better price return for the 1 yr / 3yr / 5yr but not counting in the dividend. Why take the risk and invest in so many different assets when u can get 1 that is (almost) well diversified. Nice comparison though, good job.
Yes. Buy and hold SPY or VOO or QQQ and you should outperform the majority over the long term.
Hello , Are you taking the cash and not reinvesting? I am new to this.
Hi. For most of the "income ETFs" that I own, I'm using them as an alternative source of income. You could re-invest but I would personally only do that in a retirement account for tax reasons.
What do you think about BIL?
It is fine but if rates start to come down you may want to look for better options.
I really wish you would elaborate a little further on why you are so negative about TLTW? in the video all you say is, I don’t like it. i’m just curious why you would turn your back on over 13% yield after tax?
I just wish it had active management behind it. Selling calls with the FED teetering on the edge of interest rate cuts killed the return. Active management would have likely been on the put side of the option chain and raking in the money. Since start of October, TLTW total return is 3.89% versus TLT total return of 14.87%. Do nothing and get an extra 11%. Or sell puts and probably be up 20% over that period. Here is what I was thinking:
th-cam.com/video/bzIObFNlWPg/w-d-xo.html
@@wealthadventures thank you for taking the time to express a more concise reason for your dislike of TLTW! also, I really appreciate your content on your videos.
No $KLIP ?
No KLIP but I can take a look.
What about spot bitcoin ETF?
I bought a sliver of FBTC. Already down 5.76% after a couple days. I just had to be part of it! Lol.
Why not BDCs like ARCC, MAIN?
No reason not to include them. Just have not reviewed them yet. They are on the list!👍
I sold my positions with TLTW and LQDW (I have a selective allergy to red ink in my portfolio). I'm looking at UTF BXSL & BST. (I didn't think ET paid monthly?).
Correct on ET. That was my mistake. They pay quarterly.
@@wealthadventures SRV pays Monthly
What if your timeline is 10yrs
I personally would still be in growth stocks and ETFs versus income ETFs. However, you could always start building a position in some that you like in the coming years. I just setup a separate account and started buying a few shares.
Is it possible that you made a mistake for 3 and 5 year Price Return for at least fund such as SVOL? I do not remember this fund being having these negative returns and it's also a relatively new fund. There is no history for 3 or 5 years. Can you check please if possible? Otherwrise. great spreadsheet.
Yes. The blue/gray boxes on the spreadsheet are assumptions. SVOL has not been around long enough but it is down about 9.5% since inception so I went with that. After the first year it has stabilized nicely.