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@riverdogsavioroftheunivers97811 ай бұрын
My God this guy is fantastic Small channel yet does empirical research of companies and gets interviews plus does follow up on his videos
@armchairincomechannel11 ай бұрын
Thanks for those kind words. Maybe one day my small channel will be a medium sized channel. A guy can dream 😏.
@m_sync823411 ай бұрын
Yes! Great interview. This fund gets the most undeserved criticism based on the misunderstanding of return of capital. I love this fund and it’s my second biggest holding. Will happily keep buying while others wrongly dismiss it
@armchairincomechannel11 ай бұрын
Thanks! I think it will benefit from their new efforts to distribute helpful information.
@rhope811811 ай бұрын
What is your first?
@danjennings470011 ай бұрын
Agreed, too many investors think ROC is only "they are paying me back my money" whereas first and foremost, ROC is a tax treatment of distributions (following the tax rules).
@leecarignan771411 ай бұрын
Thank you for following up with this great interview. I have a sizable position in this ETF and was a little concerned after watching your past videos on this ETF. This really clears some things up for me. I love that they don't do cover calls on 100% of the portfolio and that they do 1 to 4% out of the money. Not to mention the tax benefits. Thank you!
@armchairincomechannel11 ай бұрын
I'm glad Garrett's answers were able to provide you with some clarity. I learned a lot too!
@celestial_sphere311 ай бұрын
Thank you for taking the time to interview and thank you Garrett for coming on - I was hoping for an interview with the folks behind SPYI!!!
@armchairincomechannel11 ай бұрын
Thanks for watching it so soon after posting. Glad you enjoyed it.
@Fatkidskinny011 ай бұрын
i like that you talk directly to fund managers, subscribed
@armchairincomechannel11 ай бұрын
Thanks! I've requested more interviews with other fund managers so hopefully more of these to come.
@OracleInvestments11 ай бұрын
I added SPYI to my portfolio recently. I appreciate how you go right to the source and dig in for us to learn what they are all about. It helps make a better educated decision.
@armchairincomechannel11 ай бұрын
That feedback is helpful. I think we should question everything. Sometimes we draw the wrong conclusions. But as long as we keep searching we’ll eventually get to the truth.
@hewjkmail324811 ай бұрын
That was an excellent interview. I truly appreciate your approach in asking direct questions without pandering to your guest. I also applaud your willingness to acknowledge your prior misunderstanding of information with regard to this fund. With this approach you present yourself and your channel with enormously more credibility than other channels who approach their interviews like a celebrity fan interview. Thank you for the informative interview.
@armchairincomechannel11 ай бұрын
Thanks for sharing those thoughts. I agree 100%. I don’t want to watch a 30 minute commercial. I think some KZfaqrs are worried that they won’t get any more fund managers if they ask challenging questions. My primary motivation is to get the information to make investment decisions not to look clever.
@bassplayinpapa11 ай бұрын
Excellent interview. Thank you not just asking softball questions. It was great hearing from one of the fund managers in person. I’m much better educated about this fund and now will definitely consider it.
@armchairincomechannel11 ай бұрын
Glad you enjoyed it! I come from the same perspective. As an investor I want to know the downsides. The upsides are obvious.
@natemillsap727911 ай бұрын
Standing ovation! This was a fair follow-up piece and interview. Thank you for organizing and putting this out.
@armchairincomechannel11 ай бұрын
Wow 🤩. Never had a standing ovation before. Thanks for typing such kind words. I appreciate it!
@Seoulsearch61611 ай бұрын
These interviews have been fantastic, thank you! 👍🏼
@armchairincomechannel11 ай бұрын
Glad you like them, it makes a nice change from talking solo.
@-Sanjeet6 ай бұрын
Great interview. Thanks for bringing these insights to us. I love your videos and your no "click bait" style nonsense video titles. It attracts the right serious investors. Your channel keeps it real fact based analysis without "How to Make $5000 per month" type bs. Also the FB community is great! Thanks!
@armchairincomechannel6 ай бұрын
Thanks for your feedback. I hate clickbait as much as you do :)
@LumiLunar8 ай бұрын
I’ve seen this interview and one with JEPIs fund manager. I like them both but I feel a bit more relaxed with Garrett. Thank you for the interview!
@armchairincomechannel8 ай бұрын
Glad you enjoyed it, and thanks for your feedback :)
@Steverino7011 ай бұрын
Really glad you had this interview, as I had gone pretty deep into the stock before I saw your "return of capital" video. I sold big time(sell now ask questions later kind of thinking). I owned it in an IRA but will rebuy in my taxable account to take advantage of the return of capital tax advantage. Really enjoy your videos as I am in the same position you are, retired, manage most of my own money etc.
@armchairincomechannel11 ай бұрын
Thanks for letting me know and sorry about the U Turn! I wanted to like it back in June but so many weird things...that turned out to be OK. Welcome to the retired club :) If you're not already in the Armchair Income Community, here's a link: facebook.com/groups/1960447914286446/
@markpetty924111 ай бұрын
You have an excellent channel, with thorough analysis. I respect the fact that you are interviewing these managers even though you may not be on board with their funds
@armchairincomechannel11 ай бұрын
Thanks. I appreciate your feedback.
@donaldrockjr831411 ай бұрын
What a great informative, educational interview video!!!! I totally appreciate these videos. I have SPYI on my Watch List on Fidelity. I appreciate Mr. Garrett's transparency. 🤓🤓
@armchairincomechannel11 ай бұрын
Glad it was helpful. He cleared up a lot of doubts for me so I was happy as an investor to get answers.
@tenhomas11 ай бұрын
Excellent video and much thanks for creating this. I was on the fence about investing in SPYI, mainly because of the return on capital. I feel like that issue was cleared up during your interview with Mr. Paolella. I think I will tip toe in to SPYI over the next few months. Thanks again!
@armchairincomechannel11 ай бұрын
I'm glad you found it useful. I learned a lot too.
@jimsteinberg929111 ай бұрын
Great interview. You did the fund a favor by asking the questions that cause hesitancy in investing and he was refreshingly transparent in his answers. One interesting new wrinkle-he referred to “the model” more than once. It would be interesting to probe on the algo. Is the algo dynamic, does it pick the stocks not to cover? How much choice do the mgrs actually make in actively managing and is the approach to using a model & managing different than NUSI?
@armchairincomechannel11 ай бұрын
Thanks Jim. Those are good questions for a future interview.
@monetarywonk268711 ай бұрын
Great interview. This was badly needed. I personally like this fund and have zero issues with ROC provided total returns are good relative to volatility and the S&P 500.
@armchairincomechannel11 ай бұрын
Thanks for the feedback. I don’t mind some ROC in small doses but when it’s 90% of the distribution I need answers and Garrett delivered!
@monetarywonk268711 ай бұрын
@@armchairincomechannel I agree. It did look odd. But I’ve been looking for a fund similar to this for years. Ideally, I want a fund that tracks the S&P 500, has low fees, and pays 5% dividend - with 1.5% on qualified dividends and 3.5% in ROC. This would allow total distributions of $200k+ with zero immediate federal tax hit. As long as the total return is fine, ROC gives tax flexibility.
@enricomonesi58569 ай бұрын
Whatever you do.......keep at it. I devoured about 10 of your videos the past 3 days.......REALLY.......owesome content 😊
@armchairincomechannel9 ай бұрын
Thank you so much 😀 I appreciate your encouragement!
@dpragain11 ай бұрын
Great video! Exactly what we needed. Now we just need a NASDAQ version.
@armchairincomechannel11 ай бұрын
It's a logical progresssion!
@spooler246 ай бұрын
QQQI
@TJ-Stackin11 ай бұрын
I like this fund more and more. Thanks for the information 👍
@armchairincomechannel11 ай бұрын
More to come! Glad you enjoyed it. 😀
@dakkon7411 ай бұрын
Top notch stuff! Thanks for the interview and info.
@armchairincomechannel11 ай бұрын
Glad you enjoyed it. I appreciate your feedback. It’s good motivation while doing the behind the scenes work. 😀.
@danknastypumps333311 ай бұрын
the strategy spyi uses sounds similar to divo's, saving some of its portfolio for capital growth. definitely has me more confident in its long term potential. i might just have to buy some more shares ;D
@armchairincomechannel11 ай бұрын
Thanks for your feedback, glad you found it helpful.
@ddelmarsmith11 ай бұрын
Great video. Thank you for doing this. For next time, i think you may have let him off the hook when discussing expectations in different market conditions. To me it seems he missed discussing what would happen during a large quick market downturn in S&P. For example what happened to NUSI during 2022. My thought is that once the fund goes down by such a large amount it may never get back to the pre-crash levels even if the overall market has already. I really want to see how SPYI does during the next major downturn before jumping in too far on this ETF.
@armchairincomechannel11 ай бұрын
That's a good question. I think generally, a sharp downturn followed by a sharp recovery (like March 2020) is a relatively bad scenario for covered call funds. Just a question of how ofter that happens and how bad it is.
@samsamys519011 ай бұрын
He mentioned something similar and stated they would sell ATM calls...but it would have been useful to know what the model is trained to do in a sharp downfall. Active funds should be better managed in those situations in theory.
@edmitiu738311 ай бұрын
Excellent interview. Garrett presents himself well with his well designed fund. My needs suggest a 60% SPYI 40% VOO buy for long term hold.
@armchairincomechannel11 ай бұрын
Thanks for your feedback and strategy. Your suggestion creates a nice blend of income and growth. Personally, I like to diversify more than that, but I get your point.
@DividendDork11 ай бұрын
I actually played this video twice, well done! You brought some serious credibility to yourself and your channel when you did this. My only question now is, are you buying any SPYI? 😊
@armchairincomechannel11 ай бұрын
Twice is nice! I'll address that question in a future video but between you and me...yes :)
@AustinHankwitz11 ай бұрын
Incredible interview! Loved the questions you asked as well as the answers by Garrett. Keep it up!
@armchairincomechannel11 ай бұрын
Glad you enjoyed it! Thanks for the encouragement 😀
@goose-F169 ай бұрын
Fantastic video.. you should be a financial interviewer, I really liked this.. I had some of the same questions about SPYI as it has become a larger of my taxable holding.. great work! I have been doing this strategy myself using the wheel for a long time.. my returns were on par with this, so Im taking a break from it and see if SPYI can do the work for me..
@armchairincomechannel9 ай бұрын
Glad you enjoyed it, and thanks for the feedback. I hope to do many more interviews in the future.
@mikeconnell69811 ай бұрын
Great job on the interview. Tough questions asked and good answers given. Thanks again
@armchairincomechannel11 ай бұрын
Glad you enjoyed it! I appreciate your feedback. I’ll continue to look for fund managers willing to answer directly and openly. It’s more interesting than watching a promotion video 😀.
@peoriaos662711 ай бұрын
Awesome video! Thanks to you and Garrett. I will pick some up soon.
@armchairincomechannel11 ай бұрын
Glad you found it useful, thanks for letting me know.
@Reza1688811 ай бұрын
Thank you for another great video to shine lights at the details of SPYI ETF. One drawback of SPYI compared to JEPI and XYLD is that there are no options trading for it. Usually, I sell puts to get into these funds. I pick a somewhat longer expiration date and a lower strick price. This way, I either get in at a lower price or collect premium plus the ~5% interest cash on my money while I'm waiting. I do that with JEPI all the time. When will SPYI itself be available for options trading?
@armchairincomechannel11 ай бұрын
Thanks for sharing. That’s an excellent strategy. I don’t think SPYI trading volume is high enough yet for a liquid options market but it’s likely to get there.
@dominiquetheeasyminimalist11 ай бұрын
Another very well rounded interview, thank you 👏. It would be nice if you could add time stamps or maybe indicate where to skip the tax part in your videos? Taxes are not the same in all countries, and I’m sure many of us have those funds in non taxable accounts. Just a suggestion, not a criticism!
@armchairincomechannel11 ай бұрын
Thanks for the suggestion. I have a limited patience for tax info too! I’ll try time stamps next time. Good idea 👍🏼
@kevinzhu7211 ай бұрын
Very informative interview! Thank you so much. I can’t say that I understood everything in the video but it is reassuring to see the fund manager give detail explanation of their strategy, which I agreed with! I will be keeping an eye on SPYI and add more when opportunities arise.
@armchairincomechannel11 ай бұрын
Glad it was helpful! There are a lot of moving parts to follow, especially as it relates to options. I plan to break those down in a future video.
@rickwalker52036 ай бұрын
SPYI is a great fund! Stable NAV and dividend. Just purchased QQQI yesterday, there are others funds that pay higher dividends, but with a depreciation of NAV.
@armchairincomechannel6 ай бұрын
I agree. Also, expect a QQQI video later this month :)
@michaelcloresandersm.d.705011 ай бұрын
This is another wonderful video. I will now do my research, Thanks so much!
@armchairincomechannel11 ай бұрын
Always makes me happy when people do their own research instead of just buying based on tips. Thanks for your supportive feedback 😀
@TheYankmchain11 ай бұрын
This could be a game changer for this particular ETF with regard to tax treatment and calling this out on a taxpayers Form 6781! In fact, before i buy SPYI in my taxable account, i'd REALLY like to wait to see your follow up on what NEOS will provide on their website in this regard. As described, this could be the SOLE covered-call ETF with favorable tax treatment to this level.
@armchairincomechannel11 ай бұрын
I agree that the tax advantageous are worth noting. Overall, my opinion of this fund has improved dramatically in recent months so I'll make an update video shortly. As for allocation, I'm a diversifier so I like to spread the risk among many funds (and a few stocks too).
@mjsmcd4 ай бұрын
Do they sell covere😮d cslls on. Indiv stocks or just spx options ?
@djayjp10 ай бұрын
Missed opportunity: to ask how they manage the written calls. Do they just let them expire or be assigned or do they buy to close them ever? Do they roll them ever? Etc
@armchairincomechannel10 ай бұрын
Thanks for the feedback.
@scottmoudry584911 ай бұрын
interesting I own jepq & jepi. Their distribution seems much more consistent.
@armchairincomechannel11 ай бұрын
I thought that was interesting too! I like all 3.
@bluesky55878 ай бұрын
That is true
@user-pz1fx8lg2l6 ай бұрын
What I would like to understand better is the return of capital issue. I would like to see for example, if I invested $10,000 in SPYI & sold it 2 years later for 12,000, would my long term capital gain be $2,000 or would it be something greater due to the way return of capital is treated...anyone out there want to answer this?
@armchairincomechannel6 ай бұрын
It would be greater. The ROC you received would lower your cost basis below 10k.
@michaelbangert99611 ай бұрын
Reduced my JEPI stocks by half and invested it in SPYI, feels just right for me.
@armchairincomechannel11 ай бұрын
Thanks for sharing your insight.
@paytax470711 ай бұрын
Fabulous interview. The tax treatment explanation makes sense, which will help SPYI’s after-tax performance relative to JEPI.
@armchairincomechannel11 ай бұрын
Thanks for your feedback. The tax makes a big difference for some people.
@stangtrax11 ай бұрын
If i am using SPYI as part of a portfolio to produce income to live on i do not consider it to under perform in bull markets, because i can not live off of unrealized returns from capital appreciation. I just would not want any covered call ETF etc to have the price in a constant down trend, sideways or up overall with steady distributions is all good.
@armchairincomechannel11 ай бұрын
I agree. Watching the performance over the past year and listening to Garrett’s answers has changed my opinion of SPYI to the positive. If the yield is high enough, I don’t need growth.
@Jeguia8511 ай бұрын
The cool part is that you don’t have to sell to receive income compared to the S&P 500 without any tax implications.
@armchairincomechannel11 ай бұрын
Yes, that’s appealing to income investors, especially retirees.
@AnyangU11 ай бұрын
Thanks! That was very useful and informative!
@armchairincomechannel11 ай бұрын
Glad it was helpful! Thanks for watching and letting me know what you think.
@stk6mkt3 ай бұрын
Will be opening up a substantial position in SPYI. Just waiting for a 5-7% pullback in the market.
@armchairincomechannel3 ай бұрын
Thanks for sharing your strategy!
@jamesvandegrift810811 ай бұрын
Question about the return of capital strategy for tax purposes. The vast majority of my investments are in a tax deferred account so this strategy does not help me. My question is does this strategy reduce my total return as opposed to a fund that does not utilize tax loss harvesting?
@armchairincomechannel11 ай бұрын
That's a good question, I'm in a similar situation. My intuition says no, but I'm not an accountant. I'll keep that one in my pocket for another interview.
@chassdesk11 ай бұрын
Great update, gives me more confidence to continue with spyi
@armchairincomechannel11 ай бұрын
Glad you found it helpful, thanks for letting me know :)
@ryldauril222811 ай бұрын
o yea i love SPYI.. thats a huge part of my portfolio
@armchairincomechannel11 ай бұрын
Thanks for the feedback and glad it’s working for you.
@vskhouse793211 ай бұрын
Love SPYI. Consistently hitting 1% of monthly valuation in dividends on a regular monthly schedule is excellent.
@armchairincomechannel11 ай бұрын
It works for me too. Thanks for watching.
@unorthodocs111 ай бұрын
Options premiums have dropped significantly but SPYI keeps paying similar amounts. I’ll pass.
@armchairincomechannel11 ай бұрын
I had exactly the same concern so I asked that question fairly early on in the interview.
@Dividendsmattertoo11 ай бұрын
@@armchairincomechannelhi I’m sorry can you tell us at what time stamp you asked that question? I’ll relook at the video though
@mjsmcd2 ай бұрын
Roc by closed end funds than is like a refund for failing but with spyi its a label given to tax loss pairing just reducing cost basis if and when you sell but no return of principle?
@armchairincomechannel2 ай бұрын
That's correct. I'm not sure if "tax loss pairing" is the correct term but the concept is accurate. 2 different ROC concepts that sound the same but are actually quite different. The tax code is unnecessarily confusing.
@mjsmcd2 ай бұрын
@@armchairincomechannel pairing losses with gains labeled roc is what i meant Loved your video on Main caputal as well Love to see your take on Realty income stock too if youv'e got the time Thanx
@mediamonk10011 ай бұрын
Another great video Mark, much appreciated.
@armchairincomechannel11 ай бұрын
Thanks. By the way…who’s Mark?
@mediamonk10011 ай бұрын
@@armchairincomechannel sorry my friend, thought i remembered from somewhere that was your name. Embarrassing. 🤦🤦🤦
@armchairincomechannel11 ай бұрын
lol. No problemo. Have a great day Jeff!..I mean Adrian...never mind ;)
@mediamonk10011 ай бұрын
@@armchairincomechannel lol thank you Tom. 😉
@mitchell-lf4br4 ай бұрын
More info on QQQI
@armchairincomechannel4 ай бұрын
It’s in the works. Should be ready this month.
@169Tomh4 ай бұрын
Would love to see QQQI dig down as well, these funds seem to be the best of all worlds perhaps a mix with Goldman new funds gpix and gpiq and svol 😬
@armchairincomechannel4 ай бұрын
Interesting mix. Goldman is a bit new for me. QQQI is new but the strategy is a carbon copy of SPYI so that increases my comfort level...still easing into it slowly though.
@rudester755710 ай бұрын
If the dividend is classified as ROC, you may get a tax break in the short term, but it reduces your cost basis in the shares owned. When you eventually sell the shares, you’ll have a big capital gains tax due.
@armchairincomechannel10 ай бұрын
That's true. So it depends on whether you pay a higher rate on ordinary income or capital gains. Most people pay less on capital gains, especially long term capital gains.
@rudester755710 ай бұрын
@@armchairincomechannel True, the capital gains tax rate is usually less. What I was trying to say was that, after many years of ROC, your cost basis may be close to $0, so the sales price is almost all a capital gain. Even though the tax rate may be lower, it’s all due that year. A similar thing happened or me with Kinder Morgan a few years back. When Richard Kinder decided to take KMI from being an MLP to being a regular corp, I was forced to sell my units, with a very low cost basis (because of depreciation) and got a huge tax bill because of it (recapture of depreciated asset).
@armchairincomechannel10 ай бұрын
That's true. If I was subject to a large capital gains tax exposure, I'd rather it be for an income fund than a growth fund, as the growth fund doesn't do anything for me until I sell it.
@simona431511 ай бұрын
Another excellent interview Thanks
@armchairincomechannel11 ай бұрын
Thanks for your feedback, glad you liked it!
@mjsmcdАй бұрын
Downloading info from custodial broker toi turbo tax or h and r block or other tax service will give them all the roc info they need to do ur ur return i assume Correct?
@armchairincomechannelАй бұрын
Yes, but I would also download the tax form from the NEOS website and give that to your tax accountant as it explains the ROC.
@eddienunez82064 ай бұрын
Great video .. might add some spyi to my portfolio.. small percentage for now
@armchairincomechannel4 ай бұрын
Thanks for your feedback, glad you found it useful :)
@edmitiu738311 ай бұрын
I am surprised ''Armchair Income'' is not growing faster...We need to comment on other not as good Vlog's. BMEZ at new low, 12.2% distribution and 19.7% discount. the CEF rule "solid fund should be bought at 20% discount'' is encouraging me to fill out my position. VZ in solid base. Maybe value investing will have a moment in the sun. Good Luck
@armchairincomechannel11 ай бұрын
Thanks for your encouraging words. The channel gained 2,000 subs in the last 30 days...so making some progress. If people were to spread the word about Armchair Income, it would be appreciated...as long as it's done with respect, of course! BMEZ looks interesting, I'll take a look, thanks.
@3633613292 ай бұрын
I want to see how spyi recover from a 30-40%down bear market compare to qyld. Qyld is a no buy for me. And the capital loss does not make a big change on the dividend right? Because most of the dividend come from selling call? Am i right?
@armchairincomechannel2 ай бұрын
SPYI's recovery from a 30-40% bear market would depend on the speed of the market's recovery. It would recover at a similar rate to the market if the market recovers slowly. It would recover much more slowly than the market if the market recovers quickly. QYLD is based on the NASDAQ so XYLD, which is based on the S&P 500 would be a fairer comparison. SPYI would recover more quickly than XYLD because it doesn't sell calls on 100% of the portfolio and it doesn't sell at the money calls. The dividend is a function of the total value of the fund's portfolio (if the portfolio drops by 50% then the dividend will fall), as well as the volatility...which drives option prices.
@philpogson98832 ай бұрын
I wonder how these tax benefits translate if investing from Australia?
@armchairincomechannel2 ай бұрын
I can't speak for your Australian tax obligation, but for the US tax obligation it is beneficial because a large percentage of the distribution shifts from taxable income to non-taxable capital gain. That's assuming you file a tax return with the IRS. If you don't bother to file a return wtih the IRS, then you'll have dividend withholding deducted at the same rate for every income investment and no chance of a refund.
@cday959411 ай бұрын
Amazing!!!
@armchairincomechannel11 ай бұрын
Thanks! Glad you enjoyed it.
@KennyZ161511 ай бұрын
Armchair you are the goat my guy
@armchairincomechannel11 ай бұрын
Thanks! I think Roger Federer is the goat, but to each his own :) That made my day, much appreciated.
@KennyZ161511 ай бұрын
@@armchairincomechannel carlitooo alcaraz is on the hunt haha
@armchairincomechannel11 ай бұрын
He has all the tools if he can stay healthy.
@radcliffe106511 ай бұрын
Will you be doing a new video on SPYI now that you've got this new info?
@armchairincomechannel11 ай бұрын
It's like you're reading my mind :) Yes, it's in the works and should be ready before the end of the month.
@ivantsanov36508 ай бұрын
As of today December 10th 2023 SPYI is up 3.86% (YTD) + 8.66% dividend = +12.52% SPY is up 20.34% (YTD) + 1.43% dividend = +21.77%. The 'face ripper' rally (like the one of the last 6 weeks) caused SPYI to underperform significantly, which makes it no good for volatile environment. 😢
@armchairincomechannel8 ай бұрын
That's correct. Covered call funds do worst when the market is ripping. That's why I don't put 100% of my assets into them. When the market is trading sideways, SPYI will outperform SPY. Most of the time, SPY will create the highest total return, but it doesn't send you cash each month to pay the bills...you have to know when to sell it at highs do something else when it's down (like 2022)...that's not ideal if you're retired.
@ivantsanov36508 ай бұрын
@armchairincomechannel I am retired, and what is ideal for me is to get in a trade that has the highest probability for profit, which I periodically take out. Being retired doesn't mean you need to get paid every month. I take profits only 3 or 4 times a year, but they are big enough to pay for everything (I prepay mortgage for months). 'Short vix', ZIVB is paying for my retirement rn. It's up 50% for only 8 months, which means I can withdraw 30% of the Net Liquidation Value of my position and have the same amount of money left invested in it like I had 8 months ago.
@armchairincomechannel8 ай бұрын
The more disciplined you are, the less frequent you need to receive distributions. Some people favor monthly payouts, I'm ok with quarterly or monthly. Sounds like you are ok with less frequent than that.
@ROMEKBNY9 ай бұрын
What happens when the shares get called away? They buy them back or do they sell a put?
@armchairincomechannel9 ай бұрын
They're settled for cash. Here's a quote from page 5 of the Prospectus: The Fund focuses primarily on SPX call options which offer both European settlement (i.e., options can only be exercised at their expiration date) and cash settlement (i.e., options carry an obligation by their seller to pay the difference between their strike price and their settlement value instead of allowing the seller to take delivery of securities). www.sec.gov/Archives/edgar/data/1848758/000183988222011065/shp-485apos_052322.htm
@ROMEKBNY9 ай бұрын
@@armchairincomechannel thanks. I think I understood that. So, if the option they sold expires itm, they can pay the buyer off and keep the stock? Or is this when they would just buy the next strike.
@ronaldreagan675611 ай бұрын
I am buying. Did you?
@armchairincomechannel11 ай бұрын
I’ll cover my updated opinion in a video soon but to answer your question…yes 👍🏼😀.
@marcgardner98656 ай бұрын
What’s the advantage of holding JEPI? What do y’all think?
@armchairincomechannel6 ай бұрын
JEPI includes value in its stock selection criteria (versus growth) so it should do better during a market correction. Therefore, the argument to hold it would be to smooth out some volatility in a portfolio vs holding a fund that strictly mirrors the S&P 500.
@Antowan7 ай бұрын
Great video!
@armchairincomechannel7 ай бұрын
Thanks! Planning to do more interviews in 2024.
@user-mx7eo1pn7s11 ай бұрын
Did he just comment on a video? How did you find him?
@armchairincomechannel11 ай бұрын
Garrett? Via email. The old fashioned way.
@jimdixon66889 ай бұрын
I file my taxes with Turbo tax in conjunction with my fidelity brokerage account. Will turbo tax understand everything he just said about the tax issues with SPYI? Also is this ETF good for my IRA or my investment account. Appreciate the info and great video as always.
@armchairincomechannel9 ай бұрын
Unfortunately these tax questions are for a tax accountant and/or Fidelity. I've never used Turbo tax so I can't share any experience with it, and I'm not a tax advisor. What I can tell you is that the return of capital tax treatment is not unique to the NEOS SPYI fund. The same tax treatment is given by funds from Eaton Vance and Global X (eg QYLD).
@bluesky55878 ай бұрын
I use TurboTax …yes …you get a composite 1099 from your brokerage…neos reports all this to your broker …the 1099 if you read it will show the roc ….they usually refer to it as a non taxable amount…but bottom line is TurboTax imports it all and allocates it properly…that has been my experience for many years.
@Whiskydanger8 ай бұрын
Rising nav and no tax on the roc. Woooo!
@armchairincomechannel8 ай бұрын
So far, so good :)
@TwitchRadio10 ай бұрын
Soooo... is it qualified or ordinary🤔.... sounds like a good portion of it is qualified but is it still honestly tax-efficient.. right now I have DGRO & SCHD... and would love to add one more qualified etf to my profolio but I don't want to add something that's going to kill me in taxes😂... thanks for your time guys
@armchairincomechannel10 ай бұрын
We won't have an accurate breakdown of the tax treatment until the end of year tax statements are issued, but in broad terms, the majority is Return of Capital, which will lower the cost basis then be tax on sale as capital gains. The minority will be dividends from S&P 500 companies, which will be a combination of ordinary and qualified dividends. Thanks for watching.
@daviddavis75555 ай бұрын
Can you use this in an IRA or a ROTH IRA and not worry about taxes in your ROTH IRA
@armchairincomechannel5 ай бұрын
I'm not qualified to give tax advice but in general terms..a Roth IRA allows you to contribute after tax dollars and your earnings grow tax free, after which they can be withdrawn after age 59 1/2. Based on that explanation (sourced from Schwab) the answer is "yes".
@daviddavis75555 ай бұрын
@@armchairincomechannel thanks
@EvolutionFitnessBrookfield6 ай бұрын
Is there any benefit having this in a ROTH?
@armchairincomechannel6 ай бұрын
It would lower your tax burden but SPYI already more tax efficient than most competitors because it distributes a high percentage of return of capital which is taxed as capital gain rather than income. A Roth is usually used for the least tax efficient investments.
@jimbrown46404 ай бұрын
Return of Capital is not a bad thing with covered calls. No taxes due.
@armchairincomechannel4 ай бұрын
It can be good or bad. No income tax due but your cost basis is lowered, and capital gains tax is due when you sell...if you sell.....There's no free lunch but its a better tax scenario for most people.
@jimbrown46404 ай бұрын
@@armchairincomechannel This is a common thing with covered call etfs. Works for me if the NAV doesn’t depreciate too much.
@antaresantares482011 ай бұрын
I am more interested in the money they really earned with their strategy on a monthly basis, rather than what they distribute. In other words I want to see the pay out ratio. Taxes saved are payments out of the pockets of us taxpayers. Doesn´t say anything about their strategy or investment results. My 50c.
@armchairincomechannel11 ай бұрын
You raised an important question. I’ll address it in a future video. Most of their return comes from the distribution. If they distribute their assets then those distributions aren’t net returns. It’s an ETF so the NAV equals the price. The NAV has been flat, despite high, consistent distributions. In other words, it hasn’t eroded, which was my concern. It’s still a young fund but at this point it’s on track with its objective to produce income and keep up with SPY in total returns (or almost keep up).
@antaresantares482011 ай бұрын
@@armchairincomechannel Thank you for picking up my remarks. You are right total return is on track given the implied strategic limitation when the underlying is going up quickly, what happened this summer. However, I would propose they increase transparency big time. They still do not give clear picture what part of their different tactical instruments , i.e. buying calls, selling calls etc. has contributed how much to the monthly result. In short, I am missing a monthly P&L statement by the instruments used. Why can´t they tell us what they do or did? What went good, what failed, and why? Compare it to the way better transparency of yieldmax.
@mjsmcd4 ай бұрын
Jepi head said they used ELNS so shareholders didnt have to refugure cap gains
@armchairincomechannel4 ай бұрын
Thanks for sharing.
@sirnubenegra11 ай бұрын
If you want to lose your money remember nusi. The run that too. Lol.
@armchairincomechannel11 ай бұрын
Yes, that’s a whole other can of worms I’ll address at another time.
@JL-qs2tb11 ай бұрын
If you're on the bubble in a tax bracket or staring at the barrel of paying part B Medicare. Getting that ROC helps.
@armchairincomechannel11 ай бұрын
Good point, thanks for watching :)
@mrj168110 ай бұрын
Beware! SPYI only paid my first dividend- then they just stopped paying dividends. I sold SPYI right away. If you live outside the US: the US tax will take 30% of your dividend payments! Recieving only the first dividend and then loosing 30% of the dividend to the US tax...no thank you!
@armchairincomechannel10 ай бұрын
If you didn't receive dividends, contact your broker and ask them to resolve. I've received my SPYI dividends, as has everybody in the Armchair Community. Regarding withholding tax at 30%, that's the default setting for every US stock and has nothing to do with SPYI. If you haven't already, check to see if your country has a tax treaty with the US and if that tax treaty entitles you to a lower rate of withholding. Many countries have rates as low as 15%. Lastly, the actual taxable amount you owe is almost certain to be far less than 30%, so if you file a tax return with the IRS, you are likely to receive a refund.
@mrj168110 ай бұрын
Thank you for your advice👍I will check that out.
@armchairincomechannel10 ай бұрын
You're welcome. Sorry to hear about the glitch and hope its resolved soon. If you haven't looked at Interactive Brokers, they're good for Non-US accounts and familiar the reduction of withholding taxes based on tax treaties.