When is your video on $bali dropping?

That was fast!

There's no substitute for a (long) history of excellence! Thanks for your feedback, I appreciate it :)

Thanks for sharing! I'm glad the video was helpful for you. Best of luck on your (long) investing journey.

Unless you're within a few short years of retirement, then that makes absolutely zero sense.

@@djayjp If this portfolio was geared towards retirement goals maybe but it’s not.

@@rodericklewis6108 Exactly hence my point. High yield funds are only meant for retirement. They sacrifice growth for income. Look at a total return chart vs SPY.

All in , means you put all your money in. 22 shares is like 1k...

I bought some on the dip too :) Thanks for the feedback, I appreciate it.

Started at $50 doh hurts short term

It dipped today (9/27) because today was the Ex-Dividend date. I bought a couple shares to see what happens.

@@arentibbs799 xdate was 9/20 for $spyi

S&P has further drops to come in my opinion as we still have high inflation, global conflict, looming recession. I would DCA in for right now.

Thanks for your feedback and insight into your strategy. That simple approach makes a lot of sense.

Unless one is within 5 years of retirement, then no.

@@djayjp nope. Lots of folks out there already FI but not retired who are interested in income and capital preservation over growth. Being within 5 years of retirement is irrelevant.

@@CalmerThanYouAre1 Fine, substitute "retirement" for financial independence. So then?

@@djayjp many who are FI but still choosing to work may appreciate a less volatile portfolio with a stable and growing stream of tax-advantaged income. That would afford you the ability to quit work or change jobs at any time without having to worry about creating cash flow to pay bills. Also no need to sell shares or worry as much about sequence of return risk. Probably sleeping much better at night with less portfolio volatility as well. Many may also like to use the income for luxury purchases as they continue to work or use it as a semi-retirement stepping stone toward full retirement as their portfolio income appreciates over time and eclipses their expenses entirely. Tax drag is definitely a concern if you have a large taxable portfolio combined with a high W-2 income, but we are talking about less than 10% of the US population in that category. Those in that category would want to be extra sure they need the income before going the high yield route. Still, with the 1256 contests and ROC approach, the tax advantages are substantial for the amount of income generated.

Thanks for the feedback, we all make mistakes...or at least draw the wrong conclusions from the information we find. I'm curious to see how it does after a major correction too.

Glad it was helpful! Funny you should mentioned QDPL. I'm currently deep into the research on it and haven't seen videos about it from other KZfaqrs. So far I like what I see, so I'll probably do a video on it in the coming weeks.

Thanks for watching, and for sharing your strategy.

Glad you liked it!

Thanks. With these high dividend ones I think it's best to reinvest some rather than spend it all, or rely on spending it all. 12% has to come with some risk.

Thanks for your kind words, Jim.

Me too :)

That would cover tech, the broader market, and some income :)

Not a bad idea to mix some income with some growth. QQQ does the trick for growth.

Thank you kindly!

Glad it was helpful! I appreciate the feedback.

Webull is FDIC guaranteed and the principal isn't at risk (ie it doesn't fluctuate in price). HIGH pays a much higher yield (almost double) because your principal is at risk, and its not FDIC guaranteed. I'm not familiar with the other options you quoted.

I agree. I’m sure they’re working on it, and when they do, I’ll make a video about it.

They are working on it

Thanks for your feedback. I haven’t looked into those new ETFs yet, but thankyou for the suggestion.

They are interested funds.

SPYI vs HIGH...FIGHT!🤣

I like that aspect of it too. I don't use the word "safe" for any investment, but I think it's relatively low risk compared to other alternatives that pay similar yields.

You can’t get almost 10% yield from just tbills and cash. HIGH also opens spreads on SPY and TLT. Risk is managed, but it it not perfectly safe.

Good summary.

I should have used the term “low risk” instead of safe. But can you name one other product giving this yield that is a “lower risk” than HIGH?

I agree! If it was battle tested I'd probably invest more. At a 5% allocation I can take a hit. Last time I looked at Yieldmax they were paying ordinary income. Ymax has had a good run but their timing has also been fortunate.

I've only done a deep dive on SPYI (and invested in it). The other 2 you mentioned are interesting and so new that there isn't much data to analyze. If SPYT can avoid long term NAV erosion after a correction I would be impressed! I'll keep an eye on both and if either/both perform well after a correction I'd be open to reviewing/buying them.

Yes, that is correct and that’s a weakness of this asset class. On the other hand, if the price increases the distribution does too. For this reason I diversify beyond just covered call ETFs.

I interviewed Wealth Adventures about doing it yourself. If you haven't seen that episode, I'll link it below. My opinion is that if you really enjoy selling covered calls, then give it a try. I tried it and it just felt like a lot of work for not much return so I opted to outsource it to funds like SPYI and QQQI. You would also have to consider your personal tax situation for one strategy vs the other.

@@armchairincomechannel there are a lot of conflicting info on spyi of return of investment in a form of dividends. Not sure where to invest to avoid it.

I agree. If they do, I'll make a video about it.

Yes, I sold a lot of stocks in March 2020 because I thought the pandemic would have a serious effect on the economy for an unknown period of time. I didn't foresee that the Fed would intervene at such an extreme level...it was unprecedented. As a result, the market crash was much less than I expected. Also, very few of the investments I had held at the time cut their distributions. I bought back in gradually when the market recovered, but by then the cost basis was higher. What I learned was that we don't live in a free market economy. I have to consider that government intervention is major factor. Going forward, I'm even more careful about choosing investments that are less likely to cut distributions than I was in 2020 (I was somewhat cautious back then but now more so), and unless there's new, greater threat than we've ever seen before (eg. nuclear war), I'm more willing to ride out a recession or other market shock.

It will go down in value just as the S&P 500 goes down in value, no more, no less. The price of receiving the high yield is that it doesn't rise in value as quickly as the S&P 500 if the recovery is large and rapid. In order to stop paying dividends, the S&P 500 would have to stop paying dividends and volatility would have to fall to zero. In other words, it won't happen.

Good question. The price would fall by a similar amount as the S&P 500. If the S&P 500 remained down for a sustained period of time, the distribution amounts would also fall by a similar percentage (although it also depends on volatility, which may be higher..which would increase the payouts). Overall, it would most likely do slightly less worse than the S&P 500 because of the income. After that, if the S&P 500 recovers slowly (1% per month) then SPYI would follow its path. If the S&P 500 recovers quickly (say 6% in one month), SPYI would not recover as fast.

Every cc fund is different and each payment can differ. For SPYI, the majority of the distribution is ROC. The remainder is taxed as ordinary income.

I can't give tax advice or even calculate somebody else's tax liability. I have to hire an accountant to calculate my own tax liability and I know every detail of my own situation. SPYI pays mostly return of capital so that portion is not taxable upon receipt of the income, but it does lower your cost basis and is taxable on sale of the fund at capital gains rates.

It's so new, I think its too early to assemble much data about QQQI. However, it uses the same strategy as SPYI and that fund has been performing as designed.

Thanks : Regarding QQQY….I don’t let the high yield distract me from the declining price and declining distributions.

They're interesting but they're so new that there's no data to review. For that reason, I'll watch it for a little while before forming an opinion.

QYLD has been doing this for 11 years and has $8B under management so I disagree with your 5 year prediction. Also QYLD sells ATM and SPYI sells OTM, which allows for more appreciation than QYLD (or the closer rival, XYLD). If you can time the sale of your S&P 500 holdings when the market is up then that's a viable retirement strategy. Alternatively, if you're OK with selling your S&P 500 stock during bear markets to pay the bills, then that could work for you.

The Top 10 refers to a Playlist of reviews of my top 10 favorite high yield investments. Here's the link: kzfaq.info/sun/PLnz-9sqOVpmgZl1faPfKF_Xcce9u03Lhz Additionally, there's been interest in a simpler format for a list, which I'm working on. I'll publish an updated list in my next video which will be out within the next week.

Hi, its a Playlist of video reviews of my favorite stocks and funds, here's a link kzfaq.info/sun/PLnz-9sqOVpmgZl1faPfKF_Xcce9u03Lhz

I'm not looking for downside protection. The market rewards volatility with appreciation and/or income. If you want downside protection then you would need a different type of fund, and it would deliver lower returns. It all depends what you're looking for.

@@armchairincomechannel I understand the idea of earning via premium collected while selling covered calls, but there is absolutely no point in these funds. The reason is if S&P falls 50% these funds will cause a permanent loss and they will never be able to recover even the initial investment even though S&P 500 might regain entire loss in a period of 3-4 years. Second, you pay tax on dividends which is foolish again. On one side you pay taxes and other side upside is capped.

There are thousands of ETFs and a small percentage include hedges (eg. SVOL has a hedge). If you're asking specifically about covered call ETFs based on an index like the S&P 500, I'm not aware of any with hedges. There is 100% exposure to the downside of the index.

@@armchairincomechannel hi thanks for the comment! yes talking about a cc ETF with down side risk protection.

You just need to make sure that the cash is sitting in the Cash Management account. It will show you how much interest you've earned.

Thanks for watching. I compared to JEPI because it selects stocks from the same pool of stocks, the S&P 500. As for JEPQ, I don't consider it a competitor because it's tech focused, and selects stocks from the NASDAQ 100 (and excludes financial stocks).

So far, so good :)

From the CBOE website: "European - SPX options generally may be exercised only on the expiration date." Can you elaborate? Are you saying they can't be exercised or they can only be exercised on the expiration date?

I didn't see any protective call with ZIVB so you'd need to create your own hedge to protect the downside of a VIX spike.

SPYI is doing quite well. If you're referring to NUSI's performance, I follow what you're saying; that fund hasn't done well, except during the panic period of 2020. They've also managed a long list of other funds. If you have reviewed the performance of all the funds they've worked on, I'd be happy to take a look.

Yes, the 2 day delay in the September dividend was caused by a clerical error at the Depository Trust and Clearing Corporation (DTCC). They entered the wrong date when they were processing the payment from US Bank. www.dtcc.com/about

That's a fair question. The answer is no, I haven't received any compensation from NEOS for that video, or any other video. I haven't received any compensation from any fund. I don't plan to enter into any compensation agreements with any funds, but if for some reason that changes, I would disclose it in writing in the description box, and verbally in the video.

@@armchairincomechannel thank you!