I've held PFFA for several years and it's one of my largest holdings. I love the active management, judicial use of leverage, and, as a recent retiree, the monthly dividends. I'm a big fan of your content and presentation style, thanks for all the great info.
Thank you. Always wanted to learn more about PFFA and you presented the information well - as usual. Love your channel and your insights on the various stocks and funds. Appreciate all your hard work and efforts each week. Be well.
Thanks again for sharing your research. I’ve owned PFFA for a few months because you brought it to my attention in one of your videos. I looked at it and decided it was a good fit in my portfolio. Thanks!
Agree with your assessment... I have a small position, and I do like it doesn't have much, if any tech exposure. I don't expect much up/down etf pricing, but like the 9%+ yield on a diversified pool of stocks.
@@armchairincomechannel While preferred shares are technically eqities, I would consider them closer to bonds in a retirement mix. So if someone has a 5% allocation in PFFA, then that can be counted as part of a 20% bond/CD mix. I'm a 80/20 or 85/15 equites to fixed income type of guy. I do count covered calls as equties though.
I only got into div fund investing recently (thanks to armchair insider!). I can already tell after a handful of months PFFA is going to be a very strong performer.
Really appreciate your channel and the work you put in to researching and making these videos. I’m retiring in 2 weeks at 54 yrs old and your channel has been super helpful as I created my income portfolio to supplement my retirement. THANK YOU!
Thanks for letting me know! I'm glad that the information has been helpful to you. I was the first of my friends to retire so I didn't have anybody to ask advice from. Enjoy your new freedom :)
Like the results I'm seeing so far since adding PFFA to the income portfolio in November 2023. Almost half way to half the target allocation for this holding. Thank you for sharing your take on PFFA.
@@brucef1299 do you count reinvested dividends towards your target allocation number or is it just a dollar amount you put in as new money? I'm torn on how to do it like if I want a target amount invested like $10k in PFFA should I count dividends reinvested plus new cash or just $10k new money put in and whatever dividends I get from PFFA dosen't count towards the $10k
Thank you for your videos. I have owned PFFA since 2020, with distributions reinvested, and have been very satisfied with it. I also own a handful of perpetual preferred issues with nice returns.
Good timing. This has been on my watch list for a long time, missed the lows and keep hesitating because it's at 52-week high almost every time I look and only getting higher. I think I'll buy a few tracker shares so it's top of mind if it drops. Thanks, as always.
I totally agree with you I used to buy individual preferred stocks but now only buy funds. John Hancock has a few also. as you said they have done well this year.
I think if you enjoy the process of monitoring/managing preferred stocks or writing your own covered calls then its a great way to generate income, but they eat up a lot of time. I don't mind paying the fund managers to do it for me.
Good call, I am heavy into preferred stocks, but I have this fund as well as it has some of the ones I don't own and it pays about the same 9% I get on the preferred portfolio.
Thanks for your feedback. If you enjoy finding/tracking preferred stocks they offer a lot of benefits. Many of the preferred versions of mortgage REITs outperform their common stock counterparts.
Thanks for the video. I admit to a distrust of the financial sector, but I could be happy with PFFA. I recently got into EIC so I think my distrust in the sector is waning.
Nothing wrong with some scepticism when it comes to investing. EIC has its risks but worth considering as part of a diversified portfolio. If a fund has a long history of delivering what you seek in terms of volatility, returns, and consistency then I think it's worth considering. I'm more distrustful of new funds/fund managers.
Love PFFA. (Currently just over 2% of my portfolio). Is in the 'sweet spot' for income generating at 8%+ yield. I have it at a 9.8% YOC, so it has gone up in value nicely, but not so much that it's past min. acceptable yield rate. Armchair, I'm curious.... 1) At what percentage point do you start to wonder if a single investment is becoming overweighted in your portfolio even if it is a "great" investment. 2) Do you allow for a higher weighting for a fund that is 'diversified' in itself. -- Ex. I try to keep individual investments at 2% of portfolio, but I hold PBDC at 5% of my portfolio. It pays > 9% yield AND it's basically a fund of funds, so I treat that differently than I would ARCC, MAIN, etc.
Your questions indicate we have a similar approach. We both like a lot of diversification. I weight more heavily to investments with what I perceive to offer a better risk/reward. So GOF, RC and MAXI are very risky....tiny weighting. SPYI is diversified / less risky / higher weighting. I cap my holdings at approx 5%. Somtimes they get a little higher but I don't usually let them exceed 6%. At the moment I'm overweight SPYI and QQQI because I sold SVOL as it faces some challenges during the current volatility caused by the US election. But that should revert to "normal" soon.
Thanks for another great video. You have mentioned in previous vids that you wish you would have started this strategy earlier. What is your method for paying taxes for those of us that are still working and want to do this in a taxable account? Thanks!
I wouldn't want to invest too much in income investments in a taxable account, if I wasn't close to retirement. Growth is more tax efficient over the long term, especially when you have a paycheck. I was referring to 2 things. 1/ Starting early to smooth out the learning curve. Starting to learn about income investing the day after retiring is a steep learning curve. I learn by doing and it can be done with a small amount of money. 2/ Sequence of Returns Risk. If you happen to retire at the start of a bull market with a growth portfolio, selling stocks to pay bills would be stressful. You can hedge some of that risk with strategies such as a bond ladder, or some income investments. You'll lose some returns and tax efficiency, and I would do it too early or with too much of my portfolio, but entering retirement with some income in place would be less stressful if you happen to retire at the "wrong" time. So in summary, I'm suggesting gradually easing into it. Also, funds like SPYI, and QDPL are quite tax efficient.
I recommend having more than 1 brokerage to ensure you can't be told what you can and cannot buy. Also, you never know when a company can get hacked or have an issue.
Another great video and my advice to everyone is DO NOT ever leave the Army Chair, I am on my third full month in the Army Chair and I am getting fatter with dividends for sure 😊
I am new to income investing like this and wanting to be a part of a community that discusses these things. Do you have one / know where I can find this? I thought I heard you mention one in one of your precious videos. Thanks.
What about FPF, another preferred CEF? Over the last year it massively outperformed PFFA. It doesn't seem to be included in the comparison you referenced though
Interesting fund. You're right, it has outperformed PFFA over 1 year and 5 years for total return. Comparing it to PFFA since PFFA's inception, PFFA outperformed FPF 67% to 45%. So it depends on the time period. Quite a few dividend cuts for FPF over recent years but good to see it raise dividends more recently. Definitely an impressive fund and one to consider in the preferred space. Thanks for suggesting it!
PFFA has a good stable dividend. Certainly worth adding to a portfolio, but it won't reduce risk in a down market. Preferred stocks dropped further than the S & P 500 during the 2008 and 2020 crashes.
The yield is net of expenses so you don't deduct one from the other. If the yield is 8.6% then you receive 8.6% in your account. Most of the expenses are interest. Another option is to buy a fund with no leverage and receive less income....like PFF.
Great video that I was looking for. A quick question on the fee. So, although it says 2.52%, is it correct to understand that the actual fee we - the investors - will be responsible for will be 0.85% for "management fee" where the rest of the stated fee is for the fund's operation?
Glad it was helpful. The 0.85% is paid to the fund to cover management, the rest of the fee pays the cost of leverage (ie interest). As an investor, you don't pay for either out of pocket as all fees are deducted before the yield is calculated. So if the yield was 10% and the fee was 1%, the fund would need to generate a total of 11% to cover both.
Not bad . But I prefer JPST 5.28 % . The shares don't go up and down like PFFA . Iget it's not what this is about , just thought i would share . Cheers
I can’t seem to understand the rationale behind selling an investment when the dividend percentage falls due to higher share price. The yield on your cost remains the same doesn’t it? Based on what you are saying if the share price on PFFA were to rise to the point where the dividend on PFFA dropped to say 6% you would sell your shares? School this old mind on this please.
I had the exact same question. He answered it recently in a video about when to sell. In a nutshell. If you buy x at 10 bucks and it yields 10 percent your income is 1. If share price increases to 100, your income is still just 1. The 90 dollars in unrealized gains is not working for you. Sell for 100, buy a similar x at 10 percent yield and now your income is 10.
Look at what happened to PFFA during covid crash, due to its leveraged nature it dropped 70%!!! And has not recovered since. I would not touch this etf, no way I could sleep well at night knowing the next morning if the market dumps it could drop 70% , maybe find an unleveraged version.
Yes, the price did crash during 2020. Total return since inception is 67% so the distributions outweighed the price drop. If you don't like major corrections, perhaps an unleveraged fund like PFF is a better option.
It’s bizarre that many investors dismiss preferred stock for income. If you think about them more like bonds you will be pleasantly satisfied. If you think of them like stock, you will be disappointed
AMLP is popular with Midstream investors but it's a completely different kind of investment. I don't hold it because of the dividend cuts in the past but perhaps there are reasons to believe that won't happen again.
Thank you ofr yor suggestion. I don't go into a lot of detail about the various taxes outside the US because there's a lot of variation between countries. However, in general, the default tax withholding amount is 30%. You should check if the country you chose as a tax resident has a tax treaty with the US. If so, you can claim a lower withholding rate by signing a form and sending it to your broker. Quite a few countries withhold at 15%. Then you can also file a tax return with the IRS as a foreigner and pay the actual tax due (often less than 15%) and the IRS will send you a refund for the difference.
Just wanted to thank you for so much incredible information. Recently finished a transition plan, then completely sold everything and re-balanced into only a completely diversified (US / International, Small / Mid / Large Cap, 11 GICS Sectors, etc) dividend growth and high-yield funds (ETFs, CEFs, mutual) with tax-friendly in brokerage and non-tax-friendly in retirement. With this portfolio, will never have to sell, and only eventually use dividend income to live on, and with what's left over re-invest when the respective fund(s) dip. The new portfolio of course includes PFFA, PBDC, SPYI, QQQI, IWMI, and many other gems. Also, did you see the new NEOS BTCI (Bitcoin High Income) ETF that started trading on Oct 17th?
Thanks for sharing your strategy and congratulations on building a diversified river of cash :) Yes, I'm aware of the new BTC fund and once I have a more detailed knowledge of the strategy behind it I will decide whether its appropriate to buy it and/or make a video about it. I'm in discussions with NEOS regarding future interviews about their new funds.
Yes, the performance of PFFA during 2022 and 2023 is addressed in the "Total Return" section of the video. Fixed income investments do not perform well during periods of rising interest rates.
Shocking that less than 22k have found this channel! Maybe you should charge $200-$500 for an account instead of freely giving the information that involves a fair amount of work on your part? You and Dave of WA are tops for me. Thanks for the effort you put in so we don’t have to.
I think Armchair Income is sort of retired but it would be cool if he had his own business show (on television) to interview all kinds of fund managers.
Takes time to build a following. Quality good FREE content will get him followers and a decent revenue stream in time. He’s already viewed as one of the best in amongst his div income UA-camr contemporaries. No need to charge a ridiculous amount and make it unaffordable for those new to this, like me a few months back & looking to improve their lives. Thats the beauty of UA-cam free content from quality educators. I’ve learned car maintenance, home DIY, basic computer/electronic technician stuff, cooking and of course financial matters.
Good morning... I am looking to put together a theoretical list of about 20 income producing stocks so I can see it idea of what type of income I will make with the money I have... Will snowball or Seeking Alpha be the best for this particular use?.... I am planning on getting both of them eventually, but just want to be able to check out different scenarios on different stock combinations....ALSO, do you have a video that discusses what kind of fees are charged when buying and selling these income producing stocks?
Hi, for building an income portfolio, real or theoretical, I suggest Snowball. You could start with the free trial to see if you enjoy the interface. It will also give you a sense of how "lumpy" the income will be by month as quarterly distributions lead to some months paying more than others. I'm not sure what you mean by "fees". Most brokerages charge between zero and $1 per transaction. Unlike mutual funds, there are no fees to enter or exit any investments I hold/discuss.
➡Snowball Dividend Tracker
(Create a Free Account, and the 10% Discount will appear under "Subscribe"):
armchairincome.link/snow
My weekend is complete! 😊
Thank you as always for the great info!!!
I'm happy to contribute to your weekend :) Thanks for watching!
I've held PFFA for several years and it's one of my largest holdings. I love the active management, judicial use of leverage, and, as a recent retiree, the monthly dividends. I'm a big fan of your content and presentation style, thanks for all the great info.
Thanks for your feedback. Great to hear that the info has been useful.
Thank you. Always wanted to learn more about PFFA and you presented the information well - as usual. Love your channel and your insights on the various stocks and funds. Appreciate all your hard work and efforts each week. Be well.
Thanks for taking the time to write such kind words! I appreciate your feedback and encouragement. Makes me smile!
Thanks again for sharing your research. I’ve owned PFFA for a few months because you brought it to my attention in one of your videos. I looked at it and decided it was a good fit in my portfolio. Thanks!
I'm glad the videos are helpful for finding new ideas :)
Agree with your assessment... I have a small position, and I do like it doesn't have much, if any tech exposure. I don't expect much up/down etf pricing, but like the 9%+ yield on a diversified pool of stocks.
I agree :) Thanks for sharing your perspective!
@@armchairincomechannel While preferred shares are technically eqities, I would consider them closer to bonds in a retirement mix. So if someone has a 5% allocation in PFFA, then that can be counted as part of a 20% bond/CD mix. I'm a 80/20 or 85/15 equites to fixed income type of guy. I do count covered calls as equties though.
I only got into div fund investing recently (thanks to armchair insider!).
I can already tell after a handful of months PFFA is going to be a very strong performer.
Welcome to the income investor community :) I hope you're right about PFFA; I like it too.
Really appreciate your channel and the work you put in to researching and making these videos. I’m retiring in 2 weeks at 54 yrs old and your channel has been super helpful as I created my income portfolio to supplement my retirement. THANK YOU!
Thanks for letting me know! I'm glad that the information has been helpful to you. I was the first of my friends to retire so I didn't have anybody to ask advice from. Enjoy your new freedom :)
Like the results I'm seeing so far since adding PFFA to the income portfolio in November 2023. Almost half way to half the target allocation for this holding. Thank you for sharing your take on PFFA.
You're most welcome. I'm glad its working for you.
@@brucef1299 do you count reinvested dividends towards your target allocation number or is it just a dollar amount you put in as new money? I'm torn on how to do it like if I want a target amount invested like $10k in PFFA should I count dividends reinvested plus new cash or just $10k new money put in and whatever dividends I get from PFFA dosen't count towards the $10k
I bought into PFFA months ago 😊........a good performer so far.......I may add more funds😊........THANK YOU for another great video
Thanks for being a regular viewer and commenter :)
Thanks for the well sourced and thorough review. Another great video. Love your channel
I appreciate your kind words; very encouraging!
Very educational video on PFFA and preferred ETFs.
I'm glad it was useful :) Thanks for the feedback.
Thank you for your videos. I have owned PFFA since 2020, with distributions reinvested, and have been very satisfied with it. I also own a handful of perpetual preferred issues with nice returns.
Thanks for sharing! I'm glad that preferred shares have been working well for you.
Good timing. This has been on my watch list for a long time, missed the lows and keep hesitating because it's at 52-week high almost every time I look and only getting higher. I think I'll buy a few tracker shares so it's top of mind if it drops. Thanks, as always.
You're most welcome. Thanks for sharing.
Very good episode ! Always fine to get a shot of Armchair Income each Sunday ! 👌👌👌
Thanks for your feedback. I hope you enjoy a shot of coffee with your Armchair Income :)
@@armchairincomechannel I did !! It wasn’t on the morning one this time but at later at lunch !! 😎😎
Good analysis of this investment. I have a large position in PFFA going back 2 years.
You're welcome! You bought it earlier than me...nice move :)
I totally agree with you I used to buy individual preferred stocks but now only buy funds. John Hancock has a few also. as you said they have done well this year.
I think if you enjoy the process of monitoring/managing preferred stocks or writing your own covered calls then its a great way to generate income, but they eat up a lot of time. I don't mind paying the fund managers to do it for me.
I like that it is an ETF instead of a CEF which might trade totally disconnected from reality. Thanks for highlighting this fund.
Yes, there are pros and cons to both. CEFs can be good if you time the price discount well as the market often over reacts to bad news.
Thank you very much.
My pleasure! Don't forget to watch the interview with Jay, if you haven't already.
Good call, I am heavy into preferred stocks, but I have this fund as well as it has some of the ones I don't own and it pays about the same 9% I get on the preferred portfolio.
Thanks for your feedback. If you enjoy finding/tracking preferred stocks they offer a lot of benefits. Many of the preferred versions of mortgage REITs outperform their common stock counterparts.
Very happy having 4.5 % in my portfolio
That's great! You can build a very conservative portfolio that pays 4.5%.
Thanks for the video. I admit to a distrust of the financial sector, but I could be happy with PFFA. I recently got into EIC so I think my distrust in the sector is waning.
Nothing wrong with some scepticism when it comes to investing. EIC has its risks but worth considering as part of a diversified portfolio. If a fund has a long history of delivering what you seek in terms of volatility, returns, and consistency then I think it's worth considering. I'm more distrustful of new funds/fund managers.
Love PFFA. (Currently just over 2% of my portfolio). Is in the 'sweet spot' for income generating at 8%+ yield. I have it at a 9.8% YOC, so it has gone up in value nicely, but not so much that it's past min. acceptable yield rate. Armchair, I'm curious.... 1) At what percentage point do you start to wonder if a single investment is becoming overweighted in your portfolio even if it is a "great" investment. 2) Do you allow for a higher weighting for a fund that is 'diversified' in itself. -- Ex. I try to keep individual investments at 2% of portfolio, but I hold PBDC at 5% of my portfolio. It pays > 9% yield AND it's basically a fund of funds, so I treat that differently than I would ARCC, MAIN, etc.
He did a recent video of “when to sell” which I thought had some great insights.
Your questions indicate we have a similar approach. We both like a lot of diversification. I weight more heavily to investments with what I perceive to offer a better risk/reward. So GOF, RC and MAXI are very risky....tiny weighting. SPYI is diversified / less risky / higher weighting. I cap my holdings at approx 5%. Somtimes they get a little higher but I don't usually let them exceed 6%. At the moment I'm overweight SPYI and QQQI because I sold SVOL as it faces some challenges during the current volatility caused by the US election. But that should revert to "normal" soon.
Added this stock to my income portfolio, building it up to 5% of portfolio.
Thanks for sharing :)
Thanks for the info!
My pleasure. Thanks for watching :)
Thanks for another great video. You have mentioned in previous vids that you wish you would have started this strategy earlier. What is your method for paying taxes for those of us that are still working and want to do this in a taxable account? Thanks!
I wouldn't want to invest too much in income investments in a taxable account, if I wasn't close to retirement. Growth is more tax efficient over the long term, especially when you have a paycheck. I was referring to 2 things. 1/ Starting early to smooth out the learning curve. Starting to learn about income investing the day after retiring is a steep learning curve. I learn by doing and it can be done with a small amount of money. 2/ Sequence of Returns Risk. If you happen to retire at the start of a bull market with a growth portfolio, selling stocks to pay bills would be stressful. You can hedge some of that risk with strategies such as a bond ladder, or some income investments. You'll lose some returns and tax efficiency, and I would do it too early or with too much of my portfolio, but entering retirement with some income in place would be less stressful if you happen to retire at the "wrong" time. So in summary, I'm suggesting gradually easing into it. Also, funds like SPYI, and QDPL are quite tax efficient.
Thank you. Good job.
Thanks for watching, and I appreciate your feedback.
Annoyingly PFFA isn't available on Merrill Edge for some reason. "This security is currently blocked and unavailable for trading"
I recommend having more than 1 brokerage to ensure you can't be told what you can and cannot buy. Also, you never know when a company can get hacked or have an issue.
Another great video and my advice to everyone is DO NOT ever leave the Army Chair, I am on my third full month in the Army Chair and I am getting fatter with dividends for sure 😊
Army Chair says thanks ;)
I am new to income investing like this and wanting to be a part of a community that discusses these things. Do you have one / know where I can find this? I thought I heard you mention one in one of your precious videos. Thanks.
It's a secret community so don't tell anybody ;) Here's a link: facebook.com/share/g/MjdLvskjWipcKmPD/
Can you do a chat on taxes and which etfs are best for that
Thanks for the suggestion. I'll add it to my ideas list.
What about FPF, another preferred CEF? Over the last year it massively outperformed PFFA. It doesn't seem to be included in the comparison you referenced though
Interesting fund. You're right, it has outperformed PFFA over 1 year and 5 years for total return. Comparing it to PFFA since PFFA's inception, PFFA outperformed FPF 67% to 45%. So it depends on the time period. Quite a few dividend cuts for FPF over recent years but good to see it raise dividends more recently. Definitely an impressive fund and one to consider in the preferred space. Thanks for suggesting it!
I started to buy this fund after heard of it from this channel :)
That was last year! I hope you're happy with it thus far.
PFFA has a good stable dividend. Certainly worth adding to a portfolio, but it won't reduce risk in a down market. Preferred stocks dropped further than the S & P 500 during the 2008 and 2020 crashes.
Yes, the price volatility is harsh, especially for a leveraged fund like PFFA.
What is with the 2.52% TER? That means of the 8.6% is only 4% worth, then it is better to invest in LP's or BDC's companies.
The yield is net of expenses so you don't deduct one from the other. If the yield is 8.6% then you receive 8.6% in your account. Most of the expenses are interest. Another option is to buy a fund with no leverage and receive less income....like PFF.
PFFA is my largest holding. I can't think of any good reason to change that.
Hi Norman. Thanks for sharing that.
Recently started a position in PFFA with 200 shares will turn on drip in January
Thanks for sharing and best of luck with your income investing.
Great video that I was looking for. A quick question on the fee. So, although it says 2.52%, is it correct to understand that the actual fee we - the investors - will be responsible for will be 0.85% for "management fee" where the rest of the stated fee is for the fund's operation?
Glad it was helpful. The 0.85% is paid to the fund to cover management, the rest of the fee pays the cost of leverage (ie interest). As an investor, you don't pay for either out of pocket as all fees are deducted before the yield is calculated. So if the yield was 10% and the fee was 1%, the fund would need to generate a total of 11% to cover both.
Where can i find the amount of leverage used by income focused ETFs?
I don't know of a central database for that information. I have to check the individual fund websites.
Not bad . But I prefer JPST 5.28 % . The shares don't go up and down like PFFA . Iget it's not what this is about , just thought i would share . Cheers
Thanks for your feedback, and for sharing. PFFA has more consistent income and JPST has a more consistent price.
I can’t seem to understand the rationale behind selling an investment when the dividend percentage falls due to higher share price. The yield on your cost remains the same doesn’t it? Based on what you are saying if the share price on PFFA were to rise to the point where the dividend on PFFA dropped to say 6% you would sell your shares? School this old mind on this please.
I had the exact same question. He answered it recently in a video about when to sell. In a nutshell. If you buy x at 10 bucks and it yields 10 percent your income is 1. If share price increases to 100, your income is still just 1. The 90 dollars in unrealized gains is not working for you. Sell for 100, buy a similar x at 10 percent yield and now your income is 10.
@@Lawyerup904 I get it now! Thanks!
@@Lawyerup904Yes, thank you so much for taking your time to answer this question. It was valuable! 👌 🙂
You explained it better than I did!
@@armchairincomechannelhaha thanks! Honestly had to watch the video a couple times. ( English major 😂 )
I am a big fan of PFFA
That makes 2 of us :)
I own this fund and am happy
That makes 2 of us :) Thanks for watching, you're one of the first :)
how much leverage does this fund use?
PFFA leverage ranges from 20 to 30%
Look at what happened to PFFA during covid crash, due to its leveraged nature it dropped 70%!!! And has not recovered since. I would not touch this etf, no way I could sleep well at night knowing the next morning if the market dumps it could drop 70% , maybe find an unleveraged version.
Yes, the price did crash during 2020. Total return since inception is 67% so the distributions outweighed the price drop. If you don't like major corrections, perhaps an unleveraged fund like PFF is a better option.
It’s bizarre that many investors dismiss preferred stock for income. If you think about them more like bonds you will be pleasantly satisfied. If you think of them like stock, you will be disappointed
That's a good way to frame them!
I like AMLP with its much cheaper expense ratio and nearly 8% yield.
AMLP is popular with Midstream investors but it's a completely different kind of investment. I don't hold it because of the dividend cuts in the past but perhaps there are reasons to believe that won't happen again.
Thanks
You're most welcome!
How tax works for a non-American? 30% withholding tax? Thanks
Suggestions for a video: rank your top 10 portfolio in terms of taxes efficiency for non-American or expats
30%
Thank you ofr yor suggestion. I don't go into a lot of detail about the various taxes outside the US because there's a lot of variation between countries. However, in general, the default tax withholding amount is 30%. You should check if the country you chose as a tax resident has a tax treaty with the US. If so, you can claim a lower withholding rate by signing a form and sending it to your broker. Quite a few countries withhold at 15%. Then you can also file a tax return with the IRS as a foreigner and pay the actual tax due (often less than 15%) and the IRS will send you a refund for the difference.
Just wanted to thank you for so much incredible information. Recently finished a transition plan, then completely sold everything and re-balanced into only a completely diversified (US / International, Small / Mid / Large Cap, 11 GICS Sectors, etc) dividend growth and high-yield funds (ETFs, CEFs, mutual) with tax-friendly in brokerage and non-tax-friendly in retirement. With this portfolio, will never have to sell, and only eventually use dividend income to live on, and with what's left over re-invest when the respective fund(s) dip. The new portfolio of course includes PFFA, PBDC, SPYI, QQQI, IWMI, and many other gems.
Also, did you see the new NEOS BTCI (Bitcoin High Income) ETF that started trading on Oct 17th?
Thanks for sharing your strategy and congratulations on building a diversified river of cash :) Yes, I'm aware of the new BTC fund and once I have a more detailed knowledge of the strategy behind it I will decide whether its appropriate to buy it and/or make a video about it. I'm in discussions with NEOS regarding future interviews about their new funds.
Crazy expense ratio. 2.52%
Most of that is interest. Management fee is 0.80%. That's reasonable to manage 200 preferred holdings.
have you seen the poor performance of PFFA in 2022 and 2023 ?
Yes, the performance of PFFA during 2022 and 2023 is addressed in the "Total Return" section of the video. Fixed income investments do not perform well during periods of rising interest rates.
Great fund
'because now they pay for everything'
You have a good memory :) I said that about 50 times and thought it needed a change up :)
Shocking that less than 22k have found this channel! Maybe you should charge $200-$500 for an account instead of freely giving the information that involves a fair amount of work on your part? You and Dave of WA are tops for me. Thanks for the effort you put in so we don’t have to.
I think Armchair Income is sort of retired but it would be cool if he had his own business show (on television) to interview all kinds of fund managers.
Which channel is Dave of WA? ;)
Takes time to build a following. Quality good FREE content will get him followers and a decent revenue stream in time. He’s already viewed as one of the best in amongst his div income UA-camr contemporaries.
No need to charge a ridiculous amount and make it unaffordable for those new to this, like me a few months back & looking to improve their lives.
Thats the beauty of UA-cam free content from quality educators. I’ve learned car maintenance, home DIY, basic computer/electronic technician stuff, cooking and of course financial matters.
@@CrockerfellerI'm curious to know this to.
WA is Wealth Adventures. Another good YT channel. Dave is the host and he covers a variety of subjects.
Good morning... I am looking to put together a theoretical list of about 20 income producing stocks so I can see it idea of what type of income I will make with the money I have... Will snowball or Seeking Alpha be the best for this particular use?.... I am planning on getting both of them eventually, but just want to be able to check out different scenarios on different stock combinations....ALSO, do you have a video that discusses what kind of fees are charged when buying and selling these income producing stocks?
Hi, for building an income portfolio, real or theoretical, I suggest Snowball. You could start with the free trial to see if you enjoy the interface. It will also give you a sense of how "lumpy" the income will be by month as quarterly distributions lead to some months paying more than others. I'm not sure what you mean by "fees". Most brokerages charge between zero and $1 per transaction. Unlike mutual funds, there are no fees to enter or exit any investments I hold/discuss.
@@armchairincomechannel Thank you very much... I appreciate your stuff... keep up the great work