It has become a routine now for me for the last 6 months : Sunday morning coffee with a new video . The most educational channel on income investing I have found so far . Thanks for sharing your knowledge
Have watched several of your videos and appreciate your insights. You have given me several stocks to consider, some of which I have added to my portfolio. One of my closed end fund holdings is TEAF, which you may want to consider. TEAF pays about 9% in dividends and is selling at a discount to asset value. Also buried in the prospectus, this fund is a term fund that is scheduled to liquidate in 2031.
I own JAAA and buy as it dips on a regular basis - anything over 5% yield provides sufficient income for my needs. Thanks for the great video once again!
One area you mentioned may be worthwhile in the future is that in investing, someone should be flexible, otherwise they may miss opportunities if they are too rigid. Your example of buying JBBB is great... you have a set of guidelines, but it's not set in stone.
Please classify each item in your portfolio for suitability for IRA, Roth, or taxable accounts. You could just add a column. Thank you very much for your analysis.
Great video as always. Thank you for your efforts. I have a question about diversification if I may: i know you try to limit individual positions to 5%, but how about asset class diversification? Ex. Do you limit BDC concentration to 20%, CLO to 15% etc. Thank you in advance. Btw does Vietnam suffer from bad air in burning season now? Kind regards.
I don't have strict allocations by asset class but I don't let any of them get close to 50% of the portfolio. Hanoi has problems with pollution but I avoid that area. Southern Vietnam and Southern Thailand are generally good.
Great video as always and I do enjoy these Q&A sessions. The email questioning a 3 bucket approach with cash, income and growth really hit home as it almost exactly matches my current situation. The setup is not for everyone but for me it is working exactly as I had planned and provides me with what I need income-wise while giving me some additional growth exposure. As I age I may shift the allocation but for now it provides for what I need while letting me sleep comfortably at night. Thanks for all the insight.
Thanks for your response to my other comment. I am basically curious as to how well you are able to grow your assets as an income investor so you can stay well ahead of inflation. And at the same time love the lifestyle you enjoy. Thanks
It's a delicate balance between enjoying the good years now vs trying to die with the biggest portfolio. I think I'm keeping ahead of inflation, but taking out a large chunk of cash, so I'm underperforming the overall market and that's OK by me. If you just hold the S&P 500 or QQQ you will die with a larger portfolio than me. I don't know why people try to do that.
I started moving into income funds this week and hope to quit my job after I DCA into my new portfolio. Thanks for all the insight. I'll sign up for seeking alpha using your link; hopefully you get some sort of kickback.
Thanks for this Q&A session. Have you done a comparison between Neos and Goldman Sacks funds like GPIX vs SPYI or GPIQ vs QQQI. Since I like both income investing and growth investing, I hold all of these funds.
I like this format. Question for next episode. Are you seeing you total principal balance grow over time? If use, I would deduce that your income is growing as well. Thanks
That's a great point, thanks for the suggestion. Measuring returns is complicated because I don't withdraw all or none of my income, it varies each month. Assuming 100% withdrawal, the portfolio is up approx 4% since May of 2024 when I started using Snowball, but of course most of the returns (approx 11%) come in the form of income. I would estimate the total return since May is approx 15-16% and the balance with reinvested dividends, but without withdrawals would be up approx 7 to 8%. I don't want to get too far into the weeds with the calculations of how much I reinvest vs spend because for me that's a lifestyle choice rather than an investment choice. I want the channel and the newsletter to be about 1/ The research findings and 2/ The investments I select based on that research. I'll give it some thought because I would want to know the answer to that questions too!
Long time subscriber here. First time commentor/question, I think. But appreciate the content. Extremely insightful. Thank you, keep it up! Muni bond question here. Over the arch of time you've covered a ton of alternative income investments from BDCs, to preferreds, to MLPs, to CEFs, CLOs, etc. I haven't heard you bring up muni bonds, specifically the higher yielding leveraged CEFs like NVG, NAD, NEA, IIM, IQI, VGM and others? They remind me of PFFA, but maybe more rate volatility, but also US Fed tax free (which might not concern you as much as I think you moved out of states so that right there could be the answer). There is not a lot of coverage in general on Seeking Alpha or UA-cam on these funds. I feel like they are a balanced risk/reward based on back testing but not perfect, however with decent fed tax free income. Your take? Thanks!
Thanks for your detailed question and I'm glad the content is useful. Your guess is correct. I held them many years ago when I was a US tax resident. Their net returns depend on the tax situation for the investor. As a non US tax resident, they're less appealing to me. I like the low credit risk, but I'm looking for more yield.
Love these Q&A videos. I do own tobacco shares eg MO and BTI. I want my income streams diversified across different asset classes. I allocate equal weights across four income asset classes - stocks, real estate, debts, and credits/loans. Stock is a bit odd in the Income portfolio - unlike the other three asset classes. Within the stock asset class, I pick MLPs (EPD, MPLX, etc), High Yield stocks (tobacco, utilities and telecoms), equity based option writing plays (SPYI, EOI, etc), and dividend growth plays (yields at 4-5% with consistent and strong dividend growth).
@@normansimonsen1203 Interesting to hear opinion. They provide internet for me (and increase cost with $5/mo yearly) , but I sold my shares in June 2023 ( US account at $45.60), glad I did and not looking back.
Another great video! I really enjoy the Q&A. Would you say JAAA is the "safest" income ETF? Maybe you could do a video ranking all of the income ETF or stock classes from least risk to most risk. Thanks for your work!
I wouldn't use the word "safe" because it's absolute. But I would say its the lowest risk of all the funds I've discussed or purchased. It will remain so as long as interest rates remain high. Thanks for the suggestion. Risk is an important topic!
Thanks for another great video! Your videos get right to the point(s). So many YT vids waste many minutes before saying anything meaningful. I fast forward to try to get past their blah blah blah. I like your videos because I learn from them and you don’t waste our time with blah-blah.
I have kept the cash portion of my portfolio in a money market fund. But it's frustrating having to wait until the next day for the funds to be available. I may consider JAAA as a faster alternative for having dry powder at a better yield that can be sold quickly to take advantage of opportunities.
I don't have a formula. As the market and economy shift I adjust to the mix that seems to make sense at the time. But its not a science and I most favor diversification over trying to weight heavily to sectors I think will improve.
I think I share your view in that when I do flip the switch to income investing I will not expect my portfolio to keep pace with any major index (SPY, QQQ, IWM, etc..). I will expect to have some growth over time. I think you are accomplishing that goal. I hope to do the same.
Always enjoy the vids from you and your growth counterpart. I use a mix of growth and income in my retirement accounts. Covered call ETFs buy more stable income and growth investments. Current "growth" due to income alone is 12-15% although that will drop as the asset balance changes towards more stable assets. Spare change after weekly purchases goes into EIC and FSCO instead a 4% account.
Your videos are the absolute best value for my time! You always address the questions in my mind and bring up things I haven't considered. Much appreciated 🙏 🙇🏾♀️.
That's a good point. Also, there are some major lenders that have restrictions on morally questionable industries, which may drive up the cost of debt for them in the future. It's a complicated biz...too complicated for me!
Great explanation of the different investments and why they are different compared to equities. Thanks for the videos. I appreciate the time and effort that you put into these....fellow income investor.
i really enjoy your channel very imformative . i'm a income growth person 3 years to retirement 40% income averaging 7% and 60 % stocks witch include 5% gpix , 5% gpiq . keep up the good work !
I think a combination of dividend stocks with a reasonable yield and a couple of BDCs is the best approach to take for income investing. There are ETFs that allow for investing in MLPs without the Schedule K-1 nightmare at tax season. I am on the fence about bank loan funds.
Thanks for another informative Armchair Q&A. It would be really helpful/interesting if you could share your historical total return performance. As you’ve stated, it is your secondary goal after achieving your income targets. The biggest single challenge/question you get is why income vs growth investing (or why income is inferior over time). Sharing your you total returns achieved would help dispel this challenge.
I'd like to address that question but it's challenging. I'll paste below the response I wrote to a similar question in Dec of last year. "Tracking results is challenging with a constantly evolving portfolio. I started using Snowball to track my portfolio (and share it) in May 2024. Before then I just followed the numbers on 3 separate brokerage accounts. Since then I have made about 4 trades a week and reinvested a portion of my dividends every month. Not counting the reinvestment of dividends, the portfolio is up 6.7% since May, and the yield is currently 11.54%. Total return would require annualizing the 6.7% and adding the income. I don't have software that can do that for my portfolio. So no NAV erosion, but the market has been kind to us. I would like to track everything but I haven't found a way to account for my trades (realized vs unrealized profit) and I want to show the returns without reinvestment so that its a constant as I reinvest a different amount each month and that complicates the return. As the data from Snowball grows, I'll share whatever useful data I can. I think I'd need at least a year of data but ideally it would be best to see how the portfolio reacts to bull and bear markets. Anecdotally, I recall that my portfolio dropped like everybody else's in 2022, but the income hardly changed at all...very few cuts. Since then I've added covered call funds and they are likely to trend down during a prolonged bear market so that will affect future numbers. Thanks for the suggestion!"
Understand, it would be challenging to calculate TR precisely without software. However, you could come up with a pretty reasonable approximation as follows. Brokerage statements typically provide monthly/YTD: unrealized gains/losses on investments, realized gains/losses, divs/interest. Simply summing those and dividing by the average portfolio balance (adjusting for net portfolio additions/deductions) should give a pretty decent approximation of total return. Just a suggestion. You already provide a very informative and useful free resource! Thanks 😉
Great video as always. Curious why you don't invest in any individual bonds as well as your dividend stocks, ETFs and funds? Buying an individual bond provides insight into the actual yield you will receive holding through duration, whether its a US Treasury, agency bond or corp bond.
Nothing wrong with individual bonds but I prefer the diversification of funds that hold a portfolio of bonds. For corporate bonds, I don't have any advantage when it comes to underwriting the credit of the individual companies so I'd prefer a fund manager to handle that at scale. Having said that, I do hold a couple of preferred shares, so they're an exception to the diversification/underwriting reasoning.
Ciao,bellissimo il format q&a,sempre ottime analisi.anch'io ho strutturato il mio portafoglio da reddito e il tuo canale è molto molto interessante! Ho inserito ultimamente bxsl,mi sembra un ottima azienda.
I was there last March. Wasn't a fan of the crowds, but perhaps you can find a peaceful spot. I preferred Danang, and I'm also interested to check out Phu Quoc. Having said that, any day in Thailand is a good day. Enjoy the sun and sea!
In general, if you believe the investment markets are mostly efficient, the idea higher yields = higher risk. Most of the time this is true. It is true with interest rate on bonds, since the underlying asset is money... however, with equities there is the opportunity of appreciation in addition to dividends. That is a distinction you could further elaborate on such as total returns vs just dividend %. You touched on it, but it may be worth a video on total return vs income investing.
My 2 cents worth...Yes, there is the "opportunity" for equities to grow but no guarantee. Income investors (which I consider myself to be) are more interested in a steady income. Growth is just icing on the cake. Regarding the "addition to dividends", the average dividend for DG stocks is around 2%-3%. That means a portfolio of growth stocks, in order to compete with an income portfolio averaging 10%, would need to grow 7% to 8% annually, each and every year. If an income portfolio remains flat, yet returns 10% annually, is it really any different than a portfolio of dividend growth stocks that have the same annual return? Other than a few very dogmatic index investors, I think most would agree that one approach is not superior over another - just 2 paths leading to the same goal. I am basically regurgitating what can be found in The Income Factory, written by Steven Bavaria. Edited
Within an asset class, I agree that high yield means more risk. However, plenty of high yield investments are available that aren't the train wreck that growth investors claim. Thx for the suggestion for a video.
2 questions: 1: As far as diversification goes, I know you say you limit yourself to 5% per individual stock, but do you also have set allocation goals to each asset class/genre, ie. 25% toward covered calls, 25% to credit, 25% to BDC, etc.? Forgive me if you've already covered this particular topic, I don't think I've seen it yet though. 2: Along the same lines, I wonder out loud if it's truly diversification to own, say, both QQQI and SPYI, when what you are really investing in is a single company in NEOS (also, both own roughly similar equities but that's a separate point), therefore you should have a set limit on what you allocate towards NEOS, JPM, YieldMax, etc. Is this something you consider? I'm personally in the beginning stages of building my portfolio and I'm currently aiming for a hybrid 50/50 growth/income(reinvested) allocation. It looks to be tax efficient for now and the income ETF options really speak to me in terms of safety and diversification. Thank you for nerding out on this stuff so much, you're my favorite income ETF UA-cam channel!
I don't have a formula for asset class allocation but I do try to spread it around. I'm more focused on diversification than maximizing returns by weighting to what I think will do better in the near term. You're right about a lot of overlap with QQQI and SPYI because the option strategy is the same and those indexes have significant overlap. I hold no Yieldmax funds. I want to limit NEOS funds but they keep coming out with funds I like...it's a good problem to have! No matter how good a fund manager is, I'd never give them all, or even half of my net worth. Will have to keep an eye on that with NEOS as they fit me needs so well.
Great video.... Always enjoy your Q&A segments along with your other presentations and interviews.. Thank you... QUESTION: Was wondering what your thoughts were on the portfolio percentage of holdings in cc ETF's..... I hold JEPQ, DIVO, SPYI, QQQI, GPIX, GPIQ and IWMI.... I am in retirement but do not use the dividends $$ at this time - just accruing... Thoughts..?? Again, thank you for your time and having a great channel.... Be well...
Just a personal guideline I use. Initial goal is 2.5% - 3% of portfolio for each position. As positions appreciate consider scale selling beginning at 7.5% - 8% of portfolio. Keep track of gain/losses to reduce taxation with reminder that $3,000 of excess losses can be deducted from other income. If you are investing in securities with high historical volatility (natural resources, junior speculations) consider a 15% - 20% stop loss. Just suggestions that I hope helps & good luck.
Thanks! I like cc ETF's but I keep them to less than 50% of my portfolio because they have their own risks. ie slower recovery if there's a long crash followed by a quick mkt bounce back.
Great video! Given your success in real estate, I would love your insights on the NEOS Real Estate High Income ETF (IYRI) and REITs in general. Could you review IYRI's potential performance, risks, and dividend stability? Also, share your perspective on REIT investments today and future trends? Advice for a hesitant REIT investor like me would be invaluable.
Great suggestion! I do plan to research it and if its a good fit for my portfolio I will make a video about it, in either review form or interview form. I like NEOS' approach so it will mostly be about assessing the index.
Just checked my birth certificate and you're correct :) If you put yourself out to the public on the internet, eventually a few oddballs (less than 0.1%) can give you attention you don't want. If you lose anonymity, it can never be restored.
Excellent program, interesting comments. Thank God (so far), no scamsters or hucksters pushing “contact so and so, I’ve completely turned my finances around and have made $X in the last month”. I find it annoying, as if any sane person would act on such nonsense.
It's an interesting point. Income peaks as you die...If my grandparents began that concept and passed it down, the river of cash would be enormous by now.
Hello, Excellent video as always. I am curious why ETFs such as PULS,BIL,FLTR don't make it into your portfolio given the interest rate uncertainty? Which of these ETFs are sensitive to interest rate risks?
Thanks! If I was saving up cash for a large purchase I might use BIL. Generally I aim for at least 8% yield. That comes with more risk and volatility than BIL but also rewards me for it. As for interest rate risk, I don't know if rates will go up or down so I invest in both (ie some floating rate and some fixed rate). I won't beat the bond experts but I'm trying to avoid making large directional bets. I just want steady income.
I mentioned it briefly in the last Bitcoin income review video. The income is huge but it heavily underperforms MSTR...more than most other similar YMAX funds.
Another great video. Thank you. My question is about when you buy into a position. Many of the companies you mention are almost at their 52 week high and the market as a whole is making weekly highs. Do you initially take a small position and DCA into the fund or do you go fully into your final percentage? (Or something else entirely). Thank you in advance.
I don't try to time the market. The excess dividends I don't need get reinvested as I receive them regardless of whether I think the market is over valued (which is most of the time). Most of that happens at the end of the month as that's when funds tend to distribute the most.
What is your thought about those ETF on SP500 or Nasdaq (like SPYI or QQQI) when in the bear market drop over 25% like in 2022 ? Do you think the will high drop the dividends or the NAV erosion ?
JEPI income increased. SPYI income would initially increase because of higher volatility, but if the bear market lasted a long time it would eventually decrease. Price would decrease as much as the index then, recover more slowly.
As always I love your video. A good explanation of the importance of diversification. We will just agree, to disagree over PFFA. PFFA with such a low Total Return and high St. Dev. (Volatility) is best left out. Very poor Sharpe, Sortino, & Ulcer Ratios. Better to replace PFFA with something else: CEFS, PBDC, CLOZ, FSCO, MCI, another CC ETF, etc.. For something very different, I also use QLENX (long/short) in stock, bonds, currency & commodities in another account I do not use for retirement, ie take money out of.
PFFA isn't necessary in a portfolio, but I like exposure to preferred stocks for reasons including seniority to common stocks for payout. Each asset class doesn't need to be a top performer, I'm looking for a blend that give me consistent income and a mix of risks. We probably most like the same asset classes but we don't need to like exactly the same.
@@armchairincomechannel I apologize for my ignorance, I'm new at this. Not sure if I understood your answer. To clarify my question: When you sold MAXI did you wait until you received a dividend? Thank you!
Wouldn’t you say that covered call etfs are very risky ? They may be engineered for income, they do so at the expense of principal. Xyld is no different, when bought at it’s peak of around 52, you would be seriously underwater right now at 42. It won’t be able to recover and the next correction will see that the previous low now has become the previous. I think you don’t need a covered call etf if you want to trade capital for income. Regular deductions from a savings account will do the same thing.
Every asset class has its risks. I don't hold XYLD and not all covered call funds are the same. XYLD sells calls at the money and therefore experiences more NAV erosion that funds like SPYI that sells calls out of the money. A savings account will gradually reduce your buying power to zero unless it pays you a yield greater than inflation.
@@armchairincomechannel Then you are subject to witholding tax 15% or 30%. UCITS are ETF's domiciled in Europe. If I buy the funds/ETF's/stocks you recommend in your videos, the broker deducts 30% on distributions, that is too high and erode the return. That's why I search for the equivalent UCIT.
You also have to consider next generation products with tobacco companies such as vapes. These next generation replacements have extremely good traction, particularly with the younger generations. Trump has also thrown out the menthol ban this week, resulting in greater profits. My best returns and yields in the last 2 years have been bti and imperial brands. Yields are sitting around 10%.and returns 20%+ pa.
Yes, there's a good chance that one or more of these companies will figure out the next generation of non-combustables. If you're willing to put in the time to figure out which companies will produce the winner(s) in that category AND navigate past government regulations (these products have health risks too), then there's money to be made in the sector.
When I'm 5 hours into editing I have thoughts that drift in that direction. Then I remember that 1/ I don't have a boss 2/ I don't drive to an office 3/ I don't ask anybody for time off. So mostly it doesn't feel like work :)
May I ask here, I’m lucky to have a pension in my future and I can retire in my early 50s. I also have 4 401k type of options… and only just recently learned about margin loans and how no retirement accounts can be leveraged so not having a brokerage account means no leverage/margin loans ….. huge downside not having access to things that could help from time to time… asking advice ! Also would be interested in paying for an hour or two of professional time perhaps as well!
I don't understand your question about margin, but I can share that I don't use margin. Some of the funds I hold use leverage (eg. PFFA) and that's enough risk for me. I appreciate the offer to pay for my time but I'm not a financial advisor so I don't advise others, nor accept money for my time.
@ first off thanks for a response and a personal response. I understand, and you turned me onto perhaps a bbc if that’s the correct term I forget so early in morning ETFs to checkout….. and margin loans can be a blessing for those looking to avoid taxes…. Ans borrow without extra burden, and yea margin comes with great reward and potential great downside…. Thx !
OK, here's one for ya: if the total return of the underlying _usually_ performs better than a CC fund, why not invest your excess returns from the CC funds into the underlying, instead of back into the CC - ie SPYT -> VOO instead of SPYT > SPYT. Need a raise? Sell some VOO and buy more SPYT. Edit.... guess this is your 9:30 question. Never mind ;)
I take your point but I can't entirely agree with it. Some entire classes of high yield stocks have substantially more risk than others. For example, both BDCs and mortgage REITs can decline drastically in a bad market and/or bad economy. That's because they lend to riskier companies and defaults rise under such circumstances. I'd rather own an equity REIT fund that uses options to boost yield (recently bought some NRO) than a mortgage REIT fund. I do own a BDC fund (PBDC) but it'll likely be among my first sales if the economy turns down.
I agree that the examples you gave can be quite risky. My point was that yield alone doesn't equate to risk. Some assets are built to deliver a higher yield.
There is a link above to Armchair Insider where you can sign up for his email. Comes out about once a month with details on recent buys and sells, and includes a pdf of his portfolio.
Don't clone my work, but if I can give you some ideas then that would be excellent! In other words, I hope you do your own research too. Hopefully sharing my research saves you some time. You can subscribe to Armchair Insider at the link below. The portfolio is at the end of each edition. armchairinsider.beehiiv.com/
Technically I don't have a boss, I'm not required to show up to an office, I don't have to do what clients tell me to do, I don't have to ask for time off....so...it doesn't feel like work :)
If asked “what are your favorite AI stocks?” everyone in this community should reply with “BDCs and CLOs” just to confuse people😂 Main takeaway from today’s Q&A is that my worry about early dementia is probably unfounded - I seem to be retaining the information I’m learning on this channel such that much of today’s content felt very familiar 🙏
Sounds like you follow the industry. If you can figure out which products will win and be able to navigate govt regulation, there's money to be made. It's just not my cup of tea.
@ yeap. And I am a user of nicotine and I love these new products they have rolled out over the past few years. I love nicotine, but smoking. It’s like caffeine, lots of people love coffee.
I can't stand cigarette smoke or the smell of it, and I agree that the companies knowingly harm people. However, the channel is focused on income generation, so I stick to the investment aspect rather than injecting my opinions about social issues.
➡Snowball Dividend Tracker (Create a Free Account, and the 10% Discount will appear under "Subscribe"):
armchairincome.link/snow
1st. Good morning!
The best income focused YT channel. Thanks
I really appreciate that!
It has become a routine now for me for the last 6 months : Sunday morning coffee with a new video . The most educational channel on income investing I have found so far . Thanks for sharing your knowledge
Exactly, my girlfriend watched Garden Answers and other gardening videos on Sunday am, I look forward to Armchair Income.
Same! Totally agree!
Agreed! Sunday morning coffee with Armchair Income!
Straight to the point also... not 40 minutes long that could have been 15 minutes.... 👍
Thanks! Maybe I should get a coffee sponsor :)
Arm Chair has allowed me to design a high income portfolio at lower risk. Thanks very much.
You're most welcome!
Another excellent video. The Quality of many people's lives have increased due to the all of content you have created.
Thanks Norman. Best wishes.
Thanks for giving me something to consider while I enjoy my morning coffee. It is always interesting to understand your thought process.
You are so welcome!
Have watched several of your videos and appreciate your insights. You have given me several stocks to consider, some of which I have added to my portfolio. One of my closed end fund holdings is TEAF, which you may want to consider. TEAF pays about 9% in dividends and is selling at a discount to asset value. Also buried in the prospectus, this fund is a term fund that is scheduled to liquidate in 2031.
I'm not familiar with it but I'll take a look. Thanks for the suggestion. Not sure how sustainability and politics will get along in the near term.
I own JAAA and buy as it dips on a regular basis - anything over 5% yield provides sufficient income for my needs. Thanks for the great video once again!
Thanks for sharing! As long as rates stay high I'll continue to hold it.
Always a great video!
Thanks!
Another great video. I too look forward to Sunday morning learning!
That's great to know :)
Thank you for your weekly presentations. Your commentary on specific holdings is very informative and most appreciated.
You are very welcome
One area you mentioned may be worthwhile in the future is that in investing, someone should be flexible, otherwise they may miss opportunities if they are too rigid. Your example of buying JBBB is great... you have a set of guidelines, but it's not set in stone.
Thanks for your feedback. a mix of strategy and adaptation is good.
Another excellent piece!!! Thanks so much Armchair. When are you going to release your next Armchair Insider portfolio update?
You're welcome. I send them out approx once a month but it depends on the frequency of my trades. I won't send one out if there's nothing to report.
Very useful video as usual and a great topic! Armchair insider is very helpful as well. Thanks for all you do!
Glad you think so!
Good video, thank you. I love hearing the Q & A's and find it very informative.
Glad it was helpful!
Please classify each item in your portfolio for suitability for IRA, Roth, or taxable accounts. You could just add a column. Thank you very much for your analysis.
Thank you for the suggestion.
Great video as always. Thank you for your efforts. I have a question about diversification if I may: i know you try to limit individual positions to 5%, but how about asset class diversification? Ex. Do you limit BDC concentration to 20%, CLO to 15% etc. Thank you in advance. Btw does Vietnam suffer from bad air in burning season now? Kind regards.
I don't have strict allocations by asset class but I don't let any of them get close to 50% of the portfolio. Hanoi has problems with pollution but I avoid that area. Southern Vietnam and Southern Thailand are generally good.
Great video as always and I do enjoy these Q&A sessions. The email questioning a 3 bucket approach with cash, income and growth really hit home as it almost exactly matches my current situation. The setup is not for everyone but for me it is working exactly as I had planned and provides me with what I need income-wise while giving me some additional growth exposure. As I age I may shift the allocation but for now it provides for what I need while letting me sleep comfortably at night. Thanks for all the insight.
Thanks for your feedback. There's no perfect strategy and even though the 3 bucket strategy is different from mine, I think it's excellent!
Thank you, as always.
My pleasure!
Thanks for your response to my other comment. I am basically curious as to how well you are able to grow your assets as an income investor so you can stay well ahead of inflation. And at the same time love the lifestyle you enjoy. Thanks
It's a delicate balance between enjoying the good years now vs trying to die with the biggest portfolio. I think I'm keeping ahead of inflation, but taking out a large chunk of cash, so I'm underperforming the overall market and that's OK by me. If you just hold the S&P 500 or QQQ you will die with a larger portfolio than me. I don't know why people try to do that.
Dear AI, just another quality video. Thanks for all you do. James
Glad you like them James!
ITS FREE! Good stuff. 🎉
You're welcome!
I started moving into income funds this week and hope to quit my job after I DCA into my new portfolio. Thanks for all the insight. I'll sign up for seeking alpha using your link; hopefully you get some sort of kickback.
Thanks, and congratulations on your looming retirement. Yes, I'm an affiliate for SA, and a very frequent user :)
Excellent episode & clear information- occasional Q & A makes sense!
Much appreciated!
Thank you for explaining the PFFA expanses
You're welcome. It's confusing.
Thanks for this Q&A session. Have you done a comparison between Neos and Goldman Sacks funds like GPIX vs SPYI or GPIQ vs QQQI. Since I like both income investing and growth investing, I hold all of these funds.
I did a GPIX review but not a comparison. Thx for the suggestion!
I think i knew your answers to all of these in advance, but its always good to hear. Thanks for the content!
Maybe you can be a fill in presenter when I want a break :)
Thank you Mr. Armchair!
You're most welcome!
I like this format. Question for next episode. Are you seeing you total principal balance grow over time? If use, I would deduce that your income is growing as well. Thanks
That's a great point, thanks for the suggestion. Measuring returns is complicated because I don't withdraw all or none of my income, it varies each month. Assuming 100% withdrawal, the portfolio is up approx 4% since May of 2024 when I started using Snowball, but of course most of the returns (approx 11%) come in the form of income. I would estimate the total return since May is approx 15-16% and the balance with reinvested dividends, but without withdrawals would be up approx 7 to 8%. I don't want to get too far into the weeds with the calculations of how much I reinvest vs spend because for me that's a lifestyle choice rather than an investment choice. I want the channel and the newsletter to be about 1/ The research findings and 2/ The investments I select based on that research. I'll give it some thought because I would want to know the answer to that questions too!
Long time subscriber here. First time commentor/question, I think. But appreciate the content. Extremely insightful. Thank you, keep it up! Muni bond question here. Over the arch of time you've covered a ton of alternative income investments from BDCs, to preferreds, to MLPs, to CEFs, CLOs, etc. I haven't heard you bring up muni bonds, specifically the higher yielding leveraged CEFs like NVG, NAD, NEA, IIM, IQI, VGM and others? They remind me of PFFA, but maybe more rate volatility, but also US Fed tax free (which might not concern you as much as I think you moved out of states so that right there could be the answer). There is not a lot of coverage in general on Seeking Alpha or UA-cam on these funds. I feel like they are a balanced risk/reward based on back testing but not perfect, however with decent fed tax free income. Your take? Thanks!
Thanks for your detailed question and I'm glad the content is useful. Your guess is correct. I held them many years ago when I was a US tax resident. Their net returns depend on the tax situation for the investor. As a non US tax resident, they're less appealing to me. I like the low credit risk, but I'm looking for more yield.
@ makes perfect sense. Thanks for taking the time to reply.
Love these Q&A videos. I do own tobacco shares eg MO and BTI. I want my income streams diversified across different asset classes. I allocate equal weights across four income asset classes - stocks, real estate, debts, and credits/loans. Stock is a bit odd in the Income portfolio - unlike the other three asset classes. Within the stock asset class, I pick MLPs (EPD, MPLX, etc), High Yield stocks (tobacco, utilities and telecoms), equity based option writing plays (SPYI, EOI, etc), and dividend growth plays (yields at 4-5% with consistent and strong dividend growth).
What are your feelings on BCE ?
@@normansimonsen1203 Interesting to hear opinion. They provide internet for me (and increase cost with $5/mo yearly) , but I sold my shares in June 2023 ( US account at $45.60), glad I did and not looking back.
If you like to follow the tobacco stocks, believe in the product pipeline, and want the diversification, then it makes a lot of sense!
@@armchairincomechannel Agree. BTW, MO headquarter is about 10 miles from my house and I know many people working there.
@@normansimonsen1203 Sorry I didn’t spend enough time on BCE to have an opinion. The only telecom I feel comfortable enough to own some shares is VZ.
Thank you!!
You're welcome!
Another great video! I really enjoy the Q&A. Would you say JAAA is the "safest" income ETF? Maybe you could do a video ranking all of the income ETF or stock classes from least risk to most risk. Thanks for your work!
I wouldn't use the word "safe" because it's absolute. But I would say its the lowest risk of all the funds I've discussed or purchased. It will remain so as long as interest rates remain high. Thanks for the suggestion. Risk is an important topic!
Thanks again AI. I currently hold some MO and BTI, but you may be right about them. Especially with MAHA coming on the near horizon.
Not saying they are bad stocks, just not a fit for me.
Thanks for another great video! Your videos get right to the point(s). So many YT vids waste many minutes before saying anything meaningful. I fast forward to try to get past their blah blah blah. I like your videos because I learn from them and you don’t waste our time with blah-blah.
I dislike blah blah as much as you! Thanks for the feedback; much appreciated :)
Another great Sunday video
Glad you enjoyed it
Great video Armchair. I often have to watch when I communicate about my investments. There is a difference between dividends and distributions!
I make that error often. Dividends just rolls off the tongue more naturally.
I have kept the cash portion of my portfolio in a money market fund. But it's frustrating having to wait until the next day for the funds to be available. I may consider JAAA as a faster alternative for having dry powder at a better yield that can be sold quickly to take advantage of opportunities.
Recently figured this out myself.. Plus gain almost 50% more yield over MM.
With Schwab, you can put in an order to sell MM shares and use that amount to buy shares of something else immediately.
@@happycampers6592 thanks for the pointing this out! I did this when switching MM funds recently, but didn’t think of it for other tickers.
@@happycampers6592 Are you sure about that? I own SWVXX & I thought you had to wait until the funds are in cash.
I have a similar perspective. Only short term treasuries and bank deposits guaranteed by the FDIC are risk free, but JAAA is low risk.
Thank you for wonderful content.
Glad you enjoy it!
How do you decide on allocation to certain sectors? So Bdc, vs covered call, vs fixed, vs clo’s?
I don't have a formula. As the market and economy shift I adjust to the mix that seems to make sense at the time. But its not a science and I most favor diversification over trying to weight heavily to sectors I think will improve.
I think I share your view in that when I do flip the switch to income investing I will not expect my portfolio to keep pace with any major index (SPY, QQQ, IWM, etc..). I will expect to have some growth over time. I think you are accomplishing that goal. I hope to do the same.
Thanks for sharing. It depends if you want regular cash to pay for your life, or to die with the biggest portfolio balance. I like the regular cash.
Always enjoy the vids from you and your growth counterpart. I use a mix of growth and income in my retirement accounts. Covered call ETFs buy more stable income and growth investments. Current "growth" due to income alone is 12-15% although that will drop as the asset balance changes towards more stable assets. Spare change after weekly purchases goes into EIC and FSCO instead a 4% account.
Thanks for sharing your approach and best of luck with continued growth (and income).
SPYI baby! love this ETF
It's one of my favs too.
Your videos are the absolute best value for my time! You always address the questions in my mind and bring up things I haven't considered. Much appreciated 🙏 🙇🏾♀️.
Awesome! Thank you! I don't like videos that yabba on about nothing so I try to stick to the useful info.
There's something else to it. Tobacco is not esg and haram therefore verboten to be invested by most sovereign funds.
That's a good point. Also, there are some major lenders that have restrictions on morally questionable industries, which may drive up the cost of debt for them in the future. It's a complicated biz...too complicated for me!
Really nice job as usual. Much appreciated!
My pleasure!
Great explanation of the different investments and why they are different compared to equities. Thanks for the videos. I appreciate the time and effort that you put into these....fellow income investor.
Glad it was helpful!
Thanks for an interesting Q & A session. Good stuff!
Glad you enjoyed it!
i really enjoy your channel very imformative . i'm a income growth person 3 years to retirement 40% income averaging 7% and 60 % stocks witch include 5% gpix , 5% gpiq . keep up the good work !
Nice work! Thanks for sharing your approach.
I think a combination of dividend stocks with a reasonable yield and a couple of BDCs is the best approach to take for income investing. There are ETFs that allow for investing in MLPs without the Schedule K-1 nightmare at tax season. I am on the fence about bank loan funds.
Thanks for sharing. I agree that a combination is the way to go.
Thanks for another informative Armchair Q&A. It would be really helpful/interesting if you could share your historical total return performance. As you’ve stated, it is your secondary goal after achieving your income targets. The biggest single challenge/question you get is why income vs growth investing (or why income is inferior over time). Sharing your you total returns achieved would help dispel this challenge.
I'd like to address that question but it's challenging. I'll paste below the response I wrote to a similar question in Dec of last year. "Tracking results is challenging with a constantly evolving portfolio. I started using Snowball to track my portfolio (and share it) in May 2024. Before then I just followed the numbers on 3 separate brokerage accounts. Since then I have made about 4 trades a week and reinvested a portion of my dividends every month. Not counting the reinvestment of dividends, the portfolio is up 6.7% since May, and the yield is currently 11.54%. Total return would require annualizing the 6.7% and adding the income. I don't have software that can do that for my portfolio. So no NAV erosion, but the market has been kind to us. I would like to track everything but I haven't found a way to account for my trades (realized vs unrealized profit) and I want to show the returns without reinvestment so that its a constant as I reinvest a different amount each month and that complicates the return. As the data from Snowball grows, I'll share whatever useful data I can. I think I'd need at least a year of data but ideally it would be best to see how the portfolio reacts to bull and bear markets. Anecdotally, I recall that my portfolio dropped like everybody else's in 2022, but the income hardly changed at all...very few cuts. Since then I've added covered call funds and they are likely to trend down during a prolonged bear market so that will affect future numbers. Thanks for the suggestion!"
Understand, it would be challenging to calculate TR precisely without software. However, you could come up with a pretty reasonable approximation as follows. Brokerage statements typically provide monthly/YTD: unrealized gains/losses on investments, realized gains/losses, divs/interest. Simply summing those and dividing by the average portfolio balance (adjusting for net portfolio additions/deductions) should give a pretty decent approximation of total return. Just a suggestion. You already provide a very informative and useful free resource! Thanks 😉
Great video as always. Curious why you don't invest in any individual bonds as well as your dividend stocks, ETFs and funds? Buying an individual bond provides insight into the actual yield you will receive holding through duration, whether its a US Treasury, agency bond or corp bond.
Nothing wrong with individual bonds but I prefer the diversification of funds that hold a portfolio of bonds. For corporate bonds, I don't have any advantage when it comes to underwriting the credit of the individual companies so I'd prefer a fund manager to handle that at scale. Having said that, I do hold a couple of preferred shares, so they're an exception to the diversification/underwriting reasoning.
Thanks - excellent as usual.
You're welcome...as usual :)
Yes, tobacco is difficult call, not for everyone. I still keep my BTI with qualified dividends, and think that the risk is worth for the near future.
Same! I have MO and BTI both and they both keep on paying great qualified dividends. I'm holding long-term.
If you like to follow the industry and believe in their product pipeline then it can make sense.
@ I just need them to hang on for another decade or so, then it won't matter LOL!
Ciao,bellissimo il format q&a,sempre ottime analisi.anch'io ho strutturato il mio portafoglio da reddito e il tuo canale è molto molto interessante! Ho inserito ultimamente bxsl,mi sembra un ottima azienda.
Thanks for sharing. I have a small position in BXSL and continue to hold it. Grazie mille.
Question: do you make it to Koh Samui anytime? My wife and I will be there from mid February until the end of May.
I was there last March. Wasn't a fan of the crowds, but perhaps you can find a peaceful spot. I preferred Danang, and I'm also interested to check out Phu Quoc. Having said that, any day in Thailand is a good day. Enjoy the sun and sea!
In general, if you believe the investment markets are mostly efficient, the idea higher yields = higher risk. Most of the time this is true. It is true with interest rate on bonds, since the underlying asset is money... however, with equities there is the opportunity of appreciation in addition to dividends. That is a distinction you could further elaborate on such as total returns vs just dividend %. You touched on it, but it may be worth a video on total return vs income investing.
My 2 cents worth...Yes, there is the "opportunity" for equities to grow but no guarantee. Income investors (which I consider myself to be) are more interested in a steady income. Growth is just icing on the cake. Regarding the "addition to dividends", the average dividend for DG stocks is around 2%-3%. That means a portfolio of growth stocks, in order to compete with an income portfolio averaging 10%, would need to grow 7% to 8% annually, each and every year. If an income portfolio remains flat, yet returns 10% annually, is it really any different than a portfolio of dividend growth stocks that have the same annual return? Other than a few very dogmatic index investors, I think most would agree that one approach is not superior over another - just 2 paths leading to the same goal. I am basically regurgitating what can be found in The Income Factory, written by Steven Bavaria. Edited
Within an asset class, I agree that high yield means more risk. However, plenty of high yield investments are available that aren't the train wreck that growth investors claim. Thx for the suggestion for a video.
I agree. Wait years for growth to kick in...or take the income today.
Another GREAT video
I appreciate that
Thank you..
You're welcome :)
Have you seen Neos new fund IYRI covered call etf based on REITS? I’m buying in small increments
It's brand new but I'm keeping an eye on it. Looks interesting.
2 questions:
1: As far as diversification goes, I know you say you limit yourself to 5% per individual stock, but do you also have set allocation goals to each asset class/genre, ie. 25% toward covered calls, 25% to credit, 25% to BDC, etc.? Forgive me if you've already covered this particular topic, I don't think I've seen it yet though.
2: Along the same lines, I wonder out loud if it's truly diversification to own, say, both QQQI and SPYI, when what you are really investing in is a single company in NEOS (also, both own roughly similar equities but that's a separate point), therefore you should have a set limit on what you allocate towards NEOS, JPM, YieldMax, etc. Is this something you consider?
I'm personally in the beginning stages of building my portfolio and I'm currently aiming for a hybrid 50/50 growth/income(reinvested) allocation. It looks to be tax efficient for now and the income ETF options really speak to me in terms of safety and diversification. Thank you for nerding out on this stuff so much, you're my favorite income ETF UA-cam channel!
I don't have a formula for asset class allocation but I do try to spread it around. I'm more focused on diversification than maximizing returns by weighting to what I think will do better in the near term. You're right about a lot of overlap with QQQI and SPYI because the option strategy is the same and those indexes have significant overlap. I hold no Yieldmax funds. I want to limit NEOS funds but they keep coming out with funds I like...it's a good problem to have! No matter how good a fund manager is, I'd never give them all, or even half of my net worth. Will have to keep an eye on that with NEOS as they fit me needs so well.
Great video.... Always enjoy your Q&A segments along with your other presentations and interviews.. Thank you... QUESTION: Was wondering what your thoughts were on the portfolio percentage of holdings in cc ETF's..... I hold JEPQ, DIVO, SPYI, QQQI, GPIX, GPIQ and IWMI.... I am in retirement but do not use the dividends $$ at this time - just accruing... Thoughts..?? Again, thank you for your time and having a great channel.... Be well...
Just a personal guideline I use. Initial goal is 2.5% - 3% of portfolio for each position. As positions appreciate consider scale selling beginning at 7.5% - 8% of portfolio. Keep track of gain/losses to reduce taxation with reminder that $3,000 of excess losses can be deducted from other income. If you are investing in securities with high historical volatility (natural resources, junior speculations) consider a 15% - 20% stop loss. Just suggestions that I hope helps & good luck.
Thanks! I like cc ETF's but I keep them to less than 50% of my portfolio because they have their own risks. ie slower recovery if there's a long crash followed by a quick mkt bounce back.
Good video, thanks!
You're welcome!
Great video! Given your success in real estate, I would love your insights on the NEOS Real Estate High Income ETF (IYRI) and REITs in general. Could you review IYRI's potential performance, risks, and dividend stability? Also, share your perspective on REIT investments today and future trends? Advice for a hesitant REIT investor like me would be invaluable.
Great suggestion! Been struggling with allocating in the RE sector since I plan to get out of two REITS.
@@richkuban2027 There are some really good RE CEFs.
Great suggestion! I do plan to research it and if its a good fit for my portfolio I will make a video about it, in either review form or interview form. I like NEOS' approach so it will mostly be about assessing the index.
@@armchairincomechannel That would be great. Thank you.
Thank you for another wonderful overview.
PS; what is your name, I don’t think it’s Mr Armchair Income?
Just checked my birth certificate and you're correct :) If you put yourself out to the public on the internet, eventually a few oddballs (less than 0.1%) can give you attention you don't want. If you lose anonymity, it can never be restored.
Excellent program, interesting comments. Thank God (so far), no scamsters or hucksters pushing “contact so and so, I’ve completely turned my finances around and have made $X in the last month”. I find it annoying, as if any sane person would act on such nonsense.
I hate that spam financial advisor garbage. Fortunately not too much of that nonsense here.
There are a few, but I delete and ban them.
With dividends paying all your expenses, your portfolio should outlast you. Would like to hear your thoughts on estate planning!
It's an interesting point. Income peaks as you die...If my grandparents began that concept and passed it down, the river of cash would be enormous by now.
Chair, great video
Thanks for the visit :)
You're still the BEST 😊😊😊
Thanks for being a consistent viewer!
@@armchairincomechannel You're more than welcome 🙏
Hello, Excellent video as always. I am curious why ETFs such as PULS,BIL,FLTR don't make it into your portfolio given the interest rate uncertainty? Which of these ETFs are sensitive to interest rate risks?
Thanks! If I was saving up cash for a large purchase I might use BIL. Generally I aim for at least 8% yield. That comes with more risk and volatility than BIL but also rewards me for it. As for interest rate risk, I don't know if rates will go up or down so I invest in both (ie some floating rate and some fixed rate). I won't beat the bond experts but I'm trying to avoid making large directional bets. I just want steady income.
@@armchairincomechannel Thank you
Good afternoon, dear friend. I have a question about the CLO issue. Why not CEFS??
Haven't looked at CEFS for a while and its performance has improved a lot recently. I will take a fresh look...thank you for the suggestion!
Has he done any videos on MSTY?
I mentioned it briefly in the last Bitcoin income review video. The income is huge but it heavily underperforms MSTR...more than most other similar YMAX funds.
@@armchairincomechannelThanks. It's so confusing
Another great video. Thank you. My question is about when you buy into a position. Many of the companies you mention are almost at their 52 week high and the market as a whole is making weekly highs. Do you initially take a small position and DCA into the fund or do you go fully into your final percentage? (Or something else entirely). Thank you in advance.
I don't try to time the market. The excess dividends I don't need get reinvested as I receive them regardless of whether I think the market is over valued (which is most of the time). Most of that happens at the end of the month as that's when funds tend to distribute the most.
What is your thought about those ETF on SP500 or Nasdaq (like SPYI or QQQI) when in the bear market drop over 25% like in 2022 ?
Do you think the will high drop the dividends or the NAV erosion ?
JEPI income increased. SPYI income would initially increase because of higher volatility, but if the bear market lasted a long time it would eventually decrease. Price would decrease as much as the index then, recover more slowly.
Well said! 4 armchair.
Much appreciated!
As always I love your video. A good explanation of the importance of diversification. We will just agree, to disagree over PFFA. PFFA with such a low Total Return and high St. Dev. (Volatility) is best left out. Very poor Sharpe, Sortino, & Ulcer Ratios. Better to replace PFFA with something else: CEFS, PBDC, CLOZ, FSCO, MCI, another CC ETF, etc.. For something very different, I also use QLENX (long/short) in stock, bonds, currency & commodities in another account I do not use for retirement, ie take money out of.
Go back and watch all of the past Armchair videos and you’ll see why he and many other followers of his like PFFA.
PFFA isn't necessary in a portfolio, but I like exposure to preferred stocks for reasons including seniority to common stocks for payout. Each asset class doesn't need to be a top performer, I'm looking for a blend that give me consistent income and a mix of risks. We probably most like the same asset classes but we don't need to like exactly the same.
Do you time a sale or purchase with regards to when the fund actually pays a dividend?
Thanks for your insite.
I think you're asking about dividend harvesting and I don't do it because the market is efficient at adjusting pricing to compensate for it.
@@armchairincomechannel I apologize for my ignorance, I'm new at this.
Not sure if I understood your answer.
To clarify my question: When you sold MAXI did you wait until you received a dividend?
Thank you!
PM it’s the KING 🍷🔥🎊💶
Yield is too low for me but it's had a stellar past 12 months!
Wouldn’t you say that covered call etfs are very risky ? They may be engineered for income, they do so at the expense of principal. Xyld is no different, when bought at it’s peak of around 52, you would be seriously underwater right now at 42. It won’t be able to recover and the next correction will see that the previous low now has become the previous. I think you don’t need a covered call etf if you want to trade capital for income. Regular deductions from a savings account will do the same thing.
Every asset class has its risks. I don't hold XYLD and not all covered call funds are the same. XYLD sells calls at the money and therefore experiences more NAV erosion that funds like SPYI that sells calls out of the money. A savings account will gradually reduce your buying power to zero unless it pays you a yield greater than inflation.
Is there any BDC UCIT ETF suitable for international investors? and CLO's?
I don't know what UCIT means. I'm a non-US tax resident and I can buy US stocks and funds. I realize some European countries have restrictions.
@@armchairincomechannel Then you are subject to witholding tax 15% or 30%. UCITS are ETF's domiciled in Europe. If I buy the funds/ETF's/stocks you recommend in your videos, the broker deducts 30% on distributions, that is too high and erode the return. That's why I search for the equivalent UCIT.
The best the best the best. 🎉
Thanks!
Im trying a portfolio of income investments and dividend growth stocks that I think will have rapid dividend growth and good capital appreciation.
I wish you well!
Do BDCs have the tax problems of REITs? Do they issue a K-1?
BDCs do not issue K-1.
No K-1's for BDC's.
You also have to consider next generation products with tobacco companies such as vapes. These next generation replacements have extremely good traction, particularly with the younger generations. Trump has also thrown out the menthol ban this week, resulting in greater profits. My best returns and yields in the last 2 years have been bti and imperial brands. Yields are sitting around 10%.and returns 20%+ pa.
Yes, there's a good chance that one or more of these companies will figure out the next generation of non-combustables. If you're willing to put in the time to figure out which companies will produce the winner(s) in that category AND navigate past government regulations (these products have health risks too), then there's money to be made in the sector.
Quick update: You are not retired (dead to the world) but working to help investors maximize returns.
When I'm 5 hours into editing I have thoughts that drift in that direction. Then I remember that 1/ I don't have a boss 2/ I don't drive to an office 3/ I don't ask anybody for time off. So mostly it doesn't feel like work :)
May I ask here, I’m lucky to have a pension in my future and I can retire in my early 50s. I also have 4 401k type of options… and only just recently learned about margin loans and how no retirement accounts can be leveraged so not having a brokerage account means no leverage/margin loans ….. huge downside not having access to things that could help from time to time… asking advice ! Also would be interested in paying for an hour or two of professional time perhaps as well!
I don't understand your question about margin, but I can share that I don't use margin. Some of the funds I hold use leverage (eg. PFFA) and that's enough risk for me. I appreciate the offer to pay for my time but I'm not a financial advisor so I don't advise others, nor accept money for my time.
@ first off thanks for a response and a personal response. I understand, and you turned me onto perhaps a bbc if that’s the correct term I forget so early in morning ETFs to checkout….. and margin loans can be a blessing for those looking to avoid taxes…. Ans borrow without extra burden, and yea margin comes with great reward and potential great downside…. Thx !
OK, here's one for ya: if the total return of the underlying _usually_ performs better than a CC fund, why not invest your excess returns from the CC funds into the underlying, instead of back into the CC - ie SPYT -> VOO instead of SPYT > SPYT. Need a raise? Sell some VOO and buy more SPYT. Edit.... guess this is your 9:30 question. Never mind ;)
That strategy can work for plenty of investors. It depends on your timeline. The longer your timeline, the better it works.
I take your point but I can't entirely agree with it. Some entire classes of high yield stocks have substantially more risk than others. For example, both BDCs and mortgage REITs can decline drastically in a bad market and/or bad economy. That's because they lend to riskier companies and defaults rise under such circumstances. I'd rather own an equity REIT fund that uses options to boost yield (recently bought some NRO) than a mortgage REIT fund. I do own a BDC fund (PBDC) but it'll likely be among my first sales if the economy turns down.
I agree that the examples you gave can be quite risky. My point was that yield alone doesn't equate to risk. Some assets are built to deliver a higher yield.
How can I get your portfolio?
I am about to retire and plan to clone your work.
Thanks, Scott
There is a link above to Armchair Insider where you can sign up for his email. Comes out about once a month with details on recent buys and sells, and includes a pdf of his portfolio.
Don't clone my work, but if I can give you some ideas then that would be excellent! In other words, I hope you do your own research too. Hopefully sharing my research saves you some time. You can subscribe to Armchair Insider at the link below. The portfolio is at the end of each edition. armchairinsider.beehiiv.com/
Has anyone taken a look at WAR ETF. Pretty new.
Also anyone looked at AIPI...
Too new for me but 1/ Fantastic ticker and 2/ Seems like a winning concept and 3/ That's unfortunate....
Armchair Income says he is retired every vid but actually he has a decent UA-camr career kickstarted, welcome to the GenZ life 😁
He is a natural for presenting.
Technically I don't have a boss, I'm not required to show up to an office, I don't have to do what clients tell me to do, I don't have to ask for time off....so...it doesn't feel like work :)
If asked “what are your favorite AI stocks?” everyone in this community should reply with “BDCs and CLOs” just to confuse people😂 Main takeaway from today’s Q&A is that my worry about early dementia is probably unfounded - I seem to be retaining the information I’m learning on this channel such that much of today’s content felt very familiar 🙏
Thanks for your feedback. We could trade acronyms for a while. I'll look for something new to discuss in the coming weeks/months :)
It’s not tobacco business it’s a nicotine business. And zyn was green lighted by fda last week.
Sounds like you follow the industry. If you can figure out which products will win and be able to navigate govt regulation, there's money to be made. It's just not my cup of tea.
@ yeap. And I am a user of nicotine and I love these new products they have rolled out over the past few years. I love nicotine, but smoking. It’s like caffeine, lots of people love coffee.
Never knew about BDCs, thanks for sharing this important income generating knowledge.
I went decades without knowing about BDC's...frustrates me that we get too much info about useless stuff and not enough about helpful stuff.
Many BDCs give high yield because they are legally required to pay out 90% of taxable income to shareholders.
True! At least...legally if they want to adhere to the entity structure they've chosen to minimize tax.
And here I was thinking you don't hold tobacco stocks because it is immoral to profit off of human misery.
I can't stand cigarette smoke or the smell of it, and I agree that the companies knowingly harm people. However, the channel is focused on income generation, so I stick to the investment aspect rather than injecting my opinions about social issues.