I sold my house in phoenix and bought in a cheaper town. Ended up taking 1/4 of the money and putting it in qyld and the rest in my house. I dont have a mortgage anymore, taxes, insurance and all my utilities are paid for. My total exposure to QYLD only stands at 100k which to me isnt a crap ton of risk. Ill be using this as a solid base to invest 3 grand into etfs amd funds going forward, or even save some money and get some realestate. Love QYLD.
Just don't forget that your money won't grow if you keep spending the dividends. By the time you're ready to retire it will be worth 1/2 of what it used to be worth. Try to throw a few divs back in the pile so the compounding will work in your favor.
At 74 and near 7 figures, I like the dividend concept for three reasons. 1. Qyld is diversity so single stocks are not a player. Safety matters. 2. Anything over inflation is making money. 10% is bigger than 7.5%. 3. Focus on your goal. For us, the goal is a monthly check. For others the goal might be growth. In that case I would choose SPY. Yet for people wanting both I would pick a portion for both. CAVEAT. Anyone liking single stocks Needs to be verycautious. Just look at CLX JPM FB PYPL and so in.
I am a little younger than you but looking for good dividend checks. I have done a small amount into qyld and ryld. also CLM, IEP and some other 10%+ dividend yields. the bulk of my investments are with good dividend paying value stocks, banks, telcos, utilities.
I would just stick with the blended approach like you have right now. A little cash flow from XYLG, DIVO, JEPI ect. to stay motivated but the funds have a little leg room to grow and then have your growth/speculative plays that are pure growth. You should sell CSPs to get into the funds and stocks you want at a discount as well and sell far OTM calls on them. M1 is really cool especially if you get the card but the lack of options and buying whenever is what keeps me from using them.
Great Video. I have my wife's retirement portfolio split between QYLD, RYLD, JEPI, SCHD. She is set to retire the end of this year so we are concentrated on income with a little growth potential.
I strongly believe that anyone who has a high starting amount (100k for example) who wants to retire early should put the bulk of that money in SCHD. Divo can be substituted out because SCHD is very similar to it, aside from not being a monthly income player. It might be too much overlap, but that's just my opinion anyways. QYLD can be the backbone as a hedge for flat and sideways market and work in the background as a DRIP machine or using the dividends to pay some portion of your bills. The person who has a lot of capital upfront will do better with having a bulk in SCHD because the compounding and dividend growth of SCHD with 1,000 shares will snowball and you'll get rich every year little by little. Focus on semi-retirement and building that base first, then when you are fully ready to retire, go all in on income funds like JEPI/QYLD/DIVO and you are done.
I'm already retired and doing the same with SCHD/SCHY (Foreign equivalent of SCHD) /DIVO/JEPI with an average of 4.975% Annual return in dividends. I've $750K invested.
I currently have QYLD in my portfolio, but I keep it at 11%. I'm retired and like the high income, but I think of it as investment frosting; tasty, but too much sugar is bad for you.
I hold QYLD instead of cash and use the dividends to add other holdings in my portfolio. IMHO, markets are rotating from growth to favor value and dividend investments until after the 2024 US election cycle. SCHD is my foundation holding.
Currently making 60 dollars of passive monthly income, with QYLD. Though I did take a hit with these recent dips. I have the money to invest more and hit that 100 dollar a month goal. Just watching from the side lines, to make sure this will be the norm and correction has occurred or if we going down further with all the recent happenings. It's definitely a roller coaster right now.
Haven't read comments.... The "Trifecta" may be something you want to look into in comparison. Although, they are all covered call etfs that haven't been fully proven yet. It should hit around 8.5% yield with a higher CAGR and account value after the same length of time. JEPI, NUSI, QYLD.
Most people just log on to UA-cam to get info on the stocks to pick, without basic understanding on portfolio selection and risk tolerance. Also get the best from a financial advisor and work on your investing tolerance and with time you'd be a grand master
what kinds of investments do you make. I totally agree with you. I have a lump sum right now doing next to nothing in a savings account. but it's hard for me to take part in the market right now due to the fulltime nature of my job. it will be way to stressful to combine so I don't even think about-facing it
SCHD is my largest etf position. I have a lot of good experiences with Schwab products. I like knowing that SCHD will more or less keep pace with the S&P while reliably delivering 3%. The newer higher yield etfs are so new I just need to see how they perform over time. QYLD isn't even described very well on my broker's app so it is difficult to know how to value it.
There may be another growth fund to do this but in my opinion this is the way to go. I’m invested in highest growth and international growth possible. Been doing it for 5yrs. I’m up quite a bit
Yeah idk man. I love the idea of QYLD, all the yld funds really. Cheap, high cash flow and fairly stable. It just seems to easy, something will happen to it so change from what it is now. Don’t get me wrong, I have 452 shares in my portfolio but something DOES seem to good to be true with the yld funds.
I thought it was an interesting presentation, but also unrealistic. The reason is that we don't need to pick one and stick with it until we retire. I would have liked to see how long it would take for SCHD and DIVO to get to $328k, because you can just invest in SCHD and then when you hit the QYLD retirement amount, you can just sell out of it and buy QYLD. (btw, i'm also a data nerd... I can relate!)
Most would rather pay later than today. Also it will be captial gains. If you were a real market player you will have about 10% of your retirement networth in carryover losses! Paying taxes is a nice problem to have compared to the alternative!
Seems that a retired person looking for income should have a portion of qyld in a portfolio. The question is what percentage? Maybe the answer is 1/3 of each of these investment vehicles? Or 1/4 or 1/5 by adding in one or two other positions like ryld, qylg, jepi, etc.
Well, yeah but I'd rather take a few more years and have a million plus in safe, secure SCHD than 400k slowly depreciating in QYLD with no margin for error.
Interesting comparison. I like DIVO for a sideways to down market like we are in now. I like having my wad of dough to go down the least while still paying a decent div. And after a major down turn with prices down 20 to 50% I switch to mostly growth to build the wad of dough the fastest and pay no income tax except for what I sell the live on.
Hey Nick, another AWESOME and timely video!!!! Let's see how QYLD does in 5 days with the volatile trend we have been on (not ending soon?!?). Nice use of portfoliovisualizer and in retirement love the QYLD, SCHD positions best regards, Steve.
Also Nick, you have some thought provoking evidence for diversification here too (DIVO, RYLD) !!! With 13.7% div (11 mo's not taxed) QYLD is SO tempting.
it does not lose value. It is just staying stagnant and playing around its average price since the fund started due to their strategy. It is ideal for those who want to live off dividends
@@ryandowning6543 well, we all live in dolar system so all we can do is to live with it lol. Also, dividends paid out with 1 to 2 million USD and 10-12% yield annually is more than enough for most people to live and you even have the freedom to move to other cheaper and better countries as well. If one is living a simple lifestyle, the extra money can be invested in growth stocks as well. whole point of QYLD is to generate INCOME that you can rely on before anything
Higher dividend yields with orc, usoi, iep but I certainly trust qyld more long term lol. I feel these others could end up dividend traps. I still put small amounts in them just to get that large yield. So far it's looking like xyld might win the long term race between it and qyld...who knows 30 years from now.
I am like you. putting small amounts in various high dividend yield investments like orc, usoi, iep, qyld, ryld. don't trust them enough for large amounts from my portfolio. For that i go with value stocks like banks, telcos, utilities.
QYLD has only been around for 8 years. We haven't even had a sustained bear market over its lifetime. Don't get excited about using it in a retirement strategy until it has shown an ability to produce consistent dividends during a roaring bear market.
Qyld is an income fund primarily for people who already have made a fortune or are close to retirement. Pretty humorous to see these types of comments from people warning how QYLD will bring ruin to investors . Unless you are in this category (20-55years old or already have a lot of money) then index funds are a better choice (obviously) to anyone with any financial acumen. Then there is the clown who says you need to reinvest 30% of your dividends to keep up with inflation and since he is the smartest person in the room better listen….
You really need to add more variables. Inflation is a huge one. QYLD's income doesn't grow, so you need to reinvest some of the income when you are living off of it. Your dividend growth portfolio will likely have income that keeps up with inflation on average. You also need to look at tax efficiency. QYLD may still come out ahead after these are taken in to account, but you'd have to run the numbers to be sure.
I am not a math whiz but it would be really cool to see if the initial capital advantage of something like SCHD could be morphed into a QYLD position. So you start with a 100% SCHD and move money from that into QYLD until you get to 328K you need and you are 100% QYLD. probably need some kind of calculus (differential equations?) that might be the best of both worlds.
In many cases, even in taxable accounts, investing in good broad based index funds for 10, 20, or 30 years and then rebalancing into QYLD for income is far superior than just buying QYLD from the jump.
Very interesting video thanks for making it. How do taxes factor in though? Aren’t QYLD dividends tax as short term? Wouldn’t that potentially have a negative enough affect to change the outcome? Just my thoughts…
Interesting video. I find the logic a little flawed. In your pre retirement years, you should build up to the highest capital position you can to fund your retirement. SCHD built up the highest capital position in pre retirement. Then in retirement you can move that capital position into better yielding investments like QYLD, RYLD, etc to pay you the dividend income required to fund retirement. That is the conclusion I took away from the video.
@@Iwish4zombies Why would people need investment income before retirement. The idea is to build a nest egg during your working years. Using an IRA and non registered accounts to build a nest egg makes sense. SCHD makes more sense or a SPY etf to build your nestegg. Then when you retire convert to QYLD, RYLD to get the retirement income you need to replace your salary income.
Recommending income investments to build a nest egg instead of growth investments is bad advice. Back test these ETFs against QQQ and you can see what a disaster your scenarios are. Better name for this video: Which of these 3 inappropriate investments will hurt you the least?
Sorry but this analysis does not make sense at all. You cannot retire using the entire dividend because you need to reinvest part of it to accout for depreciation and inflation. In addition, you also need to assume that your capital could lose value due to market crashes. In those conditions you would need to sell your holdings to cover for expenses or you need to over estimate your needed capital. So at the end of that 11% you need to assume that in the worst scenario case, with a market drop of 50% and inflation of 3%, your actual dividend income would need to come from 4% of your capital, i.e. you still need 1M. This is why SCHD will always win at the end, and of a large margin. If the volatility is the same what matters is only the CAGR. Things would be different if there was no volatility like having a bank account with 11% interest but that is just a dream for now...
but if we have a 20 year bear or side ways moving market? In this climate change enviroment I don't see the willingness of politician around the world to sustain growth any longer. For the growth dream is over...income is the new king!
@@samsamys5190 If you are betting against a flat market for 20 years you are betting for something that is unlikely to happen. I'll take my chances betting that in the long run the market will go up.
you are not wrong but there is a problem with your strategy there, what if the stock market pulls a 1970-1980 stock market move and stays stagnant? 2) QYLD provides you cash flow on a monthly basis and that is what you do not get from just hoping VOO giving 10% + average return within the 10 years or 20 years period that you set. It all comes down to when you want to have cash flow and live off your dividends.
@@popkahchin if you have 25 years worth of time before you want to ideally retire, would the best approach be to just go voo/spy n then sell out n go straight into qyld for high dividend approach then to live off monthly basis, or to just continue to monthly add into qyld for the next 25 years and just let that monthly dividend keep growing (and feeding into a higher quality lifestyle to retire off for rest of your life)? Can you expand upon what you mean by "what if the stock market pulls a 1970-1980 stock market move and stays stagnant"? Is that in reference to option 1: VOO/SPY and then sell n go all in QYLD/DIVO/SCHD or option 2: QYLD/DIVO/SCHD for 25-30 years etc?
@@pittabreadchicken7926 as for the 1970-1980 economic stagnancy that I mentioned above was reference to Voo and SPY. you can look at DOW JONES index to go that far back. Yeah totally agree with you on VOO/SPY for the first 20 years and that is why I said it depends on when the person wants to retire or have hard cash on hands to do something else.
I guess this would only really make sense if you had it in a tax advantaged. That being said you still have to reach the age limit to pull from it. If you had to pay taxes on those high dividends defeats the purpose.
Good analysis, but you are not seeing the forest through the trees. With SCHD you would be a millionaire versus having $328K. You actually demonstrated that SCHD is a superior investment over time.
I agree with you and have noted this many times before. Here I was looking at this purposely through the lens of income and achieving financial independence. After all, this is the goal behind this investment.
if you talking about retire means you dont care about capital gains so QYLD is the best but for long time horizon you would go more of a growth etf but since you put retire and get tht cash to pay for shit then qyld is the best
i believe future belongs to technology but i also like monthly dividend. qyld has depreciated over the years so dont want to hold on to depreciating asset. i believe divo and KNG are great but i like closed end funds like BST BME NBGX EOS CSQ BSTZ BIGZ AIO STK best. BSTZ pays a %8 montlhy now with %10 discount on NAV. i see alot of upside for tech with recent selloff. if you like QYLD then i recommend ETV instead. they are similar but ETV has kept up its price since 2009.
I have some. USOI is great in a strong oil market, like now. But it has suffered capital depreciation. prior to the pandemic it traded over $20 per share. now at $5.35 per share. have to be careful with it.
Generally, you can retire on 4% with 250,000 invested. ( Although, 300,000 to 500,000 is safer, roughly 1k a month, standard tax reduction completely reduces taxes to under 200$ with ~12k yearly) With 8%, that is halved to 125,000 With 10%+ lowered once again, at 80,000 to 100,000. QYLD lets you retire faster, but something with 8% lets you retire faster than 4%. Retirement is about stable gradual income. Once you retire at 50-60, you only have 20-40 years left. So 100,000 is plenty to live on for 30 years. So an income of 2k is perfect for the first 20 years of retirement. So if you can put 100,000 into QYLD you'll make 1,000$/month. Completely fine if you aren't in debt, and don't eat like you are the king of some foreign land.
My m1 Roth consists of 35%schd 25%itot 25%dgro 10%O 3%ryld 2%qyld Hoping to get good growth and when I’m closer to wanting to retire to start selling and rebalancing into the yld stocks of their still the best income stocks in the future.
I really like qyld but there are some that beat it. Definitely some riskier ones like orc and arr. But at&t beats it and that's pretty stable. Of course it's not a monthly dividend but still the same in the long run
true, but that is not what income investors are looking for. Yield too low on SCHD. SPY has outperformed SCHD. QYLD and the like are ok for income investors not looking for capital appreciation but rather monthly checks, especially investors at retirement age.
@@slopotato No. QYLD is not for building your retirement in my opinion. SCHD and other similar type of investments will build you a larger retirement pot over your working years. However when you retire, QYLD, RYLD and similar high dividend funds may be what you need to generate the higher income retirees want. I am a recent retiree and I started putting some money into QYLD type investments for the higher dividend income. The bulk of my investments are in value type investments with 3% to 5% yields. But I wanted a little more retirement income without the capital growth so I invested a little into QYLD, RYLD, etc.
I sold my house in phoenix and bought in a cheaper town. Ended up taking 1/4 of the money and putting it in qyld and the rest in my house. I dont have a mortgage anymore, taxes, insurance and all my utilities are paid for.
My total exposure to QYLD only stands at 100k which to me isnt a crap ton of risk.
Ill be using this as a solid base to invest 3 grand into etfs amd funds going forward, or even save some money and get some realestate.
Love QYLD.
Just don't forget that your money won't grow if you keep spending the dividends. By the time you're ready to retire it will be worth 1/2 of what it used to be worth. Try to throw a few divs back in the pile so the compounding will work in your favor.
@@MasterKenfucius Yes but not paying a mortgage payment during that time will allow me to save and invest more throughout my life.
At 74 and near 7 figures, I like the dividend concept for three reasons. 1. Qyld is diversity so single stocks are not a player. Safety matters. 2. Anything over inflation is making money. 10% is bigger than 7.5%. 3. Focus on your goal. For us, the goal is a monthly check. For others the goal might be growth. In that case I would choose SPY. Yet for people wanting both I would pick a portion for both. CAVEAT. Anyone liking single stocks Needs to be verycautious. Just look at CLX JPM FB PYPL and so in.
I am a little younger than you but looking for good dividend checks. I have done a small amount into qyld and ryld. also CLM, IEP and some other 10%+ dividend yields. the bulk of my investments are with good dividend paying value stocks, banks, telcos, utilities.
I would just stick with the blended approach like you have right now. A little cash flow from XYLG, DIVO, JEPI ect. to stay motivated but the funds have a little leg room to grow and then have your growth/speculative plays that are pure growth. You should sell CSPs to get into the funds and stocks you want at a discount as well and sell far OTM calls on them. M1 is really cool especially if you get the card but the lack of options and buying whenever is what keeps me from using them.
Great Video. I have my wife's retirement portfolio split between QYLD, RYLD, JEPI, SCHD. She is set to retire the end of this year so we are concentrated on income with a little growth potential.
I strongly believe that anyone who has a high starting amount (100k for example) who wants to retire early should put the bulk of that money in SCHD.
Divo can be substituted out because SCHD is very similar to it, aside from not being a monthly income player. It might be too much overlap, but that's just my opinion anyways.
QYLD can be the backbone as a hedge for flat and sideways market and work in the background as a DRIP machine or using the dividends to pay some portion of your bills.
The person who has a lot of capital upfront will do better with having a bulk in SCHD because the compounding and dividend growth of SCHD with 1,000 shares will snowball and you'll get rich every year little by little.
Focus on semi-retirement and building that base first, then when you are fully ready to retire, go all in on income funds like JEPI/QYLD/DIVO and you are done.
I'm already retired and doing the same with SCHD/SCHY (Foreign equivalent of SCHD) /DIVO/JEPI with an average of 4.975% Annual return in dividends. I've $750K invested.
I currently have QYLD in my portfolio, but I keep it at 11%. I'm retired and like the high income, but I think of it as investment frosting; tasty, but too much sugar is bad for you.
i have an income portfolio of QYLD,RYLD,XYLD,SCHD. I'm not looking to build a portfolio of 1 million just to get back 40k in dividends each year.
Solid point
I hold QYLD instead of cash and use the dividends to add other holdings in my portfolio. IMHO, markets are rotating from growth to favor value and dividend investments until after the 2024 US election cycle. SCHD is my foundation holding.
Currently making 60 dollars of passive monthly income, with QYLD. Though I did take a hit with these recent dips. I have the money to invest more and hit that 100 dollar a month goal. Just watching from the side lines, to make sure this will be the norm and correction has occurred or if we going down further with all the recent happenings. It's definitely a roller coaster right now.
Great video Nick. Keep them coming!
Thanks Rich!
Haven't read comments....
The "Trifecta" may be something you want to look into in comparison. Although, they are all covered call etfs that haven't been fully proven yet.
It should hit around 8.5% yield with a higher CAGR and account value after the same length of time.
JEPI, NUSI, QYLD.
Most people just log on to UA-cam to get info on the stocks to pick, without basic understanding on portfolio selection and risk tolerance. Also get the best from a financial advisor and work on your investing tolerance and with time you'd be a grand master
what kinds of investments do you make. I totally agree with you. I have a lump sum right now doing next to nothing in a savings account. but it's hard for me to take part in the market right now due to the fulltime nature of my job. it will be way to stressful to combine so I don't even think about-facing it
FXKATHYB as⚖ handle .. with t e le gram software././../
SCHD is my largest etf position. I have a lot of good experiences with Schwab products. I like knowing that SCHD will more or less keep pace with the S&P while reliably delivering 3%. The newer higher yield etfs are so new I just need to see how they perform over time. QYLD isn't even described very well on my broker's app so it is difficult to know how to value it.
I have a mix of QYLD/XYLD - looks like XYLD is holding it's price much better due to lesser volatility.
Shouldnt you rush to 328k with SCHD and then rebalance to QYLD? i think that would save another few months
That’s what I want to do😏
There may be another growth fund to do this but in my opinion this is the way to go. I’m invested in highest growth and international growth possible. Been doing it for 5yrs. I’m up quite a bit
Yeah idk man. I love the idea of QYLD, all the yld funds really. Cheap, high cash flow and fairly stable. It just seems to easy, something will happen to it so change from what it is now. Don’t get me wrong, I have 452 shares in my portfolio but something DOES seem to good to be true with the yld funds.
^ This.
I thought it was an interesting presentation, but also unrealistic. The reason is that we don't need to pick one and stick with it until we retire. I would have liked to see how long it would take for SCHD and DIVO to get to $328k, because you can just invest in SCHD and then when you hit the QYLD retirement amount, you can just sell out of it and buy QYLD. (btw, i'm also a data nerd... I can relate!)
Divb gets to $328K faster as plenty of others. Portfolio Visualizer is a free site!
You have to pay tax when you switch though
Most would rather pay later than today. Also it will be captial gains. If you were a real market player you will have about 10% of your retirement networth in carryover losses! Paying taxes is a nice problem to have compared to the alternative!
Seems that a retired person looking for income should have a portion of qyld in a portfolio. The question is what percentage? Maybe the answer is 1/3 of each of these investment vehicles? Or 1/4 or 1/5 by adding in one or two other positions like ryld, qylg, jepi, etc.
Well, yeah but I'd rather take a few more years and have a million plus in safe, secure SCHD than 400k slowly depreciating in QYLD with no margin for error.
I do my own hybrid fund of QYLD& SCHD
heres the thing you could do schd for about8-10 years sell all of your shares and buy that same amount of qyld that took 19.5 years to get
Interesting comparison. I like DIVO for a sideways to down market like we are in now. I like having my wad of dough to go down the least while still paying a decent div. And after a major down turn with prices down 20 to 50% I switch to mostly growth to build the wad of dough the fastest and pay no income tax except for what I sell the live on.
Hey Nick, another AWESOME and timely video!!!! Let's see how QYLD does in 5 days with the volatile trend we have been on (not ending soon?!?). Nice use of portfoliovisualizer and in retirement love the QYLD, SCHD positions best regards, Steve.
Also Nick, you have some thought provoking evidence for diversification here too (DIVO, RYLD) !!! With 13.7% div (11 mo's not taxed) QYLD is SO tempting.
Great video. Personally not a fan of QYLD or any fund that loses value consistently over time.
Agree. But it's UA-cam popular
@@gomisreef You can try JEPI, NUSI these income funds with price appreciation~
it does not lose value. It is just staying stagnant and playing around its average price since the fund started due to their strategy. It is ideal for those who want to live off dividends
Does the dollar lose value over time? Asking for a friend...
@@ryandowning6543 well, we all live in dolar system so all we can do is to live with it lol. Also, dividends paid out with 1 to 2 million USD and 10-12% yield annually is more than enough for most people to live and you even have the freedom to move to other cheaper and better countries as well. If one is living a simple lifestyle, the extra money can be invested in growth stocks as well. whole point of QYLD is to generate INCOME that you can rely on before anything
Can you make an updated version of this video now that we are in a bear market?
Invest in SCHD till you hit $328K then sell it and buy QYLD. Probably will take 5 years instead of 7.549 years. Would like to see a video on that.
Higher dividend yields with orc, usoi, iep but I certainly trust qyld more long term lol. I feel these others could end up dividend traps. I still put small amounts in them just to get that large yield. So far it's looking like xyld might win the long term race between it and qyld...who knows 30 years from now.
Great points. There is something to be said of the simplicity of qyld and its sister funds
I am like you. putting small amounts in various high dividend yield investments like orc, usoi, iep, qyld, ryld. don't trust them enough for large amounts from my portfolio. For that i go with value stocks like banks, telcos, utilities.
Yeah I like the vanguard funds for a lot of those.
Invest in SCHD first then sell SCHD and buy QYLD when your portfolio grows large enough, but make sure to plan for taxes.
QYLD has only been around for 8 years. We haven't even had a sustained bear market over its lifetime. Don't get excited about using it in a retirement strategy until it has shown an ability to produce consistent dividends during a roaring bear market.
You can live pretty good in the Philippines on 700-1000 a month
Did you try first invest in high growth, reaching to 300k, then switch it to qyld to get 3k a month? That seems to be the fastest.
You do not need the income till you do. Go for max growth then convert to div income. You are paying taxes along the way on the div income.
not in IRAs you aren't
Why not both?
@@MarkEdwardTan cuz you get mediocre results. Hy dividend are the worst for growth! Divb then switch to income stocks when the time comes!
@@scotmcpherson IRAs got nothing to do with retiring early less you wanna pay the penalty for early withdrawl!
@@gg80108 That's true, I wasn't really thinking "early" retirement. I am already too old to "retire early".
Qyld is an income fund primarily for people who already have made a fortune or are close to retirement. Pretty humorous to see these types of comments from people warning how QYLD will bring ruin to investors . Unless you are in this category (20-55years old or already have a lot of money) then index funds are a better choice (obviously) to anyone with any financial acumen. Then there is the clown who says you need to reinvest 30% of your dividends to keep up with inflation and since he is the smartest person in the room better listen….
You really need to add more variables. Inflation is a huge one. QYLD's income doesn't grow, so you need to reinvest some of the income when you are living off of it. Your dividend growth portfolio will likely have income that keeps up with inflation on average. You also need to look at tax efficiency. QYLD may still come out ahead after these are taken in to account, but you'd have to run the numbers to be sure.
Do you have A link to the calculator tool as well?
I am not a math whiz but it would be really cool to see if the initial capital advantage of something like SCHD could be morphed into a QYLD position. So you start with a 100% SCHD and move money from that into QYLD until you get to 328K you need and you are 100% QYLD. probably need some kind of calculus (differential equations?) that might be the best of both worlds.
In many cases, even in taxable accounts, investing in good broad based index funds for 10, 20, or 30 years and then rebalancing into QYLD for income is far superior than just buying QYLD from the jump.
Very interesting video thanks for making it. How do taxes factor in though? Aren’t QYLD dividends tax as short term? Wouldn’t that potentially have a negative enough affect to change the outcome? Just my thoughts…
Hold QYLD in a ROTH account.
What makes qyld taxed as short term?
Interesting video. I find the logic a little flawed. In your pre retirement years, you should build up to the highest capital position you can to fund your retirement. SCHD built up the highest capital position in pre retirement. Then in retirement you can move that capital position into better yielding investments like QYLD, RYLD, etc to pay you the dividend income required to fund retirement. That is the conclusion I took away from the video.
Only in ira I think a lot of people are using this as income before retirement
@@Iwish4zombies Why would people need investment income before retirement. The idea is to build a nest egg during your working years. Using an IRA and non registered accounts to build a nest egg makes sense. SCHD makes more sense or a SPY etf to build your nestegg. Then when you retire convert to QYLD, RYLD to get the retirement income you need to replace your salary income.
why are you not discussing ryld? I find it to be the better version of qyld
Recommending income investments to build a nest egg instead of growth investments is bad advice. Back test these ETFs against QQQ and you can see what a disaster your scenarios are. Better name for this video: Which of these 3 inappropriate investments will hurt you the least?
over the last few months burying your money in your backyard would have panned out better than qyld.
Sorry but this analysis does not make sense at all. You cannot retire using the entire dividend because you need to reinvest part of it to accout for depreciation and inflation. In addition, you also need to assume that your capital could lose value due to market crashes. In those conditions you would need to sell your holdings to cover for expenses or you need to over estimate your needed capital. So at the end of that 11% you need to assume that in the worst scenario case, with a market drop of 50% and inflation of 3%, your actual dividend income would need to come from 4% of your capital, i.e. you still need 1M. This is why SCHD will always win at the end, and of a large margin. If the volatility is the same what matters is only the CAGR. Things would be different if there was no volatility like having a bank account with 11% interest but that is just a dream for now...
in this overpriced USA market i would consider buying LVHI. emerging market high divi low volitality etf. i think emerging market has alot of upside
If you want to retire early, a simple Sp500 index fund such as VOO has vastly outperformed QYLD since inception.
but if we have a 20 year bear or side ways moving market? In this climate change enviroment I don't see the willingness of politician around the world to sustain growth any longer. For the growth dream is over...income is the new king!
100%
@@samsamys5190 If you are betting against a flat market for 20 years you are betting for something that is unlikely to happen. I'll take my chances betting that in the long run the market will go up.
Why can't I just invest in voo/spy etc for growing my portfolio, and then to cash out in
you are not wrong but there is a problem with your strategy there, what if the stock market pulls a 1970-1980 stock market move and stays stagnant? 2) QYLD provides you cash flow on a monthly basis and that is what you do not get from just hoping VOO giving 10% + average return within the 10 years or 20 years period that you set. It all comes down to when you want to have cash flow and live off your dividends.
@@popkahchin if you have 25 years worth of time before you want to ideally retire, would the best approach be to just go voo/spy n then sell out n go straight into qyld for high dividend approach then to live off monthly basis, or to just continue to monthly add into qyld for the next 25 years and just let that monthly dividend keep growing (and feeding into a higher quality lifestyle to retire off for rest of your life)?
Can you expand upon what you mean by "what if the stock market pulls a 1970-1980 stock market move and stays stagnant"?
Is that in reference to option 1: VOO/SPY and then sell n go all in QYLD/DIVO/SCHD or option 2: QYLD/DIVO/SCHD for 25-30 years etc?
@@pittabreadchicken7926 as for the 1970-1980 economic stagnancy that I mentioned above was reference to Voo and SPY. you can look at DOW JONES index to go that far back. Yeah totally agree with you on VOO/SPY for the first 20 years and that is why I said it depends on when the person wants to retire or have hard cash on hands to do something else.
I guess this would only really make sense if you had it in a tax advantaged. That being said you still have to reach the age limit to pull from it. If you had to pay taxes on those high dividends defeats the purpose.
Good analysis, but you are not seeing the forest through the trees. With SCHD you would be a millionaire versus having $328K. You actually demonstrated that SCHD is a superior investment over time.
I agree with you and have noted this many times before.
Here I was looking at this purposely through the lens of income and achieving financial independence. After all, this is the goal behind this investment.
Best strat? Wheeling QYLD
I care about dividend only not capital gain. Capital gain for millionaires and billionaires
if you talking about retire means you dont care about capital gains so QYLD is the best but for long time horizon you would go more of a growth etf but since you put retire and get tht cash to pay for shit then qyld is the best
Horrible funds for accumulating wealth for retirement. Just rebalance into these once you reach retirement…..
i believe future belongs to technology but i also like monthly dividend. qyld has depreciated over the years so dont want to hold on to depreciating asset. i believe divo and KNG are great but i like closed end funds like BST BME NBGX EOS CSQ BSTZ BIGZ AIO STK best. BSTZ pays a %8 montlhy now with %10 discount on NAV. i see alot of upside for tech with recent selloff. if you like QYLD then i recommend ETV instead. they are similar but ETV has kept up its price since 2009.
Qyld doesn't have a 5yr CAGR
USOI
I have some. USOI is great in a strong oil market, like now. But it has suffered capital depreciation. prior to the pandemic it traded over $20 per share. now at $5.35 per share. have to be careful with it.
Qyld down this year sadly :/
Generally, you can retire on 4% with 250,000 invested. ( Although, 300,000 to 500,000 is safer, roughly 1k a month, standard tax reduction completely reduces taxes to under 200$ with ~12k yearly)
With 8%, that is halved to 125,000
With 10%+ lowered once again, at 80,000 to 100,000.
QYLD lets you retire faster, but something with 8% lets you retire faster than 4%.
Retirement is about stable gradual income. Once you retire at 50-60, you only have 20-40 years left. So 100,000 is plenty to live on for 30 years. So an income of 2k is perfect for the first 20 years of retirement.
So if you can put 100,000 into QYLD you'll make 1,000$/month. Completely fine if you aren't in debt, and don't eat like you are the king of some foreign land.
Did you check the inflation these days? 2k a month? You live in Vietnam?
My m1 Roth consists of
35%schd
25%itot
25%dgro
10%O
3%ryld
2%qyld
Hoping to get good growth and when I’m closer to wanting to retire to start selling and rebalancing into the yld stocks of their still the best income stocks in the future.
I really like qyld but there are some that beat it. Definitely some riskier ones like orc and arr. But at&t beats it and that's pretty stable. Of course it's not a monthly dividend but still the same in the long run
Att is only 8.9% with tons of debt
Disclaimer... don't put all your eggs in one basket. I view these types of ETFs as modern day bond funds.
can all you guys stop trying to saturate QYLD fund? It's going to get so big that it can't do it's job anymore.
Just stick with SCHD. You will just have more money...
true, but that is not what income investors are looking for. Yield too low on SCHD. SPY has outperformed SCHD. QYLD and the like are ok for income investors not looking for capital appreciation but rather monthly checks, especially investors at retirement age.
@@lsrasr158 But does it let you retire faster?
@@slopotato No. QYLD is not for building your retirement in my opinion. SCHD and other similar type of investments will build you a larger retirement pot over your working years. However when you retire, QYLD, RYLD and similar high dividend funds may be what you need to generate the higher income retirees want. I am a recent retiree and I started putting some money into QYLD type investments for the higher dividend income. The bulk of my investments are in value type investments with 3% to 5% yields. But I wanted a little more retirement income without the capital growth so I invested a little into QYLD, RYLD, etc.
Ethereum? Lol