JEPI pays my mortgage every month
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- Опубліковано 7 лют 2025
- My 30 year mortgage is forever paid for with my passive income investments from JEPI (and JEPQ). JEPI is a covered call ETF that distributes income in the form of a premium to me as a shareholder every month. This income I receive is 100% passive. The way JEPI is set up, I should continue to receive monthly distributions and over time, these distributions should slowly increase. Now obviously past performance is never a guarantee of future performance. Because JEPI has a much higher starting yield, I need less capital invested to receive my desired income target. For example, investing into an ETF like SCHD or an individual stock like Coca Cola would require significantly more capital to achieve the same target income to pay my mortgage. JEPI is ideal for someone like my wife and I because we have a short time horizon before we plan to fully live off our dividend growth portfolio.
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The power of small wins!
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@@evasanz3466 Hey Eva! You are spot on! I was actually thinking this week what my annual expenses would be living in Freiburg Germany given that we wouldn't have high medical expenses. It is so tempting sometimes to say to my wife.. ok honey we are selling the house and moving to Germany... By the way.. that book is one of my favorite finance books!
@@evasanz3466 lol I love your enthusiasm. Right now I only have time to be a finance nerd. Im excited to expand into other topics when we have more time on our hands.
@@listerinr 2,400
that’s what she said
Good morning, in your honest opinion and experience do you think JEPI is a good investment ?
If I ever needed a sign to continue dividend investing, this video was it.
Hey man! One day at a time! Celebrate those small wins along the way!
I just came to 2nd that motion 🫡💪🏾
I’ll third on this motion. Great stuff 🤌🏼
Awesome video Jake. JEPI is very comparable to having a rental property. Similar income/cash flow without the hassle of dealing with tenants and upkeep.
Yes
No it’s not …
@@dingdong6005 how so?
Just no principal growth… but some may not mind.
Holy smokes I completely agree with your thoughts on this. I started just 14 months ago. I am at 84 a month but need 235 to cover my property taxes. That is a great way to look at the goals. Breaking them up into smaller chucks. House is paid for and I want my dividend accounts only to pay taxes and insurance in perpetuity. This is my largest expense going forward (not including whatever medical will cost). Thanks for the inspiration
Hypothetically, if $250,000 is invested in JEPI and dividend payment is approximately $2,350 per month, this could work for a few years to maximize holdings in other dividend stocks. If done for 5 years, and the overall dividend amount does not change drastically to the downside, that would be an extra $140,000 to invest in other stocks. With compounding interest, if appears just holding this for a few years would really help boost portfolios. Thanks for the breakdown on your end!
I believe even JP Morgan said that the yield will eventually settle closer to 6% or 8%, which is considerably lower than it is now but much still higher than most dividend ETF'S. If it stays high, then great but I wouldn't bet your finances on it.
That was the same thought process I had while listening to the video.
@@alexanderkempf9828 Will the principal value come down when yield goes down?
@@tamiltholaikatchi not sure. Doesn't have to.
JEPI feels like a cheat code. I'm at 1,100 shares, goal of 2,000 in my taxable. I'd like the distributions to max my Roth IRA and HSA index funds. Then I can keep piling work income into more div growth ETFs. I'm 31. Great vid!
Hey!! Nice! It is such a great feeling seeing it go up every month.
@@DividendGrowthInvesting Agreed. I appreciate the info from these videos. I don't take it as financial advice, but it's amazing seeing all the strategies from the community.
Not to throw cold water, but this reminds me of similar scenario with QYLD about a year ago. I have JEPI and love it too. But don't get carried away. Don't forget about total markety stuff like VTI and div growth like SCHD and DIVO
@@marksweetser6312 definitely. This is more short term high yield to fund accounts on autopilot. My 401k and Roth Ira are all low cost index funds. I imagine I'd gradually sell JEPI shares when my dividend growth ETFs yield on cost outpaces the JEPI yield. Need to outpace inflation long term.
This is the video I was waiting for! My time horizon is less than 6 yrs. I was looking to generate an additional 2k to 3k per month when we retire to the Philippines (or Thailand, Malaysia), Philippines is where my wife is from, to supplement our other investments and Social Security. I am one of your older subscribers, living in beautiful Brenham. This extra income will go a long way and help us travel and live in Southeast Asia, during retirement. I already own a small amount of JEPI and JEPQ, in my IRA, and HSA. Currently I have an allocation of SCHD 30%, VYM 20%,DGRO 20%, JEPI 15%, JEPQ 15%, I also still contribute to my company 401k. Keep up the good work, very informative!
Hey John! Talk about timing.. I just responded to your question in my video today in my Review My Pie video. ua-cam.com/video/xab4PeNjbqM/v-deo.html
OMG!! I just realized after watching this ...I had to pull mine up!! Yes!!!! I can now make my house payment covered by JEPI and JEPQ!!
THAT IS SUCH A GAME CHANGER! I have less than 5 years to retire and I am loving the monthly distribution! Cash Flow is my priority.
I’m 27, turning 28 tomorrow. Reviewed my portfolio and I’m generating 220$ per month in dividends. Slowly but surely, a small step at a time.
nice!!! 28 is a great age to already be investing!
What are you invested in
That's nice! That amount would cover my monthly power bill... #lifegoals
26 an at 850 a year. I wish you prosperity in the new year an all other inverters an we can show our friends the tools of success are open to all of us an use are resources to prosper
That's an awesome milestone Jake. Im not a huge fan of some covered call ETFs, but I think JEPI is one of the best of them. When used right, it can be a great tool to achieve living off of dividends. Keep up the great work!!
Hey!! Thank you! yeah cc ETFs are not for everyone, especially if you have 5+ years before you plan to live off the income. Thanks for watching! Your channel is growing like crazy!
What is there to use right or wrong just buy Jepi and get the dividends and if in stock will tank then. At the point you will be still under a loss.😊
@@DividendGrowthInvesting thanks Jake!! Love watching your channel grow as well.
What do you mean by, " when used right ? "
Why don't you like covered call wtf.
As for your description, it's my wife and me :) Congrats on the milestone!!
:D Thanks for watching, Sean!
Great Video! I also have JEPI on my portfolio and I'm dripping the distributions back into it. I'm five years away for my FIRE date. Awesome job, Take care!
Hey Julio! Great to hear! Thanks for watching!
Congrats. I would call that a big win not a small win! The peace of mind dividends provide can be very powerful and this is a great example. Great video Jake.
Hey!! Thanks man! It was such a great feeling when I saw this.
I hit over 24k in expected dividends over the next 12 months earlier this year. Did it with individual stocks and ETFs. JEPI wasn't even an option for me when I started. It sure would have been easier and quicker to get there with JEPI.
I bet you are now rethinking your time horizon when factoring in adding JEPI - at least that’s what happen with us!
Congratulations on your milestone!
I’m too young for JEPI, plus JEPI is almost entirely unqualified distributions. So it’s really only an option for a retirement account and even then, I would expect the S&P to outperform JEPI over 10 years even when factoring in distributions and taxes. I hope it’s still around when I start planning to retire tho. Seems like a wonderful option.
Excellent, excellent video. I use JEPQ to pay my annual property-tax bill.
Many people are too dumb to understand the importance of an income stream.
passive income is the best form of income :)
Cash flow is king. Nothing wrong with setting yourself with a nice position for those tasty monthly dividends
Good video and great education on passive income dividend investing. I know it's not about JEPI...but with JEPI the beta (how it reacts to overall market) while hard to find and calculate does drive the risk profile up. You seem to have a pretty diversified portfolio so JEPI has a place. But I would caution viewers to also practice position sizing discipline which was one of the most important lessons I've seen learned by serious investors. Position sizing isn't about diversification but more about spreading eggs with different baskets so as not to concentrate risk. Again good video but just wanted to add to the conversation. Cheers.
What a fantastic milestone! Congratulations and keep on stacking those dividends!!
First time finding your channel.. thanks for the encouraging video and congratulations on getting close to being financial free.
Hey there!! So glad you found the channel! Thanks for watching!
I'm an idiot and you showed me that. So I'm really, really thankfull for that. 😀 I'm investing for 2 years now, but I've never give a proper thought to this. Now I'm going to think and calculate how I need to rebalance my portfolio and what stocks to buy. Thank you so much, Jake.
Glad it was helpful! Thanks for watching!
I have been accumulating shares of SCHD before it was cool, so I am doing the same with my house with SCHD. House is about $1400 a month, and I should get about $6100 on the 12th of December. It's pretty sweet.
Daaannnggg nice!!!! Yeah SCHD is almost like a fad now.
Great job!! We paid our 30 y mortgage off in 11 y and never bought our move up home. That's another way to knock out the house payment. We should move to our move-up home and rent this one to pay the next one off... but until then.
Hey Brian! That is another really great way of looking at it. Also the point of turning it into an income producing property is bit different, because when you move, your new place will still need to be paid for.
This is exactly what we are working towards. CONGRATULATIONS 🎊
Thank you, Brandi!!!
First time watching your channel, this video is AWESOME !!!!!!!!!!!!
Hey Ernie! Glad to have you here!
I hear Jakes Videos ... not only he is giving great value and he is a great teacher and he entertain his audience with great tone.. great work Jake
Thank you so much for taking the time to comment this. I really appreciate it! Happy New Year, Wasantha!
I have a small portion of JEPI. I plan to retire in the Philippines. I only need $1,500 a month to live like a king. I love this video, Thank you. It's definitely a motivator.
Hey Liam! That sounds really exciting. I've never been to the Phillippines but hear great things.
I will be there in 11 years waiting on my 3500 a month pension
Congratulations 👏
Thank you!!
Congrats that is huge!
Thanks, Mike! I appreciate it! I've been a follower of your channel for years!
Excellent I love JEPI is in my top 5 I'm watching PDI,NLY,ARR
great minds think alike!
Jake you are the man...consistently posting GREAT stuff and sharing SO MUCH! Best wishes to you and your brother ;)
Hey man! Thank you so much! So great to hear from you!
You can simply pay out your motgage with 256k$ instead of paying % for the bank for years and live debt free...
I have a similar exercise with JEPI, currently covers my grocery costs for the month! Hope to get to mortgage soon. Then the rest of my expenses I will handle was total portfolio return 4% rule
nice!! I really like that approach with combining dividends and the 4% rule! I've thought a lot about that approach.
That’s awesome. Thanks for sharing.🙌🏻👏🏼
Thanks for watching!! Omg I love buc-ees'!!!
Nicely done! Congratulations!
Thanks Chris!
Wow... great job!! I can't wait to get to this point.
Thanks for watching Carlos!
Congrats man, this is why i always tell people not to be afraid of some of the high yield options. Very few things in investing are as exciting as realizing a major expense will be covered. You call it a small win, but it's huge imo
Hey!! I was going to say this is the diamond in the rough... but given that JEPI is the 7th most popular/funded ETF in 2022 its not really a diamond in the rough lol.
@@DividendGrowthInvesting i totally have my bills laid out on my dividend calendar in google sheets, then starting from the lowest when my divideds could cover the bill i highlight it green. It's super motivating watching the green crawl up the list. Tho i could pay all my annual bills with 3 months of your mortgage 😜
@@delbomb3131 seeing it improve each month is amazing!! Oh trust me.. I've thought about selling the house and moving to a lower cost of living area all the time.
Congrats!
Thanks!!!
We’ve been on board with jepi for about 13 months. It’s a brilliant cover call
JEPI has done very well since inception!
Does this pays more than jepq or the vanguard funds? Plz reply
I personally like JEPQ a little more and you should expect higher income but higher volatility because JEPQ is tracking the NASDAQ but I own both.
Wow thank you man !
Thanks for watching!
Have you tried to calculate, what will happen if you'll take the same ammount of yield from passively managed SPLG with 0.02% management fees instead of 0.35% i actively managed JEPI, and use it to pay your mortgage?
You have to understand that total return is what matters in the end, historacally covered calls underperformed passive index investing. You can also take your 250k$ and pay with them your 2500$ mortgage for 8.3 years. Have you seen that JEPI and JEPQ were established 4 years ago and that they're actively managed funds? This won't end well when the market will go down.
Retired a couple years ago, transferred some 401k money and bought 6000 shares of Jepi. 3200 month in dividends. Life is good
dang!! Nice!
What is risk ?? Putting that much into one etf like JEPI ? Sorry I am new to the dividend investing.
Thanks 🙏
@@dingdong6005 it was just a portion, dividends are unbeatable
@@justjohn54 thanks 🙏
A small note for people who might like a little extra info. 1. The income generated by this 230k worth of investing can actually reinvest back into that same portfolio or be the thing that pays for let’s say your long term portfolio which leads into 2. Just because ETF pay less dividends doesn’t mean that you’ll lose out on income with many ETFs having consistent growth you can rebalance quarterly to benefit from the growth of maybe your lower paying ETFS
JEPI is good at this point, howevered, with covered calls, there are still risks. Would be nice to have a longer history of performance to evaluate.
I was planning to retire this month so I re balanced some long term ETF's into JEPI to get my needed cash. I am still buying long term with my extra cash so they are growing again.
nice!! I'm looking at it in a very similar way. That is so exciting that you are retiring this month! Congrats, Kevin!
I’m still very early on my financial independence path, but my JEPI payout this month paid equivalent of 2% of my monthly rent. Pretty cool.
Of course, I reinvest it for now.
That 2% will go up every month as you reinvest and add more to the portfolio!! You can celebrate that every month!
How many shares do you have of it?
As usual, well done Jake!
Congrats bro! I'm slowly getting there
Thank you!!! One day at a time
SVOL pays mine! Great job, Jake!
I need to check out that one. We’re in good company!
Love Dividend income. Cha-ching! I can't wait till I get there.
passive income is the best income :D
Thank you for sharing . This is truly motivating.
Thanks for watching, Fred!
Great video Jake!. I like JEPI income to buy other shares... 18:22 "This is going to hurt my brain" 😂😂😂
Thanks man! lol omg :D
I own 12,000 shares. it's been awesome investment. Running the compound interest over a 5-10 year time frame is pretty cool.
Gets really exciting :)
That’s awesome!
Great video. I love Jepi and jepq
Hey james!! Great minds think alike!
@@DividendGrowthInvesting the part I get a kick out of is, people will complain about the taxes of cover call etf's but they will go and sell options like crazy and have to pay taxes without a 2nd thought.
@@kc8txw lol ya
JEPI seems like the most stable high dividend fund. I've seen some jump all over the place, some just crash and stay near zero...
Hi Jake . I am new to dividend investing. Can you please talk about risk associated with JEPI ?
The big risk with JEPI is really around two areas. 1. the income is based on volatility in the market. Years where there is low volatility, there will be less income. 2. Your upside potential will be limited because the way this ETF generates income is by writing calls which limits your potential growth in bull markets.
excelent Jake. to better understand, what s the value of your mortgage property? tks.
Not 100% sure what you mean with this. Are you talking about the value of having a mortgage?
Yes. the value of The mortgage.
@@fernandodesouza4528 My total mortgage is around $320K
tks. congrats for the excelent videos.
Thank you for explaining JEPI, very informative. Would you explain further as to why it may or may not be good for a Roth IRA. Thank you very much!
Ideal to hold in a Roth IRA for tax free income. Only drawback is you need to be 59.5 years old to access it
@@DividendGrowthInvesting Okay, that's something I can put in my IRA. I don't plan to touch my IRA for a while anyway.
Thank you for your response. Much appreciated.
How about Tax on Jepi dividend income?
Love it!😊
Is there a European version of Jepi. We can not buy Jepi in The Netherlands
Good question. I’m not sure
Good job!!!
Thanks!
Fantastic educational video thank you very much.
Hey Andrew!! Thank you so much man!
Are you holding this in an individual account or IRA? Isn't JEPI non qualified? I want to live off dividends, and I'm holding in a taxable account but trying to figure the difference in dividends.
$JEPI is definitely an interesting one, need to do some more research on it for sure
JEPI can be a great option if you are looking for income and potential for growth. Keep in mind your time horizon when investing into an ETF like JEPI.
Your voice sounds like a guy I used to know, a small man with rank in the Army; Marriott was his name. Although you have great content I can’t get past the voice of such a small man.
lol well.. I'm 6ft so :D
@@DividendGrowthInvesting That’s good. I’ll try to get the image out of my mind then. I got a lot out of your dividend investing tips while commuting to work yesterday. It’s similar to what I’m doing now but gave me some ideas on how to tweak it a little. Thank you!
Of course JEPI is seen within everyone dividend investment portfolios, but I am not and likely will not be sold on it... I think as for a fund we should capitalize on the broad market and then add thereafter high quality growing dividend stocks
Fair enough. Not for everyone. It’s an interesting investment vehicle.
The div yield from JEPI and JEPQ are very enticing.. however, how sustainable over a long term timeline do you think JEPI/JEPQ are? Also - how tied to the S&P/Nasdaq do you think they are..? How safe is the principal? I dont fully understand the risks with ELN's etc. do you?
JEPI and JEPQ are covered call ETFs. I would suggest watching this video: ua-cam.com/video/yj7fZfG9Xj4/v-deo.html
Thank you
Nice video 🏆
Thanks for watching!
haha good video clip insert of that family :)
lol :D
I use trackyourdividends to compute yields with diff stocks/etfs using the same base investment amounts. Gr8 vid ty.
Another important point is that the cover call strategy is out of the money, you gain some capital compared to xyld.
exactly!!!!!!!!!!!!!
My dividends can now pay for my phone and wifi. Its not much but its a start and it feels pretty awesome.
That is great!!
Only problem is you are losing out on taxes and growth. JEPI doesn’t count as qualified dividends so you pay taxes on it as ordinary income. Plus the growth is severely limited. You would be better off with SCHD imo.
the best way is to invest in jepi or jepq but in your roth ira account
100% But be careful not to go into JEPI or these covered call ETFs if you have more than 5 years before you plan to live off the dividend. Your returns are capped and you want more growth with a long-term time horizon.
I'm 5 years from retirement. I own JEPI & think it's fantastic. I pair it with $O Realty Income, DIVO & an S&P 500 index fund. They seem to work great together. When I retire, I'll have to figure out the asset allocation! Thoughts/comments?
Hey Steve! That is really exciting! There are many ways you can look at this. I would just make sure no one individual company is more than 5% of your total portfolio. Diversifying your holdings as well as the % of income of your portfolio is a good thing to look at. If you are 59.5. when you retire, make sure to look at tax advantaged accounts.
So maximum 5% in jepi!?
@@cathychi2009 with ETFs you can allocate a higher %
@@DividendGrowthInvesting how much u allocate into jepi?
The way it works is that you sell all potential gains for those fixed 10% a year. If you're happy with 10% a year minus inflation then it is a great solution. But capital erosion will eventually catch these high yield etfs. They have to sell to pay those high dividends
This is awesome! I’m currently 24 and I’m making a small $671 this year in dividends. But that compound effect will take over year by year.
That’s amazing! Track your dividends and watch them grow!
@@DividendGrowthInvesting I definitely do, I have a little stock notebook with everything month but month
There's a section in Chapter 1 of Seth Klarman's book "Margin of Safety" concerning covered call option mutual funds. The book came out in the early 90's and the mutual funds in question held long treasury bonds, but I think the idea would apply equally to equity ETFs like JEPI and QYLD. Klarman suggested that a portion of the income from these funds is, in effect, return of your own principal. His point is that you are being paid for the truncation of future gains on the bonds or stocks. Some portion of these options will expire worthless, but another portion will expire in the money. The present value of the truncation must be factored into the calculation of the "yield" on these funds. The section in the book is called (ominously) "Greed and the Yield Pigs of the 1980s." It was an interesting idea and until I fully understand the notion and the risks I am staying away from these ETFs. Too good to be true should always be viewed a red flag.
Very valid and fair point. I would never go 100% into one investment. Diversification is so important.
JEPI is young so we can't judge it long term yet, but Covered call ETFs are not all equal, and so far you are getting a 40% total return with JEPI since 2020.
Not since it hasn't proven itself across multiple decades and multiple crisis we shouldn't throw 50% of our investment in it, but so far it is a great investment.
Take a look at IEP and OHI.
I own OHI. Thanks for the recommendation!
Remember these ETF's are being taxed as ordinary income so keep that in mind, they are not RoC. Several people got burned last year at tax time thinking QYLD was RoC when in fact it was ordinary dividend income.
Is this really better then just overpaying your house for the equity?
You got taxed on your income, and now you get taxed on your gains.
JEPI is not really growing, so your previously taxed money didn’t really grow in value with share price, and it gets taxed again on distribution of dividends.
Real estate, however, grows at a modest 3-5% annualized and you get an extra lift because you’re getting a “return” by reducing your interest payment.
I’m not really sure there are many cases where overpaying a covered call ETF instead of a house
Well there are many schools of thought when it comes to that. I have a 2.85% interest rate on my house, so I don't feel the need to pay it off anytime soon.
Just talking out loud but wouldn’t it be more cost effective to just pay off the mortgage and not let the distributions do it?
Valid debate and depends on many factors. Depends on the person.
Have you compared to a combined return of selling calls on stocks like KO, COST, etc. and collecting their dividends? Comparing the covered call returns on JEPI to the dividends of individual companies is comparing apples to oranges imo.
The premium income on dividend stocks is generally lower.
@@DividendGrowthInvesting I agree, however it doesn't take much to get to a 10% return on capital in KO or COST. Using out of the money, monthly calls you can yield about 1% a month currently.
great video , have you looked at the I-shares ETFs TLTW and LQDW
maybe I'm missing something, but if I'm still in my 20s why wouldn't I want to go with the higher dividend yield? Can someone please tell me the benefits of the lower yield companies?
Just buy and enjoy monthly passive income. :))
Hi wehre is the link for fastgraphs?
Great video. So I was talking with a friend who does not invest in stocks at all (because his dad doesn't like it) and he kept saying, "yea but imagine if you just took the portfolio value and paid off the house; then you wouldn't have the mortgage and you could use the savings to invest more in the market without having any debt." We also discussed that covered call ETFs (jepi) are taxed as income and owning your house does not get taxed as income (we agree that property taxes should be acknowledged). Thoughts? My initial argument is that you won't achieve compounding on a house like you will in a dividend income portfolio. What else?
A vehicle? To get me where I'm going? A van should get me down by the river.
lol omg!!!!!!!!!!!!!!!!
have you considered these ETFs may pay significantly less if the market falls hard then consolidates for years? options premiums could contract severely as volatility contracts during a prolonged multi-year sideways consolidation. but you won't be able to get out of the ETFs because they will have fallen so much doing so would incur a significant loss. there is not always a 'V' bottom. we might be in for years of nothingness
Excellent video... Do you know if the management when they are called on options expiring in the money and they loose the shares... How do they repurchase them? Out right or sell equal puts, short dated and close to the money with the idea of getting some income from that process?
Congratulations
thank you!!
Just bought my very first share of jepi not more than a few hours ago.. this is cool to see
that's great. dividends to pay your expenses. But, couldn't you save the interest and just take out some of that $742,000 and pay off your house? Am I missing something?
Right now my dividends cover my utilities expense ($300 aprox.). For me this is a win too.
that is a huge win! What's next? Your phone bill, your car etc..
what kind of investment account is best for holding jepi
You keep in brokerage acct or retirement acct
So, if I’m 35 years old, would it be ideal for me to get into JEPI?
Depends when you plan to use the dividend to pay for your living expenses.
@@DividendGrowthInvesting I want it to cover my lifestyle expenses
@@crizdancemedia Well if you want to cover them now, then JEPI could be a great option