I use the YLD stocks as a second income. Instead of working a side hustle or part time job I use these stocks which allows me more time to do things I enjoy like hiking. So I already had taxes mostly figured out. If your not using them for retirement income right now then you should really just consider them like a part time job and have something set aside for taxes if needed.
I like this view. That's kind of what I was thinking too. It's supplemental income I have to dump into my overall portfolio ... without sacrificing my time with an extra job. I mean I don't have enough for it to be as big as a second job yet, but still this is a very good view point. I'll probably continue to hold all three.
@@spaceydakid4965 Any time you receive a dividend in a taxable account it will be taxed (how it's taxed will differ by the type of dividend). It won't matter if you keep it for yourself or reinvest it.
To avoid tax headaches, I manage my QYLD in my HSA account so that I can use the income generated to pay for medical expenses as necessary. It generates about $500/mo right now, so that easily covers the annual out of pocket maximum should I need it. (which I only once in my life ever hit). Each year the HSA gets bigger and bigger and when I retire, I'll continue to use the cash flow from the fund to cover medicare supplemental and long term care insurance.
Thanks Joe for the video. Good information. One solution would be to hold the YLD's in a retirement account (IRA) to grow taxes deferred, but now everyone wants to wait until 59 1/2 to start accessing the dividends w/o penalty. Look forward to your followup video with your thoughts moving forward! I still like the three funds and will continue with them!
@@AverageJoeInvestor please do a video on taxes? How to find the best tax professional, cpas etc. Are there any online services that I could use for my taxes that involve stocks?
It is my understanding that option premium alone is always taxed as ordinary income, no matter the length of the contract. If you sell call options that were exercised on an underlying asset that you held less than a year, it too would be taxed as ordinary income. So you can imagine how the tax treatment of this fund can fluctuate from year to year depending on performance and volatility of the underlying asset. Therefore this strategy is always best in a tax deferred account.
This is why I've always asked the question, what kind of portfolio is best for these covered call ETFs, and I've always leaned more towards a Roth cause of the possible tax implications. The rich get away with paying little to no taxes at all, I cannot be in a position where i pay more. I am indeed a very average joe investor.
QYLD should have been in a taxable account in 2020 and in a tax deferred (401k) or tax sheltered account (Roth) in 2021. I don't like these surprises, so I'm staying away from it.
Problem with QYLD in a Roth, if you are younger it is bad. Since you miss out on that high growth that you can get untaxed. If you switch from growth to qyld while you are older it would be more beneficial. Personally I have qyld in my traditional taxable account, because I will want access to their dividend before I’m 60. I am 22 now and I want to use it for car payments and such while I’m 25+
@@tylerzerdy7806 As much as the high yield is appealing, I would stay away from QYLD at your age because QYLD is underperforming the broader markets. You'd be better off investing in SPY. I'm 51 and plan to retire in 5 years and may start a QYLD position the year before retirement. Now it's too early for me.
@@hansschotterradler3772 I think you misinterpreted what I just said. I have a portfolio of qyld drip that I will use to pay my car payments in 4-5 years. That’s not my only portfolio, just a portion.
Hey Joe! Thank you for this as my mind was doing somersaults on this as well and it is difficult to wind my way through it so I am glad that I was not alone in this. Keep on keeping on!
Thanks for the video. I was actually wondering if you were going to do a video on this. But I debated selling my positions in QYLD/RYLD (which I held in my taxable, as VTI pretty much takes up most of my non-taxable account), gave myself the weekend and even yesterday to think about it because I was long on both. It wasn't a huge position, but I sold it. Maybe reallocate all to VTI or maybe even add towards SCHD or SPHD, we'll see. It wasn't more so much about the tax nightmare... But for me, its the principle of why I invested and why I was long and no matter what people said negative towards it, I was going to stand my ground and invest until I retired. So, when this all came out a few days ago, it was very tough...I needed to do my research, needed to read up, needed to figure it out because I defended QYLD/RYLD and stayed long with it. But this was it... it was the straw that broke the camel's back for me. Sad...because I really did believe I was going to hold long until I retired. But no longer... Fortunately, there are other options but I am disappointed with Global X.
Im with you, We got caught up on the money it brings monthly and overalll nothing beats growth. I sold out all my positions and moved them into big etfs, If you we want we can build our own etfs with great companies that pay! I set mine up where im getting paid monthly. sure its lower then what my QYLD is bringing but im growing alot more and still snowballing funds.
For some investors, the strategy will change if they are holding QYLD outside of a delayed or tax protected retirement account. Holding QYLD outside of retirement vehicles will require additional planning on how to pay the taxes. Should investors only reinvest a percentage of the monthly distribution or sell shares, if needed, at the end of the year to pay the taxes.
Hi Jay! THANK YOU for weighing in! I agree that QYLD investors who invest in a taxable account MAY need to re-evaluate the investment to ensure it's the best fit. THANK YOU for watching will listen and for leaving your $0.02 in the comments! 😎👍🏻
Great information Joe. Thank you. Look forward to the next video, diving in to all this. Sounds like it's just a matter of .... How much....tax to be paid...which is good to know for planning purposes.
THANK YOU so much for that feedback Julie! I really appreciate it. =) I agree. We can account for this and from a planning standpoint we can be OK. THANK YOU for watching and for leaving your $0.02 in the comments!
1. As a rule of thumb, all those YLD funds should be held in tax sheltered accounts so you don't have to worry about taxes. 2. Don't believe in anything. What matters is SEC filings and year-end calculations. At 3:40, if you continued to read, it says "QYLD will send you a Form 1099-DIV...". And that's what counts. 3. YLD funds will continue to return capital until kingdom come. Don't believe phone calls or prospectuses (or is it prospecti...) - always look at the results.
I can appreciate where you are coming from Jon. I don't want to necessarily say that this was deception as it appears more likely to be TERRBIEL COMMONUCATIONS and EXPECTATIONS. Messaging could have been MUCH better. THANK YOU for watching Jon and for leaving your $0.02 in the comments! 😎👍🏻
My expectation was that QYLD income would be treated as normal income. If I sell my shares that will be a much different story. I uploaded my 1099 to my tax pepper and everything is exactly what I expected. So far I couldn't be happier with QYLD investment. I guess if I had a LOT of income it might change...but I am no where close to living large. Good info and thanks for sharing your experience and findings!
That's a fair statement. It's really high earners with high tax brackets that this REALLY impacts. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Wow! What a good video man. I don't appreciate them being so obscure about it. I don't know that I gave enough attention to how QYLD is taxed, but publishing this 19a form which is useless, is certainly not a good idea. Thanks for educating us man. At least the Global X rep is a subscriber of this channel ;)
THANK YOU for weighing in. =) YES, always nice to find subscribers at GlobalX... =P THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Hmmm. Being already retired I had been thinking about using QYLD to build an "annuity" when the time came for RMDs. I may have to re-think that relative to taxes to see if it still works out or not. The ROC aspect was naturally a selling point. Maybe now not so much.
QQQX has a lower distribution rate though so maybe NO but also worth a deeper dive. =) THANK YOU for watching Tom and for leaving your $0.02 in the comments! =)
On the plus side, that means due to the flat nature of the price if you decide to sell your position you won't have roc chipping away at your average cost avoiding any capital gains at the sale.
I guess it makes sense that an income ETF would be taxed at the normal income rate rather than the capital gains rate, but it’s still disappointing. We hold it in a Roth IRA, but someday when I join my wife in retirement, I would have no qualms about keeping some QYLD in my taxable brokerage along with something like VTI. I would probably get some professional guidance regarding things I could do to alleviate some of the tax burden.
Thanks so much for that Joe. This is valuable information for investors holding these in taxable accounts. If you hold them in tax advantaged accounts it doesn't really matter.
To be honest, its not a big deal to me. I have the luxury of controlling my taxable income through the use of Sch C, Rental, and S Corp activities. I’ve been in the zero tax bracket for the past 5 years. As income goes up my wife and I make major improvements to our rental property. In today’s market I’ll take most of my QYLD, RYLD, & USOI and roll it over into my growth/value ETFs and do a minor DRIP back into the dividend generators.
It is kind of bullshit that they can “check the block” by just randomly guessing the tax treatment on a 19a to meet regularity requirements. They should have to make a serious estimate that we can rely on for some level of clarity. I can understand estimating a 75/25 split and then it being 85/15 after the math is done. But a complete 180-degree turn is unacceptable. Why even have a 19a if it is not actually an estimate?
Here’s one though I’ve had on QYLD. We can all agree it naturally depreciates over time right? Wouldn’t it be plausible to sell 6 month out at or slightly in the money covered calls to offset that loss? Be tough to back test but I think it’s a worthy strategy.
If you go slightly ITM, probably. But you’ll face frequent early assignment otherwise. If the dividend is more than the extrinsic value on the contract, you should expect early assignment.
@@KamikazeCash great point. I didn’t think of that. I was thinking just slightly ITM. By the time the extrinsic gets to that value, there’s a high likelihood the share price may have decreased. Then again, who knows. Great point though.
Look on the bright side no social security tax better than a part time job. I own RYLD knocking it out of the ball park but I mainly trade options for a bigger return and more flexibility
Hi Joe I had the same conversation with them last week at the end of the call they offered to send me last 2020 year's summary Not available on site anymore which was primarily return of capital. I'm still Happy with about 9% return although 13.9% rate would be even better! Still good for retirees but ....Keeping options open?!?
Yes, I don’t think it’s a good idea to ONLY OWN QYLD in an account. It should be PART OF your income strategy, NOT ALL OF IT. THANK YOU for watching and for leaving your $0.02 in the comments! 👍🏻😎
one thing which is still puzzling to me is that, the day after they declare the dividend (on the ex eff date), the fund value gets reduced by the amount of the dividend. if the dividend is really an income, then how come the fund value gets reduced the next day? because of the reduction in the fund value, i was under the impression that the dividend is return of capital
GREAT QUESTION. What it fundamentally comes down to is when it comes around to the ex-dividend date the dividend paid out is money LEAVING the fund which reduces the overall value of the company. As a result, the markets price this in by reducing the share price of the fund. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
I have a question that has been bothering me for a while now. So if i were to put QYLD into my Roth ira, can I withdraw the dividends without being penalized? Is this for every asset? If so then why don't we all just put it in a Roth ira if all we want are the dividends and don't plan to sell? Anybody??? Or am i missing something?
Hi Sergio! No you are only able to pull out contributions you make before age 59.5. Otherwise you would be taxed and penalized. THANK YOU for watching and for leaving your $0.02 in the comments! 👍🏻😎
Thanks Joe for the info, i greatly appreciate it. Will have to think how i want to go forward, my goal was to get to 500 shares $100 a month in dividends ( I currently have 200 shares) and just let the dividends build from there and not add outside funds. Now i'm thinking might want to use that strategy in my IRA instead. Cant wait for your next update...and get your taxes done!!! lol
HAHA, glad you liked it. =) It's still worth investing in BUT we need to account for taxes now. THANK YOU for watching and for leaving your $0.02 in the comments. =)
Heres how I understand it. We pay Global X to do option trading for us. When they lose our money, they just return what they managed to keep. When they make money, they report it as ordinary income. The goal is to generate 100 percent income or at least not have a significant persion being ROC. Over time 100 percent ROC would be really questionable or a ponzi scheme in a sense. Because if they are always just returning capital why arnt they ever actually making real money. which I suppose would be something the IRs would ask.
I agree that selling your own covered calls is a better solution it just takes more effort. THANK YOU for watching and for leaving your $0.02 in the comments! 👍🏻😎
@@lorib5398 Haha well it takes some leg work but I’ve had a great experience with selling options. I usually sell a few contracts of AAPL and a few on my non dividend payers like AMD and TSLA. I’ve been able to build a decent sized portfolio over the years so I’m able to generate some good money with my covered calls.
I have 533 shares of QYLD, 4157 shares of RYLD, and 3081 shares of JEPI. I am really disappointed, and feel mislead by QYLD & RYLD regarding the tax nightmare surprise. I am thinking about getting rid of those 2, and switching everything over to JEPI. My question to you is if that is a good idea? Or does JEPI have the same tax nightmare? Or does the IRS respect JEPI's qualified or none qualified dividends?
Question with regards to tax consequences using funds like QYLD in a ROTH? 1) If I invest in QYLD in a ROTH will I be taxed during withdrawal time (e.g. min required distribution time) because of the nature of this investment or is it tax exempt? 2) If I invest in QYLD like funds in a Roth, and since QYLD distributes every month can I use it as a DRIP or am I forced to take the dividends each month and thus owe taxes. 3) The reason why I ask is that someone warned be about investing in MLP's in my ROTH because the MLP's will be distributed each month as opposed to having the ability to have dividends setup using a DRIP. Is that in fact true about MLP's whereas funds like QYLD don't require a distribution each month when in a ROTH? 4) Similar to question 3, is the same true for REITs: The reason why I ask is that someone else warned be about investing in REITs in my ROTH because the REIT's will be distributed each month as opposed to having the ability to have dividends setup using a DRIP. Is that in fact true about REIT's whereas funds like QYLD don't require a distribution each month when in a ROTH? 5) I guess I am now really confused between funds like QYLD, REITS and MLP's with regards to the tax consequences if used in a ROTH. The Meltdownman
Hi Joe, as an investor from Canada I just recieved my tax reporting documents from Interactive Brokers and the distributions from QYLD and RYLD were classed as "Capital Gains Dividends" so in Canada they would be subject to more favourable tax treatment than "Ordinary Income" I wonder why the difference?
Hey question for ya...I live in TN which is a no income tax state and they just made dividends a part of that as well. Would this mean that even though the dividends from QYLD are not qualified that it wouldn't matter except for the tax bracket I was under? Thanks.
GREAT QUESTION! I am not a tax preparer and I am not 100% sure how this would impact your state taxes but from a federal tax perspective it would be taxed at your ordinary tax rates. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
I double-checked my own 1099-DIV and confirmed SCHD is 100% qualified dividends. This SHOULD BE the case with all investors as the dividends paid form SCHD are coming from all regular dividend stocks. THANK YOU for watching Richard and for leaving your $0.02 in the comments! 😎👍🏻
GREAT QUESTION ARTHUR! If you hold QYLD in a retirement account you shouldn't have any tax concerns.=) THANK YOU for watching Arthur and for leaving your $0.02 in the comments! 😎👍🏻
And that's the key right there Will. WHY are you investing? Every investor's situation is different and QYLD may be a GREAT FIT OR NOT depending on those objectives. THANK YOU for watching Will and for leaving your $0.02 in the comments! 😎👍🏻
Actually I'am very glad that this came out now, I was planning to accumulate 8000 shares QYLD this year and only bought 700 thus far, Looks like a change of plan... I won't be buying anymore QYLD but I Still wanna hold on to those 700 shares because I got them at a good price point. I would be looking for some other proven Fund that pays all in RoC, Any suggestions?
Don't fret yet! I had an email from Global X an update may be coming this month. They do publish an IRS Form 8937 for past years that specifies ROC for their dividends. Maybe they will come soon! Then you can take it to your brokerage to correct 1099-DIV (c). If someone heard this will not be posted for TY 2021. Please post.
Hi Joe, I am finishing up my last college degree, and planned to use QYLD as my emergency fund as discussed in your early videos. This would be in May after I graduate. I am curious of your opinions if this is still a good idea, as my current emergency fund is currently making no interest in my savings account. Thank you!
An emergency account is suspose to be money set aside for emergencies if you invest your money for emergencies the value of the money could decrease plus if you have an emergency it could be days before you get the cash and you would have to pay taxes on that money best bet is to keep the cash liquid and if you want to invest in qyld I would have that for another account hope this helps a bit good luck in college I'm glad it's going good for you
The way i see it is that if QYLD allows you to retire early or have more free time to do the things you love then do it. You cant buy back time and thats one thing QYLD has over growth investors. I do both. I use QYLD income to buy more growth stocks like apple and microsoft. Freeing up my monthly cash flow to be used on travel and expenses.
hey Joe, I sub and love all your vids..thx for the hard work and info you do for us all..so let me ask you, this is still good though if I hold QYLD in my IRA right?
Hi Mike! THANK YOU so much for being part of the Average Joe Investor community! Yes, in a tax deferred or tax free account you should have no tax issues with QYLD. THANK YOU for watching Mike and for leaving your $0.02 in the comments! 😎👍🏻
Anyone else selling CC's on QYLD - funny to sell CC's on a CC ETF I hold it and RYLD in an IRA, but I did have a small amount in an M1 account too - interesting info on how it's taxed - gonna have to look closer and see if it's worth it there.
Changes nothing for me. Shares are housed and grow within the context of a standard IRA. Compounding of shares and dividends is completely tax sheltered. This "bucket" of money will be used only situationally, and not for a long time. I expect distributions to be income tax (ordinary dividends).. My strategy is to maintain and grow the principle, and draw only when desired, like 25K for a 2 week river cruise trip. Or buy my grandson daughter a new car.
Disappointed that Global X has been quiet about this matter unless you call them and even then they still don't have answers about why their exact estimate of 98.92% ROC was way off and really 0%. They should have said somewhere in bold letters that they have no clue about ROC and won't know until after the end of year. It seems very misleading to those of us that have these funds in a taxable investment account and now have to give up 10% or more for taxes.
If you took the time to read the documentation they provide before you invested, you would know that they can change the tax allocation whenever and however they want. A better tip is to follow investment channels that provide good advice instead of the 1,000's of channels that make QYLD videos every week and fail to discuss the possible tax implications. These channels exist to make money for the creator, not to actually help people.
I agree with you. It’s just a reality going forward that the 19a form cannot be relied upon. QYLD should not be the only income strategy an investor has just for reasons like this. THANK YOU for watching and for leaving your $0.02 in the comments! 👍🏻😎
If someone is in their late 20’s and gets a huge bonus this year. ( I already have a large percentage going into my Roth 401k for retirement ) I’d like to have a dividend account so I can have some fun money each year when I get to 40. Is dumping that bonus into QYLD, reinvesting the dividends, and investing a set amount each year a smart move if I don’t care what the balance is I just care that I’m getting paid a side amount each year, a smart move?
If you aren’t near retirement and aren’t looking to use the dividends as income anytime soon then it could be considered unwise since you would get a better return from growth stocks and ETFs. Although 2022 isn’t really working out well for anyone so far…
GREAT QUESTION -- The information is not readily available on their website AND I don't hold JEPI myself so I don't know. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Very important video. I hold shares in XRMI, the risk-managed S&P 500 ETF from Global X. Does anyone here know if there distributions are ROC or ordinary dividends ? Might sell my position if tax treatment unfavorable for a taxable account.
Hi Charles, THANK YOU for reaching out! Here is a link to the GlobalX Year-End Tax Supplement: www.globalxetfs.com/content/files/2021-Year-End-Tax-Supplement-Global-X-ETFs.pdf || XRMI income for 2021 was all non-qualified distributions AKA normal income. THANK YOU for watching Charles and for leaving your $0.02 in the comments! 😎👍🏻
QYLD was not a big portion of my portfolio so it will be minimal. I have not yet filed my taxes BUT when I do I will make a video about it. =) THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
GREAT QUESTION! I don't hold NUSI anymore as I transitioned to QRMI and XRMI, however my 2021 1099-DIV shows 99% Return of Capital and 1% Qualified Dividends. THANK YOU for watching William and for leaving your $0.02 in the comments! 😎👍🏻
Hi Allen! Yes, any QYLD assets held in a retirement account should not have any tax impact. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Yep. These are good when you are retired and need income. But if you're still working and in accumulation phase, I would only hold a small percentage, if any at all, in your Roth. Along with the new Dogecoin covered call CEF. (- _ - )
Hi Chip! There shouldn't be any impact to QYLD assets held in a retirement account. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Maybe I'm ignorant, but I always expected to pay higher taxes on YLD due to them giving returns like normal income. I'm not shocked by this at all. lol
It’s just that swing from ROC one year to 100% ordinary income the next year despite the form 19a’s estimating ROC. THANK YOU for watching and for leaving your $0.02 in the comments! 👍🏻😎
THE INVESTOR IS ULTIMATLELY RESPONSIBLE FOR ALL TAX RESPONSIBILITIES. AS FAR AS I CAN RECALL,, SELLING CALLS OR PUTS WERE TREATED AS ORDINARY INCOME. EITHER SHORT TERM FOR WEEKLY / MONTHLY WRITES OR LONG TERM WHEN USING LEAPS. SELLING OPTIONS IS NOT A DIVIDEND OR RETURN OF CAPITAL.
K1s are settled ROC! Own a majority of shares, you would get a correct answer. We just ride on the coat tails in the market! All funds play the same game?
I completely understand that perspective and we are going to cover it in the next video. =) THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
I think you can still use QYLD to replace income BUT you will need to factor in recurring taxes. A bummer I know. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
What's Up Everybody! Make sure to leave your $0.02 in the comments! I will respond to everybody's comment left today! =)
I use the YLD stocks as a second income. Instead of working a side hustle or part time job I use these stocks which allows me more time to do things I enjoy like hiking. So I already had taxes mostly figured out. If your not using them for retirement income right now then you should really just consider them like a part time job and have something set aside for taxes if needed.
That’s a good way to look at it.
I like this view. That's kind of what I was thinking too. It's supplemental income I have to dump into my overall portfolio ... without sacrificing my time with an extra job. I mean I don't have enough for it to be as big as a second job yet, but still this is a very good view point. I'll probably continue to hold all three.
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Is this only when u use the dividend or even when u reinvest the dividend?
@@spaceydakid4965 Any time you receive a dividend in a taxable account it will be taxed (how it's taxed will differ by the type of dividend). It won't matter if you keep it for yourself or reinvest it.
To avoid tax headaches, I manage my QYLD in my HSA account so that I can use the income generated to pay for medical expenses as necessary. It generates about $500/mo right now, so that easily covers the annual out of pocket maximum should I need it. (which I only once in my life ever hit). Each year the HSA gets bigger and bigger and when I retire, I'll continue to use the cash flow from the fund to cover medicare supplemental and long term care insurance.
Thank you. All my QYLD are in IRA or ROTH so I don’t need to worry about the tax. I forward this to my friends.
AWESOME! THANK YOU for watching JBS and for leaving your $0.02 in the comments! 😎👍🏻
Thanks Joe for the video. Good information. One solution would be to hold the YLD's in a retirement account (IRA) to grow taxes deferred, but now everyone wants to wait until 59 1/2 to start accessing the dividends w/o penalty. Look forward to your followup video with your thoughts moving forward! I still like the three funds and will continue with them!
Good points Brian! Definitely some good information to cover. =) THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
I've always done this because it's always been ordinary gains.
@@AverageJoeInvestor please do a video on taxes? How to find the best tax professional, cpas etc. Are there any online services that I could use for my taxes that involve stocks?
I agree this is good for a tax defer account .
It is my understanding that option premium alone is always taxed as ordinary income, no matter the length of the contract. If you sell call options that were exercised on an underlying asset that you held less than a year, it too would be taxed as ordinary income. So you can imagine how the tax treatment of this fund can fluctuate from year to year depending on performance and volatility of the underlying asset. Therefore this strategy is always best in a tax deferred account.
This is why I've always asked the question, what kind of portfolio is best for these covered call ETFs, and I've always leaned more towards a Roth cause of the possible tax implications. The rich get away with paying little to no taxes at all, I cannot be in a position where i pay more. I am indeed a very average joe investor.
THANK YOU for weighing in Lloyd. I completely understand where you are coming from. =)
QYLD should have been in a taxable account in 2020 and in a tax deferred (401k) or tax sheltered account (Roth) in 2021. I don't like these surprises, so I'm staying away from it.
Problem with QYLD in a Roth, if you are younger it is bad. Since you miss out on that high growth that you can get untaxed. If you switch from growth to qyld while you are older it would be more beneficial. Personally I have qyld in my traditional taxable account, because I will want access to their dividend before I’m 60. I am 22 now and I want to use it for car payments and such while I’m 25+
@@tylerzerdy7806 As much as the high yield is appealing, I would stay away from QYLD at your age because QYLD is underperforming the broader markets. You'd be better off investing in SPY. I'm 51 and plan to retire in 5 years and may start a QYLD position the year before retirement. Now it's too early for me.
@@hansschotterradler3772 I think you misinterpreted what I just said. I have a portfolio of qyld drip that I will use to pay my car payments in 4-5 years. That’s not my only portfolio, just a portion.
Hey Joe! Thank you for this as my mind was doing somersaults on this as well and it is difficult to wind my way through it so I am glad that I was not alone in this. Keep on keeping on!
THANK YOU so much for that feedback! I really appreciate it. =) THANK YOU for watching and for leaving your $0.02 in the comments!
Thanks for the video. I was actually wondering if you were going to do a video on this. But I debated selling my positions in QYLD/RYLD (which I held in my taxable, as VTI pretty much takes up most of my non-taxable account), gave myself the weekend and even yesterday to think about it because I was long on both. It wasn't a huge position, but I sold it. Maybe reallocate all to VTI or maybe even add towards SCHD or SPHD, we'll see. It wasn't more so much about the tax nightmare... But for me, its the principle of why I invested and why I was long and no matter what people said negative towards it, I was going to stand my ground and invest until I retired. So, when this all came out a few days ago, it was very tough...I needed to do my research, needed to read up, needed to figure it out because I defended QYLD/RYLD and stayed long with it. But this was it... it was the straw that broke the camel's back for me. Sad...because I really did believe I was going to hold long until I retired. But no longer... Fortunately, there are other options but I am disappointed with Global X.
THANK YOU for weighing in Dennis! I completely understand your perspective. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Im with you, We got caught up on the money it brings monthly and overalll nothing beats growth. I sold out all my positions and moved them into big etfs, If you we want we can build our own etfs with great companies that pay! I set mine up where im getting paid monthly. sure its lower then what my QYLD is bringing but im growing alot more and still snowballing funds.
For some investors, the strategy will change if they are holding QYLD outside of a delayed or tax protected retirement account. Holding QYLD outside of retirement vehicles will require additional planning on how to pay the taxes. Should investors only reinvest a percentage of the monthly distribution or sell shares, if needed, at the end of the year to pay the taxes.
Hi Jay! THANK YOU for weighing in! I agree that QYLD investors who invest in a taxable account MAY need to re-evaluate the investment to ensure it's the best fit. THANK YOU for watching will listen and for leaving your $0.02 in the comments! 😎👍🏻
Great information Joe. Thank you. Look forward to the next video, diving in to all this. Sounds like it's just a matter of .... How much....tax to be paid...which is good to know for planning purposes.
THANK YOU so much for that feedback Julie! I really appreciate it. =) I agree. We can account for this and from a planning standpoint we can be OK. THANK YOU for watching and for leaving your $0.02 in the comments!
1. As a rule of thumb, all those YLD funds should be held in tax sheltered accounts so you don't have to worry about taxes. 2. Don't believe in anything. What matters is SEC filings and year-end calculations. At 3:40, if you continued to read, it says "QYLD will send you a Form 1099-DIV...". And that's what counts. 3. YLD funds will continue to return capital until kingdom come. Don't believe phone calls or prospectuses (or is it prospecti...) - always look at the results.
Great explanation, Joe, thanks. Doesn't matter to me, though - I'm still loving the 12% returns, so I don't care how much I have to pay in taxes.
AWESOME JON! THANK YOU for watching and for leaving your $0.02 in the comments! 👍🏻😎
Thanks for the video update Joe!
You bet Gary! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Great video as usual. I'm sticking with it only in my ROTH IRA.
AWESOME MICHAEL! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Thanks Joe, at the end of the day when there is deception involved, I'm looking for the exit.
I can appreciate where you are coming from Jon. I don't want to necessarily say that this was deception as it appears more likely to be TERRBIEL COMMONUCATIONS and EXPECTATIONS. Messaging could have been MUCH better. THANK YOU for watching Jon and for leaving your $0.02 in the comments! 😎👍🏻
My expectation was that QYLD income would be treated as normal income. If I sell my shares that will be a much different story. I uploaded my 1099 to my tax pepper and everything is exactly what I expected. So far I couldn't be happier with QYLD investment. I guess if I had a LOT of income it might change...but I am no where close to living large. Good info and thanks for sharing your experience and findings!
That's a fair statement. It's really high earners with high tax brackets that this REALLY impacts. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Wait till March 15 when the corrected 1099s come out to be safe
Thanks Joe for sharing. I was starting to question this. QYLD is unscrupulous. I dumped all of it.
Glad it was helpful! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Wow! What a good video man. I don't appreciate them being so obscure about it. I don't know that I gave enough attention to how QYLD is taxed, but publishing this 19a form which is useless, is certainly not a good idea. Thanks for educating us man. At least the Global X rep is a subscriber of this channel ;)
THANK YOU for weighing in. =) YES, always nice to find subscribers at GlobalX... =P THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Glad you finally addressed this. Thanks!!
You bet! THANK YOU for watching Dallas and for leaving your $0.02 in the comments! 😎👍🏻
Awaiting your next video
AWESOME HARIS! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Hmmm. Being already retired I had been thinking about using QYLD to build an "annuity" when the time came for RMDs. I may have to re-think that relative to taxes to see if it still works out or not. The ROC aspect was naturally a selling point. Maybe now not so much.
QQQX has a lower distribution rate though so maybe NO but also worth a deeper dive. =) THANK YOU for watching Tom and for leaving your $0.02 in the comments! =)
On the plus side, that means due to the flat nature of the price if you decide to sell your position you won't have roc chipping away at your average cost avoiding any capital gains at the sale.
That is VERY TRUE! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
I guess it makes sense that an income ETF would be taxed at the normal income rate rather than the capital gains rate, but it’s still disappointing.
We hold it in a Roth IRA, but someday when I join my wife in retirement, I would have no qualms about keeping some QYLD in my taxable brokerage along with something like VTI. I would probably get some professional guidance regarding things I could do to alleviate some of the tax burden.
Well said Marc! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Thanks so much for that Joe. This is valuable information for investors holding these in taxable accounts. If you hold them in tax advantaged accounts it doesn't really matter.
Very True Bob and THANK YOU for the feedback! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
To be honest, its not a big deal to me. I have the luxury of controlling my taxable income through the use of Sch C, Rental, and S Corp activities. I’ve been in the zero tax bracket for the past 5 years. As income goes up my wife and I make major improvements to our rental property. In today’s market I’ll take most of my QYLD, RYLD, & USOI and roll it over into my growth/value ETFs and do a minor DRIP back into the dividend generators.
AWESOME MARC! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Great video. I’ve always planned for the worst (taxed at ordinary) just in case. At least we’re keeping our basis intact if we ever decide to sell.
That's true Daniel. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
It is kind of bullshit that they can “check the block” by just randomly guessing the tax treatment on a 19a to meet regularity requirements. They should have to make a serious estimate that we can rely on for some level of clarity.
I can understand estimating a 75/25 split and then it being 85/15 after the math is done. But a complete 180-degree turn is unacceptable.
Why even have a 19a if it is not actually an estimate?
Here’s one though I’ve had on QYLD. We can all agree it naturally depreciates over time right? Wouldn’t it be plausible to sell 6 month out at or slightly in the money covered calls to offset that loss? Be tough to back test but I think it’s a worthy strategy.
If you go slightly ITM, probably. But you’ll face frequent early assignment otherwise.
If the dividend is more than the extrinsic value on the contract, you should expect early assignment.
@@KamikazeCash great point. I didn’t think of that. I was thinking just slightly ITM. By the time the extrinsic gets to that value, there’s a high likelihood the share price may have decreased. Then again, who knows. Great point though.
Look on the bright side no social security tax better than a part time job. I own RYLD knocking it out of the ball park but I mainly trade options for a bigger return and more flexibility
THANK YOU for watching Bryan and for leaving your $0.02 in the comments! 👍🏻😎
Hey Joe
Thank you for addressing this query. Looking forward to your next video on this ETF.
Cheers.
THANK YOU so much for that feedback! I really appreciate it. =) THANK YOU for watching and for leaving your $0.02 in the comments!
Hi Joe I had the same conversation with them last week at the end of the call they offered to send me last 2020 year's summary Not available on site anymore which was primarily return of capital. I'm still Happy with about 9% return although 13.9% rate would be even better! Still good for retirees but ....Keeping options open?!?
Yes, I don’t think it’s a good idea to ONLY OWN QYLD in an account. It should be PART OF your income strategy, NOT ALL OF IT. THANK YOU for watching and for leaving your $0.02 in the comments! 👍🏻😎
Thanks Joe.
You bet! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
one thing which is still puzzling to me is that, the day after they declare the dividend (on the ex eff date), the fund value gets reduced by the amount of the dividend. if the dividend is really an income, then how come the fund value gets reduced the next day? because of the reduction in the fund value, i was under the impression that the dividend is return of capital
GREAT QUESTION. What it fundamentally comes down to is when it comes around to the ex-dividend date the dividend paid out is money LEAVING the fund which reduces the overall value of the company. As a result, the markets price this in by reducing the share price of the fund. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
I have a question that has been bothering me for a while now. So if i were to put QYLD into my Roth ira, can I withdraw the dividends without being penalized? Is this for every asset? If so then why don't we all just put it in a Roth ira if all we want are the dividends and don't plan to sell? Anybody??? Or am i missing something?
Hi Sergio! No you are only able to pull out contributions you make before age 59.5. Otherwise you would be taxed and penalized. THANK YOU for watching and for leaving your $0.02 in the comments! 👍🏻😎
@@AverageJoeInvestor ah I see. Thank you very much for replying Joe 😀 love your content by the way, I subscribed :)
I believe after 59 1/2 yo & having Roth account for 5 years you are free to withdraw your dividends.
Thanks Joe for the info, i greatly appreciate it. Will have to think how i want to go forward, my goal was to get to 500 shares $100 a month in dividends ( I currently have 200 shares) and just let the dividends build from there and not add outside funds. Now i'm thinking might want to use that strategy in my IRA instead. Cant wait for your next update...and get your taxes done!!! lol
Hi Mark! THANK YOU for weighing in with your $0.02. I appreciate it. =)
lol. The intro to this. Sad day, I talked to global x also a few weeks ago. changes my infinite money glitch on margin.
HAHA, glad you liked it. =) It's still worth investing in BUT we need to account for taxes now. THANK YOU for watching and for leaving your $0.02 in the comments. =)
The corrected forms should be out on March 15
Hi Denny, this might be true BUT it’s not going to result in Return of Capital. THANK YOU for watching and for leaving your $0.02 in the comments! 👍🏻😎
Heres how I understand it. We pay Global X to do option trading for us. When they lose our money, they just return what they managed to keep. When they make money, they report it as ordinary income. The goal is to generate 100 percent income or at least not have a significant persion being ROC. Over time 100 percent ROC would be really questionable or a ponzi scheme in a sense. Because if they are always just returning capital why arnt they ever actually making real money. which I suppose would be something the IRs would ask.
Great way of putting it. THANK YOU for watching and for leaving your $0.02 in the comments! 👍🏻😎
Thank you very much for this VERY informative video. It answered a lot of questions I had.
AWESOME! THANK YOU for watching and for leaving your $0.02 in the comments! 👍🏻😎
ANDDDDDD for this reason, I prefer to sell my own covered calls and I'm glad I stuck to my gut instinct to not purchase any shares of QYLD. 😅
I agree that selling your own covered calls is a better solution it just takes more effort. THANK YOU for watching and for leaving your $0.02 in the comments! 👍🏻😎
@@lorib5398 Haha well it takes some leg work but I’ve had a great experience with selling options. I usually sell a few contracts of AAPL and a few on my non dividend payers like AMD and TSLA. I’ve been able to build a decent sized portfolio over the years so I’m able to generate some good money with my covered calls.
I have 533 shares of QYLD, 4157 shares of RYLD, and 3081 shares of JEPI. I am really disappointed, and feel mislead by QYLD & RYLD regarding the tax nightmare surprise. I am thinking about getting rid of those 2, and switching everything over to JEPI. My question to you is if that is a good idea? Or does JEPI have the same tax nightmare? Or does the IRS respect JEPI's qualified or none qualified dividends?
Question with regards to tax consequences using funds like QYLD in a ROTH?
1) If I invest in QYLD in a ROTH will I be taxed during withdrawal time (e.g. min required distribution time) because of the nature of this investment or is it tax exempt?
2) If I invest in QYLD like funds in a Roth, and since QYLD distributes every month can I use it as a DRIP or am I forced to take the dividends each month and thus owe taxes.
3) The reason why I ask is that someone warned be about investing in MLP's in my ROTH because the MLP's will be distributed each month as opposed to having the ability to have dividends setup using a DRIP. Is that in fact true about MLP's whereas funds like QYLD don't require a distribution each month when in a ROTH?
4) Similar to question 3, is the same true for REITs: The reason why I ask is that someone else warned be about investing in REITs in my ROTH because the REIT's will be distributed each month as opposed to having the ability to have dividends setup using a DRIP. Is that in fact true about REIT's whereas funds like QYLD don't require a distribution each month when in a ROTH?
5) I guess I am now really confused between funds like QYLD, REITS and MLP's with regards to the tax consequences if used in a ROTH.
The Meltdownman
Hi Joe, as an investor from Canada I just recieved my tax reporting documents from Interactive Brokers and the distributions from QYLD and RYLD were classed as "Capital Gains Dividends" so in Canada they would be subject to more favourable tax treatment than "Ordinary Income" I wonder why the difference?
and the plot thickens..
Haha, that's very interesting. I wonder why that's the case. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
So all QYLD investors should move to Canada 🤣
@@hansschotterradler3772 In Canada there is a 15% withholding tax.
@@crazywaffleking Do you also pay some sort of provincial or local tax in addition to the 15% withholding?
Hey question for ya...I live in TN which is a no income tax state and they just made dividends a part of that as well. Would this mean that even though the dividends from QYLD are not qualified that it wouldn't matter except for the tax bracket I was under? Thanks.
GREAT QUESTION! I am not a tax preparer and I am not 100% sure how this would impact your state taxes but from a federal tax perspective it would be taxed at your ordinary tax rates. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
This is why I'm planning to put QYLD or any of the other of these cover call ETFs in my Roth for just this reason
THANK YOU for watching and for leaving your $0.02 in the comments! 👍🏻😎
As a retiree, what I don’t like Social Secuity being taxed. That is an annoyance. QYLD is my backup.
I understand Peter. THANK YOU for watching and for leaving your $0.02 in the comments! 👍🏻😎
I thought they were ALWAYS ordinary. That's why I keep them in my IRA....SCHD has been showing up as ordinary, not qualified which concerns me.
Is it? That would be important to know.
@@KamuelaFranco yeah all of my schd payouts have been ordinary since 2021.
I double-checked my own 1099-DIV and confirmed SCHD is 100% qualified dividends. This SHOULD BE the case with all investors as the dividends paid form SCHD are coming from all regular dividend stocks. THANK YOU for watching Richard and for leaving your $0.02 in the comments! 😎👍🏻
@@AverageJoeInvestor why is td labeling them as ordinary?
Based on the title I thought you had done a covered call on the covered call ETF.... I was way off hahaha
LOL Joe, sorry to confuse you. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
If this is in a 401k or Roth does it really matter until you are ready to retire?
GREAT QUESTION ARTHUR! If you hold QYLD in a retirement account you shouldn't have any tax concerns.=) THANK YOU for watching Arthur and for leaving your $0.02 in the comments! 😎👍🏻
When will you post the new video?
It is LIVE as of yesterday. THANK YOU for watching and for leaving your $0.02 in the comments! 👍🏻😎
Glad I didn’t get on the Qyld bandwagon. I can see how it would be useful though depending on your personal situation though.
And that's the key right there Will. WHY are you investing? Every investor's situation is different and QYLD may be a GREAT FIT OR NOT depending on those objectives. THANK YOU for watching Will and for leaving your $0.02 in the comments! 😎👍🏻
Actually I'am very glad that this came out now, I was planning to accumulate 8000 shares QYLD this year and only bought 700 thus far, Looks like a change of plan... I won't be buying anymore QYLD but I Still wanna hold on to those 700 shares because I got them at a good price point. I would be looking for some other proven Fund that pays all in RoC, Any suggestions?
I guess QYLD makes sense in an RRSP then (In Canada, it's a 401k I think in the US)
In a tax-deferred account there is no tax issue. =) THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Don't fret yet! I had an email from Global X an update may be coming this month. They do publish an IRS Form 8937 for past years that specifies ROC for their dividends. Maybe they will come soon! Then you can take it to your brokerage to correct 1099-DIV (c). If someone heard this will not be posted for TY 2021. Please post.
Why do people call this a tax night mare ? If not in a retirement account. EXPECT to pay 50% of the dividends back. STILL HIGHER THAN AT&T.
Touché. We should certainly keep things in perspective given the amazing yield. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Because taxation is theft
@The Average Joe Investor Is it possible to put QYLD in a ROTH IRA to prevent paying tax or at least putting paying taxes on what we receive on hold?
Yes you can avoid the taxes in the Roth IRA. THANK YOU for watching and for leaving your $0.02 in the comments! 👍🏻😎
Please make a review video of your emergency fund that has NUSI and QYLD. What will be the future of this portfolio?
So when paying for dividend stocks whats the difference with qyld? Qyld is a etf to make money in dividends not in stock rising to new heights.
Hi Joe,
I am finishing up my last college degree, and planned to use QYLD as my emergency fund as discussed in your early videos. This would be in May after I graduate. I am curious of your opinions if this is still a good idea, as my current emergency fund is currently making no interest in my savings account. Thank you!
An emergency account is suspose to be money set aside for emergencies if you invest your money for emergencies the value of the money could decrease plus if you have an emergency it could be days before you get the cash and you would have to pay taxes on that money best bet is to keep the cash liquid and if you want to invest in qyld I would have that for another account hope this helps a bit good luck in college I'm glad it's going good for you
This would explain why my ISA in the UK would not allow me to buy QYLD.
THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Hey Joe, if I have qyld in a Roth IRA and do a drip with the dividends are they taxed?
Awesome info brother Joe,
thank you so much :)
Sam 🎵✌🏻
THANK YOU so much for that feedback Sam! I really appreciate it. =) THANK YOU for watching and for leaving your $0.02 in the comments!
The way i see it is that if QYLD allows you to retire early or have more free time to do the things you love then do it. You cant buy back time and thats one thing QYLD has over growth investors. I do both. I use QYLD income to buy more growth stocks like apple and microsoft. Freeing up my monthly cash flow to be used on travel and expenses.
is it troubling my ROTH IRA if I have these holdings in there?
hey Joe, I sub and love all your vids..thx for the hard work and info you do for us all..so let me ask you, this is still good though if I hold QYLD in my IRA right?
Hi Mike! THANK YOU so much for being part of the Average Joe Investor community! Yes, in a tax deferred or tax free account you should have no tax issues with QYLD. THANK YOU for watching Mike and for leaving your $0.02 in the comments! 😎👍🏻
@@AverageJoeInvestor Thx for your reply, I appreciate you clarifying that for me..keep making bangers Joe, I love your content..
Is JEPI the same thing?
Anyone else selling CC's on QYLD - funny to sell CC's on a CC ETF I hold it and RYLD in an IRA, but I did have a small amount in an M1 account too - interesting info on how it's taxed - gonna have to look closer and see if it's worth it there.
What do you think about Harvest Diversified Monthly Income ETF (TSX:HDIF) 8.5 monthly dividend and what are the tax issues for USA investors.
Changes nothing for me. Shares are housed and grow within the context of a standard IRA. Compounding of shares and dividends is completely tax sheltered. This "bucket" of money will be used only situationally, and not for a long time. I expect distributions to be income tax (ordinary dividends).. My strategy is to maintain and grow the principle, and draw only when desired, like 25K for a 2 week river cruise trip. Or buy my grandson daughter a new car.
AWESOME PETER! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Disappointed that Global X has been quiet about this matter unless you call them and even then they still don't have answers about why their exact estimate of 98.92% ROC was way off and really 0%. They should have said somewhere in bold letters that they have no clue about ROC and won't know until after the end of year. It seems very misleading to those of us that have these funds in a taxable investment account and now have to give up 10% or more for taxes.
If you took the time to read the documentation they provide before you invested, you would know that they can change the tax allocation whenever and however they want. A better tip is to follow investment channels that provide good advice instead of the 1,000's of channels that make QYLD videos every week and fail to discuss the possible tax implications. These channels exist to make money for the creator, not to actually help people.
I agree with you. It’s just a reality going forward that the 19a form cannot be relied upon. QYLD should not be the only income strategy an investor has just for reasons like this. THANK YOU for watching and for leaving your $0.02 in the comments! 👍🏻😎
This helped a lot. Thanks!
You bet! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Oh, boy.... is it the same deal with JEPI and DIVO?
If someone is in their late 20’s and gets a huge bonus this year. ( I already have a large percentage going into my Roth 401k for retirement ) I’d like to have a dividend account so I can have some fun money each year when I get to 40. Is dumping that bonus into QYLD, reinvesting the dividends, and investing a set amount each year a smart move if I don’t care what the balance is I just care that I’m getting paid a side amount each year, a smart move?
Thank you, Joe. My question in the next video would be if it is still unwise to have QYLD, RYLD, XYLD, etc, in an IRA?
GREAT QUESTION PAUL! Yes, I will definitely cover this question! THANK YOU for watching Paul and for leaving your $0.02 in the comments! 😎👍🏻
If you aren’t near retirement and aren’t looking to use the dividends as income anytime soon then it could be considered unwise since you would get a better return from growth stocks and ETFs. Although 2022 isn’t really working out well for anyone so far…
This is exactly why my QYLD investments are in my Roth IRA
Good info
Any option on PBP etf ?
MULN Mullen automotive new crossover EV has a beautiful look to it.
THANK YOU for watching Ted and for leaving your $0.02 in the comments! 😎👍🏻
If you hold QYLD in a brokerage account funded by a 401k you shouldn't have to worry about taxes at the moment is that correct
Is this the same for JEPI?
GREAT QUESTION -- The information is not readily available on their website AND I don't hold JEPI myself so I don't know. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
In my form 1099 div, jepi has dividend distribution + qualified dividend = total ordinary dividends.
Very important video. I hold shares in XRMI, the risk-managed S&P 500 ETF from Global X. Does anyone here know if there distributions are ROC or ordinary dividends ? Might sell my position if tax treatment unfavorable for a taxable account.
Hi Charles, THANK YOU for reaching out! Here is a link to the GlobalX Year-End Tax Supplement: www.globalxetfs.com/content/files/2021-Year-End-Tax-Supplement-Global-X-ETFs.pdf || XRMI income for 2021 was all non-qualified distributions AKA normal income. THANK YOU for watching Charles and for leaving your $0.02 in the comments! 😎👍🏻
How big was your tax hit?
QYLD was not a big portion of my portfolio so it will be minimal. I have not yet filed my taxes BUT when I do I will make a video about it. =) THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
What about nusi?
GREAT QUESTION! I don't hold NUSI anymore as I transitioned to QRMI and XRMI, however my 2021 1099-DIV shows 99% Return of Capital and 1% Qualified Dividends. THANK YOU for watching William and for leaving your $0.02 in the comments! 😎👍🏻
So, what if my QYLD is in a ROTH? If 65
your passive income is your favorite uncle's passive income
THANK YOU for watching and for leaving your $0.02 in the comments! 👍🏻😎
These still good in a Roth though since it’s tax free?
Hi Allen! Yes, any QYLD assets held in a retirement account should not have any tax impact. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Yep. These are good when you are retired and need income. But if you're still working and in accumulation phase, I would only hold a small percentage, if any at all, in your Roth. Along with the new Dogecoin covered call CEF. (- _ - )
LOL Tom. Not touching that one... THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Hi Joe. Does any of this affect shares held in my retirement account?
Hi Chip! There shouldn't be any impact to QYLD assets held in a retirement account. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Maybe I'm ignorant, but I always expected to pay higher taxes on YLD due to them giving returns like normal income. I'm not shocked by this at all. lol
It’s just that swing from ROC one year to 100% ordinary income the next year despite the form 19a’s estimating ROC. THANK YOU for watching and for leaving your $0.02 in the comments! 👍🏻😎
I bought 50 shares of QYLD @ $19.95/share this morning.
AWESOME! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Well I guess this is a reason certain ETFs like QYLD are not available to retail investors from europe (or at least germany)
This could be a reason though I am not sure why for sure. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
US ETFs are generally not available on European exchanges due to different documentation requirements which the US ETF issuers don't care to provide.
i do know, Etoro offer QYLD
@@thegreatneess not in Europe
@@TBasianeyes i am buying QYLD in Etoro (europe)...
THE INVESTOR IS ULTIMATLELY RESPONSIBLE FOR ALL TAX RESPONSIBILITIES. AS FAR AS I CAN RECALL,, SELLING CALLS OR PUTS WERE TREATED AS ORDINARY INCOME. EITHER SHORT TERM FOR WEEKLY / MONTHLY WRITES OR LONG TERM WHEN USING LEAPS. SELLING OPTIONS IS NOT A DIVIDEND OR RETURN OF CAPITAL.
Well said Dave. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
For those that have Qyld in their retirement accounts, do you reinvest into Qyld, or use the dividends to invest in other stocks?
We withdraw the dividends we need and keep some aside to buy more QYLD shares when they dip in price.
THANK YOU for watching Paul and for leaving your $0.02 in the comments! 😎👍🏻
All of my QYLD is in my Roth IRA, so I don’t worry about tax.
AWESOME JOHN! Nothing to worry about then! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
K1s are settled ROC! Own a majority of shares, you would get a correct answer. We just ride on the coat tails in the market! All funds play the same game?
This Qyld would be better as a tax defer account unless you do not mind paying the higher tax on it now.
I completely understand that perspective and we are going to cover it in the next video. =) THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
QYLD RYLD XYLD DIVO JEPI QDIV. Can you do a video on QDIV?
So you use it to replace income, not increase it. 🤔
I think you can still use QYLD to replace income BUT you will need to factor in recurring taxes. A bummer I know. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
I wonder how this would work in a Roth IRA??
You can avoid the taxes in a Roth IRA. THANK YOU for watching and for leaving your $0.02 in the comments! 👍🏻😎
Why TF would anyone invest in something without knowing the tax implications and effects of the investment?