I am at the beginning of my "investment journey", planning to put 85K into dividend stocks so that I will be making up to 30% per year in dividend returns. Any advice?
Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.If you're new to investing or don't have much time, it's best to get advice from an expert.
The issue is people have the "I want to do it myself mentality" but not equipped enough for a crash, hence get burnt. Ideally, advisors are reps for investing jobs, and at first-hand encounter, my portfolio has yielded over 300% since 2020 just after the pandemic to date.
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
You can buy muni bond ETF's, hold them in a taxable account and pay zero taxes on the dividends. You can even buy one for your state and pay no taxes on state taxes.
Great stuff! The only issue with having high-yielding ETFs in a Roth IRA account is, while tax efficient/no taxes, you cannot enjoy the dividends until you're 60. In a taxable account, yes you get taxed, but you get access to those dividends right away. You can use those as passive income now when you're younger or much earlier than "retirement" age of 60+. I have JEPI and JEPQ in my taxable account and am loving the dividends, taxed or not. Extra income is never a bad thing.
I agree with this method if you really want to retire early. Tomorrow is never promised I’m wanting to enjoy my life on my time not a specific retirement age. Get more streams of income and retire early.
Can't get around tax. The problem with funds with qualified dividends, like SCHD or DGRO, is that the majority have low dividend yields (2.5-4%). These are great if you're starting young in a 401k or IRA. The higher yield income funds, like SVOL or any of the other covered call funds are going to be ordinary dividends. So it all depends on what type of investor you are. Are you long term and don't need the money NOW or are you a passive income investor. If you're a passive income investor, you need the cash NOW and have to be willing to pay the income tax just as if you were working - the unfortunate facts of life, but if I were a passive income investor, I'd rather be investing in funds that pay me 15-20% dividends (like SVOL) and just pay the tax on them. If I'm making $120,000+ in dividends every year that I can live on, it sure beats working for a living.
I agree. Though i am on a much smaller scale than $120k in dividends each year. Have you found an ETF that pays qualified dividends that is better than what you earn from the likes of SCHD? I'm fairly new at this and it seems there is no one looking at that niche (or maybe it doesn't exist?)
The interesting thing in her videos is she uses an income of $200,000 which would put in the top 10% of earners. A bit out of wack with a vast majority of people. I think she should use more a median income or honestly both I think it would 1. Be more relatable 2. Be far more effective in making her point on the tax effects of qualified vs non qualified dividends.
HEQT is really low volume so price slippage ( wide spread between ask and bid). Concerning. Give another year and look at it again. The video show ETF chart in line instead of daily candle. Trend the daily candle and you will realize this ETF is volatile and dangerous. . . Do your home work before investing in ETF like this one
2:15 Thanks for covering this. So for me its 15% for Qualified and 24% (edit: 22% I am married filing jointly) for unqualified. I currently get around 3K per month in dividends with a mix of qualified and unqualified and 1 tax free dividend (municipal bond fund).
Another interesting ETF. My concern is quite new. You may gain little more return in this short-term, but in 10 years, it is hard to tell. In addition, the risk is unknown. Still, thank you for providing another interesting video on ETF. I would like to see an video on top 5 ETFs you recommend.
I live off of dividends from QYLD. Last year the majority of the dividends were return of capital so I did not pay taxes on those. Varies from year to year
After every one of your videos I feel the need to purchase a new ETF. :) But being retired and having zero earned income, I may be able to skip buying this one. But there is the bear market possibility.
I recently stumbled onto you page. I have been enjoying what you are sharing. My question to you is, how do you learn about investing? what is your education background and experience?
So we're using a short-term gain to predict the market, and compare that to the S&P 500 over just a few months, then making a recommendation to buy? I will wait a little longer to see if the long-term trend holds true before comparing it to the S&P 500, which has a much longer track record. But I do like that you explain well the more complex investment terms/options.
2:46 I got confused here because it just talked about Roth IRA and the dividends are tax free, and now the example seems to be not related to the Roth IRA situation... maybe it should say, "an example if it is not in Roth IRA"
she also left out if the person took the standard deduction or has write offs to lower their taxable income. Still not sure how beneficial this is when the etf only yields 4 percent per year. Some of the other etf pay 4 x that. It may just pay to pay the tax and still come out ahead. Also 200k is not your average income.
I have totally lost track of all of the different ETFs you’ve recommended, which ones are best which seems to change from month to month, and what should really be invested in for medium term growth with the best tax treatment. There are so many channels doing the same thing…
The point is educating, and the WHY, and then you have to make your own choice what is best for YOU. I thonk of investing like an RPG. Let me add a little more Attack (Growth), then learn a Damage Over Time ability for in between attacks (Dividends), but also not forget to about Defense in case the enemy (Market) hits me (Bonds or Defensive Stocks). There are multiple great strategies that work. Just have to figure out what works for you, based on trial-error, with a hint of advise. But still make it YOUR JOURNEY.
Do u really rely on a random RUclipsr for serious advice?..these channels are no more than entertainment…like pro wrestling…… investing should be slow and boring …buy the market ..ie etf …like voo or vti….it really is that simple.
@DanceGeekRob You sound like you want people to hold your hand and tell you which investments to make and when to make them-without charging you for doing so. This is a collection of advice for specific stocks at specific times of the economic market-as the market changes continuously. This information is meant for you to get educated on the many options available so that YOU can pick what works for YOU. Be GRATEFUL you have both access to valuable information/knowledge AND capital ($) to make investments. Don’t be upset at the number of options, opportunities and freedoms you have to secure your future just because you’re not being told what to do specifically. You gotta be an adult and realize having choices to pick is better than being told what to do like in some dictatorship.
Dividends are classified as one of 3 ways... Qualified, Non-Qualified, or ROC (return of capital). ROC dividends aren't subject to tax, as they pay back your own money in essence. REITs are probably the area where you'll see ROC type dividends... but others are out there. Hope this helps.
Ms viktoriya… brilliant video and perfect explanation.. when you compared the 3 at 8:15 what site was that thru? That graph is really cool and easy to understand. Have a brilliant weekend ma’am.
Thank you very much! I'm happy to hear that you enjoyed it!😊 and its through seeking alpha, they have an amazing comparison tool, you can compare up to 20 different stocks or ETFs
what if i own JEPI in my Fidelity, brokerage account thats linked to my 401K? It's money that I can't touch because it's a brokerage account that i created off of my Fidelity 401k. I don't think i have to pay taxes on these gains, similar to ROTH IRA. is that correct?
just an FYI- i am NOT a tax professional. you are wrong on a couple points in your tax figures. you are using figures from the 2021 tax guide, not 2023. in the US we have a marginal tax rate of 32% on 200k. the taxes you would pay on your dividends would depend on in which quarter you recieved them. income is taxed $0 - $11,000 at 10%, $11,000 - $41,775 at 12%, $44,726 - $95,375 at 22%, $95,376 - $182,100 at 24%, $182,101 - $231,250 at 32%. so an income of $201,200 would have a average tax rate of 19.2% as a single filer- approx $38,400. you are right on the capital gains tax since it hasnt changed, but since the filer is above $200k, there is a net investment tax added of 3.8% on that dividend income. $10k invested July 2022 would have gotten you about 435 shares at $23.23 x the $0.80/share dividend it paid Dec.27th 2022 = $348 you would have paid taxes on, reinvested to give you about 15 more shares. then this years only dividend so far of 0.08 x 450 shares= $36. you wouldnt have paid capital gains at the end of 2022 since the share price was about $1 lower than when it was bought. as of now, its only about $1 higher at 24.60, than when it was bought. everything looks good on paper and in videos, but when you get down to real numbers this video doesnt work
You can do all this yourself without paying a 0.53% expense ratio on the S&P500. Just use SPY etf and sell cash secured puts and buy puts with the premium received and be in full control of your own options strategy. No need for this ETF.
Some people, (most I would guess) don’t want to start buying Puts and leverage cash and Options. It’s called Passive Income for a reason. Set It and Forget It. Let it do its thing on its own.
I’m new to investing and I realize that this isn’t the topic of your video. The fact that I’m paying the same tax rate on qualified dividends as somebody who makes 400,000 per year is insane.
I just can't with Ray dalio after reading his book principles and being so impressed but then researching his company Bridgewater how they knowingly turned a blind eye on the suffrage of the ethnic uighur people in China but openly promote ESG seems a conflict of interest and absolutely dishonest
Stay on topic Bob! This is about tax efficiency. I like reading comments to get a judge of things that maybe I'm not comprehending in a video or article. There is always one or two people that have weird squirrel moments and push some agenda. Whether you are right or wrong - stay on topic!
@@SuperDaveRun nah not even going to watch it anything with mr. Dalio is a bundle of hypocrisy. Maybe I like pointing out that Mr dalio tries to Cripple the US economy forcing ESG but over 51% of his company is directly benefiting from slavery. BUT thank you for randomly policing the internet. I'm sure that's helpful
But it’s really important to remember that even if you reinvest your dividends, you are still required to pay taxes on them...... Only if held in a taxable account. Correct?
I am at the beginning of my "investment journey", planning to put 85K into dividend stocks so that I will be making up to 30% per year in dividend returns. Any advice?
Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.If you're new to investing or don't have much time, it's best to get advice from an expert.
The issue is people have the "I want to do it myself mentality" but not equipped enough for a crash, hence get burnt. Ideally, advisors are reps for investing jobs, and at first-hand encounter, my portfolio has yielded over 300% since 2020 just after the pandemic to date.
Glad to have stumbled on this comment, Please who is the consultant that assist you and if you don't mind, how do I get in touch with them?
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
You can buy muni bond ETF's, hold them in a taxable account and pay zero taxes on the dividends. You can even buy one for your state and pay no taxes on state taxes.
Great stuff! The only issue with having high-yielding ETFs in a Roth IRA account is, while tax efficient/no taxes, you cannot enjoy the dividends until you're 60. In a taxable account, yes you get taxed, but you get access to those dividends right away. You can use those as passive income now when you're younger or much earlier than "retirement" age of 60+. I have JEPI and JEPQ in my taxable account and am loving the dividends, taxed or not. Extra income is never a bad thing.
I agree with this method if you really want to retire early. Tomorrow is never promised I’m wanting to enjoy my life on my time not a specific retirement age. Get more streams of income and retire early.
Can't get around tax. The problem with funds with qualified dividends, like SCHD or DGRO, is that the majority have low dividend yields (2.5-4%). These are great if you're starting young in a 401k or IRA. The higher yield income funds, like SVOL or any of the other covered call funds are going to be ordinary dividends. So it all depends on what type of investor you are. Are you long term and don't need the money NOW or are you a passive income investor. If you're a passive income investor, you need the cash NOW and have to be willing to pay the income tax just as if you were working - the unfortunate facts of life, but if I were a passive income investor, I'd rather be investing in funds that pay me 15-20% dividends (like SVOL) and just pay the tax on them. If I'm making $120,000+ in dividends every year that I can live on, it sure beats working for a living.
You are getting a "working" salary and getting taxed as a "working person" but not actually working😂 which is still better than waiting until 59.5
I agree. Though i am on a much smaller scale than $120k in dividends each year. Have you found an ETF that pays qualified dividends that is better than what you earn from the likes of SCHD? I'm fairly new at this and it seems there is no one looking at that niche (or maybe it doesn't exist?)
@@peanut0brainwaking up on payday, hitting snooze on the alarm and smiling cuz you don’t have to drag ass to work
The interesting thing in her videos is she uses an income of $200,000 which would put in the top 10% of earners. A bit out of wack with a vast majority of people. I think she should use more a median income or honestly both I think it would 1. Be more relatable 2. Be far more effective in making her point on the tax effects of qualified vs non qualified dividends.
Yeah, using an income of a top 10% earner is kinda out of touch with the average YT viewer/subscriber.
Yeah, if I made 120k on dividends I wouldn't turn to YT for tax advice.q
HEQT is really low volume so price slippage ( wide spread between ask and bid). Concerning. Give another year and look at it again. The video show ETF chart in line instead of daily candle. Trend the daily candle and you will realize this ETF is volatile and dangerous. . . Do your home work before investing in ETF like this one
Thanks for the video Viktoriya, I will keep on buying JEPI both in my Roth and brokerage account. 😉
what is the diff between JEPI and JEPQ and DGRO or OMFL? In a 5-10 yr (not all of course as some are new) they are nearly the same here and there.
2:15 Thanks for covering this. So for me its 15% for Qualified and 24% (edit: 22% I am married filing jointly) for unqualified. I currently get around 3K per month in dividends with a mix of qualified and unqualified and 1 tax free dividend (municipal bond fund).
Another interesting ETF. My concern is quite new. You may gain little more return in this short-term, but in 10 years, it is hard to tell. In addition, the risk is unknown. Still, thank you for providing another interesting video on ETF. I would like to see an video on top 5 ETFs you recommend.
I live off of dividends from QYLD. Last year the majority of the dividends were return of capital so I did not pay taxes on those. Varies from year to year
After every one of your videos I feel the need to purchase a new ETF. :) But being retired and having zero earned income, I may be able to skip buying this one. But there is the bear market possibility.
Very interesting, thanks for the breakdown. Thanks for the comment about Roth - no tax impacts; good place for Roth funds would be JEPI or similar.
Good stuff. Binged three vids and I'm now a sub. Keep up the reality of outcome vids. Reconsidering my position on NVDY.
I recently stumbled onto you page. I have been enjoying what you are sharing. My question to you is, how do you learn about investing? what is your education background and experience?
The background music 🎶 you chose were so nice ❤ very enjoyable to watch your videos 😊
So we're using a short-term gain to predict the market, and compare that to the S&P 500 over just a few months, then making a recommendation to buy? I will wait a little longer to see if the long-term trend holds true before comparing it to the S&P 500, which has a much longer track record. But I do like that you explain well the more complex investment terms/options.
Great recommendation. HEQT use a great option strategy. However, its liquidity is a problem as it causes wide bid ask spread.
In addition to HEQT, which covered call etfs do you like Would PUTW make sense? Thank you.
Thank you for sharing detailed and well explained financial information 🎉
No problem at all! Im happy to hear that you enjoy the content! 😊
2:46 I got confused here because it just talked about Roth IRA and the dividends are tax free, and now the example seems to be not related to the Roth IRA situation... maybe it should say, "an example if it is not in Roth IRA"
she also left out if the person took the standard deduction or has write offs to lower their taxable income. Still not sure how beneficial this is when the etf only yields 4 percent per year. Some of the other etf pay 4 x that. It may just pay to pay the tax and still come out ahead. Also 200k is not your average income.
I have totally lost track of all of the different ETFs you’ve recommended, which ones are best which seems to change from month to month, and what should really be invested in for medium term growth with the best tax treatment. There are so many channels doing the same thing…
😂 yeah everyday is a new etf on RUclips. I’m sticking to s&p 500 VOO
The point is educating, and the WHY, and then you have to make your own choice what is best for YOU.
I thonk of investing like an RPG.
Let me add a little more Attack (Growth), then learn a Damage Over Time ability for in between attacks (Dividends), but also not forget to about Defense in case the enemy (Market) hits me (Bonds or Defensive Stocks).
There are multiple great strategies that work. Just have to figure out what works for you, based on trial-error, with a hint of advise. But still make it YOUR JOURNEY.
Do u really rely on a random RUclipsr for serious advice?..these channels are no more than entertainment…like pro wrestling…… investing should be slow and boring …buy the market ..ie etf …like voo or vti….it really is that simple.
@DanceGeekRob
You sound like you want people to hold your hand and tell you which investments to make and when to make them-without charging you for doing so.
This is a collection of advice for specific stocks at specific times of the economic market-as the market changes continuously. This information is meant for you to get educated on the many options available so that YOU can pick what works for YOU.
Be GRATEFUL you have both access to valuable information/knowledge AND capital ($) to make investments.
Don’t be upset at the number of options, opportunities and freedoms you have to secure your future just because you’re not being told what to do specifically. You gotta be an adult and realize having choices to pick is better than being told what to do like in some dictatorship.
@@oneset6545 shhhhh....you weren't supposed to notice that
Thanks for sharing are there any tax exempt ( Federal) we could look at ????
Dividends are classified as one of 3 ways... Qualified, Non-Qualified, or ROC (return of capital). ROC dividends aren't subject to tax, as they pay back your own money in essence. REITs are probably the area where you'll see ROC type dividends... but others are out there. Hope this helps.
Ms viktoriya… brilliant video and perfect explanation.. when you compared the 3 at 8:15 what site was that thru? That graph is really cool and easy to understand. Have a brilliant weekend ma’am.
Thank you very much! I'm happy to hear that you enjoyed it!😊 and its through seeking alpha, they have an amazing comparison tool, you can compare up to 20 different stocks or ETFs
@@ViktoriyaMedia already signed up. Just haven’t played around with comparing sticks side by side
The dividend history is odd- 6 cents, then 8 cents twice, followed by 80 cents in December
what is the diff between JEPI and JEPQ and DGRO or OMFL? In a 5-10 yr (not all of course as some are new) they are nearly the same here and there.
Thanks for making a video about my last videos comment! This could work well for my portfolio and will do some calculations! BYEEEEE
No problem! and thank you for watching!😊 BYEEEE !
Dose it pay monthly? Thanks.
what if i own JEPI in my Fidelity, brokerage account thats linked to my 401K? It's money that I can't touch because it's a brokerage account that i created off of my Fidelity 401k. I don't think i have to pay taxes on these gains, similar to ROTH IRA. is that correct?
Your videos are super useful.
just an FYI- i am NOT a tax professional. you are wrong on a couple points in your tax figures. you are using figures from the 2021 tax guide, not 2023. in the US we have a marginal tax rate of 32% on 200k. the taxes you would pay on your dividends would depend on in which quarter you recieved them. income is taxed $0 - $11,000 at 10%, $11,000 - $41,775 at 12%, $44,726 - $95,375 at 22%, $95,376 - $182,100 at 24%, $182,101 - $231,250 at 32%. so an income of $201,200 would have a average tax rate of 19.2% as a single filer- approx $38,400. you are right on the capital gains tax since it hasnt changed, but since the filer is above $200k, there is a net investment tax added of 3.8% on that dividend income. $10k invested July 2022 would have gotten you about 435 shares at $23.23 x the $0.80/share dividend it paid Dec.27th 2022 = $348 you would have paid taxes on, reinvested to give you about 15 more shares. then this years only dividend so far of 0.08 x 450 shares= $36. you wouldnt have paid capital gains at the end of 2022 since the share price was about $1 lower than when it was bought. as of now, its only about $1 higher at 24.60, than when it was bought. everything looks good on paper and in videos, but when you get down to real numbers this video doesnt work
Doesn’t this only give you cap gains in a bear market ?
As of (7- 7-23) the S&P 500 is ahead of it and it's losing money even with its dividend.
Could you make a review for FDVV etf pls 🙏
The folks on SA comment you could have the same results buying SPY and keeping cash 50/50.
You can do all this yourself without paying a 0.53% expense ratio on the S&P500. Just use SPY etf and sell cash secured puts and buy puts with the premium received and be in full control of your own options strategy. No need for this ETF.
How would I. Learn to do that
Some people, (most I would guess) don’t want to start buying Puts and leverage cash and Options. It’s called Passive Income for a reason. Set It and Forget It. Let it do its thing on its own.
Isn't nusi same strategy?
I think NUSI is ran by a manager that failed miserably in another stock.
I love your thumbnails... can you just wear that in the video ..pleeeease :)
Fees are too high at 0.53%
Let turbotax figure it out
I’m new to investing and I realize that this isn’t the topic of your video. The fact that I’m paying the same tax rate on qualified dividends as somebody who makes 400,000 per year is insane.
You aren’t. That investor is also paying NIIT, an additional 3.8% tax.
4.14% yield not interested.
HUGE dividend for a taxable account. R u nuts?
Unless you buy them in an IRA.
Yup. Roth will deal with almost any tax.
Taxes.
"Reasons why" is redundant.
Thank you for covering the tax aspect.
It seems like you changs your approach every week!! Makes it difficult to stick with you videos.
if you are investing with a traditional ira, tax efficiency is meaningless.
I just can't with Ray dalio after reading his book principles and being so impressed but then researching his company Bridgewater how they knowingly turned a blind eye on the suffrage of the ethnic uighur people in China but openly promote ESG seems a conflict of interest and absolutely dishonest
Stay on topic Bob! This is about tax efficiency. I like reading comments to get a judge of things that maybe I'm not comprehending in a video or article. There is always one or two people that have weird squirrel moments and push some agenda. Whether you are right or wrong - stay on topic!
@@SuperDaveRun nah not even going to watch it anything with mr. Dalio is a bundle of hypocrisy. Maybe I like pointing out that Mr dalio tries to Cripple the US economy forcing ESG but over 51% of his company is directly benefiting from slavery. BUT thank you for randomly policing the internet. I'm sure that's helpful
But it’s really important to remember that even if you reinvest your dividends, you are still required to pay taxes on them...... Only if held in a taxable account. Correct?
Correct
Yes, so use a 401k or ROTH. But the trade off is you can’t touch it until 60+ years old.