I've had QYLD and RYLD for a few months now. Doing well with both. I am getting more capital appreciation with RYLD than with QYLD. Monthly income is a little less with RYLD. This was a great video. Thanks.
YES! I am exploring this strategy right now in my spreadsheets and will get back to you guys soon! =) THANK YOU for watching and for leaving your $0.02 in the comments! =)
I never reinvest my dividend into the same fund. Well maybe not never. I add it to whatever index fund is on sale that day. I do a daily rebalance strategy.
I subscribed. My wife is a cash horder and I finally convinced her to put it in a high-yield online savings. My friend just made her watch your video and now she was asking me about qyld LOL
AWESOME MIKE! Thank you so much for joining the Average Joe Investor community! That's so funny! Glad that money is getting put to work! Please let me know going forward what investing topics you want to learn more about as well as any feedback/questions you have!
Wow, one of the best investing videos I've seen in a while. When you compare the high yield savings interest over time to QYLD it is hands down a better way to go. I've had my emergency fund earning pennies at .05% which is one of the highest accounts I could find. Your comparisons between the 2 is what sold me. Moved my emergency fund into QYLD today!
I like QYLD with the monthly dividend payment. Just a little trade-off with the market value decreasing constantly, but it is worth it. I'm comfortable with it. Thank Joe. Great job.
Excellent video. Definitely thinking outside the box. I'm 60 and I'm a couple of years away from retirement, I was planning on getting an income annuity until I saw this. BUT...QYLD is not the way to go. We've seen now with the melt-down of the the Nasdaq how crappy qyld has performed. Its way better to go with JEPI...it tracks the S&P 500 Index which is way less volatile than the Nasdaq. I'm going with JEPI until I find a better option or maybe combine it with my own covered call writing. Anyway....love your vids...and I'm a new SUBSCRIBER.
AWESOME NATHAN! Way to get STARTED! Thank you so much for joining the Average Joe Investor community! Please let me know going forward what investing topics you want to learn more about as well as any feedback/questions you have!
Subscribed, I have QYLD myself… not much since I just started to invest las month on dividends but will be adding more over the next few years. Great video!
AWESOME! Thank you so much for joining the Average Joe Investor community! GREAT JOB GETTING STARTED! Please let me know going forward what investing topics you want to learn more about as well as any feedback/questions you have!
I put it in my M1 finance dividend portfolio, to generate the compound effect with 20+ other dividend stocks. I find it satisfying that this is a better alternative to a savings account. Thank you M1 for their pie structure!
I have some holdings in robinhood, but I also have it in my m1 portfolio as well. I'm actually thinking about deliberately pumping up my holdings of qyld in my to generate an amount of dividends sufficient to replace my current monthly deposits, with the thought that my portfolio would continue to fund itself while I put my money to work for me elsewhere with my current deposits.
I'm a long time subscriber and a fan of your channel Joe. This is a great video. Quite creative to use QYLD as 'emergency fund'. I also like the "Use it as annuity" idea. Very cool. There are some conceptual issues here, but I still like both ideas. The conceptual issues are that both with emergency fund as well as with annuity the primary intent is to not be dependent on markets at all and to have a 100% guarantee of the funds (the savings balance or the annuity monthly payment). QYLD obviously has market exposure and hence it's not a 1-1 replacement. BUT ... I still like it cause, as you pointed out, there is enough history with QYLD to have a good enough expected probability. I actually really learned here. This was a great video.
YES, I know you have been here a long time though I must admit I don't know your name, LOL. I appreciate you though! =) You are right that there is market exposure BUT it is a relatively flat investment with the exception of the COVID correction. ADDITIONALLY, despite the correction it didn't impact distributions. THANK YOU for weighing in! =)
Yes, I do have QYLD in my own portfolio. I have 2.5% approximately in QYLD and 2.5% in RYLD in the dividend portfolio and then my Emergency Fund is split 55/45 NUSI and QYLD.
@@AverageJoeInvestor MUCH appreciating your reply - as always. Thanks so much Joe. My name is Sagig by the way. I saw you posted today, planning to watch it shortly.
After your other QYLD video, I decided to stop adding to my QYLD and use it in retirement for income. Hadn't thought about using it to hold my emergency fund. I currently have a portion of my savings in VTSAX, might start to re-think that!
Hi Cathy! THANK YOU for weighing in! =) For me personally, I like QYLD vs VTSAX for my Emergency Fund because the cash flow every month allows me to reinvest and ensure I stay above the initial investment amount. THANK YOU for watching and for leaving your $0.02 in the comments! =)
@@AverageJoeInvestor You're better off having an emergency fund in NUSI for downside protection in the event of an unexpected correction, in my opinion. NUSI may not pay as high of a dividend, but it offers downside protection with a protective put whilst selling calls.
Dude. You just blew my mind with this. My wife and I always want a larger emergency fund than we really need but it kills me. This is the perfect solution.
I'm using QYLD and some other high yield dividend funds for the dividends to drop into my overall M1 portfolio so I have extra cash going into my growth stocks automatically.
Hi, I'm interested in doing this as well. I'm new to researching. Other than going into a correction, is there any chance QYLD, could just eliminate the dividend? maybe a silly question, but that's my concern. Thanks
Thank you for this video. It opened my mind to a thought on how to better distribute my cash. 1) Money to cover monthly expenses -> Interest Checking; 2) Money to bridge 3 months of expenses FDIC high yield savings; then I park the remainder in 25% JEPI, 25% DIVO and 50% sort term bond fund. If I were retired, then I think QYLD is an option, but while I am still working JEPI and DIVO are better options because of the growth over time factor. I'd be interested in hearing other opinions on how to manage cash.
I ended up moving my emergency fund into QYLD, so far it has been worth it and I am happy I did it and wish I did it much earlier than I did as I basically just passed up on free money.
Wow i just got done looking into a high-yield savings account for emergency fund. I am retired and new to investing. There is so much to think about. Thank you for the video. I need to learn about how to reinvest
good video. I am at retirement age and liked the part on using QYLD as an annuity. I have been investing in both QYLD and RYLD which are both paying around 12% per annum at Nov 24/21. Great strategy for retirees looking to live off passive income.
@@clintonholloway5523 the income from QYLD and RYLD is taxable as investment income. You will have to increase your tax installments by the amount of the income X your marginal tax rate.
I love this analysis of QYLD! I put my "emergency funds" into 4 funds last year and they are all doing well. Here are the funds I've used - all 4 are doing well for my cash stash. AMZA, PFFA, SLVO & QYLD.
I Subscribed I have about 98K invested into my portfolio with 45% going to QYLD and the other 55% across my other 9 stocks there's been times I've re invested dividends back into QYLD. Times where I took the dividends and payed into other stocks. I personally like QYLD like my little safety net for my portfolio. Keep in mind still down 37K from COVID and if I would have just had entire portfolio into QYLD would have been down 6K but would have recovered by now and made money from the dividend. Investors need to try to find that safety net of a stock, etf, fund ETC. Appreciate your videos keep up the good work.
I have been selling 20 percent 50 cents above my price point then buying 75 cents or more below the buy point to keep lowering it also take the dividends and put them in the high growth companies like ark investments
I have a specific account where QYLD & RYLD are placeholders for some profits from other trades. The passive income generated covers any taxes owed and any extra stays to build up the slush fund.
THANK YOU for the feedback! I really appreciate it! =) I think everybody learns differently and the visual representations really help me! THANK YOU for watching and for leaving your $0.02 in the comments! =)
I had some extra cabbage that I'm afraid to put into the markets at this time. Well I put 10k into QYLD for a savings account and just now stumbled on this. My timing is explicit 😃👌
If you want to play it safe with QYLD start at 0 and invest a specific amount that you would invest in a savings account monthly, weekly or daily. You can use that method to move money from a savings account slowly over a longer time period if you wish plus your advantage of dollar cost averaging and monthly reinvestment smooth out high's and low's instead of a lump sum it all depends on your need NOW for cash
This is a great video from Joe. Too many people see QYLD the same way as a normal stock investment and complain about there being no upside in the price but capital growth is not the point of the ETF. What QYLD really is is a savings account - the best paying savings account there is out there by a HUGE mile!
I’m trying to use dividend paying stocks to get around the ira 6k contribution limit. QYLD seems like a great choice, although the first year or so would probably need to be reinvested in QYLD itself and not any other stock so as not to fall below the original invested amount.
I have combined QYLD with a couple other monthly dividend funds to generate cash to build a portfolio of durable companies. Using the cash to buy whichever company in the portfolio is undervalued that month. If none are undervalued I reinvest the dividends to generate more cashflow for the next month.
Very nice Randall. I think there are definitely opportunities to be that strategic IF you want to be and you can also be more passive and just reinvest each dividend to the respective company. GREAT JOB! THANK YOU for watching Randall and for leaving your $0.02 in the comments! 😎👍🏻
Fantastic info. Completely spot on. This is a great real-world way to use QYLD as a tool. I've used QYLD as an emergency fund for years, and now buy QQQ with the monthly disbursements. It's a solid income source. I also believe it's similar to an MLP when you pass along as an inheritance. The younger RYLD is turning out to be even better. Thanks for the vid!
Glad it was helpful Cole! From a tax standpoint I am not sure if it has the EXACT SAME tax consequences though there is a Return of Capital element to it. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Maybe I am new to understanding QYLD but as someone who is looking to just obtain dividend income, I am okay if the share price of QYLD falls. Allows me to buy more shares faster than other shares appreciating in capitol gains and obtain my dividend income goals quicker.
I subscribed....I'm confused as to whether it's best to hold QYLD in a taxable account or a ROTH or does it matter? Thank you for this video; I am learning quite of bit from you and am going through your other videos now.
AWESOME ALLIE! Thank you so much for joining the Average Joe Investor community! Putting this investment into a retirement account will shield you from taxes on the distributions but will lock up the money until age 59.5 unless you are only withdrawing contributions from a Roth IRA. So which account you put it into depends on what your goals and objectives are. Please let me know going forward what investing topics you want to learn more about as well as any feedback/questions you have!
AWESOME FAUSTO! Thank you so much for joining the Average Joe Investor community! Please let me know going forward what investing topics you want to learn more about as well as any feedback/questions you have!
I had not thought of QYLD as an emergency fund, but you're right, it makes perfect sense for this purpose. Great job on video, looking forward to. QYLD compared to XYLD & RYLD.
THANK YOU for the feedback Julie! I really appreciate it! =) I may actually balance it out with including NUSI for downside protection. THANK YOU for watching and for leaving your $0.02 in the comments! =)
Hi Joe, Thanks for the back testing you have done on diff strategies. Regarding QYLD, I was thinking to buy low when I can and sell covered calls on it. I notice there's option chains available for QYLD, RYLD and even XYLD. Like I do my own covered calls on it. If price goes down and I don't get called away, I still continue to collect dividends. If I got called away, I will sell puts on it and wait to get assigned, I may do this closer to the money if price is not high since I want to get assigned to start collecting dividends again. Hope you can back test this for me.
AWESOME JACK! Thank you so much for joining the Average Joe Investor community and THANK YOU for the feedback! Please let me know going forward what investing topics you want to learn more about as well as any feedback/questions you have!
YES! it's already in the works and I will get back to you guys soon with the results. THANK YOU for watching and for leaving your $0.02 in the comments! =)
I Subscribed! Great content by the way :) Love to see your energy ETF models in a future that would take advantage of future spikes in oil which I really feel will happen this year or next with the focus on ESG and lack of capital in oil production and exploration.
I trade QYLD like a stock and I sell and buy depending on technical indicators. Sell High - buy low and accumulate shares and collect the dividend in the mean time....
I started out investing in the market during the Covid crash. Then I transitioned to dividend stocks to supplement my stock investing into more growth related stocks. Still have about 20 years till my retirement goal date. Got to get as much stashed as possible.
Well explained. Good work. QYLD ALWAYS paid a monthly distribution unlike other stocks which some of them suspended their dividends during the covid correction. In my opinion you would invest in this with a different minset instead of buy and hold for strictly capital appreciation but rather an income vehicle.
AWESOME BRENNAN! Thank you so much for joining the Average Joe Investor community! Please let me know going forward what investing topics you want to learn more about as well as any feedback/questions you have!
Could you hedge the capital loss buying puts to prevent a big loss? Looks like you can go out as far as 5-6 months. The premium would reduce the cash flow but prevent a big capital loss.
Two ways that might be interesting to look at are firstly, adding say $500 to the QYLD account each month to see how the compounding effect pans out after 10 years. The other play that might be interesting is to reinvest say 8% back into more stock and use 4% for income.
whooaahhhh!!! If we have a bear market in stocks, QYLD will go down significantly and probably will be forced to cut the dividend too. As long as the markets are going up or sideways QYLD is great for income, but we could have a bear market again one day. I think QYLD is a great addition to a portfolio to help generate income and returns in a flat market, but it's not at all safe like cash. Of course, cash isn't safe either with inflation. Long term gold is probably the best cash alternative but it too can fall in the short term. The Fed is destroying our currency and making it impossible for people to save money, so I understand looking for an alternative to a savings account. For me that alternative is gold. Gold will perform much better in a market crash than QYLD and recover much faster.
Interesting Perspective! I think the big thing for QYLD is how long the option premium will stay elevated. If QYLD goes sideways for a while the option premium would likely go down which would likely lead to lower distributions. The BIG KEY with QYLD as your emergency fund, I THINK, would be to reinvest dividends to ensure you have a sufficient buffer above your initial investment. THANK YOU for watching and for leaving your $0.02 in the comments. =)
In an extended bear market QYLD's NAV will drop horrendously and the dividend will be cut. It's unlikely to maintain your capital in that kind of environment. That's my understanding at least and what I'm told by knowledgable people. An emergency fund should be safe and so invested in a safe asset. As there is no interest, put a portion of your emergency fund into gold, either physical coins you hold or into an ETF or both. If the markets crash, gold will fall some but will recover faster. Due to this, you can also use the gold like cash to store purchasing power in a crash by which to buy stocks when they're cheaper.
This is why I am using NUSI instead for my emergency fund. It has a really strong monthly dividend coupled with a collared option strategy providing downside protection. It’s not as juicy a return as QYLD but is still beating any savings account and inflation (for now anyway)…
This is essentially the mindset I started with when I invested in QYLD. I have my emergency fund ( 1 year rent ) set aside. Everything else minus "mad money" and bills I invest in dividend income. All it took was a brief glance at what my bank was offering as a return. Essentially nothing. But what about the risk? Outside the entire market going to zero the risk is acceptable. And honestly...if the market goes to zero what is that money in the bank going to actually be worth? For the market to go to zero it would require a collapse of all fiat currencies including the dollar. So...hope that clarifies and crystalizes the good advice here for others.
@@AverageJoeInvestor thanks joe so quick question so I’m going to invest only Roth IRA and not planning to withdraw just live off dividends. Will this plan fit ? Going to main nusi qyld and divo thanks sorry for the long text😅 current age 29
THANK YOU for the feedback and for joining the Average Joe Investor community Anton! I really appreciate it! =) THANK YOU for watching and for leaving your $0.02 in the comments! =)
AWESOME CHRISTOPHER! Thank you so much for joining the Average Joe Investor community! Please let me know going forward what investing topics you want to learn more about as well as any feedback/questions you have!
Subscribed! I'm fairly new to QYLD & loved this video & others about it. Crazy idea that crossed my mind: If I did a $35K cash out refi (20 yrs) at 2.65%, could I use the cash out to buy $35K of QYLD & use the cash flow to offset remaining (new) mortgage payments? I did some math & the data suggests this could create enough offsetting cash to pay the mortgage off quicker.
I use QYLD in my retirement account as a life risk hedge. This strategy only works in M1 Finance as far as I know right now. When M1 Finance auto invests cash in your portfolio it buys the pie. Instead of a DRIP (dividend reinvestment program) where the dividend from XYZ company buys more shares of XYZ company in M1 Finance the dividend from XYZ buys however you've allocated your pie. For my retirement portfolio I have 85% as a traditional growth and/or total returns focused allocation and a 15% allocation in QYLD. My desired outcome with this is that if I ever stop being able to contribute, for life reasons, to my account there will always be a portion of my portfolio buying into higher return growth assets.
I agree with you and wish I had mentioned that in the video. I actually own 55% NUSI / 45% QYLD in the Emergency Fund. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
I saw a guy on Reddit who was talking about potentially selling his shares of Tesla and other growth stocks and using that in QYLD (about $250,000) and was gonna use the cash flow it generates to pay off his car and his house. I'm actually using QYLD and other dividend cover call etfs as a savings account for about the next year or so as I'm trying to buy a house and I figure even if the share price falls a little bit it'll get me a few thousand extra dollars by the end of the year which I can use as a down payment. I'm sorta waiting on housing prices to go down a little bit anyway so giving myself a year or so time frame doesn't really seem too irrational. Then when it comes buying time I'll probably sell off most of it and leave some profits in and continue to let them grow until it's paying enough for me to then use it to cover the mortgage on the house. It'll probably take me 10-20 years to get it covering a mortgage but it is an easy investment to scale.
Another great video Joe! Annuities are the worst thing to get involved in. Notice I didn't say investment. Don't forget the fees on some which can get as high as 8+. So I think you make a very good case for QYLD instead 👍
I loved the more recent video you made about the $2.1 million ROTH IRA video with SCHD. Have you done a QYLD vs SCHD long term investment comparison? I own QYLD and was debating using that dividend income to continually fund the ROTH IRA and purchase shares of SCHD. Could you model something like that out?
GREAT QUESTION! I like NUSI for its downside protection. I am seriously looking at using both QYLD and NUSI for my emergency fund. THANK YOU for watching Robert and for leaving your $0.02 in the comments! 😎👍🏻
just subscribed. How do i get my hands on that spreadsheet you have used in your videos showing QYLD and how to build passive income for retirement. really enjoy your vids.
First let me say if your viewers are interested in QYLD, they really should look at RYLD, which I believe will have similar returns with less risk; the Nasdaq 100 is due for a major downside correction. Second, it is not really correct to label the distributions as dividends; they are proceeds of premiums from options trades. These proceeds are choppy. Finally, unlike most regular dividends, these distributions are taxed at the higher ordinary income tax rate and could push some viewers into higher tax brackets.
HI ROBERT! From a long-term investment standpoint I personally don't see QYLD being a significant part of my investments though that could change as more time passes and I can see what happens to QYLD in alternative market conditions. From a retirement cash flow perspective, I think it DOES check a box though for CASH FLOW NOW that could do EXACTLY what an annuity does but leave you with the principle balance. THANK YOU for watching Robert and for leaving your $0.02 in the comments! 😎👍🏻
Hey Joe, great video! If an investor needs the monthly income generated by QYLD it would probably be a good idea to reinvest at least part of the monthly income to at least preserve their initial investment.
Hey Joe! Awesome video! Can you clarify if the average Joe should utilize this strategy in a brokerage account, Roth ira, or even hsa account and the pros and cons? I currently have an hsa account that is my emergency fund. Thanks!
THANK YOU for the suggestion Dwayne and the feedback! I will add that idea to the list! THANK YOU for watching and for leaving your $0.02 in the comments!
You are a hard working man Joe! Thanks for the great video. How about using QYLD in an Options Wheel or Covered Call strategy. This approach will bring in the dividend plus the options premium each month. Win - Win.
GREAT QUESTION DAVID! The options volume/premium is not very significant on QYLD as it naturally is a very sideways investment. Could you do it? Yes, but not sure how much it would move the goal posts for you in the long run. THANK YOU for watching David and for leaving your $0.02 in the comments! 😎👍🏻
Thanks! What a great way to wake up the idiot lurking inside all of us! I am a big fan of the Financial Emergency Fund, and have been steadily growing it for quite some time. Earning less than nothing. My Roth happens to be a bit over 12 months worth of take home pay, so I am immediately implementing the following: Roth becomes the new Financial Emergency Fund, I continue to “play” in the market by doing what one other reader mentions, buying lower, selling higher, increasing unit count trivially, but keeping me almost totally out of trouble! Canceled all other buy orders, and will put the time saved, (as well as the now idle cash), into a decent real estate business! Hopefully, you will expand into that area as well, and tell us what else we can do to be “less stupid” about our fears and ignorance! I have perhaps $1,000 in a 5% savings account, which I figured I might as well leave there. Who else gives 5% APR, right? Twice as stupid as QYLD. Sigh…
My emergency fund is 5k cash in marcus high yield...rest in QYLD, VZ, VOO. Idea is, in emergency, burn cash first, then verizon, then qyld, then voo. VZ 4% yield n stock doesnt move...even at height of pandemic, it dropped only 16%....so if i need more than 5k cash...ill sell out VZ first. My regular investment is QQQ, VOO, VOOG, VYM.
Unless I am mistaken, QYLD returns capital and not a dividend. This could cause some tax issues if it is held long-term outside of a retirement account.
What about qyld inside a traditional IRA? Using a bucket strategy to avoid taxes until you start using that bucket for income and only get taxed at income rate?
Great Video I had got rid of my qyld because my I made more money with vti from capital appreciation than I made from qyld with the dividends. But in the future I could use it as part of my emergency fund.
love your videos man but I’m planning on investing 100k and leaving it in there for 30 years with reinventing all the dividends what’s your thought on that
I like the idea of investing the emergency fund. My thoughts were to have the credit cards, and maybe 5-10k (I can see some situations where cash would be better than a card) in high-interest savings account and invest the rest.
One other strategy is to use the dividends as a way of getting a cash flow that you can use to buy other stocks. To buy more dividend stocks, growth dividend stocks, or growth stocks. If you're into growth stocks you generally have to supply the cash to buy them yourself. Intead, you could use the nice dividends to buy them for you. Yes, you can do options... but those are for people with the time and knowledge to do them. Dividends just come to you, no muss, no fuss. Hard to screw up (though I've managed to do it before 😒). Like somebody handing you money and saying, "Go buy yourself another stock, on me." People like to comment that QYLD is down quite a bit but so are most stocks right now and the ones that aren't are generally overpriced to the point you have to wonder if there is any growth left. The question is: can QYLD bounce back. Even a bit. Some of the financial big wigs are saying that in 2023 stocks will be flat at best. If QYLD can just keep it's price flat, the dividends will make it a value.
How about building emergency fund using LOC for "free" ? Take $10K from LOC to buy QYLD. Then use the dividends to pay the monthly interest + principle. Pay it off by the EOY. Then repeat this process every year.
That is something that technically would work on paper as long as options premium stays elevated for QYLD, but as a principle, I don't borrow money to invest. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
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I've had QYLD and RYLD for a few months now. Doing well with both. I am getting more capital appreciation with RYLD than with QYLD. Monthly income is a little less with RYLD. This was a great video. Thanks.
Use qyld dividends reinvestment into other stocks
YES! I am exploring this strategy right now in my spreadsheets and will get back to you guys soon! =) THANK YOU for watching and for leaving your $0.02 in the comments! =)
0.04 wit my comnt 😅
I never reinvest my dividend into the same fund. Well maybe not never. I add it to whatever index fund is on sale that day. I do a daily rebalance strategy.
I subscribed. My wife is a cash horder and I finally convinced her to put it in a high-yield online savings. My friend just made her watch your video and now she was asking me about qyld LOL
AWESOME MIKE! Thank you so much for joining the Average Joe Investor community! That's so funny! Glad that money is getting put to work! Please let me know going forward what investing topics you want to learn more about as well as any feedback/questions you have!
Wow, one of the best investing videos I've seen in a while. When you compare the high yield savings interest over time to QYLD it is hands down a better way to go. I've had my emergency fund earning pennies at .05% which is one of the highest accounts I could find. Your comparisons between the 2 is what sold me. Moved my emergency fund into QYLD today!
I like QYLD with the monthly dividend payment. Just a little trade-off with the market value decreasing constantly, but it is worth it. I'm comfortable with it. Thank Joe. Great job.
Excellent video. Definitely thinking outside the box. I'm 60 and I'm a couple of years away from retirement, I was planning on getting an income annuity until I saw this. BUT...QYLD is not the way to go. We've seen now with the melt-down of the the Nasdaq how crappy qyld has performed. Its way better to go with JEPI...it tracks the S&P 500 Index which is way less volatile than the Nasdaq. I'm going with JEPI until I find a better option or maybe combine it with my own covered call writing. Anyway....love your vids...and I'm a new SUBSCRIBER.
Subscribed, Great Content! I’m 46 and just starting to invest, but I find your information invaluable. Keep up the great work!
AWESOME NATHAN! Way to get STARTED! Thank you so much for joining the Average Joe Investor community! Please let me know going forward what investing topics you want to learn more about as well as any feedback/questions you have!
Subscribed, I have QYLD myself… not much since I just started to invest las month on dividends but will be adding more over the next few years. Great video!
AWESOME! Thank you so much for joining the Average Joe Investor community! GREAT JOB GETTING STARTED! Please let me know going forward what investing topics you want to learn more about as well as any feedback/questions you have!
I put it in my M1 finance dividend portfolio, to generate the compound effect with 20+ other dividend stocks. I find it satisfying that this is a better alternative to a savings account. Thank you M1 for their pie structure!
I like M1 Finance as well. THANK YOU for watching and for leaving your $0.02 in the comments! =)
I have some holdings in robinhood, but I also have it in my m1 portfolio as well. I'm actually thinking about deliberately pumping up my holdings of qyld in my to generate an amount of dividends sufficient to replace my current monthly deposits, with the thought that my portfolio would continue to fund itself while I put my money to work for me elsewhere with my current deposits.
I'm a long time subscriber and a fan of your channel Joe. This is a great video. Quite creative to use QYLD as 'emergency fund'. I also like the "Use it as annuity" idea. Very cool. There are some conceptual issues here, but I still like both ideas. The conceptual issues are that both with emergency fund as well as with annuity the primary intent is to not be dependent on markets at all and to have a 100% guarantee of the funds (the savings balance or the annuity monthly payment). QYLD obviously has market exposure and hence it's not a 1-1 replacement. BUT ... I still like it cause, as you pointed out, there is enough history with QYLD to have a good enough expected probability. I actually really learned here. This was a great video.
Are you (yourself) invested in QYLD by the way? Aren't there some tax complications of owning such as ETF tho?
YES, I know you have been here a long time though I must admit I don't know your name, LOL. I appreciate you though! =) You are right that there is market exposure BUT it is a relatively flat investment with the exception of the COVID correction. ADDITIONALLY, despite the correction it didn't impact distributions. THANK YOU for weighing in! =)
Yes, I do have QYLD in my own portfolio. I have 2.5% approximately in QYLD and 2.5% in RYLD in the dividend portfolio and then my Emergency Fund is split 55/45 NUSI and QYLD.
@@AverageJoeInvestor MUCH appreciating your reply - as always. Thanks so much Joe. My name is Sagig by the way. I saw you posted today, planning to watch it shortly.
After your other QYLD video, I decided to stop adding to my QYLD and use it in retirement for income. Hadn't thought about using it to hold my emergency fund. I currently have a portion of my savings in VTSAX, might start to re-think that!
Hi Cathy! THANK YOU for weighing in! =) For me personally, I like QYLD vs VTSAX for my Emergency Fund because the cash flow every month allows me to reinvest and ensure I stay above the initial investment amount. THANK YOU for watching and for leaving your $0.02 in the comments! =)
@@AverageJoeInvestor You're better off having an emergency fund in NUSI for downside protection in the event of an unexpected correction, in my opinion. NUSI may not pay as high of a dividend, but it offers downside protection with a protective put whilst selling calls.
Why not putting qyld dividends into VTSAX?
Dude. You just blew my mind with this. My wife and I always want a larger emergency fund than we really need but it kills me. This is the perfect solution.
I'm using QYLD and some other high yield dividend funds for the dividends to drop into my overall M1 portfolio so I have extra cash going into my growth stocks automatically.
VERY NICE! THANK YOU for watching Tyler and for leaving your $0.02 in the comments! =)
Hi, I'm interested in doing this as well. I'm new to researching. Other than going into a correction, is there any chance QYLD, could just eliminate the dividend? maybe a silly question, but that's my concern. Thanks
@@monicase9536 My guess is that the fund would go solvent before they cut their dividend ... since the purpose of the fund is to generate income.
Thank you for this video. It opened my mind to a thought on how to better distribute my cash. 1) Money to cover monthly expenses -> Interest Checking; 2) Money to bridge 3 months of expenses FDIC high yield savings; then I park the remainder in 25% JEPI, 25% DIVO and 50% sort term bond fund. If I were retired, then I think QYLD is an option, but while I am still working JEPI and DIVO are better options because of the growth over time factor. I'd be interested in hearing other opinions on how to manage cash.
I ended up moving my emergency fund into QYLD, so far it has been worth it and I am happy I did it and wish I did it much earlier than I did as I basically just passed up on free money.
Wow i just got done looking into a high-yield savings account for emergency fund. I am retired and new to investing. There is so much to think about. Thank you for the video. I need to learn about how to reinvest
THANK YOU for the feedback! I really appreciate it! =) THANK YOU for watching and for leaving your $0.02 in the comments! =)
good video. I am at retirement age and liked the part on using QYLD as an annuity. I have been investing in both QYLD and RYLD which are both paying around 12% per annum at Nov 24/21. Great strategy for retirees looking to live off passive income.
What about annual tax requirements?
@@clintonholloway5523 the income from QYLD and RYLD is taxable as investment income. You will have to increase your tax installments by the amount of the income X your marginal tax rate.
I love this analysis of QYLD! I put my "emergency funds" into 4 funds last year and they are all doing well. Here are the funds I've used - all 4 are doing well for my cash stash. AMZA, PFFA, SLVO & QYLD.
Great idea! Thanks Joe! (using QYLD as emergency funds w/reinvesting)
THANK YOU so much for that feedback Bob! I really appreciate it. =) THANK YOU for watching and for leaving your $0.02 in the comments!
I Subscribed
I have about 98K invested into my portfolio with 45% going to QYLD and the other 55% across my other 9 stocks there's been times I've re invested dividends back into QYLD. Times where I took the dividends and payed into other stocks. I personally like QYLD like my little safety net for my portfolio.
Keep in mind still down 37K from COVID and if I would have just had entire portfolio into QYLD would have been down 6K but would have recovered by now and made money from the dividend. Investors need to try to find that safety net of a stock, etf, fund ETC.
Appreciate your videos keep up the good work.
THANK YOU so much for that feedback! I really appreciate it. =) THANK YOU for watching and for leaving your $0.02 in the comments!
I have been selling 20 percent 50 cents above my price point then buying 75 cents or more below the buy point to keep lowering it also take the dividends and put them in the high growth companies like ark investments
GREAT JOB! THANK YOU for watching and for leaving your $0.02 in the comments! =)
I have a specific account where QYLD & RYLD are placeholders for some profits from other trades. The passive income generated covers any taxes owed and any extra stays to build up the slush fund.
GREAT JOB NAVINDER! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
I use QYLD a little differently. DRIP is turned off and the income is reinvested across my entire dividend portfolio.
I have to say I really appreciate the more visual presentation (charts or graphs)!
THANK YOU for the feedback! I really appreciate it! =) I think everybody learns differently and the visual representations really help me! THANK YOU for watching and for leaving your $0.02 in the comments! =)
I had some extra cabbage that I'm afraid to put into the markets at this time. Well I put 10k into QYLD for a savings account and just now stumbled on this. My timing is explicit 😃👌
If you want to play it safe with QYLD start at 0 and invest a specific amount that you would invest in a savings account monthly, weekly or daily. You can use that method to move money from a savings account slowly over a longer time period if you wish plus your advantage of dollar cost averaging and monthly reinvestment smooth out high's and low's instead of a lump sum it all depends on your need NOW for cash
THANK YOU for the quality comment Bryan! I appreciate it! =)
This is a great video from Joe.
Too many people see QYLD the same way as a normal stock investment and complain about there being no upside in the price but capital growth is not the point of the ETF. What QYLD really is is a savings account - the best paying savings account there is out there by a HUGE mile!
@@FA9082 Another income fund is worth taking a hard look SVOL
Going to be running QYLD and SVOL side by side💸💰
I’m trying to use dividend paying stocks to get around the ira 6k contribution limit. QYLD seems like a great choice, although the first year or so would probably need to be reinvested in QYLD itself and not any other stock so as not to fall below the original invested amount.
I think it's supposed to go up to $6,500/$7,500 in 2023. Just FYI.
I have combined QYLD with a couple other monthly dividend funds to generate cash to build a portfolio of durable companies. Using the cash to buy whichever company in the portfolio is undervalued that month. If none are undervalued I reinvest the dividends to generate more cashflow for the next month.
Very nice Randall. I think there are definitely opportunities to be that strategic IF you want to be and you can also be more passive and just reinvest each dividend to the respective company. GREAT JOB! THANK YOU for watching Randall and for leaving your $0.02 in the comments! 😎👍🏻
i do thé same
Very interesting! Nice breakdown! QYLG and XYLG are interesting funds too. 50/50 allocation between the growth from the options premium.
I was curious about the same.
Fantastic info. Completely spot on. This is a great real-world way to use QYLD as a tool. I've used QYLD as an emergency fund for years, and now buy QQQ with the monthly disbursements. It's a solid income source. I also believe it's similar to an MLP when you pass along as an inheritance. The younger RYLD is turning out to be even better. Thanks for the vid!
Glad it was helpful Cole! From a tax standpoint I am not sure if it has the EXACT SAME tax consequences though there is a Return of Capital element to it. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Boris vlada manages my funds, im up 78k
just this year alone.
Maybe I am new to understanding QYLD but as someone who is looking to just obtain dividend income, I am okay if the share price of QYLD falls.
Allows me to buy more shares faster than other shares appreciating in capitol gains and obtain my dividend income goals quicker.
Exactly! Reading the comments I am now going to also look into RYLD
I subscribed....I'm confused as to whether it's best to hold QYLD in a taxable account or a ROTH or does it matter? Thank you for this video; I am learning quite of bit from you and am going through your other videos now.
AWESOME ALLIE! Thank you so much for joining the Average Joe Investor community! Putting this investment into a retirement account will shield you from taxes on the distributions but will lock up the money until age 59.5 unless you are only withdrawing contributions from a Roth IRA. So which account you put it into depends on what your goals and objectives are. Please let me know going forward what investing topics you want to learn more about as well as any feedback/questions you have!
Hello! I'm down here in Brasil and i also subscribed. I'm learning a lot. Thanks!!!!
AWESOME FAUSTO! Thank you so much for joining the Average Joe Investor community! Please let me know going forward what investing topics you want to learn more about as well as any feedback/questions you have!
I had not thought of QYLD as an emergency fund, but you're right, it makes perfect sense for this purpose. Great job on video, looking forward to. QYLD compared to XYLD & RYLD.
THANK YOU for the feedback Julie! I really appreciate it! =) I may actually balance it out with including NUSI for downside protection. THANK YOU for watching and for leaving your $0.02 in the comments! =)
Hi Joe, Thanks for the back testing you have done on diff strategies. Regarding QYLD, I was thinking to buy low when I can and sell covered calls on it. I notice there's option chains available for QYLD, RYLD and even XYLD. Like I do my own covered calls on it. If price goes down and I don't get called away, I still continue to collect dividends. If I got called away, I will sell puts on it and wait to get assigned, I may do this closer to the money if price is not high since I want to get assigned to start collecting dividends again. Hope you can back test this for me.
Subscribed. Really like the idea of using Qyld for an emergency fund.
AWESOME JACK! Thank you so much for joining the Average Joe Investor community and THANK YOU for the feedback! Please let me know going forward what investing topics you want to learn more about as well as any feedback/questions you have!
What Charting program did you use to reinvest DIV!
I would like to see QYLD used as a passive means to fund the rest of my portfolio
YES! it's already in the works and I will get back to you guys soon with the results. THANK YOU for watching and for leaving your $0.02 in the comments! =)
How about using QYLD for saving for a house? Time horizon to purchase - 1 year, 3 year, 5 year. Thank you for the good work
Good idea, I may try it as well :)
You probably would be better off with QQQ or if your ok with Risk TQQQ over that time period
QQQ has better growth returns than QYLD’s dividend
I Subscribed! Great content by the way :)
Love to see your energy ETF models in a future that would take advantage of future spikes in oil which I really feel will happen this year or next with the focus on ESG and lack of capital in oil production and exploration.
I trade QYLD like a stock and I sell and buy depending on technical indicators. Sell High - buy low and accumulate shares and collect the dividend in the mean time....
Loving this test drive :) Great Job, Joe :)
I started out investing in the market during the Covid crash. Then I transitioned to dividend stocks to supplement my stock investing into more growth related stocks. Still have about 20 years till my retirement goal date. Got to get as much stashed as possible.
Great point of view on two alternate uses for QYLD. 👍
THANK YOU for the feedback Steven! I really appreciate it! =) THANK YOU for watching and for leaving your $0.02 in the comments! =)
I SUBSCRIBED! Great content!
Well explained.
Good work.
QYLD ALWAYS paid a monthly distribution unlike other stocks which some of them suspended their dividends during the covid correction.
In my opinion you would invest in this with a different minset instead of buy and hold for strictly capital appreciation but rather an income vehicle.
I subscribed. Thanks for this information about QYLD I was trying to figure out how I could make it work, and after this video I have an idea.
AWESOME MICHAEL! THANK YOU for joining the Average Joe Investor community! I appreciate it!! Glad you found some value out of the video! =)
i use the funds from qyld and spread it out to other funds. with a little back in to qyld to keep it above my initial position.
Subscribed ! Great information! Looking forward to learning more information on investing for my kids
AWESOME BRENNAN! Thank you so much for joining the Average Joe Investor community! Please let me know going forward what investing topics you want to learn more about as well as any feedback/questions you have!
I am sure those annuity companies "dislike" this video... but you have my like. :)
LOL, I am sure that's true, haha. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Could you hedge the capital loss buying puts to prevent a big loss? Looks like you can go out as far as 5-6 months. The premium would reduce the cash flow but prevent a big capital loss.
Two ways that might be interesting to look at are firstly, adding say $500 to the QYLD account each month to see how the compounding effect pans out after 10 years. The other play that might be interesting is to reinvest say 8% back into more stock and use 4% for income.
Joe has...many videos on this exact subject. Visit his channel and look them up.
whooaahhhh!!! If we have a bear market in stocks, QYLD will go down significantly and probably will be forced to cut the dividend too. As long as the markets are going up or sideways QYLD is great for income, but we could have a bear market again one day. I think QYLD is a great addition to a portfolio to help generate income and returns in a flat market, but it's not at all safe like cash. Of course, cash isn't safe either with inflation. Long term gold is probably the best cash alternative but it too can fall in the short term. The Fed is destroying our currency and making it impossible for people to save money, so I understand looking for an alternative to a savings account. For me that alternative is gold. Gold will perform much better in a market crash than QYLD and recover much faster.
Interesting Perspective! I think the big thing for QYLD is how long the option premium will stay elevated. If QYLD goes sideways for a while the option premium would likely go down which would likely lead to lower distributions. The BIG KEY with QYLD as your emergency fund, I THINK, would be to reinvest dividends to ensure you have a sufficient buffer above your initial investment. THANK YOU for watching and for leaving your $0.02 in the comments. =)
Are you buying physical gold or certificates for gold held by a 3rd party
In an extended bear market QYLD's NAV will drop horrendously and the dividend will be cut. It's unlikely to maintain your capital in that kind of environment. That's my understanding at least and what I'm told by knowledgable people. An emergency fund should be safe and so invested in a safe asset. As there is no interest, put a portion of your emergency fund into gold, either physical coins you hold or into an ETF or both. If the markets crash, gold will fall some but will recover faster. Due to this, you can also use the gold like cash to store purchasing power in a crash by which to buy stocks when they're cheaper.
@@brkbtjunkie I think a portion should be in coins you hold and a portion in the PHYS ETF.
This is why I am using NUSI instead for my emergency fund. It has a really strong monthly dividend coupled with a collared option strategy providing downside protection. It’s not as juicy a return as QYLD but is still beating any savings account and inflation (for now anyway)…
This is essentially the mindset I started with when I invested in QYLD. I have my emergency fund ( 1 year rent ) set aside. Everything else minus "mad money" and bills I invest in dividend income. All it took was a brief glance at what my bank was offering as a return. Essentially nothing. But what about the risk? Outside the entire market going to zero the risk is acceptable. And honestly...if the market goes to zero what is that money in the bank going to actually be worth? For the market to go to zero it would require a collapse of all fiat currencies including the dollar. So...hope that clarifies and crystalizes the good advice here for others.
First and love what u do!!!
THANK YOU for that feedback Timmy! I really appreciate it! =) THANK YOU for watching and for leaving your $0.02 in the comments! =)
@@AverageJoeInvestor thanks joe so quick question so I’m going to invest only Roth IRA and not planning to withdraw just live off dividends. Will this plan fit ? Going to main nusi qyld and divo thanks sorry for the long text😅 current age 29
Subscribed! Great video! Thank you for this!
THANK YOU for the feedback and for joining the Average Joe Investor community Anton! I really appreciate it! =) THANK YOU for watching and for leaving your $0.02 in the comments! =)
I think we have found the person to take over the reigns of Mad Money on CNBC when the time comes one day !! 👍🏻
HAHA, not really but I appreciate the feedback! =P THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
I subscribed! Really like your approach and ideas. Have given me some good insights to think about :)
AWESOME CHRISTOPHER! Thank you so much for joining the Average Joe Investor community! Please let me know going forward what investing topics you want to learn more about as well as any feedback/questions you have!
Subscribed! I'm fairly new to QYLD & loved this video & others about it. Crazy idea that crossed my mind: If I did a $35K cash out refi (20 yrs) at 2.65%, could I use the cash out to buy $35K of QYLD & use the cash flow to offset remaining (new) mortgage payments? I did some math & the data suggests this could create enough offsetting cash to pay the mortgage off quicker.
I would love to see you do a comparison between QYLD vs USOI. Heck if you want throw VOO or SCHD into the mix as well. That should be fun.
SCHD wins all the races :)
I use QYLD in my retirement account as a life risk hedge. This strategy only works in M1 Finance as far as I know right now. When M1 Finance auto invests cash in your portfolio it buys the pie. Instead of a DRIP (dividend reinvestment program) where the dividend from XYZ company buys more shares of XYZ company in M1 Finance the dividend from XYZ buys however you've allocated your pie. For my retirement portfolio I have 85% as a traditional growth and/or total returns focused allocation and a 15% allocation in QYLD. My desired outcome with this is that if I ever stop being able to contribute, for life reasons, to my account there will always be a portion of my portfolio buying into higher return growth assets.
Great Video! You got a new subscriber!
Thanks for the visuals.. Some portion of portfolio definitely belongs in these covered call based etf's.
For the emergency fund NUSI would probably make more sense since it has downside protection
I agree with you and wish I had mentioned that in the video. I actually own 55% NUSI / 45% QYLD in the Emergency Fund. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Thanks I was going to ask if NUSI would be better option for this
@@AverageJoeInvestor 👍
I saw a guy on Reddit who was talking about potentially selling his shares of Tesla and other growth stocks and using that in QYLD (about $250,000) and was gonna use the cash flow it generates to pay off his car and his house. I'm actually using QYLD and other dividend cover call etfs as a savings account for about the next year or so as I'm trying to buy a house and I figure even if the share price falls a little bit it'll get me a few thousand extra dollars by the end of the year which I can use as a down payment. I'm sorta waiting on housing prices to go down a little bit anyway so giving myself a year or so time frame doesn't really seem too irrational. Then when it comes buying time I'll probably sell off most of it and leave some profits in and continue to let them grow until it's paying enough for me to then use it to cover the mortgage on the house. It'll probably take me 10-20 years to get it covering a mortgage but it is an easy investment to scale.
Another awesome informative video!
Another great video Joe! Annuities are the worst thing to get involved in. Notice I didn't say investment. Don't forget the fees on some which can get as high as 8+. So I think you make a very good case for QYLD instead 👍
I loved the more recent video you made about the $2.1 million ROTH IRA video with SCHD. Have you done a QYLD vs SCHD long term investment comparison? I own QYLD and was debating using that dividend income to continually fund the ROTH IRA and purchase shares of SCHD. Could you model something like that out?
What is your opinion of QYLD and putting dividends into NUSI for emergency money?
GREAT QUESTION! I like NUSI for its downside protection. I am seriously looking at using both QYLD and NUSI for my emergency fund. THANK YOU for watching Robert and for leaving your $0.02 in the comments! 😎👍🏻
just subscribed. How do i get my hands on that spreadsheet you have used in your videos showing QYLD and how to build passive income for retirement. really enjoy your vids.
Right up my ally Joe! I have a ton of cash and need diversification for monthly income. Thanks!!
THANK YOU so much for that feedback! I really appreciate it. =) THANK YOU for watching and for leaving your $0.02 in the comments!
Great perspective!! Keep up the great content Joe.
THANK YOU for that feedback! I really appreciate it! =) THANK YOU for watching and for leaving your $0.02 in the comments! =)
First let me say if your viewers are interested in QYLD, they really should look at RYLD, which I believe will have similar returns with less risk; the Nasdaq 100 is due for a major downside correction. Second, it is not really correct to label the distributions as dividends; they are proceeds of premiums from options trades. These proceeds are choppy. Finally, unlike most regular dividends, these distributions are taxed at the higher ordinary income tax rate and could push some viewers into higher tax brackets.
Excellent video. Are you implying one should have more than the recommended 10% in QYLD to get better payout than an annuity?
HI ROBERT! From a long-term investment standpoint I personally don't see QYLD being a significant part of my investments though that could change as more time passes and I can see what happens to QYLD in alternative market conditions. From a retirement cash flow perspective, I think it DOES check a box though for CASH FLOW NOW that could do EXACTLY what an annuity does but leave you with the principle balance. THANK YOU for watching Robert and for leaving your $0.02 in the comments! 😎👍🏻
well done, very informative; certainly there are merits to QYLD. Curious bout your thoughts on QRMI or JEPI? appreciate your time
Great video. I really needed a strategy for my emergency fund and I think I found it.
Excellent! THANK YOU for watching David and for leaving your $0.02 in the comments! 😎👍🏻
Hey Joe, great video! If an investor needs the monthly income generated by QYLD it would probably be a good idea to reinvest at least part of the monthly income to at least preserve their initial investment.
right! Otherwise you DO leave yourself at risk to lose some capital value. THANK YOU for watching and for leaving your $0.02 in the comments! =)
@@AverageJoeInvestor What is the break even on that re-investment percentage wise?
Hi Joe, I don't know How you calculate REINVEST Income? thanks
AWESOME! I gained so much knowledge; in particular about the operations of annuities. QYLD and other stocks would be a better option than an annuity.
Hey Joe! Awesome video! Can you clarify if the average Joe should utilize this strategy in a brokerage account, Roth ira, or even hsa account and the pros and cons? I currently have an hsa account that is my emergency fund. Thanks!
Great video! I cant wait for the next one. Can you please make a video of the top 3 monthly paying dividend stocks?
THANK YOU for the suggestion Dwayne and the feedback! I will add that idea to the list! THANK YOU for watching and for leaving your $0.02 in the comments!
Ryld ,nusi ,jepi also work the same. I think annuities are good for lottery winners and other lump sum winners as diversity
You are a hard working man Joe! Thanks for the great video.
How about using QYLD in an Options Wheel or Covered Call strategy. This approach will bring in the dividend plus the options premium each month. Win - Win.
GREAT QUESTION DAVID! The options volume/premium is not very significant on QYLD as it naturally is a very sideways investment. Could you do it? Yes, but not sure how much it would move the goal posts for you in the long run. THANK YOU for watching David and for leaving your $0.02 in the comments! 😎👍🏻
Thanks!
What a great way to wake up the idiot lurking inside all of us!
I am a big fan of the Financial Emergency Fund, and have been steadily growing it for quite some time. Earning less than nothing.
My Roth happens to be a bit over 12 months worth of take home pay, so I am immediately implementing the following:
Roth becomes the new Financial Emergency Fund, I continue to “play” in the market by doing what one other reader mentions, buying lower, selling higher, increasing unit count trivially, but keeping me almost totally out of trouble!
Canceled all other buy orders, and will put the time saved, (as well as the now idle cash), into a decent real estate business!
Hopefully, you will expand into that area as well, and tell us what else we can do to be “less stupid” about our fears and ignorance!
I have perhaps $1,000 in a 5% savings account, which I figured I might as well leave there. Who else gives 5% APR, right?
Twice as stupid as QYLD. Sigh…
Can you test dollar cost average with the two examples. I would like to see how much we can make with catching the dips.
I would consider combing with an ETF like DIVO that has capital appreciation and dividend income.
Good idea, in what percentage, 50/50?
My emergency fund is 5k cash in marcus high yield...rest in QYLD, VZ, VOO. Idea is, in emergency, burn cash first, then verizon, then qyld, then voo. VZ 4% yield n stock doesnt move...even at height of pandemic, it dropped only 16%....so if i need more than 5k cash...ill sell out VZ first.
My regular investment is QQQ, VOO, VOOG, VYM.
Unless I am mistaken, QYLD returns capital and not a dividend. This could cause some tax issues if it is held long-term outside of a retirement account.
What about qyld inside a traditional IRA? Using a bucket strategy to avoid taxes until you start using that bucket for income and only get taxed at income rate?
Great Video I had got rid of my qyld because my I made more money with vti from capital appreciation than I made from qyld with the dividends. But in the future I could use it as part of my emergency fund.
love your videos man but I’m planning on investing 100k and leaving it in there for 30 years with reinventing all the dividends what’s your thought on that
I like the idea of investing the emergency fund. My thoughts were to have the credit cards, and maybe 5-10k (I can see some situations where cash would be better than a card) in high-interest savings account and invest the rest.
We should be careful on money useage,if you are not spending to earn back,then stop spending.
True ! Even some rich men made it through investing there money in something doing and they made it.
The right chioce of an investment has always been a big problem for me I know picking a wrong investment will leave a big scar in the future
@Angelina George Of course it is profitable,I made good profit of $20,000 with the capital of $4500 in my last trading I have made over $200,000.
Wow that is an awesome return on your investment, please what strategy did use And how can I start up such investment.
The best strategy to use when trading bitcoin,is to trade with an expert who understand the market as their own farm and make maximum profit.
Would QYLD be a good choice for a ROTH IRA?
One other strategy is to use the dividends as a way of getting a cash flow that you can use to buy other stocks. To buy more dividend stocks, growth dividend stocks, or growth stocks. If you're into growth stocks you generally have to supply the cash to buy them yourself. Intead, you could use the nice dividends to buy them for you.
Yes, you can do options... but those are for people with the time and knowledge to do them. Dividends just come to you, no muss, no fuss. Hard to screw up (though I've managed to do it before 😒). Like somebody handing you money and saying, "Go buy yourself another stock, on me."
People like to comment that QYLD is down quite a bit but so are most stocks right now and the ones that aren't are generally overpriced to the point you have to wonder if there is any growth left.
The question is: can QYLD bounce back. Even a bit. Some of the financial big wigs are saying that in 2023 stocks will be flat at best. If QYLD can just keep it's price flat, the dividends will make it a value.
Great video!
Love the content
THANK YOU so much for that feedback Senzi! I really appreciate it. =) THANK YOU for watching and for leaving your $0.02 in the comments!
You need to get this info out to the public
How about building emergency fund using LOC for "free" ? Take $10K from LOC to buy QYLD. Then use the dividends to pay the monthly interest + principle. Pay it off by the EOY. Then repeat this process every year.
That is something that technically would work on paper as long as options premium stays elevated for QYLD, but as a principle, I don't borrow money to invest. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻