3 Funds from Steven Bavaria’s Portfolio (11% Yield)

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  • Опубликовано: 11 ноя 2024

Комментарии • 336

  • @armchairincomechannel
    @armchairincomechannel  3 месяца назад +5

    Snowball Dividend Tracker (Create a Free Account, and the 10% Discount will appear under "Subscribe"):
    armchairincome.link/snow

    • @matney12
      @matney12 Месяц назад

      Does the premium membership include the income factory?

  • @joelschiffenbauer6671
    @joelschiffenbauer6671 3 месяца назад +47

    This video may become an income investing classic!

  • @jonathanfoster2263
    @jonathanfoster2263 3 месяца назад +42

    great video, and speaks to the mind shift I need in moving forward with regards to not obsessing over whether a stock is green or red. But focusing on the income over time. Not ignoring NAV but no longer live and die by it. I'm 68 days out from retiring and last week all my BDC's REITS and CEF's and covered call funds got slammed. But at the end of the week I realized none of my distributions are going to be cut so it doesn't matter that much in the end. The whole market is seeing red but I'm still making money. That is why love income investing.

    • @buzzz623
      @buzzz623 3 месяца назад +3

      Love this!

    • @antdel2087
      @antdel2087 3 месяца назад +1

      48 days out from retiring for me!!!!!!!!!!!!!!!!!!!!

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад +2

      Freedom is approaching!

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад +2

      Congratulations on your approaching retirement. A very exciting time! I agree that watching money being deposited into your brokerage account is nice during a correction.

  • @natemillsap7279
    @natemillsap7279 3 месяца назад +23

    Your choice of guests for your interviews is just top notch. This was amazingly clear and insightful. Thank you for allowing your guests the time to answer and not talking over them. Also, thank you for spreading the topics across various sectors.

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад +1

      Glad you enjoyed it! Your feedback is helpful. He knows more than me so I figured he should do most of the talking :)

    • @Pete-ql2pk
      @Pete-ql2pk 2 месяца назад

      Yes, Nate is on point. Thank you so much. I also got his book in Audible and halfway through. Will get me a hard copy next.

  • @matanshalit
    @matanshalit 3 месяца назад +20

    This is honestly a dream come true. Steven Bavaria's book has been immensely influential on my way of thinking and investing. Thank you for having him on the show! 🎉

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад +6

      I don't get to make dreams come true very often so today is a good day :) Thanks for sharing that!

  • @ShelleyfromCali
    @ShelleyfromCali 3 месяца назад +64

    I have a 3 fund portfolio but I have finally decided to invest in ETFs, alongside. I’m looking at SCHD, VOO, XLK or SCHG.

    • @MHousley
      @MHousley 3 месяца назад +4

      Great picks! I like XLK and SCHD equally!

    • @ShelleyfromCali
      @ShelleyfromCali 3 месяца назад +2

      @@MHousley thank you! Actually would it be silly to have both?

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад +4

      None of those are high yield funds, but if your goal is growth, they're solid.

    • @MHousley
      @MHousley 3 месяца назад +6

      Not necessarily though there is a fair amount of overlap but that’s not necessarily a negative. Having a diversified portfolio is KEY; that being said my initial deposit of 120k has grown to over ~$710k in only just eleven months :)

    • @henrymitchell9717
      @henrymitchell9717 3 месяца назад +1

      If one is in their 40s and just started investing (have 401k from work). Should they just focus on growth/high yield ETFs since it will be too late for them to see real benefits with dividends?

  • @rOHRshackartpottery
    @rOHRshackartpottery 3 месяца назад +29

    My retirement investments are divided in half. Half income factory and the other half Armchair Income. Both approaches are solid!

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад +8

      As long as you independently research each investment before making a decision, I'm glad to hear the channel is useful for you. I hope to supply income investors with new ideas :)

    • @rOHRshackartpottery
      @rOHRshackartpottery 3 месяца назад +3

      @@armchairincomechannel I only invest in those that meet my further research. Personally, I think you have far too many in your portfolio but the choice is yours. I have only 20 in my taxable and another 20 in my tax exempt account. Thank you for that excellent video.

    • @RAri-rc3to
      @RAri-rc3to 3 месяца назад +1

      40? I only have 1.

  • @michaelaiello7894
    @michaelaiello7894 Месяц назад +3

    Almost three months after this interview, this still stands as the most detailed, in depth discussion about income investing opportunities I have found within Steven Bavaria interviews on YT. Please consider having him back on to discuss in more detail the use of CEF Data and his process of researching a CEF or ETF choice for an income investing portfolio. Also how he diversivifies within the credit market. TY, your channel is an excellent source of sound information on income investing. I know you will continue your excellent content!

    • @armchairincomechannel
      @armchairincomechannel  Месяц назад

      Thank you for your detailed feedback and suggestions. I do want to interview him again but I want to examine different material (not just interview him for the sake of it) and your ideas are helpful.

  • @TonyCox1351
    @TonyCox1351 3 месяца назад +12

    This guy clearly knows his stuff. Felt like you could list any fund and he could rattle off the dividend yield, history, holdings off the top of his head! Great interview

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад +2

      He was a joy to interview and we could have talked for hours!

    • @Dividendflywheel
      @Dividendflywheel 3 месяца назад

      @@armchairincomechannelplease feel free to create longer videos

  • @joeturnip4216
    @joeturnip4216 3 месяца назад +6

    A "college-level" video. Yes, I took notes & yes, I bought the book. Life Changing.

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад +1

      Thanks for your feedback. So happy to hear it had a positive impact :)

  • @kanegs1
    @kanegs1 3 месяца назад +5

    Always a treat to here Steve Bavaria, big fan and follower of his Income Factory for my portfolio, currently close to 11% yield. Thanks for the interview, a great service...love your channel! Keep up the great work!

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад +1

      Thanks for your feedback and kind words of encouragement, I appreciate it!

  • @MrSimonious
    @MrSimonious Месяц назад +3

    Really enjoyed that interview. Please have Steve on again, I must get his book too. Loving the channel and making my way through the past vids.

    • @armchairincomechannel
      @armchairincomechannel  Месяц назад +1

      Thanks for your feedback and suggestion, glad to hear its helpful!

  • @30AndAWakeUp
    @30AndAWakeUp 3 месяца назад +4

    Great interview. I have been following Steven for a while and been building my own income factory in part do to his great work on SA. Thanks for sharing.

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад +2

      You're most welcome! I've watched many of your videos, and I used to work on cruise ships. Our asia travels follow similar patterns too. If you'd like to connect, my email is armchairincomechannel@gmail.com

    • @30AndAWakeUp
      @30AndAWakeUp 3 месяца назад

      @@armchairincomechannel I’ll drop you an email!

  • @MMT_Rod
    @MMT_Rod 3 месяца назад +8

    The flavor of the distribution also matters lot come tax time so when looking at CEFs I always dig into distribution details. A few CEFs make their distributions plans clear in their descriptions, such as NPDF for qualified dividends and muni CEFs for tax-free dividends; however, most CEFs do not make this obvious. I use the Fidelity CEF screener from there I can see that: RLTY distributions are about 80% return of capital and 20% dividend; XFLT is 100% dividend; and ASGI is about 65% long-term capital gains, 5% short-term capital gains, 10% dividend, and 5% return of capital.
    Thank you for publishing an another excellent interview. I've purchased Steve's book from Amazon and I look forward to learning more.

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад +1

      You make a good point about the breakdown/tax treatment of the distributions. Thanks for sharing.

    • @jamlane
      @jamlane 3 месяца назад +1

      XFLT has total expenses of 8.5%. How does that factor into your decision making?

    • @MMT_Rod
      @MMT_Rod 3 месяца назад

      CEFs often use leverage and thus have high interest payments. But so do companies, only the SEC doesn’t require companies to so visibly post their leveraged interest payments. Leveraging is both a cost and an opportunity.

  • @rickwalker5203
    @rickwalker5203 11 дней назад +1

    I’ve been buying dividends for a few years. Now I can learn more about it from Steven

  • @nathanielcodina4056
    @nathanielcodina4056 3 месяца назад +5

    Steve Baveria book is responsible for opening my eyes on this style of investing. I am very much looking forward to watching your interview

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад +1

      He opened my eyes too. Thanks for sharing that and I hope you enjoyed the interview.

  • @Lawyerup904
    @Lawyerup904 3 месяца назад +7

    I bought his book a year ago and I’ve always kinda thought your RUclips videos and your investment style mirrored his approach. ( spend some and re-invest some to create a bigger stream ). Thanks for the video!

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад

      Occasionally I'll realize that some of the phrases I use came from reading his articles many years ago.

  • @mr.f40
    @mr.f40 2 месяца назад +4

    Bar None, Greatest investing video I have ever watched. Highly recommend his book The Income Factory

  • @adchalet
    @adchalet 3 месяца назад +5

    THANK YOU!! Excellent interview with Steven. So glad you were able to make this happen. Cheers!

  • @dominiquetheeasyminimalist
    @dominiquetheeasyminimalist 3 месяца назад +9

    That was a real treat, you led the interview brilliantly and Mr. Bavaria was so generous in sharing his knowledge. Thank you! I now have work to do on XFLT 😂

  • @international_dividend
    @international_dividend 3 месяца назад +3

    What a gem of an interview! Well done, Armchair.

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад

      My pleasure. Glad you found some value from it. I enjoyed making it!

    • @Dividendflywheel
      @Dividendflywheel 3 месяца назад

      YES! YESS!! YESSSS!!! This goes in my favorite videos list

  • @J_International
    @J_International 3 месяца назад +3

    Excellent video. Steven was a major influence in my income investing journey.

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад +1

      That makes 2 of us. Even though our portfolios don't mirror Steven's exactly, the philosophy is valuable.

  • @Dividendflywheel
    @Dividendflywheel 3 месяца назад +4

    Thank You for this. Your channel is more valuable to me (and my retirement plan) than CNBC

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад

      That's high praise! I really appreciate your kind words :) Glad its helpful.

  • @johnhale5271
    @johnhale5271 2 месяца назад +4

    I have found that the personalities of income investment individuals strike me as being much more honest, believable, trustworthy, logical and sincere compared to all the snake oil salesmen trying to CONvince me to buy AI and high risk equities. Thank you gentlemen for taking the time to produce such great content that can make a huge difference in our financial future.

    • @armchairincomechannel
      @armchairincomechannel  2 месяца назад +1

      Thanks for your feedback. Perhaps its because we're older and we aren't trying to bet the farm on the next big thing. I'm not trying to beat the market, just want to pay the bills.

  • @goose-F16
    @goose-F16 Месяц назад +2

    AI.. this video is brilliant.. well done.. Steven is the master at this.. most of what I learned is from him, so Im really enjoying these inverviews.. the important thing is when he hits on the mix and the erosion/not spending.. its in line with our mantra.. well done..

  • @logiman
    @logiman 3 месяца назад +2

    I'm looking at retirement in a few years and am starting to research what I should be doing with my money. I love your channel and have learned much just in a few hours. This interview is outstanding! So much information for a newbie to the income investing approach. Wow! Many thanks for such a great channel.

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад +1

      Thanks for your feedback. Comments like this are great motivation to keep making more videos :)

  • @cumhurc4989
    @cumhurc4989 3 месяца назад +3

    Very informative. Your RUclips channel a lot of different than many others and I seem to learn more without any flashy headlines ! Keep up the great work !! Thx

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад

      Thanks for your feedback. I try to create the videos I would want to watch. You won't see any "Crash is Coming" thumbnails on the Armchair Income Channel ;)

  • @williamvarnell
    @williamvarnell Месяц назад +2

    Very insightful video. I am glad to see a name given to an investing style I had been naturally migrating to but had not yet thought of it as a strategy shift. Now I can articulate the what and why. I also bought the book and have rewatched this video several times.

    • @armchairincomechannel
      @armchairincomechannel  Месяц назад

      Thanks for your feedback, and glad it was helpful. Income isn't as exciting as growth so it gets overlooked.

    • @williamvarnell
      @williamvarnell Месяц назад

      @@armchairincomechannel but as Steve says . . . I sleep a lot better :)

  • @momdittomomditto7705
    @momdittomomditto7705 3 месяца назад +2

    Thank you for this interview! Steven was great! His book is on my bedside table and I’ve read 90% of it. You are such a good interviewer and I was happy you asked about specific tickers. I’ll be looking at the ones I’m not familiar with.

    • @darrelgrove5304
      @darrelgrove5304 3 месяца назад +1

      Book is a few years old; current portfolios are in his Seeking Alpha group but you may be able to find some older articles/updates outside the paywall.

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад

      I appreciate your kind feedback, thanks! Glad it was helpful.

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад +1

      Agreed. Books by nature are out of date as soon as they're published but the concepts are eternal.

  • @zentravel1515
    @zentravel1515 3 месяца назад +6

    Great interview. Seems to me some of the newer CC ETFs can accomplish the same kinds of results or arguably even better in many cases. Exciting times for the income investment sector.

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад +2

      I agree that the expanding number of choices for income investors is exciting. I like covered call funds too but they correlate to their index and I think its a good idea to also diversify into investments that don't do that.

  • @SummitMan165
    @SummitMan165 3 месяца назад +1

    Very good interview ! A great hour++ of armchair income plus a visit into the Income Factory ! I’ll order his books for next winter’s reading ! Continu your good works

  • @mrgoldy7532
    @mrgoldy7532 3 месяца назад +1

    I've followed the income factory for a few years now
    Glad you interview him

  • @enricomonesi5856
    @enricomonesi5856 3 месяца назад +1

    I am a great fan of Steve Bavaria, so you having organised a one on one interview is OWESOME......thanking you once again for your time and effort 👍

  • @shaymab.7601
    @shaymab.7601 Месяц назад +1

    Excellent Interview !!
    Any takes on BCAT & ECAT ? And how can we calculate their interest coverage percentage ? Much appreciate any input

    • @armchairincomechannel
      @armchairincomechannel  Месяц назад +1

      BCAT is distributing 20% of the NAV; that doesn't seem sustainable. I haven't done a deep dive on it but the dividend looks unusually high so I'd want to know more before investing.

    • @shaymab.7601
      @shaymab.7601 Месяц назад

      @@armchairincomechannel definitely would wait for your deep dive video on it Thanks for feedback :)

  • @khan200us
    @khan200us Месяц назад +2

    In this video, the guest talked about discount on CEFs and BDCs. Is there a resource or online tool where I can calculate which CEF or BDC is available at a discount? TIA

    • @armchairincomechannel
      @armchairincomechannel  Месяц назад

      CEF discount information is available at CEFConnect and BDC discount information is available on Seeking Alpha as shown in this video: ruclips.net/video/DcNs3H5gNeM/видео.html

    • @jimm4260
      @jimm4260 Месяц назад

      Nuveens CEF connect is free. Just look it up

  • @Blubbha
    @Blubbha 3 месяца назад +2

    This assures that I am on the right way to build an healthy income stream with 37 instead of focusing only on capital gains. Love that interview. Thanks for the effort.

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад +1

      Capital gains are wonderful, but income pays the bills!

    • @Dividendflywheel
      @Dividendflywheel 3 месяца назад +1

      The requirements for accumulation phase might be very different from the de-cumulation phase. Best wishes

    • @Blubbha
      @Blubbha 3 месяца назад +1

      @@Dividendflywheel might be. I see it a bit as an individual risk vs. upside evaluation of what you want to achieve within a certain time. For me I can foresee my path with realistic numbers using a mix of income strategy and dividend ETF world approach. But this looks reasonable for me and might not work for others. I believe everyone needs to do some number crunching and compare it with their own level of uncertainty and risk to sleep well.

  • @Baron1975
    @Baron1975 3 месяца назад +4

    All i can say is wow! Loved you're guest. Excellent content that could never be considered JUNK no pun intended.

  • @169Tomh
    @169Tomh 3 месяца назад +1

    Really enjoyed this video… I know of him almost bought the book but read some reviews that kept me from it saying it was hard to read. Your interview was much informative and in essence your doing it your way. Wondering if you will dive into any of those tickers…. all though you have to some extent. Thanks for this armchair

  • @michaelbangert996
    @michaelbangert996 3 месяца назад +1

    Great Video, congrats for having such a competent guest on your channel

  • @Rob-on-the-go
    @Rob-on-the-go 3 месяца назад +1

    Wow! Excellent Interview and information. Thank you so much!

  • @RoadATLBoss1289
    @RoadATLBoss1289 18 дней назад +1

    Hi! For the last section (reinvesting), can you walk me through the rationale? Is this for risk reduction (if so, how), or is it for growth of the overall portfolio in effect to grow the dividend payout to match inflation expectations? Simplistically thinking, if you are "only" spending the income (divs) and there is not an increase or decrease in portfolio value, you are already ahead of the 4% Rule strategy which depletes the portfolio over a 30 year period, right? Thanks!

    • @armchairincomechannel
      @armchairincomechannel  17 дней назад +1

      I reinvest a portion of my income for 2 reasons. 1/ To stay ahead of inflation. Many income stocks don't grow their income consistently. 2/ To mitigate risk. The risk for an income investor is dividend cuts. By reinvesting a portion of the income across a diversified portfolio of income investments, I'm constantly increasing the cashflow which means that if there is a dividend cut, it will be a reduction from a higher number than if I spent all the income.

    • @RoadATLBoss1289
      @RoadATLBoss1289 17 дней назад

      @@armchairincomechannel Thank you, makes sense! Just curious, have you ever backtested your income portfolio against 2020 market? Most of the funds look to have Beta's that would suggest low to moderate volatility. Still working though your Playlist here!

  • @DP52001
    @DP52001 3 месяца назад +1

    Wow - such a great video. Thank you as always for your insights…you truly make a difference!

  • @kejianniu2994
    @kejianniu2994 3 месяца назад +1

    Very nice interview. His Income Factory book had a big influence on my thinking. Glad he touched on CLO. Instead of XFLT, I like the pure play of CLO equity, e.g. ECC. But I think you may also like the various CLO debt funds, like EIC as he mentioned (focusing on BB traunch), CLOZ (BBB/BB), JBBB and JAAA.

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад

      Glad you enjoyed it and thanks for sharing some of your favorite tickers!

  • @minhytube
    @minhytube 3 месяца назад +1

    Bravo! love this interview. Very informative. More stuffs like this please.

  • @jimsteinberg9291
    @jimsteinberg9291 3 месяца назад +1

    Excellent interview-particularly appreciate the view on less transparent vehicles, like XFLT and the reassurance on BDCs with rates falling-the look back approach to lower rate years is useful. Thx

  • @happytravels2480
    @happytravels2480 3 месяца назад +1

    Loved this. You are a great interviewer. Nice work👍

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад +1

      Glad you enjoyed it, and thanks for the feedback. Steven was a pleasure to interview.

  • @pfd1972
    @pfd1972 3 месяца назад +2

    Amazing guest and interview!

  • @shawnswagerty5791
    @shawnswagerty5791 3 месяца назад +1

    Really good episode. Always enjoy and benefit from the words of Steven Bavaria. Appreciated the discussions of ASGI, XFLT, and RLTY in particular.
    My I suggest having someone from Seeking Alpha's "High Dividend Opportunities" team on some time in the future.
    Thanks!

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад

      I enjoyed the discussion with Steven. Thanks for the suggestion about HDO :)

  • @LasVegasStateOfMind
    @LasVegasStateOfMind 3 месяца назад +1

    Another solid video. Very happy to have found your channel, this is so in line with my thinking as well. Thank you very much.

  • @chriswoollet
    @chriswoollet 3 месяца назад +1

    Great interview. Read his book last year and it changed my whole perspective.

  • @KCInferno
    @KCInferno 3 месяца назад +1

    Thanks. I already have the book. I started down this road after reading the book.

  • @ToddByrnes
    @ToddByrnes 3 месяца назад +1

    Great video I have watched 20 of yours best yet much thanks God Bless

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад

      Glad you enjoyed it, and thanks for watching so many videos. You may need glasses after that!

  • @genesilvers1
    @genesilvers1 3 месяца назад +1

    Wonderful interview, I've been a longtime follower of yours and really respect your picks, wondering why you don't have xflt in your portfolio since Mr. Bavaria touts it so highly, do you plan on adding it? Thanks

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад

      I'm looking into it. Steven has a long list of investments and that's one of the candidates I'm researching for my own portfolio. Our portfolios aren't identical but we share a very similar investing philosophy.

  • @Rob-on-the-go
    @Rob-on-the-go 3 месяца назад +1

    I signed up for Seeking Alpha through your link. Thanks!

  • @fs2651
    @fs2651 3 месяца назад +1

    Did the Apollo Tactical Income Fund that was mentioned merge into MFIC (MidCap FIC)?

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад

      Yes. I don't know if it has gone through officially yet, but that's the result of the merger.

  • @exilion1
    @exilion1 3 месяца назад +1

    Outstanding. I am a fairly recent subscriber to your channel and can only imagine that this is part one of a series of interviews, as long as you’re both agreeable to continue this as an ongoing conversation. Best of luck making this happen.
    I’ve been a net accumulator since the 90s and have also followed Steven on Seeking Alpha for years.
    Thank you kindly for this. I enjoyed your conversational style.
    Are you interested in writing a book too? Sorry if I missed a previous announcement.

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад +1

      Thanks for your feedback. Based on the response to this interview, I'm open to another one in the future if Steven is agreeable. No plans for me to write a book, I'm enjoying retirement and making some YT videos :)

    • @exilion1
      @exilion1 3 месяца назад

      @@armchairincomechannel I’m writing a book for my kids (and their kids, and so on - at this rate, it’ll be an audio or perhaps a video book). Thanks for the channel and best wishes for the upcoming conversations and future endeavors.

  • @vikasgupta1828
    @vikasgupta1828 2 месяца назад +1

    Thanks

  • @Ronnieleec
    @Ronnieleec 23 дня назад +1

    Very interesting. Thanks a lot.

  • @cripz1436
    @cripz1436 3 месяца назад +1

    I've read this guy's book, and it's nice to see his views on these things.

  • @Baron1975
    @Baron1975 3 месяца назад +1

    Just bought Steve's book the Income Factory 🏭

  • @BTinSF
    @BTinSF 3 месяца назад +2

    Shocked to realize all 4 of the equity funds he mentioned are among my largest positions (and I’m not really familiar with his work before this). I also recently switched from BIZD to PBDC because I compared them after noting you owned PBDC. From Cohen & Steers, my choice has been RNP but I’ll keep an eye on RLTY. Also my infrastructure choice has been UTF (because I figured out what Mr. Bavaria says: That Aberdeen has a history of stretching its yields). I’ll have to look into XFLT.

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад

      We share a lot in common! I have UTG but am constantly eyeing UTF, same for RNP, RQI, RLTY, etc.

    • @BTinSF
      @BTinSF 3 месяца назад

      @@armchairincomechannel Yeah we do. We share about half our portfolios. Partly that’s because I’ve borrowed some of your ideas so thank you. I probably own a few more individual REITs than you do because they pay dividends below your range but I am looking for some capital gains as the Fed cuts rates. I also own a couple of pipeline MLPs-I believe you are Australian so I don’t know how complicated those might make your taxes. Which brings up another subject: There’s an Australia country CEF, IAF, that has a very nice yield and keeps trying to attract me. Any ideas about it?

  • @four5acp
    @four5acp 3 месяца назад +1

    Thank you so much for this Sir. I’m retiring early in 2.5 years and this type of information has been so helpful and eye opening.
    One question I have (I know you don’t usually cover taxes) but it would be awesome if you could cover some of the more tax efficient options for high yield. I know there are a few CEFs and some MLPs that can be good for a taxable account but your take on it would be invaluable!
    Thanks so much for everything!!!

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад +1

      Thanks for your suggestion. I try to point out the tax advantages of various funds where possible but I appreciate your suggestion to organize that information in a way that would be helpful.

    • @four5acp
      @four5acp 3 месяца назад

      @@armchairincomechannel thanks a lot I probably just missed it! Keep up the quality work. I for one greatly appreciate and enjoy it!

  • @YIWOTY
    @YIWOTY 3 месяца назад +1

    I've ordered a copy of Steven's book, but I'm curious - does Steven address the high fees on some of these funds? I see that #XFLT has fees of 8.49% including management fees of 2.82%. That seems pretty steep. Thanks!

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад

      I haven't done a deep dive on XFLT but just took a quick look at the website. Common shareholders pay a management fee of 1.7% which is still pretty steep. The fees section is quite complicated! xainvestments.com/funds-funds-floating-rate-alternative-income-trust-xflt/

  • @rel399
    @rel399 3 месяца назад +1

    Just got Steven's book and in the process of reading it now!

    • @darrelgrove5304
      @darrelgrove5304 3 месяца назад +2

      Updated portfolios are in Seeking Alpha group - as the book is a few years old.

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад +1

      Good point. By definition, any funds discussed in a book will soon become outdated. However, the philosophy is eternal.

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад +1

      Terrific! The value of the book is in the ideas more than the funds mentioned at the time it was published.

  • @thebigredfish
    @thebigredfish 3 месяца назад +1

    Great interview. Thank you both.

  • @TheMally85
    @TheMally85 3 месяца назад +2

    Great interview, thank you!

  • @bethhynes787
    @bethhynes787 3 месяца назад +1

    Excellent interview & content - thank you

  • @likeicare300
    @likeicare300 3 месяца назад +1

    Incredibly valuable conversation thank you

  • @happycampers6592
    @happycampers6592 3 месяца назад +2

    Excellent interview. Help me out please. Many of the popular CEFs have a downward trend NAV. I understand "math is math" and I'm not concerned with growth. If I can get an 8% distribution for 20 years and it is completely net of any capital gains, then I don't care. However, when a fund that is 20 years old has lost half of its value, I can only wonder what it will be worth in another 15 or 20 years and what will happen if its NAV approaches $0. The topic of NAV erosion has been beat to death but I really have not read/heard anything that eases my concern. Thanks for your help.

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад +4

      NAV erosion is an important consideration. Some funds suffer from it at launch and then flatten out. Some suffer from it but only under certain economic conditions (like a hike in interest rates). So its important to consider the fund in relation to what's happening with the economy and the market. There aren't many funds that pay high yields and appreciate under all market conditions. If the NAV is on a consistently downward path then I avoid it.

  • @nathangilles2839
    @nathangilles2839 3 месяца назад +1

    Yes very very good info and video.
    I’m 51 and trying to catchup and not get caught up in the highp

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад

      Glad you enjoyed it! I agree, there's plenty of hype out there and I try to avoid it too.

  • @sdrs95a
    @sdrs95a 3 месяца назад +1

    Excellent video! I would have liked to heard a question like "What are your 3 most undervalued investments at Current Prices?

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад +1

      That's a good suggestion. I hope to interview him again one day.

    • @sdrs95a
      @sdrs95a 3 месяца назад

      @@armchairincomechannel You can always use it for other interviews.

  • @photomanual01
    @photomanual01 3 месяца назад +1

    I recently subscribed to your channel, and am currently reading Steven's book. Love your videos. I was wondering if you could discuss or explain expense ratios on some of these funds. I have only invested in traditional stocks and ETFs and was always taught expense ratios are high even when they are 0.35%. looking at some of these recommendations I've seen expense ratios on some of these investment products as high as 11%. Obviously they are not apples to oranges with regular equities. Or do you have a video you made in the past discussing these expense ratios on the impact of these investments? Thanks!

    • @danstevens64
      @danstevens64 3 месяца назад +3

      Basically, many of the funds you are seeing with high expenses on them, they are required to report interest expense. So it's the management fee + interest expense = expense fee. Read the documentation from the fund website for more info

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад

      Dan is correct!

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад +1

      Welcome to the channel. Whether or not 0.35% is high depends on a lot of factors, including whether the fund is passive (not much work to do), active (daily work required), and its size. 0.35% of $50 assets under management is a lot different to 0.35% of 30 billion assets under management. Expenses are very confusing for funds with leverage because the interest gets mixed into the number. It's even more confusing for BDC funds because some of the expenses of the BDCs themselves are mixed in with the management fees of the portfolio manager. For example, PBDC's management fee is less than 1% but you have to read the prospectus to know that...it's not clearly explained on the home page.

    • @photomanual01
      @photomanual01 3 месяца назад +1

      Interesting. They can't make it easy, can they? I've owned two BDCs for about three years now, ARCC and OBDC but I do like the idea of a BDC ETF so I don't have to follow the company and try to figure out why a stock dropped etc. ETFs more worry-free hands off. Thanks for taking the time to reply, keep the great videos coming!

  • @FI-Beauce
    @FI-Beauce 3 месяца назад +2

    Great youtube moment!! Thanks to both

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад

      It was weird to read his ideas for so many years and then finally talk to him!

  • @nadavebert2339
    @nadavebert2339 3 месяца назад +2

    hey armchair!
    would you think a 50% div growth 50% fixed income like in this video (and some of your funds as well!)
    would be a good approach?
    to start building it 10 years before using the dividends

    • @danstevens64
      @danstevens64 3 месяца назад +1

      The time horizon is the most critical question. Check out a channel called "dividend growth investing" he talks about his core and satellite strategy with time horizon

    • @jumbothompson
      @jumbothompson 3 месяца назад +1

      Why not? You can mix and match all kinds of strategies.

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад

      I couldn't say when you should start an income approach; it's different for everybody. In general, over a long time horizon and while you have a paycheck, growth is more tax efficient and delivers higher total returns. The closer you get to retirement, the more value there is from income and its reduced volatility. Growth requires that you sell when the market is up, and there's some random timing associated with your retirement date (you might be unlucky and retire at the start of a bear market). So its risky to assume you can simply sell all your growth stocks the day you retire, because you don't know what the market will look like.

  • @Optimus-Prime-Rib
    @Optimus-Prime-Rib 3 месяца назад +1

    Man i wish you guys went from another hour! 😉
    Great interview

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад +1

      I appreciate that comment :) He was great to chat with.

    • @Dividendflywheel
      @Dividendflywheel 3 месяца назад

      Yes. A part 2 or 3 would be appreciated. His insights (and experience) are priceless @ 58:57 generating more income when the market was down

  • @gentillygirl545
    @gentillygirl545 2 месяца назад +1

    I need to learn from this man!!

  • @bluecollarbullionballer4269
    @bluecollarbullionballer4269 3 месяца назад +2

    He changed my life and investing.The Income Factory is my favorite investing book.Happy imvesting/stacking.

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад +1

      Wow, that's impressive! He had a big influence on me too.

    • @bluecollarbullionballer4269
      @bluecollarbullionballer4269 3 месяца назад

      @@armchairincomechannel Making income without working is awesome.I sell a little premium also.Made some income while vacationing/visiting family in Thailand.I will retire in five years and The income factory is a big part of that.Love the channel.Happy investing/stacking.

  • @lynnh1935
    @lynnh1935 3 месяца назад +1

    I am new to income investing. Who are some of the writers on Seeking Alpha that you recommend?

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад

      Welcome to the community. I like Nick Ackerman, Trapping Value, Steven Bavaria, and Damon Judd.

    • @lynnh1935
      @lynnh1935 3 месяца назад

      Thank you

  • @GionnyChannel
    @GionnyChannel 3 месяца назад +4

    Super interesting interview

  • @uansam3439
    @uansam3439 3 месяца назад +1

    Wow…I really learned a lot about this video. Thank you so much for those great questions!!!!
    But one thing that I concern me is their high expense ratio.

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад +1

      Expenses are very confusing for funds with leverage because the interest gets mixed into the number. It's even more confusing for BDC funds because some of the expenses of the BDCs themselves are mixed in with the management fees of the portfolio manager. For example, PBDC's management fee is less than 1% but you have to read the prospectus to know that...it's not clearly explained on the home page.

    • @uansam3439
      @uansam3439 3 месяца назад

      @@armchairincomechannel thank you for the info

  • @dudewheresmyguitar21
    @dudewheresmyguitar21 3 месяца назад +1

    Wow two incredible income investors speaking together, amazing. Bet theres going to be some portfolio updates coming this week!! RLTY XFLT EIC looking really juicy

  • @Jonsbasecamp
    @Jonsbasecamp 3 месяца назад +1

    Thank you for the video! Would love to see an interview with Seeking Alpha's The REIT Forum Scott Kennedy.

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад +1

      Great point! I'm a huge fan of Scott and will email him next week with a request.

  • @cmurill
    @cmurill 21 день назад +1

    Excellent

  • @josephfireborn
    @josephfireborn Месяц назад +1

    I have looked through your videos, but maybe I missed it. Do you have any type of video about a person of age in the middle? I am 40, and I have a reasonable amount of investment in stocks as I lived and worked in the tech field so I had an idea of who I believed was going to do well, mostly luck. As I age I am looking at life differently and I would rather invest more to retire early with a solid income factory than to be wealthy at 65 and having worked the entire time to sell of 4% as most people know of. The issue I struggle with is, do I start selling stocks at highs now to invest into these income factory funds, and reinvest the dividends for maximum growth, so that in the future when I decide I am ready to retire I can turn on the income factory in the form of those distributions? It is tricky question for me because I know at 40 there is still a lot of time for growth and I plan to continue working etc, but it would be a lot nicer to enjoy my life earlier than wait until the traditional approach of 65. Even if I just go to work part time, having the supplemental 8% rule/plan which you follow + my income could be very enjoyable and relaxing. On top of these things, the entire thought of not having to worry as much about the market as you both discussed in this video is very rewarding.
    I have Income Factory coming in the mail tomorrow, so I am hoping Steven will have some insight into this decision. Have you talked about this any?

    • @armchairincomechannel
      @armchairincomechannel  Месяц назад +1

      I can't give financial advice but generally, the younger you are, the more it makes sense to focus on growth because of tax efficiency and higher total returns. As retirement approaches you can transition gradually to income.

    • @josephfireborn
      @josephfireborn Месяц назад

      @@armchairincomechannel Thanks for the reply. I definitely wasn't looking for personal financial advice, just not sure when people usually transition from growth to this income plan. It seems to be sort of the same problem as the market declining as you near retirement with a 4% growth strategy etc.

  • @Steverino70
    @Steverino70 3 месяца назад +6

    Good interview. My son who was employed in the "big ticket" division of one of the biggest banks in the U.S, has had some time to assist me when looking at BDC's and applying his expertise to this sub sector. A few of them are interviewing him due to 20+ years underwriting across 5 banks. Some of his observations are interesting. One, BDC's have much ore flexibility in "working out" non preforming clients than banks. I think he referred to it as somewhat cutthroat( a compliment) when compared to what banks can do. He really likes ARCC but is very wary of the amount of loan money coming into BDC's in general and is concerned that that much money chasing new loans leads to BDC's taking on increased risk due to competition.He has had me cut back by 1/2 my exposure to BDC's that have had significant share price appreciation such as CSWC, MAIN and HTGC and sell way above their NAV. He also really didn't like TRIN. Anyway, keep up the good work, a loyal fan.

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад

      Thanks for your feedback and insight into your son's experience. Not all BDC's make a great investment so it's important to be selective based on quality and pricing. I've cut back on the same BDCs as you over the past 6 months because of their valuation.

  • @DukeOkes
    @DukeOkes 3 месяца назад +1

    Great session, and great book

  • @jbliss12345678
    @jbliss12345678 3 месяца назад +1

    At the 28:42 mark in the video where Steve talks about Net Investment Income, what websites will have this information available for non-CEF tickers like PBDC

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад

      I haven't found a tool that provides data for non CEF tickers in a good format like CEFConnect. For NII, I use the BDC tool from systematicincomeinvesting.com/ . However, that's a paid subscription.

  • @normansimonsen1203
    @normansimonsen1203 3 месяца назад +1

    I appreciate this. That guy is smart.

  • @Willymayshayes444
    @Willymayshayes444 3 месяца назад +1

    Great guy, have his book

  • @joevelasquez2757
    @joevelasquez2757 3 месяца назад +1

    Great job getting Bavaria. ❤

  • @Dividendflywheel
    @Dividendflywheel 3 месяца назад +1

    This @57:34 is a brilliant strategy. There’s F U money for employment security. This is like an F U portfolio to stock market volatility. 😊😊

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад

      Thanks for the feedback. I didn't name it with those exact words but glad it was helpful :)

  • @kenmurray2765
    @kenmurray2765 3 месяца назад +1

    Thanks! Great interview! Learned alot

  • @antimattr68
    @antimattr68 3 месяца назад +1

    Thank you for the content, really appreciate it

  • @arthursmith2056
    @arthursmith2056 3 месяца назад +1

    So a lot of these high yield investments give wonderful yield obviously, but some of them seem like they are on the verge of default. Is they key to fund investments that either appreciate or are stagnant and then reinvest until you’re ready to withdraw and you reinvest what ever the current inflation is and take the rest?

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад +1

      Your overview of the cashflow is mostly accurate. However, I don't revinvest just to cover inflation. It's also to cover risk. The higher the yield, the more I reinvest. So for SVOL's 16% yield I'd reinvest half. For MAIN (lower yield, lower risk, growing distributions) I'd withdraw it all. Not sure what you mean by "on the verge of default". I don't believe that applies to any of the investments I hold in my portfolio. I haven't researched every single investment in Steven's portfolio (there are quite a few!).

    • @arthursmith2056
      @arthursmith2056 3 месяца назад

      @@armchairincomechannel you're right. Verge of default was dramatic. NAV erosion is what I meant. I am fully on board with income investing but I feel more comfortable with a yield around 5-6% as long as i also have growth in the 4-5% range. Not for risk but because it's hard for me to understand how a negative NAV year after year is good long term even with a large yield. that being said, my exposure to this way of investing is very new and im sure there is a lot of ignorance.

  • @faisalsiddiqui6793
    @faisalsiddiqui6793 3 месяца назад +1

    I'm going to study CLOs more now. Thanks

  • @scottkeasler9317
    @scottkeasler9317 3 месяца назад +1

    Another great video. I watched it in three sittings due to my time allotment and to make sure I soaked it all in. Do you personally subscribe to the Income Factory? Thank you so much for all you do, it's been a life saver for me since retiring last November!

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад +1

      It was long and I could have talked to him for another hour but you have to stop somewhere. I just joined "Inside the Income Factory" on a monthly subscription and I'm researching some of his picks. Congrats on retiring last November, that's fantastic!!!! Feel free to join the conversations in the FB group...I don't mention it anymore in the vides because its growing all by itself. Here's a link: facebook.com/share/u3gHAmv58TszyRwz/

  • @jont96686
    @jont96686 2 месяца назад +1

    Great ideas which show how lucky US investors are to have access to such funds. As a UK investor neither of the platforms I use allows you to buy any of the 3 funds highlighted at the end. If you buy them outside the US do you also get hit by the 30% with-holding tax on dividends I wondered?

    • @armchairincomechannel
      @armchairincomechannel  2 месяца назад +1

      The withholding amount varies by country. For example in Australia its 15%. Having said that, generally its best for Non-US tax residents to check with an accountant in their country that's experienced in filing US tax returns. If you file a US tax return you will pay the actual amount due (withholding is just an estimate). The actual amount due is usually less than the withholding amount, which means you would receive a refund for the differece.

  • @moresugartradercc2744
    @moresugartradercc2744 3 месяца назад +1

    Enjoyed the interview thanks

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад

      I enjoyed the chat with Steven too. Thanks for letting me know :)

  • @jumbothompson
    @jumbothompson 3 месяца назад +4

    For me the sleeping at night part is important. Market is down, oh well I continue to buy more while getting a higher yield. I'll still invest in individual stocks if I see an opportunity out there.

    • @armchairincomechannel
      @armchairincomechannel  3 месяца назад +4

      Sleep is underrated. I don't hold exactly the same investments as Steven but we have a few in common and his overall philosophy was a big inspiration to me. Thanks for your feedback :)

  • @KristopherHesson
    @KristopherHesson 3 месяца назад +1

    Fantastic interview.