There’s a guy on RUclips, we’ll call him Brad. In a colorful shirt, he’s usually clad. He shares his journey, for which we’re glad. Don’t ask the wrong questions, he may get mad. His research is thorough and always rad. He’s a smart fella, certainly no cad. Invest wisely, no need to be sad. Avoid Nav erosion, and follow this lad. The end.
@@Income_Architect Yes.... I do believe Bito is entering buy territory. I also hold MSTY only thing I do not like about MSTY is we are capped on upside and the underlying is MSTR which is a flyer. Now I don't know if jay is implementing the new changes to MSTY or not.
Excellent video! I think DCA “small “ weekly into MSTY consistently is the way to go, buying slowly but consistently to stay long game without getting wiped out in frequent 20-35% liquidations like real BTC. Stay happy DCAing for me. Excellent video.
What I like about MSTY for my portfolio margin account: All known BTC ETFs come with a 100% draw down in buying power at E-Trade. MSTY is only a 50% reduction. At ex date I may start buying into MSTY for a long term hold as part of my growth and income plan. I currently hold both BITO and BITX...but will get out of them soon.
Thank you! You too! So correct people follow the herd and are late to party and wondering why they aren’t making money. Having a plan good or bad is better than no plan at all. Enjoy the day.
Hi Brad. Could you make a video or provide insight on CLM and CRF. they are sister funds. The charts are deceiving but they drip at NAV and the funds trade at a premium. XCLMX and XCRFX are the NAV
This is on my list. To get done. I am going to follow Steven the author of Income Factory. Here is his comments on these funds. seekingalpha.com/article/4701931-clm-and-crf-high-yields-high-premiums-bargain-prices-for-some
Great video. Love your sense of humor. So, BITO is paying an incredible dividend right now. Do you not feel this is a good play just for that reason alone? Thanks in advance.
You're doing a fantastic job! Just a quick off-topic question: I have a SafePal wallet with USDT, and I have the seed phrase. (behave today finger ski upon boy assault summer exhaust beauty stereo over). How should I go about transferring them to Binance?
Depends on your thoughts about Bitcoin and coinbase. If you think they are going to go up then its a hold. If you are reinvesting something back in and taking the income then its a hold. The compounding effect is real it just take a lot of time to show itself. If you don't believe in Bitcoin or Coinbase then you should most likely get out of it. I feel its more of a hold and take some income.
@@Income_Architectthank you so much Brad for your valuable input. It’s a confirmation for me. I will cry for a while but now I know what to do moving forward.thanks so much,appreciated❤😊
Good episode ! I have no exposure to crypto for now, because I didn’t research on it either understand it. Would be nice to maybe take a 1% on MSTY or directly MSTR one day.
It is totally fine not to understand and many of my friends are not interested in it. The ones that are interested are all about it. A small holding is best. Right now mine isn’t even 1%.
MicroStrategy stock and its derivatives will outperform all of these, including native BTC. I'd like to see other fund managers like Neos or Roundhill come out with a MSTR fund as another option to MSTY.
I agree 100%. Nice to have options. Don’t forget REX has 2x leverage on MSTR just in case you want to gamble a little. But 💯 would like something to compare it to.
Roundhill filed an application for weekly- pay single stock covered call ETFs. Microstrategy is at the top of the list. The application is in the SEC database. I am salivating waiting for the fund to come out. IMO Yieldmax erodes their NAV too much. I’d also like to see Kurv make an MSTR fund. They tend to sell a little further out of the money.
I know alot of people dont talk about the expense ration but MAXI expense ratio is 11.18, not .99 for MSTY. How does that affect your numbers also? Most people don't comment on the ratios but that is a significant amount of money per 1k- 10k$.
It does not affect my numbers at all. All numbers and calculations are after all expenses. MAXI gross expense ratio is 11.18. But if you read their prospectus the actual management fee is 0.85. You have to learn to understand how these are both calculated. They have to report gross this includes any expenses from the underlying holdings. They only charge 0.85. You see this more commonly when a funds holds other funds as the underlying assets. You will find that expenses are related to interest expenses expressed as a percentage.
I'm not sure if this is the right call but I'm going with MSTY/CONY and then IBIT because it doesn't seem like BITO/YBIT/YBTC makes sense when you can just hold MSTY. Am I off base guys?
Brad, I have a bit of a complex question I am just putting here in case you want to address it in a video. I think it would be an interesting topic. Many people like myself have used a margin strategy where you buy unstable high yielders like IWMY or MSTY or even TSLY and let them flow cash down onto the margin debt. You pay off the margin debt over time while the capital erodes. Meanwhile, you buy more stable yielders like FEPI or XDTE or SPYT or SVOL and those dividends are the ones you reinvest into themselves. So you sacrifice NAV-unstable funds to margin debt while compounding more stable funds. But looking at your videos I have seen you a few times mention the power of compounding the more unstable funds over time. I wonder if this approach is backwards. Is it better to reinvest and compound a NAV unstable fund while using smaller yielders to service margin debt?
Sorry for the long wait, but you asked a very interesting question. All your comments have been very interesting and I truly appreciate the interesting comments and questions. The method you are using has been working and a common method and it works. I would mess with something that works. I do question some of the funds due to taxes like IWMY. But IWMY is actually a winning strategy. You just have to deal the NAV. IWMY would be great in tax deferred account. If you take MSTY, the compounding $2,000 turns into $62,415.92 in 5 years. Assuming that NAV stays constant but even with some NAV erosion and call 50%. $2,000 turns into $31K. Now my comments on compounding has to be placed into context. Take my $500K Covered call portfolio. I will be taking my 8%. What I don't tell people or what they fail to realize as long as the NAV is stable or slightly increasing that $500K turns into $1 million in 7 years and $2 million by the time I am near RMD and that is just my covered call section. This is with me taking my 40K per year. If the market takes a down turn the more shares I will get to collect and it only increase the amount of income received in the long term. In the short term their will be a decrease. A lot of people are looking at next week. I look at now and when I turn 59.5, 62 and 65 and when I reach RMD age. (73 for me). They fail to realize the tax bomb that comes with RMD. Most likely you don't have this in Canada. I actually need to retire now 56 almost 57 and start my distributions or at 73 I will get hammered with taxes. Between 59.5 and 62 I need to move a lot out of my IRA and into a taxable account. Just to give you a hint of how this works for me. If I didn't start taking my distributions at 73 I would need to take $200K to $300K a year out assuming a 10% growth rate and pay the federal taxes per taxes on those distributions unless they change the tax laws. That is why I stepped away now so I can start withdraws and live my life on my terms. At 73 if they don't change things I may still have to take larger distributions then I want to. I bet not many at the age of 56 look at the RMD section of their life. Now I could do back door Roth conversions or just retire and enjoy life. I actually worked with a certified tax professional and a Financial planner (Personal Friend) to run some of these numbers.
@@Income_Architect we do in fact have a similar tax bomb in Canada, where people do not understand that their Retirement Savings Accounts are NOT tax-free but tax-deferred and suffer suchlike problems. I am clearer now on the compounding effect you are talking about with a fund like MSTY (barring issues like MSTR going bankrupt) because what you say here is much clearer than what I’ve heard you say elsewhere. Thanks for your thoughtful comments and taking the time to answer my question in such detail!!!
I rather understate things than over state things. Thanks for letting me know about Canada. The other issue is our social security. Once I start taking it I will have to reduce my IRA withdrawals and that time bomb 💣 starts ticking.
YBTC will be switching to options on the spot ETFs instead of BITO when they become available. (I personally just buy the underlying bitcoin and MSTR as my core holdings though).
Brad .I know you don't really like BITO but I just bought very small position at 16.75 if it drops ill dca for the distribution/yield and have it in my 5-year portfolio not income now. Do you think its a good position for long term distributions?i know you were big int it years ago. I have a larger position in MSTY but it does have an underline stock it follows so this way I have both sides of bit coin which I feel 5/10 years from now it will be Huge. What are your thoughts
Mr.Brad...i got 1500 shares (21.51$ cost basis)of BITO.. is it a good time to buy MSTY for the long haul, since u mentioned that it's the winner...ty for feed back ❤ ur channel
I see you follow the same charts. I think it will be shorter this time but you never know. Having a plan is the most important part. Don’t forget to take profits. In my case with MSTY. I plan on taking profits next cycle not this cycle. That is why I call it a 5 year plan.
Name dropping seeking alpha , and no affiliate link ! You’re giving them free advertising, why not collect a little in return? Also I’d start an Amazon store category for plaid shirt collection! 😊
Good video. Personally, I'll stick with buying BTC as the yield is tax-free compared to the others (unless in a tax advantaged account of course). Also, with a primary dealer like Cantor Fitzgerald getting involved and BNY Mellon (the first company ever listed on the NYSE) now approved to custody BTC it's only a matter of time until we can get yield on our BTC in a non-rehypothecated multi-sig setup. Imagine loaning your BTC at a time when it's near its 200 day moving average. Theoretically, you could then use the buy , borrow, die strategy. I'm getting ahead of myself, but the future looks very bright for BTC.
Agreed that MSTR is basically a leveraged play on Bitcoin. So MSTY would be same. Are you planning to hold MSTY long term or swing trade and sell at a high point maybe next year? Would it not just be easier to hold MSTR vs having to reinvest income from MSTY each month? Not sure I understand value of the income for this play unless you really need it to live on. Maybe I am missing something. Also, do you think MSTR is a decent buy at this point or has the boat sailed?
Hold MSTY to the next halving and reinvest everything back into it for the next 4 years. Yes it will go up and down and might have a reverse split but I feel in 4 to 5 years knowing there is another halving. The income at that point might just pay for everything. If I was going to swing trade I would use a 2x leverage product. Such at REX.
Why BITX? I’ve been trying to look up best options vs just straight buying bitcoin. I was just worried about missing the same growth as actual bitcoin.
But the M2 money supply needs to be exponential to prevent a global economic collapse. So gold, silver, and bitcoin could also go exponential. Bitcoin is still risky because governments could make it illegal. If people are buying BITO I would recommend selling covered calls on half of the holdings.
Thanks for watching.
Buy me a Sweet Tea:👉 ko-fi.com/incomearchitect
Income Factory Book 👉 amzn.to/3ZCzp1p
👉www.amazon.com/shop/incomearchitect
There’s a guy on RUclips, we’ll call him Brad. In a colorful shirt, he’s usually clad. He shares his journey, for which we’re glad. Don’t ask the wrong questions, he may get mad. His research is thorough and always rad. He’s a smart fella, certainly no cad. Invest wisely, no need to be sad. Avoid Nav erosion, and follow this lad.
The end.
Wow. Nice. 👍.
what channel is he in?
BITO is great just added another $20k to my portfolio dividends are juicy!
One of better Bitcoin ETFs
Great video Brad was waiting for this one
Hope you enjoyed it! You can see that they all range about the same.
@@Income_Architect Yes.... I do believe Bito is entering buy territory. I also hold MSTY only thing I do not like about MSTY is we are capped on upside and the underlying is MSTR which is a flyer. Now I don't know if jay is implementing the new changes to MSTY or not.
Funny you drop this video now, I just started adding BITO to my portfolio ; and selling puts for it weekly
As long as you are selling against it. Calls or puts. That is where the additional money is located.
Excellent video! I think DCA “small “ weekly into MSTY consistently is the way to go, buying slowly but consistently to stay long game without getting wiped out in frequent 20-35% liquidations like real BTC. Stay happy DCAing for me. Excellent video.
Love MSTY. Holding it for 5 years lets see what it does.
What I like about MSTY for my portfolio margin account: All known BTC ETFs come with a 100% draw down in buying power at E-Trade. MSTY is only a 50% reduction. At ex date I may start buying into MSTY for a long term hold as part of my growth and income plan. I currently hold both BITO and BITX...but will get out of them soon.
Thanks for the information.
Very true about timing. I got 2000 shares of Msty but still in minus territory. Hopefully catch up soon
Long run with MSTY for me. But timing is everything.
This was an absolute great video!! I love MSTY. When you purchase, makes all the difference. Have a fantastic day.
Thank you! You too! So correct people follow the herd and are late to party and wondering why they aren’t making money. Having a plan good or bad is better than no plan at all. Enjoy the day.
Thanks Brad great information once again.
Thanks for watching.
Brad, i really like your shirt, you should wear that shirt you wore on this video more often, very nice😮
Thanks that is one of my favorite shirts.
Hi Brad. Could you make a video or provide insight on CLM and CRF. they are sister funds. The charts are deceiving but they drip at NAV and the funds trade at a premium. XCLMX and XCRFX are the NAV
This is on my list. To get done. I am going to follow Steven the author of Income Factory. Here is his comments on these funds. seekingalpha.com/article/4701931-clm-and-crf-high-yields-high-premiums-bargain-prices-for-some
Great video. Love your sense of humor. So, BITO is paying an incredible dividend right now. Do you not feel this is a good play just for that reason alone? Thanks in advance.
I do not actually, but I can understand people liking it. I prefer BTCI as 25% is actually Bitcoin. It's NAV is up due to the factor alone.
You're doing a fantastic job! Just a quick off-topic question: I have a SafePal wallet with USDT, and I have the seed phrase. (behave today finger ski upon boy assault summer exhaust beauty stereo over). How should I go about transferring them to Binance?
😂
It’s no different than a bank really. You need to know the wallet address that you are sending it to.
Thank you Brad,what if someone is stuck buying Cony @$20 now it’s $13 , what’s your opinion on this please 🙏 thank you greatly appreciated.
Depends on your thoughts about Bitcoin and coinbase. If you think they are going to go up then its a hold. If you are reinvesting something back in and taking the income then its a hold. The compounding effect is real it just take a lot of time to show itself. If you don't believe in Bitcoin or Coinbase then you should most likely get out of it. I feel its more of a hold and take some income.
@@Income_Architectthank you so much Brad for your valuable input. It’s a confirmation for me. I will cry for a while but now I know what to do moving forward.thanks so much,appreciated❤😊
Good episode ! I have no exposure to crypto for now, because I didn’t research on it either understand it. Would be nice to maybe take a 1% on MSTY or directly MSTR one day.
It is totally fine not to understand and many of my friends are not interested in it. The ones that are interested are all about it. A small holding is best. Right now mine isn’t even 1%.
@@Income_Architect thanks for your insight, good content Brad!
MicroStrategy stock and its derivatives will outperform all of these, including native BTC. I'd like to see other fund managers like Neos or Roundhill come out with a MSTR fund as another option to MSTY.
I agree 100%. Nice to have options. Don’t forget REX has 2x leverage on MSTR just in case you want to gamble a little. But 💯 would like something to compare it to.
@@Income_Architect I'll consider it but maybe just a small amount. You buy at the wrong time and you get wrecked
Roundhill filed an application for weekly- pay single stock covered call ETFs. Microstrategy is at the top of the list. The application is in the SEC database. I am salivating waiting for the fund to come out. IMO Yieldmax erodes their NAV too much. I’d also like to see Kurv make an MSTR fund. They tend to sell a little further out of the money.
I know alot of people dont talk about the expense ration but MAXI expense ratio is 11.18, not .99 for MSTY. How does that affect your numbers also? Most people don't comment on the ratios but that is a significant amount of money per 1k- 10k$.
It does not affect my numbers at all. All numbers and calculations are after all expenses. MAXI gross expense ratio is 11.18. But if you read their prospectus the actual management fee is 0.85. You have to learn to understand how these are both calculated. They have to report gross this includes any expenses from the underlying holdings. They only charge 0.85. You see this more commonly when a funds holds other funds as the underlying assets. You will find that expenses are related to interest expenses expressed as a percentage.
I'm not sure if this is the right call but I'm going with MSTY/CONY and then IBIT because it doesn't seem like BITO/YBIT/YBTC makes sense when you can just hold MSTY. Am I off base guys?
No its not. But the its bitcoin ETF not MSTY or CONY review. I just did a followup review on both of them.
Brad, I have a bit of a complex question I am just putting here in case you want to address it in a video. I think it would be an interesting topic. Many people like myself have used a margin strategy where you buy unstable high yielders like IWMY or MSTY or even TSLY and let them flow cash down onto the margin debt. You pay off the margin debt over time while the capital erodes. Meanwhile, you buy more stable yielders like FEPI or XDTE or SPYT or SVOL and those dividends are the ones you reinvest into themselves. So you sacrifice NAV-unstable funds to margin debt while compounding more stable funds. But looking at your videos I have seen you a few times mention the power of compounding the more unstable funds over time. I wonder if this approach is backwards. Is it better to reinvest and compound a NAV unstable fund while using smaller yielders to service margin debt?
Sorry for the long wait, but you asked a very interesting question. All your comments have been very interesting and I truly appreciate the interesting comments and questions.
The method you are using has been working and a common method and it works. I would mess with something that works. I do question some of the funds due to taxes like IWMY. But IWMY is actually a winning strategy. You just have to deal the NAV. IWMY would be great in tax deferred account.
If you take MSTY, the compounding $2,000 turns into $62,415.92 in 5 years. Assuming that NAV stays constant but even with some NAV erosion and call 50%. $2,000 turns into $31K.
Now my comments on compounding has to be placed into context. Take my $500K Covered call portfolio. I will be taking my 8%. What I don't tell people or what they fail to realize as long as the NAV is stable or slightly increasing that $500K turns into $1 million in 7 years and $2 million by the time I am near RMD and that is just my covered call section. This is with me taking my 40K per year. If the market takes a down turn the more shares I will get to collect and it only increase the amount of income received in the long term. In the short term their will be a decrease. A lot of people are looking at next week. I look at now and when I turn 59.5, 62 and 65 and when I reach RMD age. (73 for me). They fail to realize the tax bomb that comes with RMD. Most likely you don't have this in Canada. I actually need to retire now 56 almost 57 and start my distributions or at 73 I will get hammered with taxes. Between 59.5 and 62 I need to move a lot out of my IRA and into a taxable account. Just to give you a hint of how this works for me. If I didn't start taking my distributions at 73 I would need to take $200K to $300K a year out assuming a 10% growth rate and pay the federal taxes per taxes on those distributions unless they change the tax laws. That is why I stepped away now so I can start withdraws and live my life on my terms. At 73 if they don't change things I may still have to take larger distributions then I want to. I bet not many at the age of 56 look at the RMD section of their life. Now I could do back door Roth conversions or just retire and enjoy life. I actually worked with a certified tax professional and a Financial planner (Personal Friend) to run some of these numbers.
@@Income_Architect we do in fact have a similar tax bomb in Canada, where people do not understand that their Retirement Savings Accounts are NOT tax-free but tax-deferred and suffer suchlike problems. I am clearer now on the compounding effect you are talking about with a fund like MSTY (barring issues like MSTR going bankrupt) because what you say here is much clearer than what I’ve heard you say elsewhere. Thanks for your thoughtful comments and taking the time to answer my question in such detail!!!
I rather understate things than over state things. Thanks for letting me know about Canada. The other issue is our social security. Once I start taking it I will have to reduce my IRA withdrawals and that time bomb 💣 starts ticking.
Also, since BITX is 2x, the IV on the options is also about 2X.
So true but also twice as risky.
YBTC will be switching to options on the spot ETFs instead of BITO when they become available. (I personally just buy the underlying bitcoin and MSTR as my core holdings though).
I was wondering about that. But you’re right Bitcoin and MSTR are a better bet.
(Source: I emailed them and they sent me a link to an updated prospectus)
Excellent shirt today Brad. Video? what video?
That was month ago. I don’t know what you’re talking about.
Brad .I know you don't really like BITO but I just bought very small position at 16.75 if it drops ill dca for the distribution/yield and have it in my 5-year portfolio not income now. Do you think its a good position for long term distributions?i know you were big int it years ago. I have a larger position in MSTY but it does have an underline stock it follows
so this way I have both sides of bit coin which I feel 5/10 years from now it will be Huge. What are your thoughts
Only if you are writing option on it.
@@Income_Architect I've never sold options so so puts ?
Mr.Brad...i got 1500 shares (21.51$ cost basis)of BITO.. is it a good time to buy MSTY for the long haul, since u mentioned that it's the winner...ty for feed back ❤ ur channel
Only showing the data. Thanks for watching.
I bought my first 100 shares of BITX and immediately sold a call for next week on it. We’ll see how this plays out
If you go out about 30 days on BITX, you can get about a 10% premium on at the money covered calls.
That is another one I did not add to the list. Another nice play if you are into Bitcoin.
@@edbrandt8972agreed, but I am taking smaller bites to start with shorter time frames to start. Might do the 30 day next time. Thanks for the input
gave myself 100k in BITO for Christmas
That is a nice Christmas present.
If btc behave the same as last 3 halving cycles then btc should have a bull run until Oct-2025. Have msty in my portfolio and results are great.
I see you follow the same charts. I think it will be shorter this time but you never know. Having a plan is the most important part. Don’t forget to take profits. In my case with MSTY. I plan on taking profits next cycle not this cycle. That is why I call it a 5 year plan.
@Income_Architect Yes, I'm planning on taking profits (msty) one hits close to 40.
@@ifern4545 Nice, going hold mine to next cycle. Lots of RUclips videos between now and then.
👍
Thanks
Name dropping seeking alpha , and no affiliate link ! You’re giving them free advertising, why not collect a little in return? Also I’d start an Amazon store category for plaid shirt collection! 😊
Coming soon! I have been working with them to get my link. I will ask my wife about the story. She is in charge of that.
Good video. Personally, I'll stick with buying BTC as the yield is tax-free compared to the others (unless in a tax advantaged account of course). Also, with a primary dealer like Cantor Fitzgerald getting involved and BNY Mellon (the first company ever listed on the NYSE) now approved to custody BTC it's only a matter of time until we can get yield on our BTC in a non-rehypothecated multi-sig setup. Imagine loaning your BTC at a time when it's near its 200 day moving average. Theoretically, you could then use the buy , borrow, die strategy. I'm getting ahead of myself, but the future looks very bright for BTC.
Mining my own Bitcoin. Holding it a cold wallet.
Agreed that MSTR is basically a leveraged play on Bitcoin. So MSTY would be same. Are you planning to hold MSTY long term or swing trade and sell at a high point maybe next year? Would it not just be easier to hold MSTR vs having to reinvest income from MSTY each month? Not sure I understand value of the income for this play unless you really need it to live on. Maybe I am missing something. Also, do you think MSTR is a decent buy at this point or has the boat sailed?
Hold MSTY to the next halving and reinvest everything back into it for the next 4 years. Yes it will go up and down and might have a reverse split but I feel in 4 to 5 years knowing there is another halving. The income at that point might just pay for everything. If I was going to swing trade I would use a 2x leverage product. Such at REX.
If you are one that thinks Bitcoin is going to a million, then BITX should be in your portfolio.
Most likely a good trade if you think 🤔 that is the direction.
Why BITX? I’ve been trying to look up best options vs just straight buying bitcoin. I was just worried about missing the same growth as actual bitcoin.
@@chicarbiomed 2x leverage
@@Income_Architect :-O I’m messing with TQQQ right now and so far so good. BITX will be right up my alley then!
But the M2 money supply needs to be exponential to prevent a global economic collapse. So gold, silver, and bitcoin could also go exponential. Bitcoin is still risky because governments could make it illegal. If people are buying BITO I would recommend selling covered calls on half of the holdings.
Great advice 👍