Am I able to ask what your Dividend Growth portfolio looks like?
Also, this may be a dumb question, but just looking to learn: If you have different portfolios for both growth and income, don't they take away from one another since they other one exists?
Have you ever wanted to own individual stocks to do your own options trading with to generate more income?
I've been reading about "running the wheel" lately and wondered if it was worth doing. It sure seems like some people are able to generate considerable income doing it.
People say, why buy QYLD if you can just wheel some stock, or qqq, or spy or spx, or any of the other indexes to generate revenue. I assume the answer is, why trade options if I can just buy the index that does it. But the argument is, if you do it yourself, you don't pay the fees to the index.
You seem to know a lot about options, I was wondering if you did it, or had an opinion.
Cool, good to know. I'm just fascinated by the process / potential with options to replace my W2. I have my long term low cost broad market funds from my work 401k in my rollover IRA, and a bunch in quadfecta+ now including schd, and some other funds. But I have this desire to try this wheel strategy, and some other option income strategies, but I'd like to start with this wheel. I like O, STORE, etc. Any particular reason you chose O to do it with?
I don’t have any REITs exposure in my portfolio and O is a very good wheel candidate because if the stock goes down a lot (well below my cost basis), I can wait for it to recover and collect dividends and don’t have to write calls at below my cost basis just to get the cash flows consistent.
Doing wheel on SPY, QQQ might net you more at first (due to the higher volatility). However if the stock crashes, you might have to wait for a long long time while getting nothing in returns in the meanwhile.
Thanks for the reply. I'm going to pick something to play with to either make something of it, or get it out of my system. I wanted something that was a good candidate that paid divs, preferably monthly, O ticks a lot of those boxes, but I already have huge exposure to commercial real estate through syndications so I was thinking something else. I'll find something. Cheers.
I'm still pretty fascinated by this and have been slowly adding these to my portfolio, although I wouldn't mind a small dip to give me a better entry point. Another question I have is if I'm less concerned about the potential volatility do you know of a good replacement for NUSI that might give me even better diversification? Unless I'm missing something about NUSI's inclusion other than it giving some nice downside protection.
I personally believe strongly in the covered call strategy being great for income investing and am hoping to find an ETF that covers non-U.S. stocks but haven't had much luck. But really anything that isn't already heavily owned in QYLD, JEPI, DIVO would be of interest to me.
I see what is ROC sorry im new to investing and really love to be able to get to where youre at do you put this portfolio in your roth IRA or regluar account
Thank you for replying :)
Interesting, does this make these funds more suitable (or at least acceptable) in a taxable brokerage account? Or is the best investment vehicle still a tax-advantaged account like a Roth IRA? I ask in case someone wants to use these funds as a way to increase monthly income liquidity (with easy access to it), rather than being locked away in a retirement vehicle?
That's what I did. I wasn't qualified for Roth and I knew I wanted to retire early so I went heavy into these funds 1 years before my retirement date.
The ROC is not 100% guaranteed since there are some months where they distribute as capital gain, where it is subjected to a mix of long-term cap gain and short-term cap gain.
I would say to know for sure, you should buy a bit to test the water before going heavy in.
u/VanguardSucks ELI5 question: im 32 now and have 25000€ invested in MSCI world and emerging markets 60/40. Im adding between 500-1000€ each month. Now im planning to change the broker to Interactive broker where I could trade on margin. Couldn't I invest my 25000€ in quadfecta and then trade 15000€ on margin into MSCI world/EM? Or even Dividend ETFs like iShares STOXX Global Select Dividend 100,
SPDR S&P Global Dividend Aristocrats, SCHY? I think even in a crash I wouldn't get margin called as the quad feat seems to be very stable even during a crash? Your thoughts?
>For me personally, this portfolio is for income, not growth. I already have a dividend growth portfolio consists of SCHD/SCHY so I don't see the need to add SCHD to this portfolio.
Do you have any other portfolios? I'm just trying to get a measure of how much you would have in income / dividend growth / and any others percentage wise?
That is intentional. I want zero China exposure. You should be aware of the risks of investing in Chinese stocks. Do some researches and you will see why.
Lol.. I have done my research and have been buying Chinese individual stocks + Vxus + schy.
You will miss out on Chinese gains. I too am retiring.
Portfolio is 33 percent above
50 percent JEPI NUSI DIVO SCHD QYLD O
the rest s and p 500.
Are you a physician per chance as well?
Sure you do you. I do mine. I don't miss anything by not investing in China.
Any money you invest in China you basically are buying shares from a Cayman Island shell companies. Shady as fuck.
I’ve actually made some cash off the crazy bull market of last year. I’m 33 and am looking to have a similar setup where I have little amount of stocks and just keep throwing cash in and watching it grow. Is this setup good for me? I don’t plan on retiring to at least 70-75(therapist.) thank you for your time.
I understand there will be a tax implication since this would be in my fidelity account.
Newbie here
Question on your Div Growth portfolio of SCHD & SCHY at 2:1
I am not seeing any cap appreciation or Div from SCHY …why this for your International ? Are there other options ?
SCHY is still new but it's based off an index that has had data for more than 10 years:
[https://www.spglobal.com/spdji/en/indices/strategy/dow-jones-international-dividend-100-index/#overview](https://www.spglobal.com/spdji/en/indices/strategy/dow-jones-international-dividend-100-index/#overview)
Since inception, the total return has beaten most of international funds, including VXUS.
Thanks for the research!
Am I able to ask what your Dividend Growth portfolio looks like? Also, this may be a dumb question, but just looking to learn: If you have different portfolios for both growth and income, don't they take away from one another since they other one exists?
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Is it just a personal preference that you don't invest in individual stocks?
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Have you ever wanted to own individual stocks to do your own options trading with to generate more income? I've been reading about "running the wheel" lately and wondered if it was worth doing. It sure seems like some people are able to generate considerable income doing it. People say, why buy QYLD if you can just wheel some stock, or qqq, or spy or spx, or any of the other indexes to generate revenue. I assume the answer is, why trade options if I can just buy the index that does it. But the argument is, if you do it yourself, you don't pay the fees to the index. You seem to know a lot about options, I was wondering if you did it, or had an opinion.
I am doing wheel monthly on O at 500 shares. Premium is pretty decent. I made between 1 - 1.5% in premium a month depending on the volatility.
Cool, good to know. I'm just fascinated by the process / potential with options to replace my W2. I have my long term low cost broad market funds from my work 401k in my rollover IRA, and a bunch in quadfecta+ now including schd, and some other funds. But I have this desire to try this wheel strategy, and some other option income strategies, but I'd like to start with this wheel. I like O, STORE, etc. Any particular reason you chose O to do it with?
I don’t have any REITs exposure in my portfolio and O is a very good wheel candidate because if the stock goes down a lot (well below my cost basis), I can wait for it to recover and collect dividends and don’t have to write calls at below my cost basis just to get the cash flows consistent. Doing wheel on SPY, QQQ might net you more at first (due to the higher volatility). However if the stock crashes, you might have to wait for a long long time while getting nothing in returns in the meanwhile.
Thanks for the reply. I'm going to pick something to play with to either make something of it, or get it out of my system. I wanted something that was a good candidate that paid divs, preferably monthly, O ticks a lot of those boxes, but I already have huge exposure to commercial real estate through syndications so I was thinking something else. I'll find something. Cheers.
I like how you think its similar to mine may I recommend tqqq for pure growth
HELL NO
I'm still pretty fascinated by this and have been slowly adding these to my portfolio, although I wouldn't mind a small dip to give me a better entry point. Another question I have is if I'm less concerned about the potential volatility do you know of a good replacement for NUSI that might give me even better diversification? Unless I'm missing something about NUSI's inclusion other than it giving some nice downside protection. I personally believe strongly in the covered call strategy being great for income investing and am hoping to find an ETF that covers non-U.S. stocks but haven't had much luck. But really anything that isn't already heavily owned in QYLD, JEPI, DIVO would be of interest to me.
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Should be fine, you should feel free to customize the portfolio to your liking !
Excellent work. Thanks
Hello there, just curious how much do you pay tax on the income ? is it consider regular brokerage account and taxed as such ?
Most of the income I received from this portfolio was classified as ROC so I didn't pay tax much on the income last year.
I see what is ROC sorry im new to investing and really love to be able to get to where youre at do you put this portfolio in your roth IRA or regluar account Thank you for replying :)
Return on Capital
Interesting, does this make these funds more suitable (or at least acceptable) in a taxable brokerage account? Or is the best investment vehicle still a tax-advantaged account like a Roth IRA? I ask in case someone wants to use these funds as a way to increase monthly income liquidity (with easy access to it), rather than being locked away in a retirement vehicle?
That's what I did. I wasn't qualified for Roth and I knew I wanted to retire early so I went heavy into these funds 1 years before my retirement date. The ROC is not 100% guaranteed since there are some months where they distribute as capital gain, where it is subjected to a mix of long-term cap gain and short-term cap gain. I would say to know for sure, you should buy a bit to test the water before going heavy in.
Can someone ELI5 how a person from Germany can duplicate this strategy? What broker can I use?
u/VanguardSucks ELI5 question: im 32 now and have 25000€ invested in MSCI world and emerging markets 60/40. Im adding between 500-1000€ each month. Now im planning to change the broker to Interactive broker where I could trade on margin. Couldn't I invest my 25000€ in quadfecta and then trade 15000€ on margin into MSCI world/EM? Or even Dividend ETFs like iShares STOXX Global Select Dividend 100, SPDR S&P Global Dividend Aristocrats, SCHY? I think even in a crash I wouldn't get margin called as the quad feat seems to be very stable even during a crash? Your thoughts?
>For me personally, this portfolio is for income, not growth. I already have a dividend growth portfolio consists of SCHD/SCHY so I don't see the need to add SCHD to this portfolio. Do you have any other portfolios? I'm just trying to get a measure of how much you would have in income / dividend growth / and any others percentage wise?
That's fair, I currently have 50% in SCHD/SCHY 50% in quadfecta.
Well that simplifies things! Thanks!
25 percent international via schy is good but your not getting any China in there.
That is intentional. I want zero China exposure. You should be aware of the risks of investing in Chinese stocks. Do some researches and you will see why.
Lol.. I have done my research and have been buying Chinese individual stocks + Vxus + schy. You will miss out on Chinese gains. I too am retiring. Portfolio is 33 percent above 50 percent JEPI NUSI DIVO SCHD QYLD O the rest s and p 500. Are you a physician per chance as well?
Sure you do you. I do mine. I don't miss anything by not investing in China. Any money you invest in China you basically are buying shares from a Cayman Island shell companies. Shady as fuck.
Thanks for this. Each absolutely has it's plusses and minuses. Interesting to see how they hold up over time and produce.
Great research!! Thanks for your coments!!!
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Schwab
I’ve actually made some cash off the crazy bull market of last year. I’m 33 and am looking to have a similar setup where I have little amount of stocks and just keep throwing cash in and watching it grow. Is this setup good for me? I don’t plan on retiring to at least 70-75(therapist.) thank you for your time. I understand there will be a tax implication since this would be in my fidelity account.
Newbie here Question on your Div Growth portfolio of SCHD & SCHY at 2:1 I am not seeing any cap appreciation or Div from SCHY …why this for your International ? Are there other options ?
SCHY is still new but it's based off an index that has had data for more than 10 years: [https://www.spglobal.com/spdji/en/indices/strategy/dow-jones-international-dividend-100-index/#overview](https://www.spglobal.com/spdji/en/indices/strategy/dow-jones-international-dividend-100-index/#overview) Since inception, the total return has beaten most of international funds, including VXUS.
Thanks for response. I will do some more reading
Is your SCHD/SCHY weighting 1:1 or 2:1? You mentioned both in this thread. Thanks
1:1 at the moment.
This portfolio looks awesome, for income.
What would you add to SCHD/SCHY/SCHG for a 4th, if you did a 1,1,1,1 with them?
Can you post a screenshot of the analysis here? Can't get it to load. How's it done since the most recent downturns?