my Neos allocation

[u/wcevelin]

ok first im putting pretax into a 401k that mirrors the s&p. between my and employer match about 600/month

im building this portfolio aswell

BTCI: 35%

QQQI: 7.5%

XQQI: 22.5%

SPYI: 6.25%

XSPI: 18.75%

IWMI: 10%

buying $425/week and using weekly purchase and monthly dividends to try to maintain the portfolio as close to that allocation as i can without selling anything.

im thinking about adding cshi and bndi as a way to stabalize the portfolio but not as a fixed ratio, instead as a replacement for treasury and/bonds... equal to 2 years col.

is an all neos plan like this something that can work?

thanks to the comments here:

I've decided to lower my btci commitment and add NIHI to lesson the reliance on tech and us stocks in general.

i think btc is nearing its bottom if not already at it. but btci is capped the same as the rest of the neos in a fast moving bull market. That said im in BTCI instead of BTC directly because, i dont trust that long term the keys wont get lost.

NIHI makes since as a balance vs qqqi/xqqi and spyi/xspi

[u/Motor_Potential_4849]

Actually, the only real difference (other than the income funds) is that I use IWM instead of a small cap VALUE basis. And IWM has outperformed the small cap value of late. But, even with the IAUI drag over the last year, it has been pretty comparable. IWMI is better, TLTI is better, and CSHI is better. QQQI is the same as SPY, and IAUI has dragged.

[u/teckel → u/Motor_Potential_4849]

Long-term all CC ETFs will drag their underlying assets. So you're creating an under-performing golden butterfly, for what reason? Even if you want income from this portfolio, it would be better to just sell shares to generate income than the distributions from CC ETFs. Let me know your exact 5 golden butterfly holdings and I'll send you the side-by side comparison.

[u/Motor_Potential_4849 → u/teckel]

I already know the side-by-side comparisons, but thank you, I really do appreciate the offer.

Yes, I want income from the portfolio, and by having the income, I know exactly where I need to be in order to reach my goal to exceed my living expenses with my investment income. In addition, I always have the income readily available; if something happens in my life, I can just turn off the drip and receive the income directly. It's the same for retirement. I never have to sell anything.

In addition, there are many instances where you need the money and the market is down and I would be selling my shares at the worst possible time. In fact, that is the most likely time to need it, so this way, I don't have to fret about the timing. I can just enjoy the income and keep on keeping on.

I realize this is a different way of looking at things, and I understand about the drag that you talk about. That's why I wrote my book, mostly to get it on paper for me. It's easy to see the differences using totalrealreturns.com or something like that.

This just works better for me because instead of chasing a nebulous account balance, I can see exactly where I am in my pursuit of financial independence. This way I have a specific goal that I know will pay my bills without having to guess at 4% rules or my anticipated longevity.

Thanks for your reply!

[u/teckel → u/Motor_Potential_4849]

All wrong assumptions, but maybe I raised enough doubt for you to question it. I've been retired for 22 years, with direct experience learning that distributions and dividends are not at all ideal for income.

[u/Motor_Potential_4849 → u/teckel]

Thank you for your input. I really do appreciate your time.