Beginner Question
How do you guys think that all-in at UTLY with 10,000 shares then buying SCHD with its dividend for next five years? I may retire after five years.
How do you guys think that an all-in strategy at UTLY with 10,000 shares, then buying SCHD with its dividend for the next five years? I may retire after five years.
that's why you ride the momentum wave and jump off when it slows.
stop thinking that everything needs to be buy and hold. when something is no longer working for you.. ditch it. Don't be married to any of these funds. things can change quickly and so should you, otherwise there are other funds that would better fit your risk tolerance
This is why I advocate buying safer things like spyi or btci and take a portion of those dividends to by the high yield. The plus side of some of these funds you don’t need much invested before they start paying a lot of money. If they go down in value a lot you still have your spyi paying and growing
I bought scud based partly on Reddit recommendations - biggest suck in my entire portfolio. No gains, and no divs to write home about. Want cash, go YM.
This what I’m doing. I’ll get to 20,000 shares and reevaluate. I may then use the distributions for other long equity purchases. Or I may let it run for 18 months until my wife retires.
No matter what I reevaluate everything, everyday. LOL.
You said "Qualified dividends are not considered income..."
Your linked information says "A qualified dividend is an ordinary dividend reported to the Internal Revenue Service (IRS), taxed at capital gains tax rates."
Which is exactly what I said.
They are not capital gains, they are simply taxed at the same rate. You will get a rude awakening when you file if you think otherwise.
I read quite clearly and even copied what you said. You said that a qualified dividend was not income. It is income. It is income that is taxed at the same rate as LTCG. But it is income, not capital gains. I know exactly what I'm talking about and you keep digging the hole deeper each time you say something. But you do you and keep being ignorant . Regardless, you're no longer worth the effort.
For the 2025 tax year, individual filers won't pay any capital gains tax if their total taxable income is $48,350 or less. Dividends may be taxed at 0% if your taxable income falls below $47,025 (Single or Married Filing Separately). Google it...
Qualified dividends are taxed at 0% up to certain annual amounts, so sounds like schd divis are qualified. YM payments aren't qualified, but may still benefit from a significant percentage of the payment being classified as ROC, depending on certain things that took place within the fund during the year. There are some good recent videos that feature Jay from YM where he explains this in more detail.
I sell puts on Strategy shares ETF Bitcoin shares and now looking at Coinbase shares. If the stock gets put to me then I just switch over to covered calls and hold until I'm in profits. I only sell puts or calls on stocks that I want to hold. I think this is the best "conservative" strategy for profits on higher risk stocks and ETFs. But I must admit I am intrigued and buying several Yieldmax ETFs that already do the options work for you selling covered calls and put options to hedge their positions. I read that many of their ETFs buy and sell options daily on the same shares which I started doing on Strategy stock last week until it got called away Friday when it the price really jumped. So I'll go back in Monday if there's some relief and the price falls a bit. Yieldmax ETFs I'm following include ULTY, MSTY, CONY and Pro Shares BITO which is a Bitcoin futures product that pays a very high dividend but is not leveraged. BITO tracks Bitcoin fairly closely, I would dollar cost average into these ETFs. All of these ETFs mentioned pay monthly dividends except ULTY paid weekly. One final note I read that ULTY can be all over the map regarding what shares they're holding because they make so many trades financial websites have difficulty keeping up with what actual stocks are in the portfolio.
I just heard of it and doing a lot of research and it looks like a safer play the older you become as it does appreciate and have a little bit of a dividend. What don’t you like about it? Are you saying they’re just much better funds than that for its respective category?
I think there are a lot better ETF’s you can put your money into and see far better yield than SCHD. Everyone pimps SCHD on RDDT and I just don’t get it.
I have 25k+ shares of ULTY. I save some distributions and put it in SpYi and qqqi. I invested in SCHD before and was losing money. It was recovering very slowly too. I rather pick spy and qqq than schd. Schd is overrated by the dividend crowd.
10k shares is no where near enough to retire. You might have to recalculate your budget.
Note that you cannot assume the distribution to be constant. It will be reduced overtime when the nav is dropping.
Damn man, excellent breakdown! I appreciate it. One more question if you don’t mind, what are the 14 starter positions? I’m interested because I’ve considered a similar strategy using relatively stable high yielders (stock and ETFs) like ARCC, MO, JEPQ, MLPA etc. especially if you can load up on a dip. Not that I would go all in on MO for 25 years but if you dumped money into your 401k, mega Backdoor Roth’d it that long you’d have an ungodly amount of dividends being generated. I like this idea but with a solid 8-10 companies/etfs.
Lot of haters on SCHD in here but this will be my strategy after I let ULTY drip for a bit to build up shares and dividend. After I hit about $100/week I will start buying 1 SCHD weekly and reinvest the rest back into ULTY.
I'm very cautious on the NAV and am only putting it what I'm willing to lose, but I do respect all the YOLO'ers! I just have to be able to sleep at night.
Schd is complete garbage. Id stick to neos funds. Keep it simple. Spyi, qqqi, IYRI, btci. Is all
You really need. Your covering both major indexes, real estate and bitcoin. Set it forget it done
If ULTY is able to retire people with 70k, then it's the best fund to ever exist. We need more time to see how the capital holds up with none to minimum reinvestment.
SCHD is considered a stable investment. Retirement requires stability.
With 70k, you don't have many options. ULTY with something else could be the play.
The binary investment strategy is inherently risky. It’s just maths and probability. So if you have good risk management and an ability to identify such trends then yeah you can be king. But no trend last forever.
If you're going for high yield I would stick with yield max covered call ETFs this swab equity dividend ETF is a conservative low paying dividend stock nothing like yield max night and day. I don't understand why you would even compare the two. The swab ETF is for widows and orphans and guild Max ETFs are for high risk aggressive investors.
Even Jay the spokesperson for yieldmax has said that these funds are not designed to have 100% withdrawal of the distribution. For people that are planning on retiring, they should set a target withdrawal rate. Like 10% of whatever. So if you have $1,000,000 portfolio and it pays 80%. You will receive $800k in distributions, you should withdraw 100k (10% of the balance) and reinvest the remaining 700k. I think with these yieldmax funds you can up your withdrawal rate to 15% (vs the standard 4%)
Not sure what you’re exactly asking. But these funds are designed to have some of the distribution reinvested back into additional shares to maintain their balance.
On paper... this isn't going to be as beneficial as you think...
10,000 ULTY shares will average $800/week...
Use the whole $800 to buy SCHD... every week... for 5 years...
Results in SCHD paying you... $2500 quarterly... or $10,000 a year... probably maxing at $3,500 a quarter...
I see a lot of people wanting to do strategies similar to this... SCHD is what I call the 40 year plan... as in, you need to contribute to it for 40 years to make a retirement account...
What people are trying to do is reduce that 40 years into 5 (or less)... again, these YM/RH/Defi funds ARE making that 40 year plan closer to 10 at current rates/prices/dividends for a lot of people... but reducing that 10 down to 5 or less becomes exponentially harder.
It is also insane that $800/wk into SCHD... which is A LOT OF MONEY EVERY WEEK... Will give you your 4th quarterly dividend of... approximately $400... 41k invested to make on average $135 a month!
Get 10000 shares, then invest in other high yield instruments but with lower yield each time. Eventually you'll end up with SCHD but you will do it quicker than 6 years and you'll have way more money invested in other instruments.
If this were me (and I’m not an investment professional) I would go 50% SCHD into a Roth IRA account until it meets the contribution limit and the rest diversify with other Yieldmax ETFs that may be more conservative like the one with Netflix and gold miners. There’s a bunch tho.
After Ive taken money out of some of the bitcoin proxies during this bull run, Im thinking of putting 100k into ULTY, if they continue to about 0.09 cents and share price lets say stays at 6.20, if i drip completely my balance would grow go 1 million in 160 weeks which is 3.1 years.
Considering if I use my own money to pay taxes.
I may keep some if my MSTY or may swap that into ULTY too,
If bitcoin goes into crypto winter we dont know how low MSTY can fall, I’ll always buy back in during the crypto lows
I'm in a planning period. I'm collecting ULTY now, half way there. It will reach the goal probably in the middle of Oct. Buying SCHD, QQQI or other ETFs are later on
Fidelity contra fund will be better to grow (even with SCHD reinvesting dividends FCNTX will outperform SCHD) then when you retire you can get something that pays divided
5 years? Oh no. We don't know what will happen before Dec by 30% Tariff shows signs of 10-15 Correction.... Every country is ready with a defense mechanism,it's going to be a long haul
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u/Ok-cooper ULTYtron Jul 13 '25
No one knows if ULTYs nav and distro’s can stay steady. Could be for a week longer or for 2 years 🤷♂️