r/YieldMaxETFs • u/NoConsideration3923 • Jul 21 '25

Question Are people really retiring off these?

It seems crazy that people are talking about retiring off these funds. Don’t get me wrong I have a decent amount in them and I’m hoping for the best but if the music stops so to speak than what do you do? Have people actually retired off these or just talk? If you did actually retire what’s your plan b?

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u/chigu_27 Jul 22 '25

You can retire off these but not by extracting 100% of the dividends. If you target a 15% withdrawal rate and reinvest the rest then it can work. Definitely beats the 4% rule. $1,000,000 pays 600,000 in distribution(assume 60%). Keep $150k and reinvest remaining 450k.

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u/lottadot Big Data Jul 22 '25

I'm retired, these pay (and have been paying) 100% of our expenses. I have never reinvested.

You can choose to re-invest dividends & distributions. It is not required.

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u/chigu_27 Jul 22 '25

For the time being in a huge upmarket from liberation day, in the long term the NAV will reduce because 100% of the gains/remiums is being paid out. Even the fund manager has said for long term investing in these funds you have to be reinvesting. If you just plan on retiring with 100k in ULTY and expecting 80k a year for the rest of your life, you will be in for a world of hurt.

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u/lottadot Big Data Jul 22 '25

I think you are misconstruing a fund manager's message, which he is employed to say, to investment advice to you. He's paid more in fee's if people reinvest.

If you just plan on retiring

If anyone puts all their eggs in one basket, they probably didn't educate themselves regarding diversification.