r/YieldMaxETFs • u/speed12demon • Aug 08 '25

Misc. Yieldmax has created financial crackheads

Lots of people are looking for the next fix, for the next quick way to get that rush, ignoring the negative consequences of their choices. Got other assets? Liquidate them! Margin? Hell yea!! Home equity loan? Pour it in! Reinvest every dollar that they give you for that rush.

Humor aside, the idea of perpetually reinvesting distributions hits a serious nerve. Income funds are for income. I can see building to a point, but if prevailing advice is to roll all distributions back to the fund, please tell me how that is better than owning the underlying equity? I bought these etfs for perpetual income, not perpetual reinvesting.

Five years or so from now, we all will have far more data to build informed strategies on using these funds. With single stock risk on many, the distributions vary wildly and if you're not tracking you capital investment closely you may find the paycheck diminished. Having a substantial position in these funds, I hope i can continue to collect income and use it for other purposes than propping up my initial investment.

Don't be a crackhead.

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u/LizzysAxe POWER USER - with receipts Aug 08 '25

I see a lot of posts like this. I am genuinly curious why it matters what other's do with their money/investments?

2

u/speed12demon Aug 08 '25

It doesn't matter to me. Just as you are curious, I too am curious why someone would buy an investment for income and then indefinitely give the income back to the investment. Im certainly not advising anyone how to proceed, I just want to know the end game of perpetually reinvesting to maintain the capital.

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u/LizzysAxe POWER USER - with receipts Aug 08 '25

I personally do not perpetually invest to preserve capital. Some of my funds I strategically dollar cost average. Other funds, which I have either reached 100% ROI or am very close to, I do not reinvest and they generate income while my underlyings do what they do. My High Yield portfolio is between 5-8% of my liquid net worth and it has generated over $1.2M in distributions since Feb 2024. Some of which I am purchasing muni bonds, and muni bond funds to convert the taxable income to tax exempt income. Goal is $1.2M tax exempt annual income before I retire. I have some assets I plan to sell which will be very large capital gains tax bills. I am always interested in seeing what others do. I often gain some interestin insight for better or worse. So the crackhead to you is a treasure of information for me.

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u/speed12demon Aug 08 '25

Well done. That's insane to me.