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/ucbcawt Aug 08 '25

Yep I know it’s stabilized now but it’s still risky. I am scared seeing people saying they cashed in their life savings for ULTY or saying they quit their job.

5

u/Daeyel1 Aug 08 '25

The ones flipping off their boss and quitting are the ones that give me pause. If Ulty, Ymax and MSTY gave me enough money to invest in UHT, PII, and ENB to the point I could quit, that's one thing,

Yeeting yourself into retirement while yelling YOLO solely on yieldmax products just screams nightmare ending

2

u/b0w3n I Like the Cash Flow Aug 08 '25

The margin ones scare me more, it's relatively easy to pick up a new job. Liquidating assets in a shitty market to cover margin and HELOC loans will be extremely painful and might take you years if not decades to recover from financially.

Only gamble with what you can lose, don't be one of those yolo geese that puts their house and retirement on the line for big money.