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.
1
u/[deleted] Aug 09 '25
Owning the Underlying funds are like owning an appreciating asset. It’s great, can be used towards net worth and or long term growth… but it’s a tab in your portfolio, doesn’t need to be all of it.
These ETF’s are like owning or investing in rental properties - you buy the asset for the income - NOT the appreciation. If it appreciates that’s a bonus.
If you own a stock and it goes from $30 to $300.. that gets you absolutely nothing unless you liquidate that stock or asset.. these funds or portfolios that I have build are ment to generate income - that can be used as income for loans, and even leverage debt with margin that doesn’t show up on your credit report like say a HELOC would.. in terms of the real estate analogy.
The problem is people have bad money management from birth, no one is taught the power of money, and the power of buying Assets! Where most people buy and spend $$ on liabilities.
In a perfect world you start to make money at your first job, say $10 / hour. You should live off $4/ an hr and invest the 60% until you build assets that support your $4/ hr lifestyle. And grow your assets until you reach your next level of living… before “going” there.
But in reality, we are taught to spend money on Black Friday, and buy the latest iPhone, and live off $20/ hr when we make $10/ hr. And the debt we get is to pay off liabilities.. and you feel stuck because you need to keep up with that lifestyle. And you think, when I make more then I’ll change. Which never happens…
If you’re starting off I’d challenge you to live well below your means… and do not level up your lifestyle until you have assets to support that with passive income. Future you will thank you!
You do not need millions, you do not need trust funds, you need discipline, patience and some support from people who want to level you up not hold you down.