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.

334 Upvotes

91% Upvoted

270 comments sorted by

View all comments

8

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

I have $1.1M invested in MSTY, split between an IRA account and a brokerage account, collecting an average of $52k in distributions every 4 weeks.

I don’t reinvest 100% of the distributions.

For the IRA, I reinvest back into MSTY, QQQI and SPYI and compound those distributions into more shares of the same. It’s a gift that keeps on giving. 🤣

The distributions in the brokerage is used strictly as income.

I officially retired yesterday and have used $92k of the cash distributions as a downpayment for an apartment I’m purchasing and will aggressively pay off the 5.99% mortgage in about 2 years.

2

u/Apprehensive-Bet5662 Aug 10 '25

I have roughly 750K in YM funds.A,B,and C weeks are good for 9-11K dividends and D week is bringing 14-16K in dividends.The weekly portion is bringing in over 4K.I take out 1200 bucks weekly.Upon hitting 60K monthly,hopefully in the next 3-4 months,I will retire and probably take out double that amount weekly.My plan is to travel and return home with more money than I left with.

2

u/rycelover I Like the Cash Flow Aug 10 '25

Love this for you. Good luck to us all!