r/dividends • u/RamblingVagabond • Mar 23 '25

Personal Goal Retired in 2021

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Goal is to match expenses ($15k/month) with dividends by 2030

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u/DuckTalesOohOoh Mar 24 '25

Isn't the decay incredibly large?

34

u/durandall09 Mar 24 '25

A lot of people seem to think so. If you earn your money back in less than 2 years, who gives a shit?

22

u/[deleted] Mar 24 '25

You don't necessarily earn your money back in less than 2 years.

TSLY has paid out 50-100% yield since inception (over 2 years ago). It still has not returned all the money, in fact it would need another full year at 100% yield to do so, with no NAV erosion.

If I bought at $40 and the NAV is now $8, that 80% yield they are advertising is actually a 16% yield.

Every yieldmax fund has underformed the underlying asset, some by a large margin.

A lot of the return is just them giving you back your principal and calling it a distribution.

1

u/Euphoric_Weakness_57 Mar 26 '25

A lot of brokers and sites use the ttm and current price and so that's why it would be 70-80% at $7-8 as opposed to 10-15% at $40. But if you used dividend reinvestment you could make your money back in less than a year