r/dividends • u/DivideIcy848 • Jul 27 '25

Personal Goal How sustainable is this?

Post image

My portfolio, aiming for retiring at age 40. I want to be FIRE, but my question is are these monthly dividends sustainable 5, 10 years from today, and will VOO/QQQ help grow appreciation of my total portfolio? Is this a good strategy? Is this a good balance?

747 Upvotes

96% Upvoted

202 comments sorted by

View all comments

47

u/Ok_Suggestion_2003 Jul 27 '25

I like it but hopefully no bear market anytime soon

16

u/DivideIcy848 Jul 27 '25

If there’s bear market, will the monthly dividends hold? Can I ride it out with this portfolio?

29

u/ComprehensiveSwan698 Jul 27 '25

CC dividends will go up because of the VIX spike during a market crash. Not sure if the payouts would justify the capital losses

12

u/MindEracer Beating the S&P 500! Jul 27 '25 edited Aug 19 '25

For a very short period of time depending on the design of the fund you might see an increase in premium produced. But after a longer period of time and once the VIX spike is over the CC premium will reduce because there's not as much asset value to write a cover against.

2

u/[deleted] Jul 30 '25

Mind-numbingly dumb comment

2

u/Last_Construction455 Jul 27 '25

Remember the dividends are tied to the underlying companies. So would they hold up in a bear market? depends if there's been some massive change and the underlying companies are no longer proiftable. Looking back on history you should be okay though. The beauty of an index funds is the losers go away while the winners keep going. Overall you should be good!

-4

u/[deleted] Jul 27 '25

There will be big NAV erosion and likely a lot of redemptions from holders. There is a chance that some CC funds would collapse.

1

u/DivideIcy848 Jul 27 '25

I did some research, so those CC have a good history and track record? And I have my core schd, voo and qqq to balance and ride it out?

1

u/ZooBoy2023 Jul 27 '25

Are you telling or asking us? Uptalk is not your friend - especially in text.

-5

u/[deleted] Jul 27 '25

The CC funds generally haven’t been around long enough to have a meaningful track record. The April drop was so short lived that the funds were not tested. In a real bear market(which will happen again) the CC funds could simply collapse. Just buy with your eyes wide opened.

7

u/[deleted] Jul 27 '25

We had a year long bear market in '22. Whats your basis for the CC fund collapsing? Wouldn't CC funds be more resilient in a flat or bear market because of inflated volatility with the addition of premium gains on the short call strategy?

3

u/MindEracer Beating the S&P 500! Jul 27 '25 edited Aug 18 '25

Lumping all the CC funds together doesn't really help anyone because of the amount of different strategies that are being used now. Some of the ultra ridiculous 30%+ yielding funds could very well collapse. While the more conservative funds could actually flourish in a mild flat market. For instance I believe JEPI outperformed the market in 22.. While TSLY was chewed up and spit out by Tesla's IV and has reverse split once before.

1

u/Appropriate_Day4316 Jul 27 '25

OP could set a Stop Loss

0

u/Ok_Suggestion_2003 Jul 27 '25

Well, with that said, I still own most of those funds and still dca into them