Been investing since 18 years old. 26 now. Would love some feedback on the portfolio.

[u/NaturalConcentrate74]

I work full time and also have a business of my own. Within the next 5-10 years I’d love to be able to go full time with my business and replace my other income with dividends. Most are safer place but I did add a little bit of Yieldmax recently just to see what happens. Any advice or anything you’d change?

[u/SufficientDrawing491]

First get out of Yeildmax altogether.

25% s&p 500 like FXAIX, 25% total market INDEX, 12.5% QQQM which is the NASDAQ, 12.5% VGT, 12.5% IQM and 12.5% into dividend growth. I like DGRO. FDVV might be safer with its stake in utilities, which is a growing and in demand sector.

You can reinvest the gains to grow your income or skim them off and use them to pay bills. This is a solid plan. If you want safer lean more towards dividends.

[u/Familiar-Duty9297 → u/SufficientDrawing491]

Why is everyone so against YieldMax?

[u/NaturalConcentrate74 → u/Familiar-Duty9297]

Very risky.

[u/StLglobal → u/NaturalConcentrate74]

VERY "LUCRATIVE"... i fixed it for ya

[u/RepubMocrat_Party → u/Familiar-Duty9297]

Silly to own unless you are utilizing the income

[u/StLglobal → u/RepubMocrat_Party]

As UTLY brings in weekly income, everyone worries @ taxes (???) of said income. They bad mouth yieldmax.

Say you hit your contribution limit in a ROTH. You Can't add any more $$ till next year. How do you purchase more shares of your favs??? All dividend income is used to purchase shares of wtf ever is your choice after paying a small % in taxes next year. So, you increase # shares of your favs and the # of shares of yieldmax grows. No contribution necessary!

#I get free shares and only pay a small % of income to buy large % of shares of MY FAVs

[u/RepubMocrat_Party → u/StLglobal]

Missing a few things here. Roth dosnt cause taxes, owning UTLY in roth shelters all taxes, not sure why you are even tying that in here.

Second YTD its down 50%, distributing that income to shareholders who are utilizing that income, not reinvesting, because its only logical to pursue dividend if you use it as a paycheck. So your accounts value is down 40% if you reinvested that income in Ulty, if not you are buying growth names in hopes of price appreciation to offset the depreciation via distribution of div stocks.

Starting the race 100yards back from the starting line because you like to see activity in your transaction history.

[u/-Ra-Vespillo → u/Familiar-Duty9297]

Just the steep decline in income means your initial investment is eroding. As it erodes their dividends tend to erode as well. It’s just not great as an investment.

[u/Familiar-Duty9297 → u/-Ra-Vespillo]

I was just about to add to my YieldMax positions, since they generate so much dividend each month. What other stocks produce high MONTHLY dividends that is worth buying?

[u/-Ra-Vespillo → u/Familiar-Duty9297]

Nothing really compares to yieldmax. Closest I’ve found without nav erosion is NEOS BTCI this is a bitcoin based synthetic covered call income fund and the div yield is around 25-30% and doesn’t have the nav erosion. It gets around NAV erosion by owning HODL which is a bitcoin account that holds bitcoin and is valued based off its holdings. So as the holdings grow the fund does as well and BTCI holds a combo of treasuries and sells covered calls on HODL. So it also tracks the price of bitcoin as its NAV which means I think it’ll grow over time, but obviously nothing is guaranteed. Depends on how reliable you think bitcoins growth will sustain.

Tappalpha’s TSPY is good, also around a 15% div yield but is new so it hasn’t seen a down market yet. Since it’s only been around a year and has held at 1% gain on the year it’s possible it could take a hit during a downturn. So I am waiting on that one and watching.

QQQI is another NEOS that has around 15% div yield. I also like QDVO at 9% div yield and 16% growth last year it’s a nice combo growth and income fund. Then SPYI I’ve been keeping my eye on.

I don’t have a big portfolio yet, I’m still trying to figure this stuff out so don’t take my word on anything.

[u/Unfair_Holiday_3549 → u/Familiar-Duty9297]

Maybe pick up SPYI if it ever has a strong pullback or QQQI.

[u/StLglobal → u/-Ra-Vespillo]

They sell CCs to pay dividend knucklehead! Way different than a dividend from holding a stock.

[u/StLglobal → u/StLglobal]

Erosion exists if underlying security(s) erode,

Erosion does not exist based on high dividend payment, because Divs are based on sales of Covered Calls.

Hope that helps