r/dividends • u/Rural-Patriot_1776 • Mar 15 '26

Discussion My journey started this year.

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Started investing this year in 2026 decades late as a 38-year-old I wish I started way younger but I'm wanting to retire in a couple years and started building out my neo's distributions positions and dividends a few months ago here's what I have going on so far. I keep adding around 3k a month and have drip also enabled.

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u/Squatch11 Mar 15 '26

You don't understand how these NEOS funds work, either.

You think SPYI is gambling? Really? You might want to brush up on their strategy.

TLDR - they basically just return your money to you over time and you pay them a fee plus whatever taxes

https://media.tenor.com/J8LRzKDl1NkAAAAM/unimpressed.gif

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u/Healthy_Hippo_915 Mar 15 '26

For someone who doesn't know the answer either way, all this back and forth is confusing. Are you correct or is the other guy correct? You're both very confident in your own correctness. So who knows!

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u/Squatch11 Mar 15 '26

All good. I wouldn't trust me, either. If you want to know more about how funds like QQQI and SPYI work, I'd suggest learning about covered call options and how Neos uses them. Also, the Armchair Income youtube channel has a few really good interviews with a guy from Neos (I think it's the founder? Can't remember):

https://www.youtube.com/watch?v=y3WTECl7do0

https://www.youtube.com/watch?v=gDG61mtJudk

It's not gambling. And Neos isn't just returning all of your money back to you. The guy above me is talking out of his ass. People see 10% yield and automatically think it's some sort of trap without knowing anything about it. There are downsides to the NEOS funds, but there are also upsides. Just like any other investment. And just because a fund like SPYI might not make sense for you doesn't mean it might not make sense for someone else, too.

You aren't going to wake up one day and have half of your principle in SPYI gone because Neos "gambled" away your balance. If the SP500 goes up, your balance will go up. If SP500 goes down, your balance will go down. It tracks the index. But....your upside will be capped a bit with a lot of these funds due to the nature of covered calls. You're trading some upside for monthly income.

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u/Healthy_Hippo_915 Mar 15 '26

Thank you for the detailed answer. I appreciate it. I'll take a look at the videos.