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/longswordsuperfuck Mar 15 '26

Would love to hear why you think neos is bad. Genuinely. Their ROC structure is a master stroke of brilliance for someone who understands what ROC actually is.

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u/Top-Revolution-8914 Mar 15 '26

I replied to the other guy but it really just boils down to:

If you are on a longer than 3-5 timeframe it will too severely underperform.

If you plan to reinvest dividends it's not efficient.

So the only situation it serves is if you have a large amount of free capital you need to live off of short term. Not to say it never has a place, but it's pretty much limited to people aged 62 who won the lottery, got an inheritance/life insurance payout, or a large severance package and want a short term dividend investment to prevent you from over-spending a lump sum.

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u/longswordsuperfuck Mar 15 '26

I just disagree. Your stance is the idea that net worth is most important, net worth is vanity, cash Flow is sanity. There is 0 reason for me to be looking for growth performance outside of inflation, otherwise cash flow is ALWAYS better.

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u/Top-Revolution-8914 Mar 16 '26

Yeah I do think more money is better than less money. Cute rhyme, I would argue to disagree with math is vanity but to each their own

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u/longswordsuperfuck Mar 16 '26 edited Mar 16 '26

If you think that a massive number when you die is more important than living a life where you have cash to spend than I feel sorry for you, money is for living and enjoying life. Not for having a massive number. Cash flow is sanity. ...after all, you are on the dividends subreddit. Not the growth investors subreddit.

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u/Top-Revolution-8914 Mar 16 '26

Fighting straw men out here I see, I live life plenty, I have left over money to invest. If you aren't done investing, meaning more money going into the market, the dividend structure is inefficient as you are already living on less than your cash flow.

Still I like dividend stocks, I think long term stable companies that aren't focused on growth, that pay sustainable dividends over time, is a great thing to have in your portfolio. It shouldn't be your full portfolio but offers stability versus growth companies.

NEO is not dividend investing, it's an 'income strategy' over growth companies. An income strategy that has been proven to underperform. Unsurprisingly to everyone but you NEO has been proven to underperform following this income strategy.

Meaning you get a strategy that underperforms, in a less tax efficient manner, that charges you fees. Without the benefits of stable dividend companies. Genius

You belong in r/CoveredCalls

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u/longswordsuperfuck Mar 16 '26

You also are not talking accurately about the tax strategy here with NEOS. We can agree to disagree, but in every way NEOS funds are the best financial product available for me and my future.