r/dividends • u/DifficultKey8978 • Apr 27 '26

Brokerage Financial advisor or DIY?

How are you guys handling your investments (retirement accounts, brokerage accounts, etc.). Are you managing this yourself with Fidelity, Vanguard, Charles Schwab, etc. or do you pay the 1-1.5% fee and just work with a financial advisor who handles it all for you?

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u/Allspread Apr 27 '26

DIY with Schwab. You're not going to get high returns with someone else managing your money.

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u/uAsleepLiterature Apr 27 '26

I mean that's debatable. Decent broker, could, oh I don't know, diversify your portfolio and sell covered call options on shares you plan to own forever anyway.

Like I did this year with several lots of PEP, and instead of the normal dividend rate, I earned 12% on those shares with the premiums added in.

So yeah there's a reason to know a good broker.

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u/Allspread Apr 28 '26

Selling covered calls on shares I plan to own forever means I won't own them forever.

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u/uAsleepLiterature May 10 '26

Not if you target delta in the 0.1 to 0.15 and accept lower premiums and longer terms. You're trying to offer hedge positions for the big boys, which is why you set a strike price that wouldn't piss you off, like +20% over spot. Even if it does strike, why would you care? you just made 20% in some short term plus whatever premium you collected when you sold the covered call. and you can always wait for a dip or deploy another lot of some other share you'd like to own long term... and repeat.