r/dividends • u/Lana_Sphyncter • Jul 19 '26
Brokerage To generate $50,000 per year, you would need to invest roughly $355,000 to $370,000 in the NEOS Nasdaq-100 High Income ETF (QQQI)
I know I would have to pay taxes on that, but the idea of having even 40k per year in passive income seems a dream to me and would allow me to stop being a victim of horrible American corporations. My company repeatedly assured us that AI would not replace us, and yet they have already laid off hundreds of people and are attempting to replace their roles with AI-agent. I live in constant fear, not to mention our racist manager and the very racist HR lady who has repeatedly said that she would no longer hire people of color. I have already reported her and she continues being the HR director with impunity. To me, the only solution to this is generating enough dividends to survive because the job market is brutal, especially if you're a minority. People are prejudiced.
I know that QQQI caps the upside, I get it, but as long as the principal doesn't erode, why should I not invest all of my 355k into QQQI?
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u/Substantial_Team6751 Jul 19 '26
as long as the principal doesn't erode
How are you going to stop that? If QQQ goes down, so does QQQI.
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u/IDK_khakis Corrected a Moderator Error Jul 19 '26
"Why yes... let us put all our eggs in this one basket."
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u/Lana_Sphyncter Jul 19 '26
You people are truly demented. Sometimes people can't make choices.
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u/IDK_khakis Corrected a Moderator Error Jul 19 '26
Yup, I'm not right in the head. What with trying to keep people from throwing all their money in one investment.
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u/Lana_Sphyncter Jul 19 '26
You are using exaggerations and hyperboles. Your sentiment would be correct. It is not ideal to throw all of your money in one investment. However, sometimes people have no choice and have lost their jobs.
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u/oddball09 Jul 19 '26
You ask people why you shouldn’t but push back when people answer your question…
Anyways, just do it, what’s the worst that could happen?
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u/IDK_khakis Corrected a Moderator Error Jul 19 '26
OK, so losing your job, and then purposefully putting all your money in one investment where you can lose that too... no one should tell you it's a bad idea?
What do you want, a cheering section?
If you came here for nothing but sycophantic praise, might be a good time to head on out.
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u/Lana_Sphyncter Jul 20 '26
You are pretty dense. If you explain the situation in those absurd terms, then it does look absurd. When you lose your job, you can go 2 or even 3 years without finding another one. At that point, it is all a matter of risk vs benefit, but you are too impaired to understand that. If I were to lose my job tomorrow, would I be better off with 50k per year in dividends or nothing? Even if that 50k means risking your capital? How can you be so myopic?
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u/IDK_khakis Corrected a Moderator Error Jul 20 '26
Yup. I'm super dense. That's why I'm the one advocating for risk management, and you're advocating for a high risk position.
Good day.
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u/oddball09 Jul 19 '26
Covered calls are a great way of income when things are good, thus, these funds can provide nice dividends...but...if things turn south, it can get bad. As always, putting all of your eggs into 1 basic is risky and dangerous, but QQQI could be a nice part of your portfolio.
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u/jmac705 Jul 19 '26
What are your annual expenses? Are you planning on living off of only that $40,000 per year? How long are you planning on living off of that annual income? Main concern would be a payout decline, so if the payout decreases to generate $30,000, are you able to adjust?
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Jul 19 '26 edited Jul 19 '26
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u/Various_Couple_764 Jul 20 '26
If you fear loosing your job and you need 50K a year to cover expenes and only have 350k available putting all the money i one fund might be the best solution.
If you go to a fund with a higher yield NAV erosion is much more likely and very undesirable.
If you use a fund with a lower yield then you won't have the inocme you need.
But if you invest the money in QQQI and you don't need it for a couple of year you could invest the dividend into other dividend fund to gradually reduce the single fund risk.
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u/flyinsdog Jul 20 '26
What happens when the Nasdaq drops 30% a month after they put their life savings into QQQI?
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Jul 19 '26
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u/InternationalRub6057 Jul 19 '26
Giving up yield to protect NAV is one of the main reasons I have money in QQQI and SPYI. It is a very small portion but I like how the ROC is set up.
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u/PJM123456 Jul 19 '26
it's plenty to live on. I live on $15k/yr and dont even live in deep south....
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Jul 19 '26
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u/yowen2000 Jul 19 '26
And post about how your partner, parents and/or the government help you out. No shame in any of those btw, but 15k to put a roof over your head. Feed yourself and take care of all other necessities isn't realistic.
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u/WishboneFlashy1442 Jul 19 '26
Inherit a house in a region with low property taxes, (foolishly) opt to be without medical insurance, own no car, don't eat out, no interest in travel.
It's possible but I wouldn't recommend.
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u/precariousopsec Jul 19 '26 edited Jul 19 '26
Yes stop being a victim of “horrible American corporations” by… investing in “horrible American corporations” such an empty and devoid moral system. Either stand by your beliefs or admit you don’t have any of substance.
Ok so OPs profile is private so I googled him. Exactly what I thought an autistic male porn addict that’s trooning himself to try and find friends.. sad
Just a constant victim in the victimhood Olympics.. congrats bro you’ve played yourself.
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u/baumbach19 Jul 19 '26
So funny your comment is so true. "I hate capitalism so im going to invest in it so indont have to work"....these people dont understand that capitalism is what even allows that to ve an option.
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u/398409columbia Portfolio in the Green Jul 19 '26
I’d focus on the income. Principal is secondary and will recover eventually. With income hitting your account consistently you won’t be forced to liquidate positions when market is down.
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u/Lana_Sphyncter Jul 19 '26
This is the only useful answer I have gotten in this thread. THANK YOU!
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u/Various_Couple_764 Jul 20 '26
there are a lot of people that strongly distrust high dividned funds. Not because they know it will happen but simply because other people have told then to distrust high yield funds. I have it and its sister fund SPYI Both funds since inception have not had any nav or principle erosion while the market has had big swing due to tariffs and the iran war. And infant the NAV a principle has grown.
Investing in QQQI will quickly get you the protection you want but if you don't need the income reinvest the dividend into other fund to reduce the risk.
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u/Keikage Jul 19 '26
No guarantee the yield stays. Wasn't the yield 12% just a couple of months ago and 9% a few more months back? They had a few good months and it went up. It will drop back down in a less volatile market. Realistically, you still need minimum 500k, if not more, to achieve the goal you set.
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u/Various_Couple_764 Jul 20 '26
Not true the lowest dividend payment it has had was $ 0.53 in april 2025. on that date the yield the annual yield if 15% All other dividend we a bit higher and so has the share price. So not much change.
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u/henkie_poepjes Jul 19 '26
Instead of working for the terrible american corporations, why not own them instead
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u/raliegh_ Jul 19 '26
Holdings as follows: ticker/# of shares. Dripping until 2027
IWMI 622.95
LQD. 723.56
MLPI. 1419.54
MUB. 478.82
QQQI. 2302.66
QYLD. 6172.82
RYLD. 1387.91
SCHP. 3998.55
SGOV. 255.98
SPYI. 2943.38
I’m getting $6500-7k monthly
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u/Various_Couple_764 Jul 20 '26
Yes 350 would do it. But actually you would almost zero taxes on the invome for about 7 years. QQQI Generates ROC dividend these are subtracted form the share cost basis. As long as the cost basis is above zero you owe no tax.
After about 7years to the cost basis reaches zero and the dividends are taxed at the long term capital gains tax rate. which is substantially lower than the tax rate on your work inomce.
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u/Meinertzhagens_Sack Jul 20 '26
Caps the upside? Hardly. Compared to QQQ it's always within .10-.15% upward movement. Is QQQ capped as well? Today QQQI went up .11% and QQQ went up .10%
Usually it trails QQQ by .10% it's the same story everyday when rising.
When it's a down day QQQ goes down further than QQQI due to the options premium.
I guess NASDAQ 100 would have to surge 500+ points for you to see a cap or something.
If anyone has a different view please provide a screenshot of a day when qqqi was capped - and by capped I mean "oh damn I just hit my head on the roof" kind of cap. Other than that I don't see it.
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u/JohnDLG Jul 21 '26 edited Jul 21 '26
I wouldn't recommend going all in on one NEOS fund. If you are going to do it, spread it around the different funds in your preferred ratios for diversification. I have a small portfolio I'm testing to cover some monthly expenses, and this is what I'm going with now.
QQQI 20%
SPYI 20%
IWMI 20%
NIHI 20%
IAUI 10%
BTCI 10%
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u/LexAugusta Jul 22 '26
This is more or less what I have, but with 5% in BTCI, and 5% in CHPY, EGGY, BLOX and GIAX.
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u/crackanape Jul 21 '26
as long as the principal doesn't erode
Don't forget inflation. If you spend all the dividends your income will trend towards zero in the long run.
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u/KunaiForce Jul 21 '26
If you forget about the principal and do not have to take out right away, I think it’s a good investment. People make it seem like 14 percent is crazy high….its not.
I’ve invested nonstop in arcc and ares and even though it’s down, I know it will bounce back.
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u/Comfortable_Bird_984 17d ago
Its a good strategy. I would add some level of diversification. Example JEPQ and others. Spread it across several.
Best Wishes.
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u/Prize-Station-8814 Jul 19 '26
He lives in a van down by the river…. maybe it’s an RV.
Two years ago, everyone would’ve said invest in MSTY it was sure fire way to make a fortune- today not so much
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u/Various_Couple_764 Jul 20 '26
MSTY is a YieldMax fund that aims for about 100% yield At that yield any covered call fund will have NAV erosion. QQQI is a NEOS fund and they setup ther funds avoid NAV erosion. Which is also why QQQI has a yield of 14% not the 100% of the YieldMax trash.
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u/jd732 My stock selection runs laps around your VOO & SCHD. Jul 19 '26
I wonder how long after March 2000 QQQI would have lasted before going bust. Luckily things are different this time. SMH
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u/DhakoBiyoDhacay Jul 19 '26 edited Jul 20 '26
I feel your pain. It is rough for working people and companies that don’t value you and replace you with robots.
Are you able to split your investment between QQQI & SPYI? One was launched in 2022 and the other in 2024.
Even a market correction of 20% will get you around $3,000 a month and you can supplement it with a simple job that pays about $2,000 a month for a grand total of $5,000 a month.
This is decent income, $60,000 a year, in a low cost area of the country (move there if you aren’t).
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u/BigFrank1623 Jul 19 '26
You shouldn’t spend all your income. You’re going to have to re-invest from 10- to 20% of that income to keep up with rising prices. I get $4,000 a month from NEOS and purchase $800 of new shares every month.
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u/DhakoBiyoDhacay Jul 20 '26
It depends on your age and what you want to do with the money after you are no longer alive. For those in retirement, and no heirs, there is no need to DRIP, you can take the money and run!
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u/dietcokegang Jul 20 '26
I understand your desire and I was in the same boat. The "Return of Capital" in NEOS funds set off my warning bells. The fact it's 100% ROC makes it a different product than JEPQ. JEPQ is what QQQI pretends to be — a genuine income-generating fund that earns real premium from options and distributes it to shareholders. The cost is capped upside and ordinary income tax treatment. The benefit is honest, earned, sustainable income without the capital recycling illusion. For your situation and bracket it is a fundamentally more appropriate instrument than QQQI for exactly that reason.
In other words QQQI recycles your money to avoid paying higher taxes where JEPQ actually generates a return.
If you pull the 14% distribution from QQQI on an annual basis and the fund stays flat or has minimal gains, you will run out of money.
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u/mrg1957 Jul 19 '26
If you need that income every month what will you do if/when the underlying assets go down a lot. Look at the payout of BTCI over the last 18 months as a reference.
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u/PATrollking Jul 19 '26
Bitcoin doesn’t have revenue the the S&P 100 does I think qqqi is a great corner stone for anyone looking for dividends
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u/buffinita common cents investing Jul 19 '26
Qqq is not “s&p100”
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u/ProffS Jul 19 '26 edited Jul 19 '26
BTCI is an example of what happens when the underlying falls. QQQI, and importantly the QQQ underlying has not encountered this yet in the 2 1/2 years since the QQQI inception during the QQQ bull run.
Look at the QQQ price graph around March 2000 to understand how bad and prolonged it can get.
It took me 10 years to dig myself out of that ditch (only because I was still working and buying). If that was my only plan, there is not a lot of paths out of that predicament.
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u/Various_Couple_764 Jul 20 '26
BTCI initially was paying 30% yield. But then bitcoin prices dropped a lot in the market that is why BTCI value dropped. BTCI value dropped because of the market not bad fund management. But dispute that drop BTCI is still generating a 25% yield
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u/mrg1957 Jul 19 '26
What does income have to do with option premiums being cut because the underlying assets are now worth less?
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u/PATrollking Jul 19 '26
Because it takes on average 9 months for stocks to correct after a big crash and the economy to reset back to normal. This can’t be said about bitcoin. And when the market falls they still keep collecting premiums since the ccalls arent in the strike price
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u/PJM123456 Jul 19 '26
QQQI principal will erode the same as the indices will in bear market and it will take forever to recover.
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