Is anyone rich here?

[YY1]

What are the tickers? I'll guess it's something like JEPI

Good fund, one of the better managed covered call funds available. Tends to maintain NAV, will be limited on aggressive up moves. Still has exposure to the downside.

The one I bought today is JEPQ. 11%

Close

The one I bought in April is QQA- 9.79% and up 25%

I also bought IWM in April. Only 1.1% div but up 35%

 

[crackedback]

you stepped in at the right time.

 

[YY1]

I bought the dips.

As stated before, I've made more money by far, buying when everyone else was selling, at the worst economic times in the last 25 years.

My only regret is not having more money to pour in at those times.

 

[YY1]

I have a confession to make-

I accidentally bought a few hundred shares of MSTY.

It's fund that (bear with me here) buys and sells options on a fund that buys and sells options on...

bitcoin

I initially purchased 100 shares because I was curious and it seemed like a way to ride the digital currency bandwagon without actually buying digital currency.

Here's the kicker-

it pays 138%!

and it pays 13 times a year.

You read that right 138% dividend. Yes, if it sounds too good to be true......

So I got my first months payout and I decided to buy 100 more shares...

...except I muffed/fat fingered the order.

Since then the share price has gone down about 15%, but I'm still getting hundreds (and hundreds) of dollars a month that I wasn't really planning on.


Can you say "conundrum"?

I guess that's a pretty good problem to have huh?

 

[Dan the man]

At 54, I don't think that I would invest much in the stock market, sure you can make a ton of money but you can lose it too and at 54 that only gives you 11 to 13 years at best to recoup.

 

[crackedback]

I have a confession to make-

I accidentally bought a few hundred shares of MSTY.

It's fund that (bear with me here) buys and sells options on a fund that buys and sells options on...

bitcoin

I initially purchased 100 shares because I was curious and it seemed like a way to ride the digital currency bandwagon without actually buying digital currency.

Here's the kicker-

it pays 138%!

and it pays 13 times a year.

You read that right 138% dividend. Yes, if it sounds too good to be true......

So I got my first months payout and I decided to buy 100 more shares...

...except I muffed/fat fingered the order.

Since then the share price has gone down about 15%, but I'm still getting hundreds (and hundreds) of dollars a month that I wasn't really planning on.


Can you say "conundrum"?

I guess that's a pretty good problem to have huh?

Be careful with msty or any of the yieldmax funds. The management are complete idiots and crooks. If things go wrong and the underlying doesn't cooperate with a covered call campaign, they screw the pooch. Microstrategy has been a real good stock for a CC. NVDA is another. A warning for you, if msty starts dropping on a monthly basis by an amount equal or greater than the distribution you receive, be on guard to exit. People bought the tsla cc fund at inception thinking they would get a 100% purchase cost payback in 15 months or less with the healthy "yield"... they are still waiting almost 3 years later.

Only positive is they have a guy that came on board this week that is pretty sharp. Hopefully the nonsense with some of the strategy stuff, that is stealing shareholder assets on a weekly basis stops.

 

[Dan the man]

JMHO, But I think that people focus to much on personal wealth

 

[crackedback]

At 54, I don't think that I would invest much in the stock market, sure you can make a ton of money but you can lose it too and at 54 that only gives you 11 to 13 years at best to recoup.

Scared money doesn't make money. With that time window, you should be in the markets with a portion of your assets. Collecting cd rates isn't and hasn't kept up with true inflation for decades.

 

[YY1]

Be careful with msty or any of the yieldmax funds. The management are complete idiots and crooks. If things go wrong and the underlying doesn't cooperate with a covered call campaign, they screw the pooch. Microstrategy has been a real good stock for a CC. NVDA is another. A warning for you, if msty starts dropping on a monthly basis by an amount equal or greater than the distribution you receive, be on guard to exit. People bought the tsla cc fund at inception thinking they would get a 100% purchase cost payback in 15 months or less with the healthy "yield"... they are still waiting almost 3 years later.

Only positive is they have a guy that came on board this week that is pretty sharp. Hopefully the nonsense with some of the strategy stuff, that is stealing shareholder assets on a weekly basis stops.

Totally agree. It's a daily watcher.

That's what I meant by "finicky math" about share value vs dividend payout.

So far, I'm up.....

Bitcoin is crazy, CRAZY volatile, but these guys are paying attention....unlike me.

I will say, the math I'm doing is not completely adding up- I am not getting 1/13 of 138%
But it is a pretty substantial payout on a more frequent than monthly schedule.

I've gotten out of similar situations and managed to not be on the losing end in the past...
...but it's not really my idea of "fun".

 

[YY1]

At 54, I don't think that I would invest much in the stock market, sure you can make a ton of money but you can lose it too and at 54 that only gives you 11 to 13 years at best to recoup.

For the record, I'm 57.

 

[Dan the man]

For the record, I'm 57.

Your about 10 years from full retirement. When I moved my retirement fund around a few years ago, my advisor told me that once you're over 45 years old that you need to be careful how you invest your money and it's not a good idea to put more than 45% of it in any one investment. I put mine in a IRA that why I didn't have to pay taxes on it when I moved it from my 401k plan. Everyone wants to put their money into the stock market while it's true that you can make big money you can also lose big money

 

[crackedback]

Bitcoin is crazy, CRAZY volatile, but these guys are paying attention....unlike me.

compare a chart and the slope/direction of MSTR with MSTY

That should tell you enough that they are lost on approach. one is up to the right, the other is down to the right.
With a CC fund, if the chart looks like MSTR, MSTY chart should NOT look like it does. It should more closely mirror the underlying. They focus on one side of the trade, yield, not both sides, yield and cap appreciation.

 

[YY1]

However, I never "gamble", and let's face it investing is gambling, any more than I can stand to lose.


I have a six point retirement plan-

Rental properties (some partially funded with investment gains) -This is a "supply side" asset group.

Personally managed stock market investments

Professionally managed investments (403b/401k)

State worker pension (currently 35% of my salary- hey, it's something)

IRA (I was forced to open this account by the IRS vs give the same amount of money to them in 2022, when they screwed up W4 withholding, however it's up 27%)

Social security

Ranked in order I expect to depend on them.

I can probably tolerate any two failing.

 

[YY1]

Your about 10 years from full retirement. When I moved my retirement fund around a few years ago, my advisor told me that once you're over 45 years old that you need to be careful how you invest your money and it's not a good idea to put more than 45% of it in any one investment. I put mine in a IRA that why I didn't have to pay taxes on it when I moved it from my 401k plan. Everyone wants to put their money into the stock market while it's true that you can make big money you can also lose big money

Based on the strategy outlined above, I plan to retire in October of this year.

 

[BSB67]

……..my advisor told me that once you're over 45 years old that you need to be careful how you invest your money……

You should always be careful when investing. But being conservative in your investments at age 45 is terrible advice. If that is what he meant, find another advisor.

Everyone wants to put their money into the stock market while it's true that you can make big money you can also lose big money

At age 45, most of your investments should be in the market. Don’t take my word for it, or anyone else’s. Simply look at market history.

 

[Dan the man]

Based on the strategy outlined above, I plan to retire in October of this year.

That's cool

 

[Dan the man]

You should always be careful when investing. But being conservative in your investments at age 45 is terrible advice. If that is what he meant, find another advisor.



At age 45, most of your investments should be in the market. Don’t take my word for it, or anyone else’s. Simply look at market history.

My question is, if you put your funds into the market and you lose it, do you have enough time to recoup your original investment? Can you replace 25-30k in 12 year's? You might be able to do so but you wouldn't be putting much else back with it. I'm no expert on this but I did talk to several investment advisors and they all pretty much said the same thing. I think that it's best to put money in different forms of investments, I had a IRA, CD'S and a savings account.

 

[dadsbee]

You should always be careful when investing. But being conservative in your investments at age 45 is terrible advice. If that is what he meant, find another advisor.



At age 45, most of your investments should be in the market. Don’t take my word for it, or anyone else’s. Simply look at market history.

I've put max allowable each year into RSP's (401k to you) since I was 23, wife 21, plus her some mutual funds. Haven't put a dime in it at all in 21 years (ie at 42 & 40 years old, now 63/61). Last 6 years we've been living off of our yearly withdrawals and paying no more than 16% tax vs the 52% we would have coughed up many moons ago.

 

[Dan the man]

I've put max allowable each year into RSP's (401k to you) since I was 23, wife 21, plus her some mutual funds. Haven't put a dime in it at all in 21 years (ie at 42 & 40 years old, now 63/61). Last 6 years we've been living off of our yearly withdrawals and paying no more than 16% tax vs the 52% we would have coughed up many moons ago.

I was able to put money into my IRA and take it out completely tax free. It's income based so I had my tax people see what I could take out each year without paying income tax on it

 

[Dan the man]

I'm not rich by no means, but I'm comfortable and happy and that's all that matters.

 

[dadsbee]

We can take about 18 grand a year out, each, without paying a dime in taxes, but not gonna live on that. Would barely pay the property taxes and insurance on everything.

 

[Dan the man]

We can take out about 18 grand a year out, each, without paying a dime in taxes, but not gonna live on that. Would barely pay the property taxes and insurance on everything.

What? Your saying that you are taking out 36 grand total and you can't live on that? Your property taxes and insurance must be ridiculous.

 

[fishmens67]

I retired the 1st time at 38.
Took 2 years off and fully retired from business at 52.
The government and my son send me checks every month, will start collecting SSI in 4 years when I'm 67

 

[Dan the man]

I retired the 1st time at 38.
Took 2 years off and fully retired from business at 52.
The government and my son send me checks every month, will start collecting SSI in 4 years when I'm 67

What did you do for health insurance? SSI , That means you don't have anything as you can't have over 2 grand in the bank

 

[fishmens67]

What did you do for health insurance?

Retired military, TRICARE.

That means you don't have anything as you can't have over 2 grand in the bank

I have plenty.