Originally Posted by DaFace:
From the looks of it, they also sometimes dive into water that's 3' deep and then brag about how great the food is at the hospital.
Eh maybe, I'm not necessarily opposed to an income strategy in retirement. I don't think I'd probably go with those covered call type funds, but interestingly if you compare SPYI to JEPQ, JEPQ will outperform the covered call fund, but the income (cash dividends) is actually higher out of SPYI. If a guy is trying to live off dividends and keep his nut together, I don't necessarily hate it.
Still better in something like JEPQ over the intermediate-long term, but it's not always self-destructive in all cases.
Originally Posted by Hog's Gone Fishin:
TSLA doesn't pay a dividend. TSLY does. TSLY payday is tomorrow and I'll get around $1200. Owning TSLA is purely for growth. Owning TSLY is purely for income.
If I had it all to do over again I would not have bought TSLY, I would have bought NVDY or CONY but like all stocks hindsight is 20/20. Like lewdog says , TSLY has been a dog but he only points out the negative. I will not lose ANY money investing in TSLY, but it will take longer to pay out than I hoped.
TSLY was the first fund YM came out with. Now they have about 20 different options.
And yes , as long as TSLA grows, TSLY will increase in share price as well as dividend.
And to Daface's comment, hospital food isn't so bad once you get accustomed to it . :-)
Dividends only make sense for “income” if the share price is relatively stable. A volatile stock price coupled with a dividend is a recipe for declining capital without a return to match.
TSLY seems to have the same downside risk as TSLA but lacks the growth potential during bulls to match the returns you’d have by actually just owning TSLA. Again, total returns!
Originally Posted by lewdog:
Dividends only make sense for “income” if the share price is relatively stable. A volatile stock price coupled with a dividend is a recipe for declining capital without a return to match.
TSLY seems to have the same downside risk as TSLA but lacks the growth potential during bulls to match the returns you’d have by actually just owning TSLA. Again, total returns!
as long as the total return is higher ( taxes you pay on the dividends included, compared to long term capital gains of growth capture).. then even if the price drops, a high yield dividend stock can make sense..
but whats more concerning for some companies is the stability and risk of the dividend payment itself
Some companies have a proven track record of maintaining their dividend payment and even growing the dividend yield. This one (TSLY) looks really high right now but how long can they keep going like this?
For income / dividend ETF
I kind of like QQQX and QYLD. Maybe not as bold as TSLY but also less risky... [Reply]
Originally Posted by UteChief:
Why an IRA? I think more questions need to be asked before making that recommendation.
it's the tax benefits of the Roth.
any gains you make will be tax free..
you can only fun a roth 6500-7500;a year, because it's such a crazy powerful advantage. your 1st 6500 - 7500 every year of savings should be a roth ira (or 401k) [Reply]
Originally Posted by Buehler445:
If he has nothing invested, he needs to get something in retirement IMO.
A million questions should probably be asked, but if a guy has nothing at all I’d be hard pressed to find a better positioned investment.
Logic would dictate that if he thought he would need access to the money he would have mentioned it.
Sure, but I’d want to confirm if he has a retirement account. 401k, pension, etc… Does he have access to a workplace retirement? Are they forgoing a workplace match to save the $3,000.
Does he have an emergency fund? Is the money saved for anything upcoming?
In my experience novel investors need an in depth conversation before general advice. [Reply]
Originally Posted by Ming the Merciless:
it's the tax benefits of the Roth.
any gains you make will be tax free..
you can only fun a roth 6500-7500;a year, because it's such a crazy powerful advantage. your 1st 6500 - 7500 every year of savings should be a roth ira (or 401k)
My only point was the need to ask more questions and not jump into an IRA. I work in finance, have a BS in Finance, previously was a trader with series 7 and 63. I read the posts here a lot, I just don’t comment much. [Reply]
Originally Posted by UteChief:
My only point was the need to ask more questions and not jump into an IRA. I work in finance, have a BS in Finance, previously was a trader with series 7 and 63. I read the posts here a lot, I just don’t comment much.
Hey, request for free advice here.
Does a Roth conversion count as income in MAGI for the purposes of assigning Medicare costs? In other words, could a big Roth conversion throw one's income up enough to incur the extra Medicare income-based surcharges?
I think it does, but I can't find a definitive answer on the world wide web. [Reply]
Originally Posted by UteChief:
Sure, but I’d want to confirm if he has a retirement account. 401k, pension, etc… Does he have access to a workplace retirement? Are they forgoing a workplace match to save the $3,000.
Does he have an emergency fund? Is the money saved for anything upcoming?
In my experience novel investors need an in depth conversation before general advice.
Well sure. But he threw it on a football message board.
But let’s walk through it.
He said he had nothing invested. That rules out a 401K. Doesn’t necessarily rule out a pension but if all he has is a pension he still needs a Roth.
He wouldn’t forego a workplace match. He said he HAS 3000 (not could forego contributions to a qualified plan to get 3000). And the contributions to an IRA wouldn’t count against his contributions to a qualified plan, which from what he said he doesn’t have anyway.
An emergency fund shouldn’t be “invested”.
If the money is saved for something upcoming it shouldn’t be “invested”.
He didn’t ask for a financial plan, he asked what we would do for a first investment so I told him.
Sorry if you’re offended. If he wanted an in-depth discussion we’ve been through it all. In 4 lines he asked what investment we’d put the first dollar in. [Reply]
That reminds me, say you had some money tied up in stocks and ETFs in a brokerage account. Realistically, how long would it take for you to sell those holdings and have the money moved to your primary bank account? [Reply]
