JEPI

Sharaku_US

You've got a pretty solid setup. Most will likely just tell you to VOO and QQQ then autopilot. I'd add JEPI or SPYI and JEPQ or QQQI for some income but that's just me liking monthly dividends. Keep some cash on the side, when a major correction comes DCA down and save up your powder for the next correction.

twarr1

Your best chance of success is invest in boring index funds like VOO or JEPI. Keep in mind the 2 groups that make money consistently in stocks are; 1, those selling stocks, and 2, those writing about stocks. With a very few extraordinary exceptions investment superstars *never* maintain their success over long periods of time. If you’re one of these unicorns like Warren Buffet, George Soros, Nick Taleb, you don’t need advice from this sub. Don’t imagine investing as a get-rich-quick scheme. The hedge fund manager with the fleet of exotic sports cars makes his millions using OPM - Other Peoples Money. Unless you have access to a position where you can trade OPM and charge a 33% fee (win or lose), invest in index funds. One last note - here and in most other forums you will hear from the people that invested in a fruit company in 1981 but very few that invested in an energy trading company in 2000. It’s called Survivorship Bias. Ignore them.

AICHEngineer

Use portfoliovisualizer to backtest JEPI or JEPQ. Covered calls do not protect downside. You plummet as much holding JEPQ as you do holding QQQ, because you're trying to use the covered call yield as a source of income and not reinvesting. If you don't reinvest, you significantly underperform QQQ and also suffer the same downside. This is because JEPQ just synthetically turns the upside of QQQ into yield. This is not the safe shit you think it is.

Hail_Nero

I’ve only been in JEPI and JEPq for about 8-12 months and I’m up about 3% on each. JEPI is yielding 6% and jepq it varies between 7-11% (both paid monthly) As long as they gain 3-4% a year and keep yielding those percentages I will love them long time

gnocchicotti

I like the idea of using JEPI as an extra component for stock+bond strategy. The prospect of high returns in a volatile, sideways market is a nice balance. I haven't researched it enough to pull the trigger yet, but after the shitshow that befell the classic 60/40 portfolio in the rising rate environment, I do think the "common knowledge" investment advice might be modified a bit in the coming years.

TJMarlin

From seeking alpha: > JEPI's distributions declined by almost 30% from 2022 to 2023, due to lower option prices and premiums from decreased equity volatility. https://seekingalpha.com/article/4674708-jepi-three-important-recent-developments So it sounds like the issue was actually not movement related, but rather a less willing buyer's market.

ElbowWavingOversight

It’s the other way around. JEPI sells covered calls, so it would outperform in a sideways and bear markets, and underperform in a bull market.

chris_hinshaw

GE has been a crazy story. They have been slimming down to focus on their core business and it is working for sure. My sone picked up some of their stock in January and he is up over 70%. Blew my mind I had mostly written GE off after years of stagnation. Completely missed the run up on this one. Like the AMZN a lot! They have been spending inordinate amounts of money on building out delivery infrastructure and warehouses to offer same day delivery, but when that starts to wind down the free cash should sky rocket. Own NVDA for the longest time. They have a stranglehold on the AI market for the foreseeable future with chips and ecosystem (Cuda). VKTX has been a great stock to trade but need to be careful. I think they are in stage 2 trials of their weight loss pill but things can go sideways. I have been buying shares since the teens but still own some puts in the 20's in case things don't go as planned. Not a lot of 8B market cap non profitable biotech companies so don't put more than you are willing to lose into it. I am stoked about the idea of them being acquired. I will say that a weight loss pill vs shot (Ozempic) will be a massive seller if it compares in results and has similar side effects. In the future you might look at adding some financials and some dividend trading stocks. I picked up some of the eternally boring AT&T the other day with a yield of 6% and trading at $17 there should be some decent upside. My recommendation is look for companies you like and avoid the ones you hate. Three of my other favorite stocks are HD, CAT and HD, FERG. All have done extraordinarily well for me over the years. For ETFs, I like RSP (Equal weighted S&P ETF), JEPI (dividends), SMH and MGK. I do prefer to own individual stocks more than ETFs but sometimes it is just easier.

TJMarlin

>Never trust anything promising 10% annually. It's either a ponzi or they are not disclosing/you're not understanding the true risk involved. A few of these come from JP Morgan Chase. Not a ponzi, and the underlying math around options overlays are sound, but in an extensive market downturn distributions decline (we saw this with JEPI in 2022) as the fund cannot play the downside of the options as aggressively in that sort of down + sideways environment. So now you're looking at asset depreciation plus reduced distribution. Income vehicles like that are great during a hot market, useless the rest of the time.

MrPopanz

I am with Peter Lynch when it comes to the average institutional investor: they're not good at outperforming the market (because it doesn't fit their risk profile, so to speak), but can be very good at optimizing risk/revenue, which holds lots of value and is often overlooked by the layperson. Something like JPMorgans JEPI and JEGA ETF would be good examples of the latter imo, while ARK & co. represent the average of the "trying to outperform" (and failing to do so consistenly) crowd. I would say theres a reason why people like Buffett, Lynch & co. are so few and highly regarded, because they are the absolute outliers when it comes to institutional investors outperforming the market consistently. Certainly institutional investors have more computational advantage than ever, but even decades ago they had a complete advantage when it comes to manpower and computational power available compared to retail investors.

Wild_Character_4269

with no dividend is that really a good move... if you are planning to hold it forever, seems like you are missing out. Something like VOO, JEPI, JEPQ etc ... that pay a healthy dividend would be better for you I would think. If you were looking for gains that you can trim and reinvest I think that is better for a stock like Berkshire.

Filthy_Casual22

Better off with a savings account than JEPI.

Suspicious-Stop5231

Buy VOO, SPY, or JEPI. Otherwise you are not very smart.

BetweenCoffeeNSleep

Even a somehow verifiable track record wouldn’t justify subscription. Environment change can turn a strategy from a winner into a loser, very quickly. This is why the language about fund managers vs the index is, “over a long period of time”. Most can and will beat the index over small sample sizes, as their strategy or focus works well within a specific set of market conditions (ex: JEPI was down less vs the S&P 500 in 2022, since the covered call strategy outperforms in those conditions).

Kitten_Team_Six

Not sure why everyone is so hot on VOO. JEPI and JEPQ are better and pay better dividend

Particles1101

I'd rather stick with JEPI or JEPQ. Even SVOL is better.

149AssetManagement

JEPI has the longest track record & is backed by the king of banks. You can start and end there and do quite well over the long term. Careful with Yieldmax

149AssetManagement

There is a whole universe of ETFs that make money off you regards. Check out JEPI, SVOL, Yieldmax

AICHEngineer

Using the term "high income" is a misnomer. JEPI synthetically produces income via options and dividends and pays yield to fund holders. JEPI invests in companies from the s&p500 with some criteria. JEPI also underperforms the S&P500 on a risk adjusted and total returns basis in all know time periods. That's because covered calls aren't free money. JEPI is "high income", VOO is just an index fund that you call "not high income", yet owning and holding VOO outperforms owning and holding JEPI (and reinvesting the income). You can just sell off VOO monthly if you want the same "high income" as JEPI. Both will suffer in a down market.

PreparationBorn2195

QYLD is not a play for retail investors making questions on public forums. Yes it has its pros and cons but you are probably not fit to make the macroeconomic judgements you would need to make it a good investments. Covered Call ETFs like QYLD, JEPI and JEPQ only beat the market in bad/flat years like 2015 and 2018, sure theres definitely months where it will beat the broader market but notice that none of the covid years managed to overtake SP500 returns.

Hesho95

Selling calls can be used to lock in gains and get a premium on top of it for selling someone the right to buy your shares at a higher price. You either sell your shares for higher than current price and keep the premium, or the stock goes down and you just pocket the premium (assuming you sell OTM calls). It's a win win unless you wanted to hold the shares past the strike price you chose. Pretty much guaranteed profit either way Flip side of it, selling puts, can be used to pocket a premium and then buy shares for a more attractive price than the current price (again, assuming you sell OTM puts and want at least 100 shares of the underlying company) I've been using both methods on RDDT stock so far. Sold calls against my pre-IPO shares when the stock went crazy the first couple days and pocketed the insanely high premiums from selling those (since the volatility was so high) without having to sell a single share. Then when it sold off massively down to ~40 I sold a couple of $30 puts since I was either going to get more shares at a $30 average or just pocket the premium if the stock turned around and started running up again. Read up on options writing/selling. It's the way smart big money actually play options. There's ETFs out there that use this strategy to pay out a fat dividend (JEPI for example). It's pretty safe but caps your gains if the stock runs way past the strike price you choose

Uniball38

JEPI is much more stable than any of the YLD funds

ForeverAsleep13

Yeah Ive decided against it at this point I currently have JEPI & JEPQ just looking for more stable yet high dividend stocks for recurring income

ForeverAsleep13

Any other high yield stable etfs you could recommend? I have JEPQ & JEPI

SaltLifeFtLaud

And for someone in their 20's, it's the perfect solution while they continue to save and invest while they live their life. It'll do what the person who left it to them intended, support them on their journey of life. Long JEPI/JEPQ

CenterLeftRepublican

2500 shares of JEPI will get you about that.

Capital-Ratio5870

So I bought JEPI in Sept 2022. I just collected $676 in divvys today. I didn’t actually add them all up but let’s say it’s $600 a month on avg. I’ve collected ballpark estimate $12k in dividends. I’m down about $1900 in unrealized losses. I don’t feel scammed. I bought it for monthly income and that’s what I’m getting. I am probably going to sell soon and move into something else to replace that income and improve my yield. I’m retiring in July and my dividend portfolio is paying $110k annually across 50 plus diversified investments. I trade options to supplement that income, mostly selling puts as well. Not s big fan of selling covered calls.

l0wryda

i’ve had JEPI and JEPQ for over two years and have done amazing with both of them. about 10% yield paid out monthly and it hasn’t fallen below my original cost basis.

KBradl

JEPI behave a little differently than many CC funds. It uses 80% of capital to buy stocks it chooses, not all the SP500, and uses 20% to buy ELNs to get exposure to covered calls. Because JEPI has only 80% of it's money in stocks, it could outperform SCHD in a bear market as it will only be exposed to 80% of downside. In a bull market SPY will outperform as JEPI would only get 80% of the upside in the stocks it selected.  It's not good or bad, only another choice of return. From etfchannel.com At any time, JEPI will invest at least 80% of its capital in stocks mostly selected from the S&P 500 index but can also venture outside the S&P 500 for stock selection. JEPI's current security selection process is a bit of a proprietary black box. The ETF doesn't specify which metrics it screens for.  Rather, JEPI's fund management team selects "securities that are identified as attractive and considers selling them when they appear less attractive", which is as active management as it gets. According to the summary prospectus, the fund manager considers factors such as: Catalysts, such as improving company fundamentals, that could trigger a rise in a stock’s price. Impact on the overall risk of the portfolio. High perceived potential reward compared to perceived potential risk. Possible temporary mispricing caused by market overreactions. JEPI also employs a proprietary valuation model to rank its securities, with the goal of producing a portfolio that has lower volatility than the S&P 500.  Finally, the remaining 20% of JEPI’s capital is invested in equity linked notes (ELNs) issued by counterparties which provide synthetic exposure to covered call options on the S&P 500 index. Because JEPI does not own all the stocks in the S&P 500 index, it cannot sell covered calls, hence the use of ELNs. 

BetweenCoffeeNSleep

Experience tells me that people replying with that tone are usually committed to attacking a line of thinking, but I’ll roll with the question. A person who didn’t want to be quite as active you’d want to be selling CCs on your own, may want to use a CC fund as an offset to a leveraged equity position, with rebalancing at determined intervals. For example, 40% UPRO or 60% SSO, offset with 40% or 60% JEPI, inside an IRA.

Middle_Arugula9284

Look up JEPI

AJS914

I was reading about JEPI the other day. What is not clear to me is how to compare these funds with dividend reinvestment to the S&P or other benchmark. JEPI's sales pitch is that it's less volatile and does better than a 60/40 portfolio. If grandma has a couple million in the bank, putting some in JEPI and taking an 8% dividend may be a fine idea. (I'm not sure what the risk though is by having it all in one fund. Could some kind of volmageddon event take out one of these funds?) Maybe T-bills better for grandma with $2M right now?

Confident-Scar-5776

I’ve dug myself out of worse man. Took about 5k and a year but I doubled it. Mostly BTC JEPI AMZN PLTR META. Keep it up.

IndustrialFX

The lower yield ETFs like JEPI appear to be a reasonable trade-off between growth and yield. The ETFs my brother is in have a negative growth curve so your original investment will in fact not still be there, it's been sent back to you in bits and pieces as the ETF's price has declined.

Whole_Financial

>collecting a fee to send your own money back to you a little bit at a time with no growth whatsoever You are telling the truth about no growth. To say it's sending your money back to you is a reach though, if you were to have put money into JEPQ or JEPI since their inceptions, your original capital would have still been there for you to take out. Nothing would have happened to that money.

Maventee

Not a scam, just different form of investing. Think of something like JEPI (which is what I believe you're talking about) as a horizontal market fund. Basically, you're giving away your upside potential for income if you go sideways. You hold onto the downside risk. Compare this to something like a high income dividend fund (SCHD) and SPY. In an upwards market, SPY is going to out perform JEPI. In a down market they both are going to tank, but SPY will recover quickly whereas JEPI will go down and tend to stay down (or at least rise slower). In a downwards market, you bought SCHD for the income and that doesn't change. JEPI's income will scale with its price so it's income decreases drastically along with market pull backs. Since you're selling your upside, it also does not return to original price as fast. In a horizontal market SCHD holds its performance, but under performs JEPI in the short run (but likely not in the long term as SCHD would appreciate faster, and it's income would increase over time) TLD: SPY>JEPI in bull market SCHD>JEPI in bear market

IndustrialFX

That's what I'm thinking too. JEPI , VIG, VYM, SCHD etc. look far more appealing to me and it's obvious that you're trading varying amounts of growth for varying amounts of income. And that's fine. As long as you're aware that you're fully aware that is what's happening. I really don't like these ones that are shrinking in value while paying out huge yields. For someone who's using those dividends to live off us in their retirement it's much too easy to miss the fact that your capital is declining if you're not reinvesting that income.

nerdinden

Standard Blueprint: [blueprint](https://imgur.com/lSoUQr2) 1a. 3-6 month Emergency Fund HYSA 1b. 401K deducted from your paycheck automatically ($23,000 limit for 2024) 3. ⁠⁠⁠IRA ($7000 limit for 2024) Traditional means pay taxes later or pay taxes now (ROTH) 4. HSA - if applicable, 2024 limit: $4150 for single, $8300 for family 5. Individual Brokerage Account: ie Vanguard ETFs- VTI, VOO, VTSAX, VUG, SPY (r/bogleheads) or other ETFs JEPI 5a. Stocks or bonds or Crypto 6. Real Estate 5 and 6 can be in parallel or switched.

No_Detective_But_304

JEPI

theduderino38

Yep I’m holding and adding to JEPI regularly

Stfucarl12

Look into JEPI/JEPQ

Samjabr

Curious, I saw JEPI/JEPQ article a while back and it just seemed too good to be true. 7% to 10% yield. What's the catch?

cjalas

Roth or Trad Ira. High income? YMAX. safe? JEPI.

Positive_Wheel_7065

Target date funds are super simple, and a very safe way to invest without any thought. If you want to be a bit more active than that,Consider the world of ETF's. There is an ETF for everything and picking the right ones for you can seem daunting. There are the simple ones like QQQ that tracks the NASDAQ and SPY that tracks S&P 500, they move with the market and are diversified enough that you dont have to worry about a single company tanking your portfolio. I like high divident ETF's like JEPI and JEPQ. They also track the NASDAQ and S&P 500, but they employ strategies to also provide monthly dividends along with market movements.

Sryzon

BRKB or VTI for a taxable account. JEPI non-taxable.

HunterBidenBeMyDaddy

JEPI is a high dividend ETF

Puzzleheaded_Two1063

>CLM Thanks, was planning on doing JEPI since I did get recommended to buy that.

PM_ME_YOUR_CTOE

Dividend hunting? Search no more. Invest in $JEPI $JEPQ $MAIN $ABR $SCHD.

theduderino38

I’m with you man- and following a similar strategy although a larger percentage of stonks still in weedstonks I’ve been adding to mega cap tech, cloud and dividend stonks to rebalance and currently about 70% cannabis 30% cloud tech cyber I’m adding to NVDIA Apple Microsoft Polaris - Verizon , JEPI , DIVO, SCHD and MU for dividends , A lot of my (eventual ) gains from selling weed stocks will go directly to dividend stonks. - good luck and I’m still here abiding my time….

Striking-Block5985

Take a look at JEPI (its an ETF that does the same sells covered calls) , and tell me if it okay using it for income, and it's hedged against down moves in the underlying

BudgetInvestor

Agree bro. Completely unacceptable. They probably saw everyone advertising how they plan to just get $1,000 of USFR, JEPI, JEPQ, or other stable income investments to offset the $50 annual fee - and decided to be sneaky and change the benefit like scum bags. They deserve to get lit up on social media over this until they bend and admit fault

cnflakegrl

If you've already cashed out of your growth investments, you could do something like QYLD or JEPI, covered call ETFs that have typically paid out 10%ish in dividends (JEPI is trending a little lower right now, QYLD is still on the 10% mark). With 1M, that's 100k before taxes. If there's any portion of that you could shelter in a Roth IRA, or other tax-advantaged account is a benefit. Spain is bad for taxes, France is good for taxes. You'd need to look into the other countries to see where there's the biggest tax advantage. If you're concerned about the visas, you could do a student visa for you or your wife (French language school counts for France), then for the rest of the family you do a family reunification type visa attached to the primary student. This isn't hard, it is totally possible, and if you rent and hate it, you can always come back home. The numbers work as long as you're not materialistic. Another benefit is that if you have US debt and never plan to return, you could just 'leave' your debt - it is currently nearly impossible to collect on someone who lives overseas and your credit score is meaningless in Europe (this assumes your US-based assets $$ are in a 401k retirement account, which can't be garnished).

cnflakegrl

I thought it was low for Switzerland, but I think as a single dude who doesn't go out much, it was reasonable for him. France, yes, totally do-able + don't have to be a hermit. For OP, the benefit of being American and retiring in Europe is that OP still retains access to the really good investment options offered to US citizens - example, QYLD or JEPI covered call ETF can be purchased and yield a high dividend. My French friends can't buy those - they've tried, it's not allowed. So, OP could take his 1M, put it in QYLD, yield 10%, live overseas pretty well.

Baked_potato123

Make sure that you are maxing out Roth accounts to avoid taxation as much as possible. After that, I would say JEPI/Q, HYSA, CD's and chill.

Elons-Musky-Balls

Buy JEPI and forget about it .

kronco

JEPI uses covered calls and pros at JP Morgan handle the details. That (covered calls and pros) mitigates the risk to a level I am comfortable with. I pay them (in the form of the fund fees) to do it. I would never use uncovered calls due to high risk (some brokers don't even allow it).

ImperativeKoi

Would you mind if explaining more? I’m interested in your insight as to why zero percent (unless JEPI) :)

kronco

Zero percent (unless you count JEPI).

Sea_End_1893

My situation is unique, as with every investor. My biggest problem when I started investing was FOMO and also checking prices every single day. As for "paid out", I am not at retirement age. I have gains and profits, and I'm green across the board, but I won't touch the money until I need to. I don't run the market like a casino, I don't do options, I don't do puts or calls, I just put money away every month like a savings account, and let it cook while I live my life. I'm with Fidelity, so I have FNILX as my main fund. I have MAIN and GAIN, O and VICI, SCHD and FNILX, and one day I put $30 each into JEPI and JEPQ just to start rolling dividends lmao With partial shares, or slices, or whatever you want to call it, It takes like no effort to slap $20 into VOO and let it sit for a month just to see the percentages.

Glad-Historian-5515

Time horizon? 1-2 years? Start DCAing over the next six-twelve months into the market doing a blend of tech stocks and dividend stocks. Some of my personal favorites include TSLA (which I believe is grossly undervalued), MSFT, NVDA, AAPL, JEPI, IEP, and SBUK. You may wish to sprinkle some commodity plays in there, I personally am leaning into Uranium plays, UROY and FUUFF, but I’ve got some gold and silver in there too. I think oil and coal plays are too risky; we are at the crux of a major economic downturn, driven heavily by consumer debt and commercial real estate. 10 years or more? Bitcoin. Though, arguments can be made that BTC will triple or quadruple over the next 18 months. 70k => 250k, which if accurate, will outperform the broader market, including the plays listed above. The thing to keep your eye on: the fed has signaled rate cuts are coming in 2024, but… it’s looking like they may be lying… but secret QE is and has been happening. So… hard to say where we’re going. Retail and lifestyle brands are dangerous right now, depending on where consumer confidence goes. Not saying there won’t be money to be made. But be weary

utumike

SNOXX is a money market fund paying over 5% right now. They pay the interest monthly. You would get over $400/month. It’s state tax free in Maine. I’m not sure about other states. I also like JEPQ and JEPI. Both funds run by JP Morgan paying around 8% in dividends. They pay monthly also. One follows the Nasdaq the other the S&P.

AlfB63

I'm sorry about your dads situation. As to retirement, one consideration is that the best way to increase retirement is to delay SS as long as possible. Maybe waiting to retire a couple of years may be a thought for your mom. But if she indeed retires soon, a target date fund is not a good idea. I would consider a solid income oriented fund. That could be something like SCHD on the low end of yields with some growth to something like JEPI or JEPQ on the higher end of yields but less growth.

Sryzon

Most stocks paying a consistent, qualified dividend are only going to return ~3%. Anything higher is usually either inconsistent, nonqualified, or bleeding share price. You would probably be better off just selling a portion of your long term gains in your existing portfolio, VTI, or BRKB. I've done the same exercise, and, at least in a taxable account, the answer is usually to just hold an index for a year and sell long-term gains. Now, if we're talking non-taxable, then you might as well go for the non-qualified income funds like JEPI covered call fund or a CLO fund like JBBB.

Kekulzor

I'm still confused why fidelity makes you sign a waiver to buy something like JEPI but you can go and get the shittiest 50% daily swings penny stock no issues

DifferentSwing3149

I have a pension, retired last year at 65, over 30 years, get around $4,200 a month no COLA. I plan to offset the COLA with dividends. Adjusted my portfolio and picked up JEPI and SCHD. Gonna get in on JEPQ now with the dip. Gonna delay SS a little longer and see how things go.

Sharaku_US

Have you looked at SPYI instead of JEPI?

MarkusEF

Why do people buy JEPI? Covered calls is an easy enough strategy that you can do it yourself… and save the administrative fees.

myco_psycho

That makes sense. I've been playing around with them recently just looking for safe short-term income vehicles (2-3 years) while I save for a house. What you make off of premiums does seem rather pathetic. Market volatility recently scares me and I need money in hand when I'm ready to buy. Maybe I'll just throw my money into SCHD and JEPI. I know long-term divvies won't beat growth, but better safe than sorry.

trader_dennis

In my case i am using JEPI as an income generation and hedge. I totally understand I will underperform the market in good years.

user568945673

Just looked at JEPI, pretty wild thank you. I think if I went down that road, I definitely might use it as part of a larger strategy, maybe go half-in. I’ve never invested in a dividend stock before. In the scenario of putting $335k in, getting 10.7% out I’m looking at $2987 a month + whatever gains the stock makes yearly. However the caveat here is not being able to offset any expenses. So in the rental scenario, I’m bringing in $36k a year but I’m able to depreciate the construction cost over 27.5 years as well as mortgage interest and property taxes. Effectively lower my tax burden to like $5k AGI for the rental In a Dividend stock I’m assuming I pay taxes on the full payout AND the capital gains for the year? Even still, I did realize such a thing existed. I also think it’s hilarious because selling options is practically guaranteed money for the seller… at least when I buy them 😂

No-Argument-3444

What an odd portfolio. Sell the ARC and JEPI and put those funds in VTI

SupportCompetitive63

I'm in JEPI, but may like CBLDX a little better.

scientropic

Yes there are financial products that at least come close. One is JEPI. Not quite the 10.7% or so you’re looking for, but it does yield around 8.5% and distributes monthly. You can find higher yields in mortgage REITs (real estate investment trusts) and BDCs (business development companies), and junk bond funds and closed end funds in that neighborhood, but at each increment you’re stepping up the risk scale. You’re also in the zone where part of the yield can effectively amount to a return of capital.

trader_dennis

I would say JEPI lost less in 2022 than VOO but 12% in principal to 15ish for VOO. But JEPI did pay over 10 percent so a much better year.

jf7853

Check out JEPI return for 2022 - I'll take a little under performance if it stays up in a down market and continues to pay it's income!

consumervigilante

Since you mention JEPI & I assume you might also have interest in JEPQ you might also want to consider the NEOS covered call funds SPYI & QQQI. These funds have better tax treatment. Here is a link to the NEOS website. Or you can always look up NEOSFUNDS in google to find the website if you don't trust my link. [https://neosfunds.com/](https://neosfunds.com/)

scientropic

Each has its place. SCHD gives you a lower current yield, but the dividends stream grows over time. JEPI shows little or no dividend growth, but the current yield is much higher. There’s no harm in owning both … you could emphasize SCHD if you’re more interested in keeping your dividends well ahead of inflation long term, or JEPI if current income is a higher priority. They’re both fine funds … it’s just a matter of which or what combination best matches your priorities.

RevolutionLazy6131

I also own JEPI and SCHD. I just checked what Mezzi suggests. Have you looked at SPYD? 0.07% expense ratio vs. 0.35% for JEPI. 4.72% dividend yield, so it's more than SCHD which as 0.06% expense ratio. Sounds like a good alternative to SCHD, though returns haven't been as good. If income is more important, then it could be a good alternative.

JeffB1517

SCHD is designed to deliver an inflation adjusted income. JEPI is a junk bond alternative, high yield but you could experience capital degredation over time. Given you are looking to maintain an income for at most 7 years I think JEPI will sustain a very high draw better. I am however assuming this money is held tax advantaged. If not SCHD is vastly more tax effecient.

my_name_is_gato

K, go for it then. A CC can limit your upside and needs monitoring. If you are ok selling at the strike price you choose, it can't go completely wrong per se. However, the premiums aren't that great imho. I sell calls on JEPI, and while it does help the bottom line, I'm usually doing it with the intention of being assigned and just collect premium on top. I don't monitor the position closely; it simply isn't worth the time spent. If you want to help avoid assignment by selling at low delta strikes, it can become more effort than what it is worth. The risk/lost opportunity of having an unexpected boom blow past your strike price may be justified for your investment style. Early assignment is always possible, but you'll need to be careful about ex-div dates in particular. Personally, I think there are far better tickers for options trading. Alternatively, consider a wheel strategy, again with a close eye on dividend dates. Selling calls and puts very near the money offers better premiums and volume, and I'd managed well, has the potential for better returns.

Particles1101

Start taking most of your money and put it into VOO and don't touch it for 36 years. ROTH IRA, too. There's also stuff like covered call income ETFs like JEPI, YMAX, QQQY, JEPY, and SVOL.

Particles1101

Now save some for taxes and put the rest into boring VTI or JEPI or something.

BeardedGuy201

Look into a Roth IRA and I'd say buy some monthly dividends. Basically something that will pay out month to month and just grow over time. Great thing about the Roth is just feeding in money little by little and letting it amass while paying no taxes until you take the money out. You won't be touching it any time soon so don't break the bank on putting money in. JEPQ, JEPI, CLM are good ones to start in and keep. You could always look up monthly dividend lists. Yes they pay tiny dividends but the idea is that they are lower cost (well, CLM is) but being a monthly dividend, they give back that investment in a much shorter time. There's many others and it's not hard to do a little research on them; here or elsewhere.

Tavernman1

Without knowing her age or timeline, I would suggest 70-30 or 60-40 split of T Bill ladder and mix of ETFs SCHD,DIVO,JEPI,JEPQ,VOO/VIG

SuperNewk

Honestly why doesn't he just buy JEPI. Get paid 10% no matter what, if stocks crater 50-60% Jepi should do less than that. Take JEPI stack then yolo into leveraged ETFs, close computer...come back in 5 years with profits. no loss of hair in the process

Icankickmyownass

Too much overlap. JEPI is monthly div, how old are you?

AICHEngineer

JEPI isn't high risk. It's the returns of the S&P500 expect you pay more taxes. JEPI and JEPQ are ridiculous products. The only time they'll do better than owning either index directly is if the market is low volatility and sideways, which it rarely ever is. Do not buy JEPI or JEPQ

licgy

New to investing, 36 years old, I recently relocated to the US and have $650K to invest. I learned what I could in a short period of time and planning to have a professional assistant but I want to hear other opinions so maybe I will be able to tune it a bit in advance. It is also important to mention that I would like to play as safe as possible and focus on cash flow. I would like to invest it for approximately 20 years with DIP without taking any monthly income out. This is my current plan for the $550K: 1. 40%(220K) Qualified dividends - SCHD 2. 25% (137K) growth - VOO 3. 8% (45K) higher risk - JEPI 4. 7% (38K) market protection - HEQT 5. 10% (55K) Bonds - NNY (I live in New York, not sure it a good choice but I believe it is ok) 6. 10% (55K) Real Estate - VICI (45K) + O (10K) Any feedback is greatly appreciated!

weatherinfo

Thanks for the optimism. I’ve gotten a couple of DMs from people saying a lot of people here don’t know what they’re talking about, so I’ve taken everything with a grain of salt (I can’t say I disagree; I asked for something that grows decently with a dividend of around 5-6% and I got suggestions for stocks with 20% yields that have declined 10% over 5 years, only for them to later tell me that the dividends are not regularly scheduled and they basically pay them when they feel like it, lol). I wasn’t trying to make anything quickly though. My dad actually bought SPHD for me 2 years before I’ve cared about stocks and now (3 years later) I have my own investing plans and SPHD just isn’t a part of it. He agrees that it would be a better decision to move on and I already have decided where all of that cash is going to go, plus the cash I’ve gained over the years. I finally logged into my account for the first time about a year ago to see that it’s down 10%. It has stayed like that for awhile now. I don’t plan to sell it until I get into the green though, and fortunately it’s getting close. I do understand that it’s difficult to find things but I’ve discovered a couple of gems on my own (One is JEPI, with a 7.55% yield and growth of 7% over 6 months and 14% in 5 years). I’m just seeing if anyone else has any other ideas.

cnflakegrl

A few things to look into: 1. Roth Conversions - you can roll money into becoming Roth money. This has tax implications in the year you do it, as it counts as ordinary income, but if the math works out, you take the one-time hit and then have a lifetime of untaxed gains. You will want to dig into this more, there are some details that can be 'gotchas' depending on if you have other IRAs. 2. For high yield ETF, look at covered call ETFs - like QYLD or JEPI (QYLD seems to be paying out more right now, but this can change). But you'll pay tax on the 10% return monthly/quarterly, unless you put it in a Roth or have it in 401k. 3. There are plenty of 5%+ 5-10 year bonds and CDs right now. 4. 401k comes with its own set of game rules - if you hold it too long in 401k, you'll have to take minimum distributions from the 401k at some point in retirement years, which could push you into a higher tax bracket in retirement. Sometimes it is advantageous to strategize a non-working year (Jan - Dec) to reduce income to 0. This is all a game, gotta look at options outside of the box.

rbrumble

JEPI

weatherinfo

I tried SPHD and it failed. I’m gonna try JEPI soon.

solidlyaverage1

Where are you getting your calculations from? JEPI is a really bad example because it barely moves relative to the strikes listed. It’s like 7 vol. and it doesn’t trade, so the markets posted are going to be wide. That will cause wildly inaccurate vol calculators. An option that is no bid - .05 will calculate a vol that is super high. But the options are worthless.

BabaYaga19723

Dude what positions do you have. Unless you have a Uber low-crazy buy in some stocks, sell all positions spend the 12k on JEPI you can get 210 shares of that and get $92 a month from dividends and get passive income buying almost two shares for free each month and then work your way back up. Stop doing options if you are!

mrbigglessworth

I’ve had some good dividends with JEPI

Suspicious_Dinner914

At first I was all like this is sketchy and that's mainly because of MULN. I'll see how the market shifts Monday and take some of shares of JEPI out to toss in here. I only hold 60 shares ATM because I wasn't sure if this would go downwards.

PresidentialTrader

What's the ticker? not everything has options. Not financial advice but if I were you I'd look into $TLTW It's an ETF that sells covered calls on $TLT already; it generates a monthly dividend (1099-DIV) and it keeps up with the changes in rates such that if you bought at the highs last year, the dividends alone will mean you're still about +3% after bonds dropped hard. The idea is that you can let it ride paying a monthly income while you earn an average 12% - 20% per year in income and the value of bonds will remain stable. I like to sell covered calls on what I own but unless you're willing to actually be sold-out and assigned, which is totally likely, the strategy may sound "better" for you than it really is. I shorted $NVDA at $630 and I shorted $XLE just recently at $97. I actually sold covered calls on $XLE at \~90 but closed the trade at about $86 cost basis. The point is that selling a covered call is like a "secured short". You can't lose more than the strike if price keeps moving. But, imagine earning a nice income on $NVDA at $630 to only find out it moved to $1000 in that time frame. How do you "get back in" and safely? Instruments like $TLTW help you ignore that problem. You may or may not out perform the instrument in question; but you'll be comfortable with the results not having to be sold out. ------------------ $TLTW $O $JEPI These are some strong "income" stocks that are also pretty trustworthy and stable enough to enjoy as monthly income writers.

EveryDollarVotes

That's rough but not surprising. What many don't understand is that the stock market is a way to participate in companies profits/success. The option market is a casino. The people (computers) offering up those calls/puts are running millions of black schole models and immediately hedging out their side. Much like a casino if more than 50% of people start to win they change the rules (i.e move cost to play up considerably). This happens in REAL time. The interest in options, and especially short term options has been a windfall for wall street, and by simple math, bad for investors. Look at JEPI. They can pay an insane dividend because of the amount of losses being absorbed by individual investors on the calls they write. Their strategy wouldn't have worked only a few years ago because there was a lack of buyers for this product (options) I KNOW this to be the case, but have probably lost even more over time. Next time you get cash, buy an underlying equity. Preferably one that pays a dividend.

Legitimate_Style9930

Not financial advice but $JEPI pays around a %7 monthly dividend

Plus_Goose3824

JEPI is pretty low expense and high dividend. Perhaps you can find an ETF that holds stock in your employer if that interests you.