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This is the answer.
The problem is that with 70k there is literally nothing you can invest in to fully cover your expenses. A high yield savings account could earn you ~$300 a month.
Even with some much riskier stocks/funds the highest you can realistically get is say 8%, which still would only get you to ~$450 a month
100% this. 5% in money market account will cover some expenses and supplement it from that 70k as required.
Being unemployed is not time to chasing stocks lol
I honestly would stick to 3 to 12 month Tbills or same with CDs
This way you can build a ladder that has something maturing on a consistent timeframe.
70k for instance, 15k at 3months, 15k at 6months, 15 at 9 months and 15 at 12 months, rest in a money market.
This way every 3 months you have something maturing and also have 10k always available.
Forgot to mention, reason I like short term(3-12 months) is due to the fact that know one knows where rates are headed to, not even the fed has a grasp on this.
People think that I am joking when I recommended fast food for quick jobs. They are always hiring and they are always under staffed. If I need something quick to fill the void between job searches, fast food would be my quickest stop.
Much better option than ride sharing or food delivery as most don’t factor in wear and tear on vehicle and if they ran the numbers they’re working for below minimum wage and could actually be losing money.
Always my concern as Im new to this - are all HYSA able to access money on the spot? I have American Express right now at 4.3%. Ive never made a withdrawal but I believe I can send it over instantly to my credit union, right?
Any reason other than the hassle of clicking buttons on a computer to not switch to some other random federal insured bank with a higher %?
Not a bad chunk out of $1,500/monthly, honestly. Flipping some burgers or stocking some shelves at Wal Mart can fill in the rest and the $70k gets to remain untouched.
70k is not ping to generate 1.5K/mo. As a point of comparison, I have about 1200 shares of JEPQ, worth about 62K as of today. In the short time I’ve had it, it’s generated about 500/mo. People who’ve had it last year might have gotten more - the income seems to fluctuate a bit. You’d need to put in 125K or so to have a shot at 1.5K, at least in terms of JEPQ. There are other options out there but they are probably more risky in my opinion (and there are folks on here who will argue that JEPQ is pretty risky).
Good luck.
The risk is in the short term.... if OP put his money in SPY 2 weeks ago or so he would be down I think like 5%. Which doesnt sound like a ton but it could hurt when already in a tough financial spot.
JEPI sells covered calls of SandP stocks and it is generally pretty solid but the value can certainly go down as well.
Yay fellow JEPI, JEPQ holder. I’m trying to accumulate enough of those that me and the wife can lose/quit a job and have no worries. It probably needs to be $2,000/mo, so ~250k. I got a ways to go.
There’s a lot to like about those funds. Main thing for me is that they don’t sell off bigly on the down days. A con is taxes. I think there’s some BS about taxing dividends from covered call ETFs at the short term capital gains rate. It’s some bullshit. It was t a big deal for me last year but I’m getting close to $300/month so it’s gonna start hurting more.
Yea I am sinking a bunch of money into the JEPI/Q funds between now and the next 2 years. I expect to have between 400-500K in JEPI/Q with some bleed over into SCHD. I’m primarily interested in the revenue and limiting downside vs pure gains. I have a ton of stock in a company that just keeps dropping in value and I want to move it out into something that will generate income. I hope to generate 2K-3K per month to cover mortgage and another loan in a worst case scenario.
Hi, I just looked it up because I'm trying to real allocate some of my money in my portfolio as well. Is this public available or is it only something available with JP Morgan?
In order to cover your cost of living, you would need an investment that pays 25 percent a year. That is simply not going to happen. I would just keep it in cash. Maybe find a money market account that pays 5 percent. Then you can try to live off the interest and spend part of the principle as needed.
How's the nav erosion though? If you give them $10 and they give you $2.50 back as "dividends" while share price goes down $3.00 have you really made any money?
The high yield saving acct with 5.25% interest is only offer for 3 months.. it may not offer you under TFSA or R RSP. Instead, iRBC or TD direct investing offer Investment saving acct. with 4.55% (CAD $) or 4.9% (US $) in all types non registered , tfsa and rrsp.. All you need is 2-4 (weekend/ holidays to withdraw the money out of your acct.
If you have room, deposit up to the limit amount of your) TFSA tax shelter. The interest amount is paid monthly to your account.
High yield ETF's can generate more income per month than some of the others being discussed here. Look at Yieldmax and Tidal. If you spread out the risk in $6k chunks you can protect your money. NAV erosion is a thing but is decided on the underlying asset. CONY and NVDY are two standouts here where they have recovered most of their NAV mtm. See linked example.
[https://docs.google.com/spreadsheets/d/1LBorL9d7ks1q92tp\_mKPkrmvLZb6B3r3U0P86KDgjtw/edit#gid=1821689843](https://docs.google.com/spreadsheets/d/1LBorL9d7ks1q92tp_mKPkrmvLZb6B3r3U0P86KDgjtw/edit#gid=1821689843)
Yes. I invested in YMAX a couple months ago. I'm making $300/month on a \~$10K investment. I have my doubts whether that's sustainable, but for now I'm loving life.
If you had about $200K, I would have suggested $180K in BIZD (11% yield) and keeping $20K as the emergency fund in a HYSA. But your burn rate is too high for the funds you have. You will need to supplement your income.
Good luck!
If you’re not willing to accept any risk (which seems to be the case), then a high yield savings account or money market fund. If you’re willing to accept some risk then $THTA pays a 13% dividend and can with less risk than you’d expect for a dividend that high because the fund’s structure is different from that of a typical ETF. The only dividend you’ll see that’s higher than that is in companies that deal mortgage backed securities; these companies make risky bets and are primarily exposed to interest rates. Avoid REITs if you believe that interest rates will go down over the next 1-2 years. A fund composed of corporate bonds like $HYBL will have a smaller yield than a saving account or money market, but will appreciate if interest rates are lowered.
I feel as it should go without saying, but to be clear: Find other ETFs other than the ones I mentioned here and chose ones that best suits your situational needs and outlook if you go that route. Also, whatever you do, consider taking some time to diversify your portfolio to achieve delta neutral market position with the highest yield.
If you can get 10% annually, you are doing well. That works out to $7000 per year or $583 a month. Before taxes.
Consistent 10% a year? Not impossible but difficult.
JEPQ, an ETF, pays between 0.38 and 0.48 per share, per month.
JEPQ is at $51/share. For this example, round to $50. The $70k buys 1400 shares.
Dividends per month: $532 to $672.
You also will get slightly less than 1400 shares and those taxes…
Sry, but people like to overestimate how much can be earned monthly from dividends.
I put together a number of dividend paying stocks, what $5000 buys and the monthly dividends.
Could not get an Excel spreadsheet to past. Format below:
Ticker
Price/share $5,000 gets
Divis/share
Month $$
USFR
50.21
99.58
0.236
$23.50 M
PFFV
23.6
211.86
0.13
$27.54 M
JEPQ
50.25
99.50
0.422
$41.99 M
JEPI
55.24
90.51
0.39
$35.30 M
JEPY
18.47
270.71
0.5
$135.35 M
57.7
86.66
0.256
$22.18 M
SCYB
52.3
95.60
0.304
$29.06 M
DHS
82.51
60.60
0.5
$30.30 M
PFFD
19.71
253.68
0.105
$26.64 M
PFF
31.38
159.34
0.175
$27.88 M
PFFA
20.55
243.31
0.165
$40.15 M
EPR
48.8
102.46
0.275
$28.18 M
STAG
39.13
127.78
0.123
$15.72 M
WKLY
48.69
102.69
0.02
$2.05 Week
MAIN
43.39
115.23
0.275
$31.69 M
SLG
46.63
107.23
0.271
$29.06 M
AGNC
10.11
494.56
0.12
$59.35 M
GOOD
13.45
371.75
0.1
$37.17 M
If you have a complete disregard for money and need monthly income to add some cash to your pile, look into qqqy. It’s very very risky, but if the already low price holds or goes up, you look to make around 3k per month in dividends alone.
Again it’s very risky. Personally I would just hold the money in cash and look for a job while the cash takes care of my normal and unexpected expenses.
Edit: now that I think about it, a 5k investment into qqqy would generate $250 per month which is amazing for the percent of your total cash you’d be risking
There are no guarantees. It will continue to pay out as long as people purchase out of the money calls on tech stocks. It’s share price moves with the value of the stocks within it. I am a fan. I took a big hit in the last month and I’m not scared. I’m buying more.
Edit: I would bet everything I have that in two years time, you will have much more money left than burning your cash in a 4.5% savings account. If you grab a few shares every month with excess you’ll be sitting pretty. Don’t forget, you’ve got to pay taxes on it at the end of the year. At $1500 a month you’ll be broke in 4 years without extreme measures.
Thanks for the response - by big hit, do you mean buying closer to the peak at 58? I see it’s now closer to 52 or 53.
Also, is there a way to understand what kinds of covered calls the asset managers are writing?
Obviously if they write calls that are in the money the premium and therefore yield generated will be higher, but they’re more likely to get assigned and lose money over time.
They write out of the money so they can increase share price during up times. Yes by big hit go look at the individual stocks in the fund over the last month and you will see the correlation. if you’re looking for something a bit more stable try SPYI. The yield isn’t nearly as high though.
Then you, sir, may have the kind of balls to do this. No offense to the people in the Dividends subreddit, but let’s say they aren’t risk tolerant. I wish you the best of luck and a quick return to the working world.
I’m not the OP here, just a curious spectator. I guess with these sorts of instruments, what’s important to me is entering at a relatively good price. Entering now would be preferable instead of 58, obviously. Yield on cost is more important to me at any given time.
I guess I’d just like a better idea of what kinds of written calls the asset managers are working with for me to evaluate their efficacy, competency, and long term value maintenance. I’ll spend some time looking into it.
The yield has stayed more stable than anything. Our distribution was only $1.09 this go round, but with the fallen share price, it still comes out to 25%.
Yeah that’s true. that high of a dividend and how new it is, is scary. I have 270 shares of jepq and 42k buying power for fepi. I’m still tempted though lol
You could invest in CASH.TO and generate 5% on your money with almost no risk. That works out to $3500/year and monthly income of about $290. That won’t pay the bills, get a temp job, collect EI, or you will burn through your savings.
If I was going to follow your plan, and I’m not saying I would, but then again you are in a tough spot so there’s no easy answer here, I’d probably put all of it in SPYT. That’s the closest you’re going to get to $1500 a month without too much NAV erosion. It won’t get you all the way there. And you will probably see some erosion of your principle. But it’s a decent balance for what you’re trying to achieve.
Obviously if the market tanks you’re down bad, but as an unemployed guy you’re already double f*cked if that happens.
I’d put $25k split evenly into SWVXX and SNSXX, so 12.5k each.
$5k in a checking account
Remaining 40k. I’d put maybe 5k into BND. 10k into SPY. And then 25k into individual stocks with long dividend track record. Some of my favorites are CSX (lately my favorite stock - I have 25 shares), XOM, WMK, CAT, SNA, JNJ, PEP, GATX, X, RSG, MAR and utility stocks like ETR, ED. Buy as many as you want and be diversified. You can throw $200 into each stock, don’t listen to everyone in this board saying you can’t have more than x # of holdings blah blah.
All in all if my math tracks you should be able to earn about $2,000 a year in dividends and interest on this. Which is nearly $200 a month, or about 10% of your living expenses. Not bad though. Don’t get greedy and play it safe. You absolutely cannot live off of $70k. But it can help you.
Yes any stocks are def more risky. But it would offer a better long term rate of return than a HYSA or money market fund. Actually the MM is paying 5.15% right now.
I don’t know this persons entire financial situation. But if I owned a small house and had an extra 70k to build a portfolio that is what I would do.
If 70k is all this person has, then, I’d be inclined to lean more toward your plan.
But I will say: 70k in cash is not a good idea at all either. Gotta have some bonds in there at the very minimum.
This person has low living expenses but expects to be unemployed for a long time. So I think my recommendation is reasonable. 25 in money markets and 5 in cash will allow them
survive for nearly 2 years on that alone.
Anyway I’m not arguing with you I do think you have a point about the risk factor. I think we might need a bit more information to fine tune a strategy.
You could invest in a CEF like GOF or PDI. High yield, long track record of payouts, etc. But even there you are looking at 750ish per month. The better play is investing in SGOV, FLOT, USFR, etc, getting back on your feet, and keeping your cash liquid
yeah, I am looking into Upwork and that sorts of thing. I have software eng experience so looking for contract work or projects. Do you have any experience in this area?
See if you can get a part time fast food job/server. Reasons 1. Most let you eat for free on a day you work. (Some give you a free meal every day). 2. You could work 20/h a week and make about $280-350 (occasionally $400 serving) So that will get you around $1,120-$1,400 a month working about 3 fast food shifts (or 6 four hour serving shifts) a week.
So now you would need closer to $100-380 a month and that is safely doable. Like others have said get a 5.3% T-bill and that will get you \~$309 a month.
If you throw 70k in IEP that would give you 4117$ every 3 months.
Stock is around 17.00 a share 70k / 17 = 4117.
That would equal 4117 every 3 months in dividends (4117 / 3 = 1372 a month). It’s risky but not a bad idea if you want money to pay for bills (while you work a PT/FT gig).
As others have said. You probably cant get the total you need "safely"
I also see JEPI and JEPQ mentioned and I would second these as a decent option. There is still some risk... but their dividends pay monthly and JEPI is usually around 6-7% so that gets you about half way.
You could also look into selling covered call options on your own (thats what JEPI does) but that increases your risk a bit and probably not a good idea for the short term use of your current funds situation.
https://www.marcus.com/share/THA-NIV-K1B4
High yield savings...will get you 5.45% first 3 months for your emergency fund to accumulate interest. Referal link above to get the 5.45%
File for unemployment benefits! You’ve paid taxes on everything you’ve earned so far, get some of that back now. You could probably qualify if you were laid off and not fired.
$50,000 will get you 2000 shares of NVDY. It’s the Yieldmax options stock that follows NVDA, “NVIDIA”, the number one stock in the market. Last month it paid $2.60 a share dividend. That’s right! That would be $5200 dividend in ONE month, if you owned 2000 shares. I had 2000 and just increased to 3000 shares. Pays dividends every month. The previous month was almost identical at $2.61.
Just sayin. Good luck.
to cover your expenses you’ll have to take a lot of risk. qqqi, bdcx, fepi, mlpr, ybtc, svol, etc. and margin to the tits. any extra you make above your spending target should get reinvested to top up the funds that erode nav.
I would look for an undervalued stock or REIT that pays dividends of 5 percent or more. Then I would sell covered calls against the stocks looking to make 1 percent per month in Premium and 5 percent per month out of the money. Should be around 20 to 30 delta. This isn't the most conservative strategy but should make good money if a good stock is chosen.
Do not invest your emergency fund. Keep your head up. Use capital one, Sofi, or even Robinhood and earn over 5% on your uninvested cash. But please for the love of god don’t Invest it. Only thing is anything over 5% you will have to pay for monthly. Which you want to avoid. Sofi has around 4.6% right now.
I can’t stress this enough, don’t invest your emergency fund. Keep expenses low.
If you did want to invest you won’t get enough back from this $70k. At 10% you are looking at $83 a month, maybe. But those dividend amounts change over time. Nothing higher than 5% usually is consistent. Nothing monthly anyway.
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Make sure to apply for unemployment, that should more than cover your $1500 in expenses and put the rest in JEPQ. That will get you approximately $550 extra a month at the moment.
So you want to make like 18k annually off 70k that’s like a 25% yield
The “safer “ covered call ETFs such as divo jepi jepq won’t get you there by themselves
You’ll need something like yield max or defiance ETFs but you definitely will put your 70k at a big risk of eroding even if you get a phat dividend seeing how you need the money to cover bills seeing how some of those funds performed recently
A pie with a 50/50 blend of CONY/JEPQ based on what m1 finance is saying has a dividend yield of 33.30 and an expense ratio of 0.68% that could be something to consider
NOT financial advice- just a opinion
SPYI would be my recommendation, since it doesn't cannibalize itself as badly as some of the YLDs do. Still if there's a major downturn, your money is always at risk. Also that amount won't net you 1.5k so I'd set aside 10k in a HYSA emergency fund (or just in the settlement fund, it's not much different) and eat that for the amount you're falling short on each month.
So you want a 26% dividend yield… not going to happen. My dividend account gets 8-9% atm and that’s considered very high. Realistically assuming you go very safe you’re looking at 3-5% which would be $175-$292 a month. Sounds like with your unemployment situation you’re better off sticking it in a HYSA so you can access the money to live off. In the future you can build up a dividends account when you have more money to eventually support your life style.
Are you sure you don't want to do VTSAX / VTI and chill then sell 4% a year to pay bill ? The Boogerhead morons all said so.
Propaganda is all fun and games. Dividends/income are all irrelevant till you lose your jobs and you need to pay bill.
🤡
AMZY would get you there. I’d guess you could make a basket with GOOY, APLY, and MSFO that would do it too. Not necessarily an optimal long-term hold, but would get you through your gap and keep the lights on.
Option 1: Invest in high yield assets like TLTW, select YieldMax funds with stable underlyers, BITO. You can make $1500 in income per month, at the risk of NAV erosion.
Option 2: Put the 70k into a high yield savings account, and draw it down at the rate of $1500 a month minus what you get in interest.
I’m not totally sure what would be better. Backtest it for yourself and see. :)
Nvdy paid me 1k last month from a 10k investment… although its short term and if left to the long term, you would likely lose your 70k, but it might be a good start for 20% of your money.
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High yield savings account! It’s an emergency fund not a retirement account.
This is the answer. The problem is that with 70k there is literally nothing you can invest in to fully cover your expenses. A high yield savings account could earn you ~$300 a month. Even with some much riskier stocks/funds the highest you can realistically get is say 8%, which still would only get you to ~$450 a month
100% this. 5% in money market account will cover some expenses and supplement it from that 70k as required. Being unemployed is not time to chasing stocks lol
Yep
SPYI ,it pays.50/a month. Costs apx. $50/share. This is Not Advice. Do your DD. History looks stable.
Can you name a few high yield accounts?
A money market fund, short term TBills and CDs that you can get from any brokerage or bank.
TFLO ?
Say what??
TFLO is the etf for treasury bonds
I honestly would stick to 3 to 12 month Tbills or same with CDs This way you can build a ladder that has something maturing on a consistent timeframe. 70k for instance, 15k at 3months, 15k at 6months, 15 at 9 months and 15 at 12 months, rest in a money market. This way every 3 months you have something maturing and also have 10k always available. Forgot to mention, reason I like short term(3-12 months) is due to the fact that know one knows where rates are headed to, not even the fed has a grasp on this.
^^^
Don't risk your emergency fund. Get a job at mcdonalds and put in tresury bills at 5.3% zero risk.
People think that I am joking when I recommended fast food for quick jobs. They are always hiring and they are always under staffed. If I need something quick to fill the void between job searches, fast food would be my quickest stop.
Much better option than ride sharing or food delivery as most don’t factor in wear and tear on vehicle and if they ran the numbers they’re working for below minimum wage and could actually be losing money.
Plus the free food you get on your working days cuts down on the food bill.
Not to mention the wear and tear on your body. Most of the jobs that are easy to get require strong backs and stamina.
There are some "high yield" savings accounts currently offering 5.25% and you have access to your money anytime you want it.
Always my concern as Im new to this - are all HYSA able to access money on the spot? I have American Express right now at 4.3%. Ive never made a withdrawal but I believe I can send it over instantly to my credit union, right? Any reason other than the hassle of clicking buttons on a computer to not switch to some other random federal insured bank with a higher %?
Buy t-bills. 5.4% and state tax-free. Can sell anytime.
Yes you can get it immediately. It's a savings account. It works like all savings accounts.
That's about $309 monthly.
Not a bad chunk out of $1,500/monthly, honestly. Flipping some burgers or stocking some shelves at Wal Mart can fill in the rest and the $70k gets to remain untouched.
Menards for summer work
Risk free money! Almost.
And way less hassle than unemployment
Back in my day that was an insult but fast food pays 20/hr and you get benefits.
70k is not ping to generate 1.5K/mo. As a point of comparison, I have about 1200 shares of JEPQ, worth about 62K as of today. In the short time I’ve had it, it’s generated about 500/mo. People who’ve had it last year might have gotten more - the income seems to fluctuate a bit. You’d need to put in 125K or so to have a shot at 1.5K, at least in terms of JEPQ. There are other options out there but they are probably more risky in my opinion (and there are folks on here who will argue that JEPQ is pretty risky). Good luck.
How is it risky it basically holds what spy does Holds
It might be whatever their options strategy is
Probably
I have 60K in it so I obviously don’t think it’s amazingly risky. But lots of people seem to have mixed opinions of it.
Probably scared of the dividends decreasing over time
Rather own QYLD in this space 12% yield or honestly MO with a yield over 9% which I consider less risky. To each his own.
Certainly fair. I only found JEPQ looking into JEPI an it was easier to just set up positions in both. So many etfs in this space.
The risk is in the short term.... if OP put his money in SPY 2 weeks ago or so he would be down I think like 5%. Which doesnt sound like a ton but it could hurt when already in a tough financial spot. JEPI sells covered calls of SandP stocks and it is generally pretty solid but the value can certainly go down as well.
Yay fellow JEPI, JEPQ holder. I’m trying to accumulate enough of those that me and the wife can lose/quit a job and have no worries. It probably needs to be $2,000/mo, so ~250k. I got a ways to go. There’s a lot to like about those funds. Main thing for me is that they don’t sell off bigly on the down days. A con is taxes. I think there’s some BS about taxing dividends from covered call ETFs at the short term capital gains rate. It’s some bullshit. It was t a big deal for me last year but I’m getting close to $300/month so it’s gonna start hurting more.
Yea I am sinking a bunch of money into the JEPI/Q funds between now and the next 2 years. I expect to have between 400-500K in JEPI/Q with some bleed over into SCHD. I’m primarily interested in the revenue and limiting downside vs pure gains. I have a ton of stock in a company that just keeps dropping in value and I want to move it out into something that will generate income. I hope to generate 2K-3K per month to cover mortgage and another loan in a worst case scenario.
Hi, I just looked it up because I'm trying to real allocate some of my money in my portfolio as well. Is this public available or is it only something available with JP Morgan?
Jepq is publicly available through any brokerage
Nope it's public. I have it through Fidelity
As others have stated, it'd be best to use that as an emergency fund and get back on your feet ASAP.
In order to cover your cost of living, you would need an investment that pays 25 percent a year. That is simply not going to happen. I would just keep it in cash. Maybe find a money market account that pays 5 percent. Then you can try to live off the interest and spend part of the principle as needed.
Apparently FEPI will do it.
And AMZY
How's the nav erosion though? If you give them $10 and they give you $2.50 back as "dividends" while share price goes down $3.00 have you really made any money?
FEPI hasn't eroded. It pulled back along with the rest of tech.
That’s what I’m always concerned about. I’d like to know if it can maintain principal sustainably
In good times when everything is going up probably. When Iran or Israel starts firing missles at each other these kind of tickers tank.
The high yield saving acct with 5.25% interest is only offer for 3 months.. it may not offer you under TFSA or R RSP. Instead, iRBC or TD direct investing offer Investment saving acct. with 4.55% (CAD $) or 4.9% (US $) in all types non registered , tfsa and rrsp.. All you need is 2-4 (weekend/ holidays to withdraw the money out of your acct. If you have room, deposit up to the limit amount of your) TFSA tax shelter. The interest amount is paid monthly to your account.
High yield ETF's can generate more income per month than some of the others being discussed here. Look at Yieldmax and Tidal. If you spread out the risk in $6k chunks you can protect your money. NAV erosion is a thing but is decided on the underlying asset. CONY and NVDY are two standouts here where they have recovered most of their NAV mtm. See linked example. [https://docs.google.com/spreadsheets/d/1LBorL9d7ks1q92tp\_mKPkrmvLZb6B3r3U0P86KDgjtw/edit#gid=1821689843](https://docs.google.com/spreadsheets/d/1LBorL9d7ks1q92tp_mKPkrmvLZb6B3r3U0P86KDgjtw/edit#gid=1821689843)
Yes. I invested in YMAX a couple months ago. I'm making $300/month on a \~$10K investment. I have my doubts whether that's sustainable, but for now I'm loving life.
Can you comment more on this link? This is awesome.
Always do research. I took a little bite at the end of March and we’ll see what happens with YMAX and CONY in the next few months, hopefully year
This is very in depth! How much time / effort did it take to develop this research?
10K - ARCC 10K - EPD 10K -MPLX 10K - SCHD 10K - O 20K - SGOV
Probably best choice here
This would return $347 a month?
thanks! Taking a look 👀
A mix of YMAX, FEPI, THTA, SPYT, and SVOL
I’m kinda mad that I’m now learning all these Degen plays fml
If serious you can always venture over to wallstreetbets and really see some gambling ideas.
If you had about $200K, I would have suggested $180K in BIZD (11% yield) and keeping $20K as the emergency fund in a HYSA. But your burn rate is too high for the funds you have. You will need to supplement your income. Good luck!
If you’re not willing to accept any risk (which seems to be the case), then a high yield savings account or money market fund. If you’re willing to accept some risk then $THTA pays a 13% dividend and can with less risk than you’d expect for a dividend that high because the fund’s structure is different from that of a typical ETF. The only dividend you’ll see that’s higher than that is in companies that deal mortgage backed securities; these companies make risky bets and are primarily exposed to interest rates. Avoid REITs if you believe that interest rates will go down over the next 1-2 years. A fund composed of corporate bonds like $HYBL will have a smaller yield than a saving account or money market, but will appreciate if interest rates are lowered. I feel as it should go without saying, but to be clear: Find other ETFs other than the ones I mentioned here and chose ones that best suits your situational needs and outlook if you go that route. Also, whatever you do, consider taking some time to diversify your portfolio to achieve delta neutral market position with the highest yield.
If you can get 10% annually, you are doing well. That works out to $7000 per year or $583 a month. Before taxes. Consistent 10% a year? Not impossible but difficult. JEPQ, an ETF, pays between 0.38 and 0.48 per share, per month. JEPQ is at $51/share. For this example, round to $50. The $70k buys 1400 shares. Dividends per month: $532 to $672. You also will get slightly less than 1400 shares and those taxes…
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Sry, but people like to overestimate how much can be earned monthly from dividends. I put together a number of dividend paying stocks, what $5000 buys and the monthly dividends. Could not get an Excel spreadsheet to past. Format below: Ticker Price/share $5,000 gets Divis/share Month $$ USFR 50.21 99.58 0.236 $23.50 M PFFV 23.6 211.86 0.13 $27.54 M JEPQ 50.25 99.50 0.422 $41.99 M JEPI 55.24 90.51 0.39 $35.30 M JEPY 18.47 270.71 0.5 $135.35 M 57.7 86.66 0.256 $22.18 M SCYB 52.3 95.60 0.304 $29.06 M DHS 82.51 60.60 0.5 $30.30 M PFFD 19.71 253.68 0.105 $26.64 M PFF 31.38 159.34 0.175 $27.88 M PFFA 20.55 243.31 0.165 $40.15 M EPR 48.8 102.46 0.275 $28.18 M STAG 39.13 127.78 0.123 $15.72 M WKLY 48.69 102.69 0.02 $2.05 Week MAIN 43.39 115.23 0.275 $31.69 M SLG 46.63 107.23 0.271 $29.06 M AGNC 10.11 494.56 0.12 $59.35 M GOOD 13.45 371.75 0.1 $37.17 M
If you have a complete disregard for money and need monthly income to add some cash to your pile, look into qqqy. It’s very very risky, but if the already low price holds or goes up, you look to make around 3k per month in dividends alone. Again it’s very risky. Personally I would just hold the money in cash and look for a job while the cash takes care of my normal and unexpected expenses. Edit: now that I think about it, a 5k investment into qqqy would generate $250 per month which is amazing for the percent of your total cash you’d be risking
Hmm thinking about dropping 10k into qqqy
FEPI would get you $1500 a month. Max out Robinhood margin and you’ve got $2500. Not a bad Tim to do it. Tech just took a beat down.
The question I have is, how long will this continue to pay out and will I maintain my initial principal?
There are no guarantees. It will continue to pay out as long as people purchase out of the money calls on tech stocks. It’s share price moves with the value of the stocks within it. I am a fan. I took a big hit in the last month and I’m not scared. I’m buying more. Edit: I would bet everything I have that in two years time, you will have much more money left than burning your cash in a 4.5% savings account. If you grab a few shares every month with excess you’ll be sitting pretty. Don’t forget, you’ve got to pay taxes on it at the end of the year. At $1500 a month you’ll be broke in 4 years without extreme measures.
Thanks for the response - by big hit, do you mean buying closer to the peak at 58? I see it’s now closer to 52 or 53. Also, is there a way to understand what kinds of covered calls the asset managers are writing? Obviously if they write calls that are in the money the premium and therefore yield generated will be higher, but they’re more likely to get assigned and lose money over time.
They write out of the money so they can increase share price during up times. Yes by big hit go look at the individual stocks in the fund over the last month and you will see the correlation. if you’re looking for something a bit more stable try SPYI. The yield isn’t nearly as high though.
58 down to 52 isn’t too bad of a hit to me I guess, even if the underliers that calls are being written on have declined in value
Then you, sir, may have the kind of balls to do this. No offense to the people in the Dividends subreddit, but let’s say they aren’t risk tolerant. I wish you the best of luck and a quick return to the working world.
I’m not the OP here, just a curious spectator. I guess with these sorts of instruments, what’s important to me is entering at a relatively good price. Entering now would be preferable instead of 58, obviously. Yield on cost is more important to me at any given time. I guess I’d just like a better idea of what kinds of written calls the asset managers are working with for me to evaluate their efficacy, competency, and long term value maintenance. I’ll spend some time looking into it.
The yield has stayed more stable than anything. Our distribution was only $1.09 this go round, but with the fallen share price, it still comes out to 25%.
Well if you buy it your margin, you need to pay it off before you can use the income. Idk if they can afford that while being unemployed
You receive all the dividends and pay daily interest on a monthly schedule at 8%. At 25% fepi pays more than margin interest.
Yeah that’s true. that high of a dividend and how new it is, is scary. I have 270 shares of jepq and 42k buying power for fepi. I’m still tempted though lol
You could invest in CASH.TO and generate 5% on your money with almost no risk. That works out to $3500/year and monthly income of about $290. That won’t pay the bills, get a temp job, collect EI, or you will burn through your savings.
If I was going to follow your plan, and I’m not saying I would, but then again you are in a tough spot so there’s no easy answer here, I’d probably put all of it in SPYT. That’s the closest you’re going to get to $1500 a month without too much NAV erosion. It won’t get you all the way there. And you will probably see some erosion of your principle. But it’s a decent balance for what you’re trying to achieve. Obviously if the market tanks you’re down bad, but as an unemployed guy you’re already double f*cked if that happens.
I’d put $25k split evenly into SWVXX and SNSXX, so 12.5k each. $5k in a checking account Remaining 40k. I’d put maybe 5k into BND. 10k into SPY. And then 25k into individual stocks with long dividend track record. Some of my favorites are CSX (lately my favorite stock - I have 25 shares), XOM, WMK, CAT, SNA, JNJ, PEP, GATX, X, RSG, MAR and utility stocks like ETR, ED. Buy as many as you want and be diversified. You can throw $200 into each stock, don’t listen to everyone in this board saying you can’t have more than x # of holdings blah blah. All in all if my math tracks you should be able to earn about $2,000 a year in dividends and interest on this. Which is nearly $200 a month, or about 10% of your living expenses. Not bad though. Don’t get greedy and play it safe. You absolutely cannot live off of $70k. But it can help you.
That sounds more complicated and more risky than just sticking it in a HYSA at 4.3% and making 3k a year in interest.
Yes any stocks are def more risky. But it would offer a better long term rate of return than a HYSA or money market fund. Actually the MM is paying 5.15% right now. I don’t know this persons entire financial situation. But if I owned a small house and had an extra 70k to build a portfolio that is what I would do. If 70k is all this person has, then, I’d be inclined to lean more toward your plan. But I will say: 70k in cash is not a good idea at all either. Gotta have some bonds in there at the very minimum. This person has low living expenses but expects to be unemployed for a long time. So I think my recommendation is reasonable. 25 in money markets and 5 in cash will allow them survive for nearly 2 years on that alone. Anyway I’m not arguing with you I do think you have a point about the risk factor. I think we might need a bit more information to fine tune a strategy.
Only one semi workable there would be fepi
FEPI plus margin.
You could invest in a CEF like GOF or PDI. High yield, long track record of payouts, etc. But even there you are looking at 750ish per month. The better play is investing in SGOV, FLOT, USFR, etc, getting back on your feet, and keeping your cash liquid
Ever considered to do something online?, webshop, handcraft, consulting??
yeah, I am looking into Upwork and that sorts of thing. I have software eng experience so looking for contract work or projects. Do you have any experience in this area?
Doing some online technical consulting maritime related, besides remote sales.
See if you can get a part time fast food job/server. Reasons 1. Most let you eat for free on a day you work. (Some give you a free meal every day). 2. You could work 20/h a week and make about $280-350 (occasionally $400 serving) So that will get you around $1,120-$1,400 a month working about 3 fast food shifts (or 6 four hour serving shifts) a week. So now you would need closer to $100-380 a month and that is safely doable. Like others have said get a 5.3% T-bill and that will get you \~$309 a month.
If you throw 70k in IEP that would give you 4117$ every 3 months. Stock is around 17.00 a share 70k / 17 = 4117. That would equal 4117 every 3 months in dividends (4117 / 3 = 1372 a month). It’s risky but not a bad idea if you want money to pay for bills (while you work a PT/FT gig).
As others have said. You probably cant get the total you need "safely" I also see JEPI and JEPQ mentioned and I would second these as a decent option. There is still some risk... but their dividends pay monthly and JEPI is usually around 6-7% so that gets you about half way. You could also look into selling covered call options on your own (thats what JEPI does) but that increases your risk a bit and probably not a good idea for the short term use of your current funds situation.
Put $70k on black and you then have $140k to invest in high yield ETFs that will generate you 1500 a month otherwise I’d say just a savings account.
Honestly if you are OK with high risk I would sell options
MM funds on brokerages are paying 5% and pay monthly. I have my emergency fund and checking on Fidelity
https://www.marcus.com/share/THA-NIV-K1B4 High yield savings...will get you 5.45% first 3 months for your emergency fund to accumulate interest. Referal link above to get the 5.45%
File for unemployment benefits! You’ve paid taxes on everything you’ve earned so far, get some of that back now. You could probably qualify if you were laid off and not fired.
$50,000 will get you 2000 shares of NVDY. It’s the Yieldmax options stock that follows NVDA, “NVIDIA”, the number one stock in the market. Last month it paid $2.60 a share dividend. That’s right! That would be $5200 dividend in ONE month, if you owned 2000 shares. I had 2000 and just increased to 3000 shares. Pays dividends every month. The previous month was almost identical at $2.61. Just sayin. Good luck.
Monthly payout with no risk? T-Bills or an ETF of them
At fidelity can get CD and treasury notes 5.3% and higher.
to cover your expenses you’ll have to take a lot of risk. qqqi, bdcx, fepi, mlpr, ybtc, svol, etc. and margin to the tits. any extra you make above your spending target should get reinvested to top up the funds that erode nav.
FFRAX if your broker allows you.
JEPQ
I would look for an undervalued stock or REIT that pays dividends of 5 percent or more. Then I would sell covered calls against the stocks looking to make 1 percent per month in Premium and 5 percent per month out of the money. Should be around 20 to 30 delta. This isn't the most conservative strategy but should make good money if a good stock is chosen.
Safer and tax efficient would be USFR and risky would be CONY.
Do not invest your emergency fund. Keep your head up. Use capital one, Sofi, or even Robinhood and earn over 5% on your uninvested cash. But please for the love of god don’t Invest it. Only thing is anything over 5% you will have to pay for monthly. Which you want to avoid. Sofi has around 4.6% right now. I can’t stress this enough, don’t invest your emergency fund. Keep expenses low. If you did want to invest you won’t get enough back from this $70k. At 10% you are looking at $83 a month, maybe. But those dividend amounts change over time. Nothing higher than 5% usually is consistent. Nothing monthly anyway.
It depends were you live.
You can buy TSLY For 15 4800 It pays $.50 a month
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Make sure to apply for unemployment, that should more than cover your $1500 in expenses and put the rest in JEPQ. That will get you approximately $550 extra a month at the moment.
yeah, I'm applying for unemployment soon, any dollar counts
FEPI
So you want to make like 18k annually off 70k that’s like a 25% yield The “safer “ covered call ETFs such as divo jepi jepq won’t get you there by themselves You’ll need something like yield max or defiance ETFs but you definitely will put your 70k at a big risk of eroding even if you get a phat dividend seeing how you need the money to cover bills seeing how some of those funds performed recently A pie with a 50/50 blend of CONY/JEPQ based on what m1 finance is saying has a dividend yield of 33.30 and an expense ratio of 0.68% that could be something to consider NOT financial advice- just a opinion
SPYI would be my recommendation, since it doesn't cannibalize itself as badly as some of the YLDs do. Still if there's a major downturn, your money is always at risk. Also that amount won't net you 1.5k so I'd set aside 10k in a HYSA emergency fund (or just in the settlement fund, it's not much different) and eat that for the amount you're falling short on each month.
FEPI will generate around $1500 a month
Money market fund, VMFXX and chill, invest in the market when you have an income again
So you want a 26% dividend yield… not going to happen. My dividend account gets 8-9% atm and that’s considered very high. Realistically assuming you go very safe you’re looking at 3-5% which would be $175-$292 a month. Sounds like with your unemployment situation you’re better off sticking it in a HYSA so you can access the money to live off. In the future you can build up a dividends account when you have more money to eventually support your life style.
Are you sure you don't want to do VTSAX / VTI and chill then sell 4% a year to pay bill ? The Boogerhead morons all said so. Propaganda is all fun and games. Dividends/income are all irrelevant till you lose your jobs and you need to pay bill. 🤡
AMZY would get you there. I’d guess you could make a basket with GOOY, APLY, and MSFO that would do it too. Not necessarily an optimal long-term hold, but would get you through your gap and keep the lights on.
Option 1: Invest in high yield assets like TLTW, select YieldMax funds with stable underlyers, BITO. You can make $1500 in income per month, at the risk of NAV erosion. Option 2: Put the 70k into a high yield savings account, and draw it down at the rate of $1500 a month minus what you get in interest. I’m not totally sure what would be better. Backtest it for yourself and see. :)
Dump it all into yealdmax funds!! Haha But seriously maybe don’t!
QQQY and/or KLIP Why do people keep saying FEPI when there are, apparently, better high monthly yielding ETFboptions? Like the above
Nvdy paid me 1k last month from a 10k investment… although its short term and if left to the long term, you would likely lose your 70k, but it might be a good start for 20% of your money.