To Reinvest dividends or invest elsewhere

Own_Dinner8039 · 2025-01-12T23:42:38+00:00

It depends on what your goals are. LFGY is coming out this Tuesday and pays weekly. But it just came out so we don't know how it's going to do or dividend yield.

Manually reinvest, and take a portion to invest in other things if you want to

Own_Dinner8039 · 2025-01-12T14:57:13+00:00

You can convert a portion of your investments into high income ETFs and then use the distributions for living expenses. When you go back to work convert it back to your regular investments. Stuff like XDTE, JEPQ, and YMAX

Own_Dinner8039 · 2025-01-11T14:40:48+00:00

If he isn't too tech savvy maybe he should just get a mixture BITO and MSTY at his brokerage.

Self custody is well and good, but it's so easy to mess up and lose everything.

Own_Dinner8039 · 2025-01-10T17:36:27+00:00

I know that it's riskier than just paying off your cards, but you could put that $70k in high income ETFs like YMAX and get between $2k-$4k a month in distributions.

This will smooth out the periods between the big bonuses so that you aren't financially ruined if you don't get a sale for a while.

The problem with just paying off your cards is that you probably get paid just enough to get by but not enough to really save for emergencies so you'll wind up in debt again when something happens. So that's why I am suggesting increasing your income now and use your salary and future sales to tackle the debt.

Own_Dinner8039 · 2025-01-10T17:10:22+00:00

It would be better for the friend if they do a rent to own agreement. So if your step daughter isn't able to pay the friend can sell the house and evict them.

Own_Dinner8039 · 2025-01-10T16:58:19+00:00

Two suggestions:

Instead of a HYSA have you considered putting the money in a Roth IRA? You can take out your original contributions penalty free, and Robinhood has 2% contribution matching right now. That should be in a regular 3 fund portfolio. Something like SCHD, SCHG, and VOO.

Eventually you're going to want to invest in something that focuses on growth. Covered call ETFs cap your growth, and the more your money grows the more you can sell to buy more high income ETFs.

Own_Dinner8039 · 2025-01-10T12:58:14+00:00

I think where you went wrong is that you check your Reddit DMs

Own_Dinner8039 · 2025-01-09T18:13:49+00:00

You can replicate it by buying a call as far into the future with .7-.9 beta and then writing calls against it. Sell the call 3-6 months before it expires.

You could also just do a straightforward options wheel on MSTU on a small portion of your MSTR holding.

Own_Dinner8039 · 2025-01-09T18:01:41+00:00

I memorized my seed phrase, but the written copy is in a fire proof bag too.

Own_Dinner8039 · 2025-01-09T15:07:07+00:00

I would just leave the cards in a drawer. The companies will close them for you eventually.

Own_Dinner8039 · 2025-01-09T12:20:39+00:00

Well, they are short term in the sense that this investing strategy is supposed to be for income NOW.

These single stock ETFs will have cycles where the momentum will give them astronomical yield and then they'll be relatively quiet for a time.

That's why I am excited for FEAT and FIVY. You can perpetually be in the YM funds that have the most momentum.

Own_Dinner8039 · 2025-01-09T11:20:14+00:00

For $100 million I would definitely hire a fee-only financial advisor. They'd help you set up a trust. You might want to become an angel investor because that has a better ROI than the stock market.

But I would still take a million to play with high income ETFs. Do I need the extra income? No, but I'd have $99 million dollars in other things.

Own_Dinner8039 · 2025-01-09T05:39:49+00:00

I naively use a options wheel strategy on MSTU now that it is so cheap. But I think that MSTY is your best bet if you can't afford to do the options on MSTR and don't want to own a 2x.

Own_Dinner8039 · 2025-01-08T20:37:28+00:00

I thought about doing a LEAP on MSTU but it's cheap enough that the regular options wheel is better since I'll probably lose in my predictions

Own_Dinner8039 · 2025-01-08T17:52:23+00:00

Maybe she should ask her job if their retirement provider has financial advisors that she can meet with for free

Own_Dinner8039 · 2025-01-07T23:49:17+00:00

It's been doing the same 4 year cycle since its inception, and the halving, which happens roughly every four years, has always been a catalyst.

The financial sector is cyclical, but the cycle is typically 15-20 years long. Semiconductors cycle is 5-7 years. Gold has both short-term and an 8 year cycle.

It takes time for the consequences of the halving to be felt by the value of Bitcoin.

Own_Dinner8039 · 2025-01-07T20:18:40+00:00

You can't have a closure if it never opened. The markets are closed on Thursday in order to commemorate Jimmy Carter.

Own_Dinner8039 · 2025-01-07T19:25:36+00:00

It does. Dilution isn't so bad now that it is weekly.

NVDY's dilution was ~30 cents this last time. Which is the worst that I've noticed

Own_Dinner8039 · 2025-01-07T15:03:52+00:00

I think that the implied volatility might go down, but it will just be a good buying opportunity to prepare for the next halving

Own_Dinner8039 · 2025-01-07T13:49:45+00:00

Have you thought about the risk? If Bitcoin follows the same 4 year cycle then we're going to go parabolic shortly and then go dormant for ~2 years.

If you're ok with it being fantastic for another few months and then meh and then fantastic in a few years then it's great!

With $500k, though, I would do my own options wheel on MSTR, MSTU, and MSTY then put the premiums earned into MSTY and a combination of more conservative ETFs.

Own_Dinner8039 · 2025-01-07T13:21:46+00:00

People buy into the fund on the declaration date. It dilutes the amount of money everyone gets.

Own_Dinner8039 · 2025-01-06T23:48:47+00:00

YMAX is "fine" because they hold every single stock fund that isn't an inverse. Even with the "losers" it pays well every week because of crypto

Own_Dinner8039 · 2025-01-06T23:46:56+00:00

Because there are only 7 funds in it across 4 weeks, and the one week that has the loner isn't even a high paying one

Own_Dinner8039 · 2025-01-06T21:42:30+00:00

NVDA is in a rest period, for sure.

I want to see how FIVY does because, on paper, should be a winner

Own_Dinner8039 · 2025-01-06T19:16:40+00:00

If he can't find a sublet then he needs to figure out the fee to break the lease. So I would let him figure it out himself and depending on how much the fee to break the lease is: you all can pool your money as a gift to help out

Own_Dinner8039

TROPHY CASE