Hellow guys, Welcome to my website, and you are watching Building A Side Stream of Dividend Income Borrowing Money. and this vIdeo is uploaded by The Not Guru Investor at 2024-04-20T19:15:50-07:00. We are pramote this video only for entertainment and educational perpose only. So, I hop you like our website.
| Name | Building A Side Stream of Dividend Income Borrowing Money |
| Video Uploader | Video From The Not Guru Investor |
| Upload Date | This Video Uploaded At 21-04-2024 02:15:50 |
| Video Discription | #tsly #tesla #investing #margininvesting #buildwealth #qdte #fepi #jepq #qqqy #rich #motivation #borrowmoney The Strategy: Borrow money to buy dividend paying funds. Dividend pays back the margin interest and loan. Now you’re left with a side stream of income without using your own money. By investing in TSLY,fepi, jepq, or qdte(covered call ETF's ) or QQQY ( cash secured put ) the premise is to build a stream of income by using option investing. The fund TSLY buys calls a couple months out(5-15% out of the money) and sells weekly calls to generate premium where as qqqy sells cash secured puts on qqq daily. Investing in funds like these would be advantageous during a flat or bull market. Investing in a covered call strategy is something I have done before and have made consistent income. Investing in TSLY or qqqy makes option investing easier due to the work associated with rolling the option positions is outsourced to the fund manager. This allows a hands off approach preventing you from making emotional decisions. The Decisions are being executed by a professional fund manager. By Investing in these funds it requires a lot less capital to sell options. Normally to sell options it would require 100 shares of the underlying. If you were trying to sell options on QQQ it would require just shy of $50,000. Another positive element is free time. By outsourcing the option writing as an investor you no longer have to constantly watch the market. There is no more diligent screen hawking waiting for any swings in price to manage positions. Finally, it is much easier to scale investing in a fund vs individual stocks. The key pillar for implementing this side passive income strategy is to invest in a fund that distributes more than you can borrow. In this case these funds distributes 50+% a year. If you can borrow money less than that, then you are on your way to building a side stream of passive income. By using Robinhood Gold I can borrow money at 8% where other brokerages can charge up to 13%. By using margin you are essentially able to build another stream of income by utilizing your overall portfolio value as the foundation. With the excess distributions after accounting for taxes, expenses, and reinvestments, could be utilized to invest in other high quality funds, reinvestment in the current fund as well as spending the money on whatever you deem right or paying down the margin. This strategy increases your risk but utilized in small amounts can potentially offer some great returns. I'm using only 10% of my overall portfolio value in margin to implement this strategy. Overall for the time being the income from the fund is covering expenses. The income is quite substantial for a dividend/ income fund. Currently it is too early to tell if this is a viable strategy going forward .As of right now we will continue the experiment and continually acquire real world data and no arm chair data. Spreadsheet download: https://docs.google.com/spreadsheets/d/18_15qVX_BqOnVS8mZhAKt0mkfLOrEoztwSkJOsXEi50/edit?usp=sharing Hope you enjoy! Don't forget to like the video! If you want free stocks press on the link below^^ https://join.robinhood.com/michaem76 Disclaimer : All information and data on my YouTube Channel, and other materials is solely for informational/ entertainment purposes. I make no representations as to the accuracy, completeness, suitability or validity of any information. I will not be liable for any errors, omissions, losses, injuries or damages arising from its display or use. All information is provided AS IS with no warranties and confers no rights. I will not be responsible for the accuracy of material that is linked on this site. Because the information herein is based on my personal opinion and experience, it should not be considered professional financial investment advice or tax advice. The ideas and strategies that I provide should never be used without first assessing your own personal/financial situation, or without consulting a financial and/or tax professional. My thoughts and opinions may also change from time to time as I acquire more knowledge. |
| Category | Entertainment |
| Tags | yieldmax | coveredcalls | incomeinvesting | option investing | wealth building | stock portfolio update | robinhood investing | dividend investing | dividend growth investing | dividend yield | etf investing | stock investing | portfolio update | passive income | fire | fat fire | tsly | qqqy | qdte | rich | success | motivation | dave ramsey | get rich | investing | building wealth | justin waller | cash secured puts | borrowing money | margin investing | elon musk | tesla | succss | money motivation | andrew tate |
