WEBVTT
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Welcome to Roaming Returns, a podcast about generating
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a passive income with dividend stocks so you
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can secure your finances and liberate your life.
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This is the Q3 update for the high yield ETF
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income portfolio loaded with YieldMax, Roundhill,
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Defiance and other potentially sketchy ETFs.
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This is the account we're actually using for
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living expenses while we let our main portfolio
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compound in the background. The goal is simple,
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but not easy. Recoup the initial investment,
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stretch the money longer than the cash would
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have lasted, and keep monthly income coming in
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without letting NAV Erosion eat the whole thing
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alive. It's risky, it's high maintenance, and
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it's absolutely not a strategy you can set and
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forget. We're going to cover what had to change
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and the strategy we're focusing on to keep this
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thing on track. All right. If you were not interested
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in the conservative portfolio or the main portfolio,
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and you're into this high yield ETF, crazy nonsense,
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experimental, whatever the heck, we're doing
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the performance. This portfolio is probably like
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on an average week, I spend probably 500 % more
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time on this portfolio than the other two combined.
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This one's just crazy babysitting. Right. Babysitting
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and to make sure that we're extending that. We
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were first and foremost recouping our initial
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investment and then extending it as much as possible
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so that we can prevent having to tap our main
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portfolio as long as possible so that that thing
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can keep compounding and churning and compounding
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and churning. So we're actually kind of seeing
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if we can make this to the point of extending
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way past, I guess, the $52 ,000. We have a lot
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paid back, so I'm actually kind of curious to
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see the update here. All right. The income portfolio.
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This is chaos. So, the very first thing, we had
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two complete sells in this quarter. We sold COIW,
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which is the Roundhill Coinbase ETF. I don't
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know what they are doing with the Coinbase high
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yields and the Roundhill yield max. Like, they
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all just suck. So, yeah, we sold that on August
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7th, 8 -7. And then on August 11th, we sold USOY,
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which is what, at the time... We actually recouped
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all of that initial. And normally what I do when
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I recoup all the initials, I just let the profits
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run. But I noticed that USOY's dividend has been
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shrinking, even though we're in an environment
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where the dividend shouldn't be shrinking. So
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I got out of that and I actually dumped USOY
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into USOI. on August 11th. But we had some additions
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this quarter. We added KYLD on 6 -25. We added
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RNTY on 7 -21. We added AVGW, which is the broadband
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of Brownhill, on 8 -4. We added CEPI, which is
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the sister of AIPI and FEPI. We added that on
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8 .4 as well. We added USOI, like I mentioned,
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on 8 .11. And we added YRAM on 8 .25, which is
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the yield max storage and memory new ETF that
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came out. I'm really excited about that one.
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So those are our additions and our subtractions.
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So in quarter two, we made $4 ,982 .66 in this
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portfolio. In quarter three, we only made $4
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,763 .57. So it's about, what, $220 difference?
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Now, this one is kind of like we talked about
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because of those additions and subtractions or
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those changes that we made. Sometimes you actually
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have like a missed dividend payout. So that affects
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the monthly numbers. So after you get a couple
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months past that or a month or so past that,
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like those numbers, you know, even back out.
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Hopefully. Hopefully. But you do have an ad decline
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and reduced payouts. So in the month of March,
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which is the first month of quarter two, we made
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$1 ,830. And the first month of quarter three,
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June, we made $1 ,597. That's a huge difference.
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What the hell happened in March? April, we made
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$1 ,560 versus July, $1 ,511. So that was like...
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$39, $49 difference. And then May, we made $1
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,593 versus August of $1 ,655. So that one was
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actually $60 up. So the only difference was March
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to June. Do you have to caveat here with our
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argument? Okay, so one other caveat that might
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affect if you are comparing from the last update
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and this update. Yeah, the March, April, May
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numbers are going to be different because of
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a discussion. We had a discrepancy because of
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the Kony experiment. The credit card portion
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of it moved shares into LFGY and WNTR, and Tim
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was counting them as part of our income, whereas
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I was actually thought they were being counted
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as like an exemption in an experiment self -contained
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thing. So I actually thought it was more accurate
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to pull them out or leave them out because of
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the entanglement kind of created, in my opinion,
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overinflated income. We're not in agreement completely
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on it, but we want to have it for consistency.
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So we went back and actually changed that. So
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if you watch the quarter two one, those numbers
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for March, April, May will be a little bit different
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than the ones I'm presenting now. And that's
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because LFGY and WNTR were moved from the income
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portfolio into the yield max experiment in January.
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And I've been including the income for those
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the entire time. So I went back and I actually
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extracted the income from the shares that we
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sent to the yield max experiment from the totals.
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Right. And the reason that I don't think they
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should be counted is because we're not. actually
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able to spend that money it's we're trying to
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actually reinvest it in that experiment to see
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if we can actually recoup the initial in the
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experiment faster it's you'll see that in the
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actual experiment updates but essentially like
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those got moved out so there will be difference
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from last month's numbers or last quarter's numbers
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from March April May than this one so What happens?
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We have to dissect this. So what happened is
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in quarter two, COIW paid $341 versus $176 in
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quarter three. PLTW paid $840 in quarter two
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versus $664 in quarter three. USLY paid $256
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in quarter two versus $72 in quarter three. You
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see why those two got sold, COIW and USLY. pay
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or topw however you want to refer to it paid
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864 in quarter two versus 680 in quarter three
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and ybtc which we sold previously and it was
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updated last time paid 126 in quarter two versus
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15 in quarter three so those five investments
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paid 820 more in quarter two than quarter three
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so if you add to 820 or you subtract i guess
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subtract 820 from the total you'll see that That
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would be 4 ,160 versus 4 ,763. So I think the
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portfolio is actually in better shape extracting
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those from it than it was with those in it. So
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we've been working on rebalancing the portfolio.
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and sold some shares of NVDW and TOPW and PLTW
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because we were so concentrated in those. They
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were like 14, 15, 16 % of our portfolio. So now
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they're about 10%. I still have to trim them
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some more whenever the price warrants it. And
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we use that money for better ETF, better NAV
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erosion. So essentially you're moving from the
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higher yield payouts to like more of the 30,
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40 % sweet spot -ish. So I use that money and
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I... initiated positions in KYLD, CEPI, RNTY,
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and then I'm adding to those whenever I trim
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those, I still have to take probably $2 ,000
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from NVDW, probably $1 ,200, $1 ,500 from TOPW,
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and probably $1 ,500 from PLTW to bring them
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down to like my 5%, my 6 % or 7%, 5 % or 6 %
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of the total portfolio balance. Right. So that's
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also going into NAB decline, like it's helping
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with the NAB decline issue. So we also switched,
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like I mentioned, USOY, which paid little for
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USOY, which pays a shit ton. We made more in
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the one month of holding USOY than we did in
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four months of holding USOY combined. That's
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a lot. Yeah, we made $167, whereas if you look
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at USOY, we weren't making... Seven? It paid
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$7? USOY paid $7 in August? Yeah. Is that because
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it was partial because you sold it? Yeah, it
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was partial, but it wouldn't have been... Yeah,
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it wouldn't have been much. It wouldn't have
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been more than the 33. It would have been less.
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It would have been about 26 -ish. Good move.
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This portfolio is always going to be a lot of
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work. Like I mentioned at the top, this is the
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one I spend the most time on. Right. But I feel
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the addition of KYLD, CEPI, RNTY, YRAM, USOI,
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XDTE, and QDTE, which were not in this portfolio.
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Initially. I've actually been. funneling money
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into those they actually will lead to long longer
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term stability and hopefully more months or years
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of income because they don't have they don't
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really suffer from the nav erosion that the brown
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tails do and because this portfolio has so much
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management going on with it what we've decided
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to do is and the Kony experiment is essentially
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dead or in massive hibernation mode or whatever
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you want to call it, we're going to do a monthly
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update because this thing changes frequently
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and we're managing that NAB decline on a regular
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basis and we're trying to extend those payouts
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as long as possible in this one. So we're going
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to do a monthly update. So if you're not aware
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of that because you missed that announcement
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in our podcast episodes. You are now aware of
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that. And then we have the drip on on some investments.
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And that's only because we don't need the cash
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because we haven't moved like in months. Yeah,
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we're dealing with a personal cat loss situation.
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So we haven't been spending very much money.
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So what we're doing is we're compounding certain
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things. I know you said that RNT, RNTY? No, YRAM.
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You wanted to actually get more money into YRAM.
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But I'm trying something different. Right. So
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the drip's on in the Apple Roundhill AAPW, which
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has been probably one of the best, if not the
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best, single stock Roundhills other than NVDW.
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I don't know if it's Apple AAPW or NVDW, but
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those have both been really, really good with
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the nav erosion and the payout consistency. I
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have the drip on on AVDW until I need the money.
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So I just kind of accumulate shares every week
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until we need the money. Then that'll be one
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of the first ones I turn the drip off on. Why
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do you have the drip on? Because you just want
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a larger share of it? Mm -hmm. Okay. I have the
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drip on at CEPI because I think it's pretty undervalued
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because crypto is a whole tip of shit. And again,
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once we need money, that'll probably be the second
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one that the drip's turned on is the EPI. Even
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off? Off, yeah. So AVGW will be the first one
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I turn the drip off on when we need cash. CEPI
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will be the second one. KYLD, they pay 10 cents
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a week. It's consistently been 10 cents a week
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for I don't know how many weeks now. That one
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that has the drip on. RNTY, which is the yield
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max real estate one. I have the drip on on that
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one. Just accumulate shares until I actually
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need to tap it. QDTE, USOI, and XDTE will be
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the last ones I turn the drip off because they've
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been the most consistent performers in this portfolio,
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like with NAV staying pretty consistent as well
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as the payment being consistently in the... 30
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to 40 % range. So he could have the drip off
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and be manually reinvesting in these, but because
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of the consistency and the undervalue of some
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of these, you're choosing to do drip. So starting
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balance on June 1st in this account was $52 ,633.
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We transferred shares, I forget what day it was,
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of LFGY and WNTR into the Kony experiment. That
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was $1 ,456. We have taken out cash and... paid
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bills or put it in our checking or savings, whatever,
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of $2 ,322. So the total amount that we've actually
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withdrawn from this account in this quarter was
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$3 ,778. So if you take the balance minus the
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withdrawals, it would be $48 ,855. The balance
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as of August 31st was $47 ,065. So we lost $1
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,790 in portfolio value due to price loss or
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NAV erosion in this portfolio in the last quarter,
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which is not terrible no that's actually really
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good considering these things never rode so bad
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normally i expect that 1790 to actually reduce
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now that i'm actually moving money from the high
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like the 100 80 yielders into the 20 and 30 yielders
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i expect the nav erosion to be less than that
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or the portfolio value to like now the price
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loss i can't help so it's basically what it is
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like there's some sometimes i go up sometimes
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i go down but a majority of the time with these
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high yield etfs then when the price goes up it's
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not near as much as like the stock does yeah
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and when the price goes down It goes down as
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much or maybe more than the actual single payer.
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So like I can't help the price loss, but what
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I can help is the NAV erosion. And that actually
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comes from when they're redistributing your return
00:12:28.889 --> 00:12:30.750
of capital to you. So you basically pay them
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$1 ,000. They hold it and they give you like
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$100 each month. So your $1 ,000 is now worth
00:12:35.590 --> 00:12:38.070
$900. The price will reflect that. So you're
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just getting your money back in a monthly installment.
00:12:40.429 --> 00:12:42.610
It's kind of like an annuity. Yeah, it's not
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actually. Like dividend payout from their synthetic
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options. It's not good. So they actually will
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reduce their assets under management to fund
00:12:49.909 --> 00:12:52.450
the dividend at that point. That's when return
00:12:52.450 --> 00:12:54.610
on capital is bad. Right. I understand there's
00:12:54.610 --> 00:12:57.629
times when return on capital, like MLPs and BDCs
00:12:57.629 --> 00:12:59.690
and REITs and shit like that, where return on
00:12:59.690 --> 00:13:02.289
capital is good. But in these ETFs, return on
00:13:02.289 --> 00:13:05.299
capital is not good. Yeah, not good at all. So
00:13:05.299 --> 00:13:08.919
like if you have access to your email and you're
00:13:08.919 --> 00:13:10.679
a nerd like me, you can actually go into every
00:13:10.679 --> 00:13:13.019
one of the high yield ETFs that you invest in.
00:13:13.080 --> 00:13:15.799
You can sign up for the email subscription that
00:13:15.799 --> 00:13:17.639
you make every week. Well, here's what the payouts
00:13:17.639 --> 00:13:19.639
are going to be for all of our ETFs. And here's
00:13:19.639 --> 00:13:21.649
what the return of capital is going to be. Or
00:13:21.649 --> 00:13:22.970
you can just go on their website. Like if you
00:13:22.970 --> 00:13:24.889
have YieldMax, go on to YieldMax ETFs. If you
00:13:24.889 --> 00:13:26.769
have Roundhill, go to Roundhill ETFs, and they
00:13:26.769 --> 00:13:28.629
actually have a return on capital column in there
00:13:28.629 --> 00:13:32.409
so you can see. And the ones like GraniteShares,
00:13:32.509 --> 00:13:36.870
there's four that don't return capital. Oh, that's
00:13:36.870 --> 00:13:39.990
nice. YieldMax does a lot of ROC. There's like
00:13:39.990 --> 00:13:43.610
30 of them that do. But anyway, here is the breakdown
00:13:43.610 --> 00:13:46.409
of – there's a lot of green in this one, but
00:13:46.409 --> 00:13:49.059
the green comes with a caveat. So if you need
00:13:49.059 --> 00:13:51.259
access or want access to the spreadsheets that
00:13:51.259 --> 00:13:54.139
we're looking at for this podcast episode, they'll
00:13:54.139 --> 00:13:56.899
be in the show notes. And right now we're looking
00:13:56.899 --> 00:13:58.539
at the one that's the buy up to. So if you are
00:13:58.539 --> 00:14:00.440
interested in potentially replicating any of
00:14:00.440 --> 00:14:05.799
this right now, the Vanny or the current price
00:14:05.799 --> 00:14:07.580
is not showing because it's a calculation. We're
00:14:07.580 --> 00:14:09.940
offline because we're in the we're using my phone
00:14:09.940 --> 00:14:11.620
to record and we're not using it as a hotspot.
00:14:11.720 --> 00:14:13.639
But this number will populate when you open this
00:14:13.639 --> 00:14:15.580
chart as soon as you have Internet. So like I
00:14:15.580 --> 00:14:17.600
said, there's a caveat to this one. There's a
00:14:17.600 --> 00:14:20.059
lot of green in this high yield portfolio. Which
00:14:20.059 --> 00:14:22.100
means undervalued. But I don't expect the price
00:14:22.100 --> 00:14:25.100
to ever really get up to that amount. But if
00:14:25.100 --> 00:14:27.399
it did, that would be like my limit where I would
00:14:27.399 --> 00:14:31.320
turn the drip off and not buy it. But if you
00:14:31.320 --> 00:14:35.600
look at the yield, you'll see that's why you
00:14:35.600 --> 00:14:37.860
have a lot of yield cushion. But then you have
00:14:37.860 --> 00:14:41.019
to research like AVGW, for example, 73 % yield.
00:14:41.120 --> 00:14:42.639
Well, how much of that is coming back in the
00:14:42.639 --> 00:14:45.279
form of return on capital? And then you have
00:14:45.279 --> 00:14:47.139
to make a determination, well, the price is currently
00:14:47.139 --> 00:14:50.240
whatever it is. And here's how much they're returning
00:14:50.240 --> 00:14:53.200
on average return on capital. So the buy up to
00:14:53.200 --> 00:14:55.220
point actually has to start reflecting the return
00:14:55.220 --> 00:14:57.860
on capital. And you can actually go into any
00:14:57.860 --> 00:15:00.740
AI if you want. You can actually replicate. You
00:15:00.740 --> 00:15:03.600
can create your own formula for these ETFs, basically
00:15:03.600 --> 00:15:06.100
where the AI can actually pull all the data.
00:15:06.220 --> 00:15:08.539
They can crunch all the data for you and they
00:15:08.539 --> 00:15:10.299
can say, well, the probability of the return
00:15:10.299 --> 00:15:13.000
on capital plus the NAV erosion, this is what
00:15:13.000 --> 00:15:14.799
the price will be like in 12 months. You can
00:15:14.799 --> 00:15:17.700
do that. I might actually do a podcast on that
00:15:17.700 --> 00:15:20.960
one day, like how I basically might try to actually
00:15:20.960 --> 00:15:23.840
create a value. My GPT basically created a formula
00:15:23.840 --> 00:15:25.740
that I can plug these numbers into where I can
00:15:25.740 --> 00:15:27.320
say, well, this one doesn't make sense to hold
00:15:27.320 --> 00:15:28.580
anymore because that's what we did that with
00:15:28.580 --> 00:15:31.940
YBTC. I ran YBTC through the formula that the
00:15:31.940 --> 00:15:34.600
AI created and I determined that the probability
00:15:34.600 --> 00:15:39.340
of YBTC ever. Getting me back to my break -even
00:15:39.340 --> 00:15:42.580
point was negligible, maybe 1 % or 2%. So I just
00:15:42.580 --> 00:15:44.899
liquidated it, took it as a loss, and I redeployed
00:15:44.899 --> 00:15:47.860
the money into other things. We may do that.
00:15:48.000 --> 00:15:49.679
I might actually do a podcast about that. Well,
00:15:49.679 --> 00:15:51.200
in actuality, looking here at the spreadsheet,
00:15:51.340 --> 00:15:52.500
you have two that are red, which means they're
00:15:52.500 --> 00:15:55.620
overvalued, but we still own AAPW and AMZY. Now,
00:15:55.679 --> 00:15:57.519
Tim did not make the decision to liquidate and
00:15:57.519 --> 00:15:59.139
sell these, I assume, because that calculation
00:15:59.139 --> 00:16:01.120
came back and said that they're actually not
00:16:01.120 --> 00:16:04.259
going to have that NAV decay. Well, AMZY is all
00:16:04.259 --> 00:16:06.039
profit. Well, okay. So you have that component
00:16:06.039 --> 00:16:08.360
too. And MBDY is all profit. Well, I wasn't talking
00:16:08.360 --> 00:16:10.820
about MBD. That's not a red one. I'm saying out
00:16:10.820 --> 00:16:12.600
of the red ones. Well, that one. YRAM is brand
00:16:12.600 --> 00:16:15.019
new, so I don't know. Right. That one's like
00:16:15.019 --> 00:16:17.059
brand new, brand new. I don't know where it's
00:16:17.059 --> 00:16:20.480
going to settle. Yeah. So I just said that get
00:16:20.480 --> 00:16:22.919
started at 50. So don't over, don't spend more
00:16:22.919 --> 00:16:25.399
than 50, but I know it's at like 54, 55. Last
00:16:25.399 --> 00:16:27.700
time I looked at it, I think it might be 53 now.
00:16:27.779 --> 00:16:29.700
I don't know. So like we already made a lot of
00:16:29.700 --> 00:16:31.299
money. Unless you're willing to take a flyer
00:16:31.299 --> 00:16:32.899
because that one actually is really interesting
00:16:32.899 --> 00:16:36.840
because it's a macro economic. The macro trend,
00:16:36.899 --> 00:16:39.240
it's storage and memory, and they hold the companies.
00:16:39.340 --> 00:16:40.700
So they actually write options on the companies,
00:16:40.779 --> 00:16:43.840
which is rare for yield max. And we've been in
00:16:43.840 --> 00:16:45.500
these things for so long that we have noticed
00:16:45.500 --> 00:16:46.940
a pattern that typically when they're in the
00:16:46.940 --> 00:16:49.679
very beginnings, they tend to drop huge dividends
00:16:49.679 --> 00:16:51.919
and you can recoup your initial investment sooner.
00:16:52.259 --> 00:16:55.000
We do not invest in all the brand new ones, but
00:16:55.000 --> 00:16:56.460
this one caught our eye just because of that
00:16:56.460 --> 00:16:59.039
macro trend. So that's why we jumped into that
00:16:59.039 --> 00:17:01.600
one right out the gate. But what I was saying
00:17:01.600 --> 00:17:03.799
back here with AAPW and AMZY, like you didn't
00:17:03.799 --> 00:17:05.559
make the decision to essentially sell those off
00:17:05.559 --> 00:17:07.240
because of that equation. And you just said,
00:17:07.259 --> 00:17:09.299
what do you say? AMZY. Well, AAPW is like probably
00:17:09.299 --> 00:17:11.480
on the better round hills. Right. So that one
00:17:11.480 --> 00:17:13.700
did not actually. So I just keep that one. Right.
00:17:13.819 --> 00:17:15.680
We're up about 100 % in that one. I mean, and
00:17:15.680 --> 00:17:17.579
you're reinvesting, which I find hilarious. That's
00:17:17.579 --> 00:17:20.559
overvalued. You're reinvesting. AMZY is an all
00:17:20.559 --> 00:17:24.059
profit. AVGW is brand new. LFGY, we're about
00:17:24.059 --> 00:17:28.980
60 % recouped. And NVGW is about 50%. I don't
00:17:28.980 --> 00:17:30.579
know. Go to the actual dividend sheet. You can
00:17:30.579 --> 00:17:31.799
see how much we've prepared. All right. So now
00:17:31.799 --> 00:17:33.559
let's jump over to the dividend spreadsheet for
00:17:33.559 --> 00:17:34.980
these things. You can see what we've been getting.
00:17:36.420 --> 00:17:37.920
These aren't always apples to apples because
00:17:37.920 --> 00:17:39.779
share quantities do change over time. Well, at
00:17:39.779 --> 00:17:42.640
YRAM, we only made $10 .80, so that one's going
00:17:42.640 --> 00:17:44.839
to take a hot minute. $10 .80? On the first day.
00:17:44.839 --> 00:17:46.779
Yeah, okay, there it is. It was $0 .42, so I
00:17:46.779 --> 00:17:47.619
don't know if it's going to - But you don't have
00:17:47.619 --> 00:17:49.039
a ton of shares of that either, and you said
00:17:49.039 --> 00:17:50.720
you were kind of mad you wish you had more. You
00:17:50.720 --> 00:17:52.440
originally had Drupal, but then you turned it
00:17:52.440 --> 00:17:54.420
off. I turned it off because I don't trust it
00:17:54.420 --> 00:17:57.059
yet. It's YieldMax. You're right. It's YieldMax,
00:17:57.160 --> 00:17:58.740
and we've been burned I don't know how many times.
00:17:59.359 --> 00:18:03.769
But you'll see the bottom there is $16 .21. 51
00:18:03.769 --> 00:18:06.109
and 1830 were the outliers. Everything else has
00:18:06.109 --> 00:18:09.589
been between 15 and 1600. Now, there is something,
00:18:09.690 --> 00:18:11.970
too, with these because some months have four
00:18:11.970 --> 00:18:14.130
pays and some months have five. Some pay out
00:18:14.130 --> 00:18:15.690
on Tuesdays, some pay out on Fridays. We actually
00:18:15.690 --> 00:18:17.509
have an extra line down here that says, like,
00:18:17.529 --> 00:18:19.529
four Tuesdays, five Fridays. Some have four and
00:18:19.529 --> 00:18:21.309
four. Well, that normally is not something that
00:18:21.309 --> 00:18:22.349
you should be concerned with, but when you're
00:18:22.349 --> 00:18:24.400
in the high -yield ETFs, you should know. Yes.
00:18:24.480 --> 00:18:26.140
How many pays you're getting each month. Right.
00:18:26.200 --> 00:18:27.640
Because again, it helps your apples to apples.
00:18:27.859 --> 00:18:29.720
Tim said he also noticed that the ones that have
00:18:29.720 --> 00:18:32.920
the five week pays. One of them's trash. Yeah.
00:18:32.940 --> 00:18:36.000
One of them kind of is down lower. So it's, don't
00:18:36.000 --> 00:18:36.700
get your panties in a bunch. So like in January,
00:18:36.920 --> 00:18:38.619
for example, there was five Fridays. Eomax pays
00:18:38.619 --> 00:18:41.019
out on Fridays. Well, what I saw was a lot of
00:18:41.019 --> 00:18:43.779
the Eomax's had trash, a trash dividend one month
00:18:43.779 --> 00:18:46.440
of that. Week. One week. On March, there was
00:18:46.440 --> 00:18:49.059
five Tuesdays, which Roundhill pays out on Tuesdays.
00:18:49.059 --> 00:18:51.039
Well, one of the, one of the weeks in March was
00:18:51.039 --> 00:18:53.579
trash. And I've noticed that's actually been
00:18:53.579 --> 00:18:55.740
consistent. In May, we had another yield max
00:18:55.740 --> 00:18:58.819
that was trash. One week of yield max dividend
00:18:58.819 --> 00:19:01.440
trash. June was another week of round -hill trash.
00:19:01.900 --> 00:19:04.839
July was another week of yield max trash. And
00:19:04.839 --> 00:19:06.359
I'm assuming September, we're going to have a
00:19:06.359 --> 00:19:10.099
week of round -hill. But what I mean by trash
00:19:10.099 --> 00:19:12.519
is generally the dividends, say, between $0 .20
00:19:12.519 --> 00:19:15.740
and $0 .40, it'll be like $0 .08. Right. So the
00:19:15.740 --> 00:19:17.680
point of that is if you're in these things and
00:19:17.680 --> 00:19:20.839
you see that pattern set up, don't necessarily...
00:19:21.669 --> 00:19:24.089
get super concerned about that as like a consistent
00:19:24.089 --> 00:19:26.730
pattern of continuing every week going forward
00:19:26.730 --> 00:19:28.170
sometimes i don't actually see anyone else talk
00:19:28.170 --> 00:19:29.549
about that either because there's a lot of people
00:19:29.549 --> 00:19:30.809
that talk about these but they don't actually
00:19:30.809 --> 00:19:32.549
talk about hey there's some some months where
00:19:32.549 --> 00:19:34.390
you're going to get five payments so it's going
00:19:34.390 --> 00:19:36.690
to look like really good like that like that
00:19:36.690 --> 00:19:39.029
january one i don't know if people track the
00:19:39.029 --> 00:19:41.490
way we track because like we have a certain like
00:19:41.490 --> 00:19:43.769
a i guess a strategy or an experiment thing here
00:19:43.769 --> 00:19:45.710
so we're being like so i'm guessing if i had
00:19:45.710 --> 00:19:49.160
to guess scroll back to the left one sorry I'm
00:19:49.160 --> 00:19:52.279
guessing in the January of the 1951, I'm assuming
00:19:52.279 --> 00:19:54.480
that WPAY, which pays on Thursday, which means
00:19:54.480 --> 00:19:56.240
there was probably five Thursdays. That's why
00:19:56.240 --> 00:19:59.880
that 327 is just an aberration compared to the
00:19:59.880 --> 00:20:03.940
rest of the rest of it. And I'm assuming on March
00:20:03.940 --> 00:20:07.960
when we had five Tuesdays that there was a couple
00:20:07.960 --> 00:20:11.029
of those round hills didn't have as bad as. Of
00:20:11.029 --> 00:20:13.569
a dividend as it has in previous ones. I just
00:20:13.569 --> 00:20:16.390
had to guess. Just looking at this chart, like
00:20:16.390 --> 00:20:18.470
looking at this, you know, it's between $1 ,500
00:20:18.470 --> 00:20:20.190
and $1 ,600 consistently, except for those two
00:20:20.190 --> 00:20:21.950
outliers. I can explain the first one in the
00:20:21.950 --> 00:20:25.849
WPAY probably was, I don't know, $100 more than
00:20:25.849 --> 00:20:28.529
it should have been. Well, in WPAY, if you don't
00:20:28.529 --> 00:20:30.609
remember, that's the one that's like a... It's
00:20:30.609 --> 00:20:32.990
top W. It's like the index fund. Yeah, total
00:20:32.990 --> 00:20:36.849
market index of all the... Roundhill. Roundhill
00:20:36.849 --> 00:20:39.269
single payer stocks. Right. So it's kind of redundant
00:20:39.269 --> 00:20:42.980
to have that. Yeah, a little bit. But the concept
00:20:42.980 --> 00:20:45.220
of it initially was actually really good. And
00:20:45.220 --> 00:20:47.559
that was the same thing in YieldMax, but YieldMax
00:20:47.559 --> 00:20:49.660
went trash. That's what YMAX was. We got rid
00:20:49.660 --> 00:20:51.259
of that because that thing was not performing.
00:20:51.279 --> 00:20:54.140
Well, you see, we've so far accrued like $15
00:20:54.140 --> 00:20:56.700
,000. Right. So here's the thing that matters.
00:20:56.960 --> 00:21:01.059
We had initially the $52 ,000. Do you even have
00:21:01.059 --> 00:21:02.140
that number here? You don't have that number
00:21:02.140 --> 00:21:04.960
here. It's about $52 ,600, around there somewhere.
00:21:04.980 --> 00:21:06.299
And then you'll have to subtract that $14 ,000
00:21:06.299 --> 00:21:08.539
out of it. But essentially, we've recouped. So
00:21:08.539 --> 00:21:13.980
yeah, we have 29 .29 % recouped of the initial,
00:21:14.079 --> 00:21:17.240
if you take out the LFGY winter debacle thing
00:21:17.240 --> 00:21:20.680
that's in there. So yeah, we're about 29 .29
00:21:20.680 --> 00:21:23.460
% recouped. And we are how many months into this?
00:21:23.500 --> 00:21:26.160
We did this in January? Eight months. That's
00:21:26.160 --> 00:21:28.619
really good. Eight months. So I'm assuming we'll
00:21:28.619 --> 00:21:32.740
be about 40, maybe 40, between 40 and 45 % recouped
00:21:32.740 --> 00:21:34.990
by the end of the year. And that's looking pretty
00:21:34.990 --> 00:21:36.769
good on getting the initial investment back and
00:21:36.769 --> 00:21:38.670
potentially extending this thing past the original
00:21:38.670 --> 00:21:42.470
$52 ,000, $51 ,000 initial investment on this
00:21:42.470 --> 00:21:44.109
thing, which was the whole point of this was
00:21:44.109 --> 00:21:46.130
to be able to actually extract more money from
00:21:46.130 --> 00:21:49.490
that capital than just taking it in cash. We
00:21:49.490 --> 00:21:53.069
haven't added money to this and we've been basically
00:21:53.069 --> 00:21:55.450
playing with the money inside it, reallocating
00:21:55.450 --> 00:21:59.519
it or selling shares of certain things. Yeah,
00:21:59.640 --> 00:22:01.220
self -contained for the most part. Now we do
00:22:01.220 --> 00:22:03.319
draw on this. So those count as like paybacks
00:22:03.319 --> 00:22:05.180
because this is our living expenses if we need
00:22:05.180 --> 00:22:07.259
it. But we have been kind of in a crap situation
00:22:07.259 --> 00:22:08.799
the last couple of months. So he's been able
00:22:08.799 --> 00:22:12.220
to reinvest certain things more so in here. I
00:22:12.220 --> 00:22:14.460
think last month it was like 510 of the income
00:22:14.460 --> 00:22:18.380
you were able to reinvest out of 1600. But this
00:22:18.380 --> 00:22:20.599
spreadsheet shows you what we've made. The red
00:22:20.599 --> 00:22:23.099
ones we sold. Now I actually have a question.
00:22:23.180 --> 00:22:27.200
Is the management... bandwidth that this takes
00:22:27.200 --> 00:22:30.500
to manage this worth the extension of capital
00:22:30.500 --> 00:22:33.960
time. Time will tell. In our current situation.
00:22:35.299 --> 00:22:38.480
The longer that I can make this last to cover
00:22:38.480 --> 00:22:40.299
our living expenses or majority of our living
00:22:40.299 --> 00:22:42.460
expenses, the longer that the main portfolio
00:22:42.460 --> 00:22:46.059
can compound. So to me, the time is completely
00:22:46.059 --> 00:22:48.059
worth it. If you did something similar where
00:22:48.059 --> 00:22:49.660
you took a chunk of money and put it into something
00:22:49.660 --> 00:22:51.180
that I'm going to live off this as long as I
00:22:51.180 --> 00:22:54.259
can, while this part here is growing, it's totally
00:22:54.259 --> 00:22:57.039
worth the time. If it's just I'm dumping all
00:22:57.039 --> 00:22:59.799
my money into these, again, totally worth the
00:22:59.799 --> 00:23:02.119
time because it's all your money. You need this
00:23:02.119 --> 00:23:04.089
to last as long as you possibly can. Well, and
00:23:04.089 --> 00:23:06.009
if you really do need to get your initial out
00:23:06.009 --> 00:23:08.549
of this and then some, you kind of have to micromanage
00:23:08.549 --> 00:23:09.829
a portfolio like this. But if it was just a,
00:23:09.930 --> 00:23:12.990
I'm going to try this high yield thing, but I
00:23:12.990 --> 00:23:16.230
have my main investments in index funds or dividend
00:23:16.230 --> 00:23:18.369
growth stocks, it's not worth the time. Right.
00:23:18.430 --> 00:23:21.930
So if this was more like a... casino type thing
00:23:21.930 --> 00:23:24.769
fun just to see that's one thing but like our
00:23:24.769 --> 00:23:27.170
intention with this is much different and the
00:23:27.170 --> 00:23:28.730
other thing too i was telling him like tim likes
00:23:28.730 --> 00:23:30.410
video games he likes strategy he likes all that
00:23:30.410 --> 00:23:34.109
other stuff if this is a more productive bandwidth
00:23:34.109 --> 00:23:36.490
focus for him than screen targeting on some game
00:23:36.490 --> 00:23:38.769
that has no relevance in life i'd rather have
00:23:38.769 --> 00:23:41.369
him do this it's you're getting the same output
00:23:41.369 --> 00:23:44.730
from a strategic strategy Well, yeah, but this
00:23:44.730 --> 00:23:46.710
is all about... Than playing those stupid football
00:23:46.710 --> 00:23:48.509
coaching games that I hate so much. This whole
00:23:48.509 --> 00:23:51.309
thing is about making this last as long as I
00:23:51.309 --> 00:23:53.450
possibly can, where I can keep the dividends
00:23:53.450 --> 00:23:56.190
above $1 ,500, hopefully. I'm assuming at some
00:23:56.190 --> 00:23:57.849
point they'll probably drop down to $1 ,200 or
00:23:57.849 --> 00:24:00.970
$1 ,300. I'm okay with that, as long as I can
00:24:00.970 --> 00:24:02.849
keep the $1 ,500 to $1 ,600 going as long as
00:24:02.849 --> 00:24:04.670
possible. Right. And I think what will happen
00:24:04.670 --> 00:24:06.569
if it does go down below our actual expenses,
00:24:06.589 --> 00:24:08.130
it'll depend month to month because some months
00:24:08.130 --> 00:24:09.710
we do spend more, some months we spend less.
00:24:09.890 --> 00:24:12.309
The months that we actually spend more than the
00:24:12.309 --> 00:24:16.089
high yield ETF portfolio will pay out. We'll
00:24:16.089 --> 00:24:17.910
probably just tap it from the main. But as long
00:24:17.910 --> 00:24:19.589
as we're compounding majority of the main back
00:24:19.589 --> 00:24:22.490
as long as possible, I will be content. And if
00:24:22.490 --> 00:24:25.009
we can actually get more out than we initially
00:24:25.009 --> 00:24:27.009
put in, I would be really curious of pushing
00:24:27.009 --> 00:24:31.789
this to see how far it can actually go. This
00:24:31.789 --> 00:24:34.470
is a completely different strategy than you see
00:24:34.470 --> 00:24:36.329
online because most people are living off of
00:24:36.329 --> 00:24:40.029
this. This is partially that, it's partially
00:24:40.029 --> 00:24:43.309
to live off of, but the whole time there is that.
00:24:43.579 --> 00:24:45.299
program running in the background where we're
00:24:45.299 --> 00:24:47.799
growing the main portfolio because we don't have
00:24:47.799 --> 00:24:50.019
to tap any money that's the that's the whole
00:24:50.019 --> 00:24:52.880
objective of this right and the other thing too
00:24:52.880 --> 00:24:55.559
is that's why we decided to move this into a
00:24:55.559 --> 00:24:57.240
new experiment essentially because if we can
00:24:57.240 --> 00:24:59.440
push this as long as possible this is a much
00:24:59.440 --> 00:25:01.259
i think more elegant experiment because we get
00:25:01.259 --> 00:25:03.460
to change things as opposed to the coney where
00:25:03.460 --> 00:25:05.700
we went into it with like rigid freaking scope
00:25:05.700 --> 00:25:08.539
where we didn't want to change selling even though
00:25:08.539 --> 00:25:10.500
we should have sold at certain points and blah
00:25:10.500 --> 00:25:12.200
blah blah blah blah but like we kind of pigeonhole
00:25:12.200 --> 00:25:15.019
ourselves in that experiment by the initial like
00:25:15.019 --> 00:25:17.579
implications of it this is more we have the freedom
00:25:17.579 --> 00:25:19.799
and flexibility to change this around as much
00:25:19.799 --> 00:25:22.559
as possible based on variables that shift i really
00:25:22.559 --> 00:25:24.619
like this better because i like dynamic shifting
00:25:24.619 --> 00:25:27.460
with what is reality as opposed to trying to
00:25:27.460 --> 00:25:30.000
stay micro pigeoned into something that doesn't
00:25:30.000 --> 00:25:31.859
make sense to me like i don't give a shit about
00:25:31.859 --> 00:25:34.200
purity of something i give a fuck about like
00:25:34.200 --> 00:25:37.980
does it work in reality do like adapting in reality
00:25:37.980 --> 00:25:40.819
so i like this way better than the coney experiment
00:25:41.559 --> 00:25:44.039
The problem with this, what I'm seeing here though,
00:25:44.119 --> 00:25:47.460
is that I think between the main portfolio and
00:25:47.460 --> 00:25:49.460
this portfolio, we're going to be above like
00:25:49.460 --> 00:25:53.440
$55 ,000, $60 ,000 in dividends. That's good.
00:25:53.500 --> 00:25:55.200
Because again, reinvesting, all I care about
00:25:55.200 --> 00:25:56.619
is the reinvesting component. Luckily, we have
00:25:56.619 --> 00:25:59.059
tax write -offs for a couple of years to cover
00:25:59.059 --> 00:26:01.759
that. Well, so those aren't apples to apples.
00:26:01.859 --> 00:26:03.619
When you get into taxes, and this is the thing
00:26:03.619 --> 00:26:05.900
with this, ROC doesn't count as your taxable
00:26:05.900 --> 00:26:07.579
stuff. So that gets taken off. So that actually
00:26:07.579 --> 00:26:10.509
helps you with a lot of this. These... high yield
00:26:10.509 --> 00:26:14.369
typically are exempt from long -term capital
00:26:14.369 --> 00:26:17.470
gains deduction in the thing, but we are in a
00:26:17.470 --> 00:26:19.470
lower tax bracket. And then I've been doing my
00:26:19.470 --> 00:26:22.670
taxes the last couple of years. And because you
00:26:22.670 --> 00:26:25.390
have that, what do they call it? The thing where
00:26:25.390 --> 00:26:29.369
you take 15 ,000 off of your top, there's like
00:26:29.369 --> 00:26:31.549
buffer. And then because we've had loss, we've
00:26:31.549 --> 00:26:33.289
locked so many losses in over the last however
00:26:33.289 --> 00:26:36.630
years, I forget, I think we have like 27 ,000
00:26:36.630 --> 00:26:40.599
impossible gains that we can offset. with a lot
00:26:40.599 --> 00:26:43.240
of things so like it just it depends like your
00:26:43.240 --> 00:26:45.099
taxable thing i mean it should be factored in
00:26:45.099 --> 00:26:47.460
in your initial strategy or your actual strategy
00:26:47.460 --> 00:26:50.799
but like it differs it's so hard to give like
00:26:50.799 --> 00:26:52.859
across the board universal recommendation for
00:26:52.859 --> 00:26:54.519
because it really does differ from freaking thing
00:26:54.519 --> 00:26:57.200
to thing person to person circumstance to circumstance
00:26:57.200 --> 00:26:59.519
like this is all of our income but in the main
00:26:59.519 --> 00:27:02.759
portfolio anything that's held or excuse most
00:27:02.759 --> 00:27:04.480
of the stuff that's in there is like normal dividend
00:27:04.480 --> 00:27:06.720
stuff dividends get taxed at a lower rate than
00:27:06.720 --> 00:27:10.799
normal income and We don't sell as much stuff
00:27:10.799 --> 00:27:14.119
as we do. So we have access to the stuff that
00:27:14.119 --> 00:27:16.720
actually gets the long -term reduction in capital
00:27:16.720 --> 00:27:18.779
gains, which because we're in the lower tax bracket,
00:27:18.900 --> 00:27:21.059
a lot of those actually end up being zero. And
00:27:21.059 --> 00:27:22.779
then we're in the process right now of moving
00:27:22.779 --> 00:27:26.140
and relocating to South Dakota for the exemption
00:27:26.140 --> 00:27:29.799
for state income tax. So that'll knock off a
00:27:29.799 --> 00:27:31.339
good chunk of stuff too that we can, you know,
00:27:31.339 --> 00:27:34.960
pay for the income. Or the taxes, hopefully.
00:27:35.099 --> 00:27:37.839
It'll offset. So it is what it is. Again, not
00:27:37.839 --> 00:27:40.000
tax planners, not strategizing, just telling
00:27:40.000 --> 00:27:41.759
you that's kind of like the thing. We're not
00:27:41.759 --> 00:27:44.359
negating it, but it's not really that big of
00:27:44.359 --> 00:27:47.799
a deal for us. Eight months in, I think this
00:27:47.799 --> 00:27:51.380
is going to extend beyond the 30 months. You
00:27:51.380 --> 00:27:54.200
mean the original invested? Yeah. Just because
00:27:54.200 --> 00:27:57.519
it's always changing. Like I like say, for example,
00:27:57.640 --> 00:27:59.960
ICW pay like starts cutting their dividend and
00:27:59.960 --> 00:28:02.450
it's like, you know, it's 15 cents. Well. sell
00:28:02.450 --> 00:28:04.470
some shares at WPAY and I'll put it into something
00:28:04.470 --> 00:28:06.809
else that actually generates more. Right. So
00:28:06.809 --> 00:28:08.509
I think this, just because there's flexibility
00:28:08.509 --> 00:28:11.809
of being able to sell shares and put them into
00:28:11.809 --> 00:28:13.849
other things when I need to, like, I think this
00:28:13.849 --> 00:28:15.829
will actually extend, I think it'll extend more
00:28:15.829 --> 00:28:19.410
than four years, probably 50 to 60 months would
00:28:19.410 --> 00:28:22.569
be my guess before this is not feasible to actually
00:28:22.569 --> 00:28:25.309
live off of. I was actually, to not live off
00:28:25.309 --> 00:28:27.049
of. So you think it would actually take that
00:28:27.049 --> 00:28:28.730
long before it? I thought we were shooting. I
00:28:28.730 --> 00:28:30.809
thought you actually said that four or five years
00:28:30.809 --> 00:28:33.309
is when it would essentially. Because I'm moving
00:28:33.309 --> 00:28:35.490
from ones that are going to go to zero to into
00:28:35.490 --> 00:28:37.509
other ones. I think. Okay. Okay. I should be
00:28:37.509 --> 00:28:39.410
able to. I thought when you said that you meant
00:28:39.410 --> 00:28:40.750
it was literally going to nab decline to the
00:28:40.750 --> 00:28:42.710
point of essentially like negligible where we'd
00:28:42.710 --> 00:28:44.609
have to like scrap the whole thing. But if you
00:28:44.609 --> 00:28:47.250
mean the actual livable 1500 ish a month or whatever
00:28:47.250 --> 00:28:49.690
supporting her. I don't know if it's going to
00:28:49.690 --> 00:28:52.309
be $1 ,500, but I'm assuming 50 to 60 months,
00:28:52.349 --> 00:28:55.490
like I will be above $1 ,000 for 50 to 60 months,
00:28:55.529 --> 00:28:57.069
be my guess. That would be really interesting.
00:28:57.670 --> 00:29:00.230
But I think we were estimating one year past
00:29:00.230 --> 00:29:03.349
the initial recoup would be probably the thing.
00:29:03.430 --> 00:29:04.809
So it's like, would it be worth it? I don't know.
00:29:04.910 --> 00:29:06.569
Because again, we were back discussing taking
00:29:06.569 --> 00:29:08.809
OPM and potentially implementing a strategy like
00:29:08.809 --> 00:29:11.250
this. I don't know if we just don't learn a lesson
00:29:11.250 --> 00:29:13.109
or if we just like keep bashing something until
00:29:13.109 --> 00:29:14.990
we figure out how the hell to make it work. I
00:29:14.990 --> 00:29:17.009
feel like it's the second one because there's
00:29:17.009 --> 00:29:19.700
something there. I have so much balance transfer
00:29:19.700 --> 00:29:23.460
credit available. It just seems kind of, I don't
00:29:23.460 --> 00:29:26.339
want to say stupid, but you can exponentially
00:29:26.339 --> 00:29:28.559
get your stuff to grow by utilizing different
00:29:28.559 --> 00:29:31.039
tools and strategies as long as you do it appropriately.
00:29:31.299 --> 00:29:32.980
But we need to actually have proof in the pudding
00:29:32.980 --> 00:29:34.619
before we're willing to take on that level of
00:29:34.619 --> 00:29:36.980
debt. And we have to have a big enough yield
00:29:36.980 --> 00:29:41.299
to offset the risk component of that. So just
00:29:41.299 --> 00:29:42.799
looking at this, we're going to be above the
00:29:42.799 --> 00:29:44.779
$1 ,500 again. We'll probably be above $1 ,600
00:29:44.779 --> 00:29:47.640
again for this month. Just based on the fact
00:29:47.640 --> 00:29:49.539
that it's, what, the 12th? Yeah, it's the 12th.
00:29:49.539 --> 00:29:52.259
And we're already at 505. Loot, loot. And we've
00:29:52.259 --> 00:29:54.480
got five and four. And the USOI dove dividends
00:29:54.480 --> 00:29:58.019
at $1 .70, I think, or $1 .77. So that one's
00:29:58.019 --> 00:30:00.839
going to be $112 or $113. That's freaking awesome.
00:30:01.160 --> 00:30:03.200
Which is way more than I was making in USOI.
00:30:04.079 --> 00:30:05.980
So yeah, this one would probably be a, like,
00:30:06.039 --> 00:30:08.960
I would, like, we might do this month to month.
00:30:09.039 --> 00:30:11.180
I don't know yet. I think we're going to if you
00:30:11.180 --> 00:30:14.069
have enough. trades and stuff or movement to
00:30:14.069 --> 00:30:16.670
make it justifiable we might pump that to two
00:30:16.670 --> 00:30:19.549
months on updates or six weeks depending so but
00:30:19.549 --> 00:30:21.630
we will be updating that high yield i actually
00:30:21.630 --> 00:30:24.970
have it now as a youtube series that will be
00:30:24.970 --> 00:30:27.230
doing that those updates as necessary to help
00:30:27.230 --> 00:30:28.410
people if they're following through interested
00:30:28.410 --> 00:30:30.269
in seeing how this experiment unfolds because
00:30:30.269 --> 00:30:33.670
it's i think extremely interesting and we got
00:30:33.670 --> 00:30:35.650
massive skin in the game because that's what
00:30:35.650 --> 00:30:37.990
we're living off of now that i think we've depleted
00:30:37.990 --> 00:30:40.390
our savings essentially to our threshold points
00:30:40.390 --> 00:30:44.400
so this is our expendable income. Yeah. So that's
00:30:44.400 --> 00:30:46.400
that. That's the high yielder. That's awesome.
00:30:46.680 --> 00:30:48.339
It's doing what it should be doing. It's not
00:30:48.339 --> 00:30:50.519
as much as we wanted, but it's still better.
00:30:50.579 --> 00:30:52.220
You mean as much as we initially predicted, like
00:30:52.220 --> 00:30:54.079
we predicted like 2 ,500 initially, and I was
00:30:54.079 --> 00:30:55.920
really pissed that it was like 1 ,500, 1 ,600.
00:30:56.420 --> 00:30:58.980
But it's better than what I thought it would
00:30:58.980 --> 00:31:01.059
do. And if it's consistently sticking around
00:31:01.059 --> 00:31:04.319
the 1 ,600, 1 ,500, I am completely content with
00:31:04.319 --> 00:31:06.500
that riding, you know, three, three, four years.
00:31:06.539 --> 00:31:08.839
Stop eating plastic. Our cat's eating plastic.
00:31:09.059 --> 00:31:12.019
Time to go. Time to go. See you guys in the next
00:31:12.019 --> 00:31:12.900
update. That's all three.
00:00:09.140 --> 00:00:12.380
Welcome to Roaming Returns, a podcast about generating
00:00:12.380 --> 00:00:15.259
a passive income with dividend stocks so you
00:00:15.259 --> 00:00:17.820
can secure your finances and liberate your life.
00:00:18.120 --> 00:00:21.059
This is the Q3 update for the high yield ETF
00:00:21.059 --> 00:00:24.300
income portfolio loaded with YieldMax, Roundhill,
00:00:24.420 --> 00:00:27.219
Defiance and other potentially sketchy ETFs.
00:00:27.629 --> 00:00:29.589
This is the account we're actually using for
00:00:29.589 --> 00:00:31.850
living expenses while we let our main portfolio
00:00:31.850 --> 00:00:34.390
compound in the background. The goal is simple,
00:00:34.490 --> 00:00:37.369
but not easy. Recoup the initial investment,
00:00:37.590 --> 00:00:39.770
stretch the money longer than the cash would
00:00:39.770 --> 00:00:42.490
have lasted, and keep monthly income coming in
00:00:42.490 --> 00:00:44.609
without letting NAV Erosion eat the whole thing
00:00:44.609 --> 00:00:47.909
alive. It's risky, it's high maintenance, and
00:00:47.909 --> 00:00:50.189
it's absolutely not a strategy you can set and
00:00:50.189 --> 00:00:52.810
forget. We're going to cover what had to change
00:00:52.810 --> 00:00:54.969
and the strategy we're focusing on to keep this
00:00:54.969 --> 00:00:58.060
thing on track. All right. If you were not interested
00:00:58.060 --> 00:01:00.100
in the conservative portfolio or the main portfolio,
00:01:00.320 --> 00:01:03.579
and you're into this high yield ETF, crazy nonsense,
00:01:04.019 --> 00:01:06.560
experimental, whatever the heck, we're doing
00:01:06.560 --> 00:01:08.480
the performance. This portfolio is probably like
00:01:08.480 --> 00:01:11.180
on an average week, I spend probably 500 % more
00:01:11.180 --> 00:01:13.359
time on this portfolio than the other two combined.
00:01:13.640 --> 00:01:17.640
This one's just crazy babysitting. Right. Babysitting
00:01:17.640 --> 00:01:19.760
and to make sure that we're extending that. We
00:01:19.760 --> 00:01:22.000
were first and foremost recouping our initial
00:01:22.000 --> 00:01:24.099
investment and then extending it as much as possible
00:01:24.099 --> 00:01:26.400
so that we can prevent having to tap our main
00:01:26.400 --> 00:01:28.939
portfolio as long as possible so that that thing
00:01:28.939 --> 00:01:30.620
can keep compounding and churning and compounding
00:01:30.620 --> 00:01:32.859
and churning. So we're actually kind of seeing
00:01:32.859 --> 00:01:35.579
if we can make this to the point of extending
00:01:35.579 --> 00:01:39.260
way past, I guess, the $52 ,000. We have a lot
00:01:39.260 --> 00:01:40.519
paid back, so I'm actually kind of curious to
00:01:40.519 --> 00:01:44.120
see the update here. All right. The income portfolio.
00:01:44.560 --> 00:01:49.409
This is chaos. So, the very first thing, we had
00:01:49.409 --> 00:01:54.250
two complete sells in this quarter. We sold COIW,
00:01:54.329 --> 00:01:56.930
which is the Roundhill Coinbase ETF. I don't
00:01:56.930 --> 00:01:58.750
know what they are doing with the Coinbase high
00:01:58.750 --> 00:02:00.750
yields and the Roundhill yield max. Like, they
00:02:00.750 --> 00:02:03.030
all just suck. So, yeah, we sold that on August
00:02:03.030 --> 00:02:07.250
7th, 8 -7. And then on August 11th, we sold USOY,
00:02:07.530 --> 00:02:11.099
which is what, at the time... We actually recouped
00:02:11.099 --> 00:02:12.860
all of that initial. And normally what I do when
00:02:12.860 --> 00:02:15.340
I recoup all the initials, I just let the profits
00:02:15.340 --> 00:02:18.680
run. But I noticed that USOY's dividend has been
00:02:18.680 --> 00:02:21.360
shrinking, even though we're in an environment
00:02:21.360 --> 00:02:23.180
where the dividend shouldn't be shrinking. So
00:02:23.180 --> 00:02:25.460
I got out of that and I actually dumped USOY
00:02:25.460 --> 00:02:30.050
into USOI. on August 11th. But we had some additions
00:02:30.050 --> 00:02:35.389
this quarter. We added KYLD on 6 -25. We added
00:02:35.389 --> 00:02:40.629
RNTY on 7 -21. We added AVGW, which is the broadband
00:02:40.629 --> 00:02:45.379
of Brownhill, on 8 -4. We added CEPI, which is
00:02:45.379 --> 00:02:48.280
the sister of AIPI and FEPI. We added that on
00:02:48.280 --> 00:02:52.300
8 .4 as well. We added USOI, like I mentioned,
00:02:52.340 --> 00:02:55.680
on 8 .11. And we added YRAM on 8 .25, which is
00:02:55.680 --> 00:02:58.259
the yield max storage and memory new ETF that
00:02:58.259 --> 00:03:00.280
came out. I'm really excited about that one.
00:03:00.939 --> 00:03:03.699
So those are our additions and our subtractions.
00:03:03.719 --> 00:03:07.879
So in quarter two, we made $4 ,982 .66 in this
00:03:07.879 --> 00:03:10.400
portfolio. In quarter three, we only made $4
00:03:10.400 --> 00:03:15.240
,763 .57. So it's about, what, $220 difference?
00:03:15.560 --> 00:03:17.659
Now, this one is kind of like we talked about
00:03:17.659 --> 00:03:19.580
because of those additions and subtractions or
00:03:19.580 --> 00:03:21.620
those changes that we made. Sometimes you actually
00:03:21.620 --> 00:03:25.639
have like a missed dividend payout. So that affects
00:03:25.639 --> 00:03:28.080
the monthly numbers. So after you get a couple
00:03:28.080 --> 00:03:29.659
months past that or a month or so past that,
00:03:29.719 --> 00:03:31.759
like those numbers, you know, even back out.
00:03:31.800 --> 00:03:34.120
Hopefully. Hopefully. But you do have an ad decline
00:03:34.120 --> 00:03:36.120
and reduced payouts. So in the month of March,
00:03:36.180 --> 00:03:37.860
which is the first month of quarter two, we made
00:03:37.860 --> 00:03:42.120
$1 ,830. And the first month of quarter three,
00:03:42.159 --> 00:03:45.780
June, we made $1 ,597. That's a huge difference.
00:03:45.939 --> 00:03:48.120
What the hell happened in March? April, we made
00:03:48.120 --> 00:03:53.240
$1 ,560 versus July, $1 ,511. So that was like...
00:03:53.560 --> 00:03:57.460
$39, $49 difference. And then May, we made $1
00:03:57.460 --> 00:04:02.699
,593 versus August of $1 ,655. So that one was
00:04:02.699 --> 00:04:05.259
actually $60 up. So the only difference was March
00:04:05.259 --> 00:04:08.400
to June. Do you have to caveat here with our
00:04:08.400 --> 00:04:11.659
argument? Okay, so one other caveat that might
00:04:11.659 --> 00:04:13.860
affect if you are comparing from the last update
00:04:13.860 --> 00:04:16.560
and this update. Yeah, the March, April, May
00:04:16.560 --> 00:04:18.120
numbers are going to be different because of
00:04:18.120 --> 00:04:21.300
a discussion. We had a discrepancy because of
00:04:21.300 --> 00:04:23.600
the Kony experiment. The credit card portion
00:04:23.600 --> 00:04:27.459
of it moved shares into LFGY and WNTR, and Tim
00:04:27.459 --> 00:04:29.339
was counting them as part of our income, whereas
00:04:29.339 --> 00:04:31.339
I was actually thought they were being counted
00:04:31.339 --> 00:04:34.540
as like an exemption in an experiment self -contained
00:04:34.540 --> 00:04:37.319
thing. So I actually thought it was more accurate
00:04:37.319 --> 00:04:39.720
to pull them out or leave them out because of
00:04:39.720 --> 00:04:43.040
the entanglement kind of created, in my opinion,
00:04:43.240 --> 00:04:47.259
overinflated income. We're not in agreement completely
00:04:47.259 --> 00:04:49.019
on it, but we want to have it for consistency.
00:04:49.040 --> 00:04:52.230
So we went back and actually changed that. So
00:04:52.230 --> 00:04:56.050
if you watch the quarter two one, those numbers
00:04:56.050 --> 00:04:58.310
for March, April, May will be a little bit different
00:04:58.310 --> 00:04:59.870
than the ones I'm presenting now. And that's
00:04:59.870 --> 00:05:03.610
because LFGY and WNTR were moved from the income
00:05:03.610 --> 00:05:07.750
portfolio into the yield max experiment in January.
00:05:07.990 --> 00:05:10.569
And I've been including the income for those
00:05:10.569 --> 00:05:13.290
the entire time. So I went back and I actually
00:05:13.290 --> 00:05:15.870
extracted the income from the shares that we
00:05:15.870 --> 00:05:18.250
sent to the yield max experiment from the totals.
00:05:18.269 --> 00:05:19.709
Right. And the reason that I don't think they
00:05:19.709 --> 00:05:21.629
should be counted is because we're not. actually
00:05:21.629 --> 00:05:23.949
able to spend that money it's we're trying to
00:05:23.949 --> 00:05:25.649
actually reinvest it in that experiment to see
00:05:25.649 --> 00:05:27.870
if we can actually recoup the initial in the
00:05:27.870 --> 00:05:29.870
experiment faster it's you'll see that in the
00:05:29.870 --> 00:05:32.790
actual experiment updates but essentially like
00:05:32.790 --> 00:05:34.649
those got moved out so there will be difference
00:05:34.649 --> 00:05:37.910
from last month's numbers or last quarter's numbers
00:05:37.910 --> 00:05:41.209
from March April May than this one so What happens?
00:05:41.209 --> 00:05:43.329
We have to dissect this. So what happened is
00:05:43.329 --> 00:05:48.269
in quarter two, COIW paid $341 versus $176 in
00:05:48.269 --> 00:05:51.910
quarter three. PLTW paid $840 in quarter two
00:05:51.910 --> 00:05:56.389
versus $664 in quarter three. USLY paid $256
00:05:56.389 --> 00:05:59.290
in quarter two versus $72 in quarter three. You
00:05:59.290 --> 00:06:02.410
see why those two got sold, COIW and USLY. pay
00:06:02.410 --> 00:06:05.009
or topw however you want to refer to it paid
00:06:05.009 --> 00:06:08.829
864 in quarter two versus 680 in quarter three
00:06:08.829 --> 00:06:13.470
and ybtc which we sold previously and it was
00:06:13.470 --> 00:06:16.769
updated last time paid 126 in quarter two versus
00:06:16.769 --> 00:06:20.110
15 in quarter three so those five investments
00:06:20.110 --> 00:06:23.069
paid 820 more in quarter two than quarter three
00:06:23.069 --> 00:06:26.250
so if you add to 820 or you subtract i guess
00:06:26.250 --> 00:06:29.649
subtract 820 from the total you'll see that That
00:06:29.649 --> 00:06:34.990
would be 4 ,160 versus 4 ,763. So I think the
00:06:34.990 --> 00:06:37.389
portfolio is actually in better shape extracting
00:06:37.389 --> 00:06:42.069
those from it than it was with those in it. So
00:06:42.069 --> 00:06:43.829
we've been working on rebalancing the portfolio.
00:06:45.720 --> 00:06:51.240
and sold some shares of NVDW and TOPW and PLTW
00:06:51.240 --> 00:06:53.160
because we were so concentrated in those. They
00:06:53.160 --> 00:06:56.040
were like 14, 15, 16 % of our portfolio. So now
00:06:56.040 --> 00:06:58.120
they're about 10%. I still have to trim them
00:06:58.120 --> 00:07:01.000
some more whenever the price warrants it. And
00:07:01.000 --> 00:07:03.759
we use that money for better ETF, better NAV
00:07:03.759 --> 00:07:06.339
erosion. So essentially you're moving from the
00:07:06.339 --> 00:07:08.699
higher yield payouts to like more of the 30,
00:07:08.759 --> 00:07:12.660
40 % sweet spot -ish. So I use that money and
00:07:12.660 --> 00:07:16.360
I... initiated positions in KYLD, CEPI, RNTY,
00:07:16.420 --> 00:07:18.339
and then I'm adding to those whenever I trim
00:07:18.339 --> 00:07:20.279
those, I still have to take probably $2 ,000
00:07:20.279 --> 00:07:24.199
from NVDW, probably $1 ,200, $1 ,500 from TOPW,
00:07:24.339 --> 00:07:26.779
and probably $1 ,500 from PLTW to bring them
00:07:26.779 --> 00:07:29.720
down to like my 5%, my 6 % or 7%, 5 % or 6 %
00:07:29.720 --> 00:07:32.639
of the total portfolio balance. Right. So that's
00:07:32.639 --> 00:07:35.899
also going into NAB decline, like it's helping
00:07:35.899 --> 00:07:38.850
with the NAB decline issue. So we also switched,
00:07:38.910 --> 00:07:41.189
like I mentioned, USOY, which paid little for
00:07:41.189 --> 00:07:44.230
USOY, which pays a shit ton. We made more in
00:07:44.230 --> 00:07:46.750
the one month of holding USOY than we did in
00:07:46.750 --> 00:07:50.310
four months of holding USOY combined. That's
00:07:50.310 --> 00:07:53.810
a lot. Yeah, we made $167, whereas if you look
00:07:53.810 --> 00:07:56.730
at USOY, we weren't making... Seven? It paid
00:07:56.730 --> 00:08:00.810
$7? USOY paid $7 in August? Yeah. Is that because
00:08:00.810 --> 00:08:02.110
it was partial because you sold it? Yeah, it
00:08:02.110 --> 00:08:03.800
was partial, but it wouldn't have been... Yeah,
00:08:03.819 --> 00:08:04.560
it wouldn't have been much. It wouldn't have
00:08:04.560 --> 00:08:05.779
been more than the 33. It would have been less.
00:08:05.819 --> 00:08:09.160
It would have been about 26 -ish. Good move.
00:08:10.040 --> 00:08:11.519
This portfolio is always going to be a lot of
00:08:11.519 --> 00:08:14.379
work. Like I mentioned at the top, this is the
00:08:14.379 --> 00:08:16.980
one I spend the most time on. Right. But I feel
00:08:16.980 --> 00:08:20.579
the addition of KYLD, CEPI, RNTY, YRAM, USOI,
00:08:20.819 --> 00:08:23.759
XDTE, and QDTE, which were not in this portfolio.
00:08:24.740 --> 00:08:27.709
Initially. I've actually been. funneling money
00:08:27.709 --> 00:08:30.069
into those they actually will lead to long longer
00:08:30.069 --> 00:08:33.250
term stability and hopefully more months or years
00:08:33.250 --> 00:08:35.190
of income because they don't have they don't
00:08:35.190 --> 00:08:37.169
really suffer from the nav erosion that the brown
00:08:37.169 --> 00:08:39.870
tails do and because this portfolio has so much
00:08:39.870 --> 00:08:42.009
management going on with it what we've decided
00:08:42.009 --> 00:08:44.409
to do is and the Kony experiment is essentially
00:08:44.409 --> 00:08:48.250
dead or in massive hibernation mode or whatever
00:08:48.250 --> 00:08:50.490
you want to call it, we're going to do a monthly
00:08:50.490 --> 00:08:52.129
update because this thing changes frequently
00:08:52.129 --> 00:08:54.009
and we're managing that NAB decline on a regular
00:08:54.009 --> 00:08:56.350
basis and we're trying to extend those payouts
00:08:56.350 --> 00:08:58.230
as long as possible in this one. So we're going
00:08:58.230 --> 00:08:59.809
to do a monthly update. So if you're not aware
00:08:59.809 --> 00:09:02.129
of that because you missed that announcement
00:09:02.129 --> 00:09:06.440
in our podcast episodes. You are now aware of
00:09:06.440 --> 00:09:09.200
that. And then we have the drip on on some investments.
00:09:09.320 --> 00:09:11.480
And that's only because we don't need the cash
00:09:11.480 --> 00:09:14.259
because we haven't moved like in months. Yeah,
00:09:14.299 --> 00:09:16.440
we're dealing with a personal cat loss situation.
00:09:16.480 --> 00:09:19.659
So we haven't been spending very much money.
00:09:20.139 --> 00:09:23.019
So what we're doing is we're compounding certain
00:09:23.019 --> 00:09:28.139
things. I know you said that RNT, RNTY? No, YRAM.
00:09:28.179 --> 00:09:30.200
You wanted to actually get more money into YRAM.
00:09:30.200 --> 00:09:32.659
But I'm trying something different. Right. So
00:09:32.659 --> 00:09:35.539
the drip's on in the Apple Roundhill AAPW, which
00:09:35.539 --> 00:09:37.679
has been probably one of the best, if not the
00:09:37.679 --> 00:09:41.539
best, single stock Roundhills other than NVDW.
00:09:41.620 --> 00:09:44.200
I don't know if it's Apple AAPW or NVDW, but
00:09:44.200 --> 00:09:46.220
those have both been really, really good with
00:09:46.220 --> 00:09:49.200
the nav erosion and the payout consistency. I
00:09:49.200 --> 00:09:51.779
have the drip on on AVDW until I need the money.
00:09:51.820 --> 00:09:53.580
So I just kind of accumulate shares every week
00:09:53.580 --> 00:09:54.799
until we need the money. Then that'll be one
00:09:54.799 --> 00:09:56.960
of the first ones I turn the drip off on. Why
00:09:56.960 --> 00:09:58.539
do you have the drip on? Because you just want
00:09:58.539 --> 00:10:01.080
a larger share of it? Mm -hmm. Okay. I have the
00:10:01.080 --> 00:10:03.960
drip on at CEPI because I think it's pretty undervalued
00:10:03.960 --> 00:10:06.620
because crypto is a whole tip of shit. And again,
00:10:06.679 --> 00:10:08.639
once we need money, that'll probably be the second
00:10:08.639 --> 00:10:11.200
one that the drip's turned on is the EPI. Even
00:10:11.200 --> 00:10:14.120
off? Off, yeah. So AVGW will be the first one
00:10:14.120 --> 00:10:16.179
I turn the drip off on when we need cash. CEPI
00:10:16.179 --> 00:10:19.100
will be the second one. KYLD, they pay 10 cents
00:10:19.100 --> 00:10:22.480
a week. It's consistently been 10 cents a week
00:10:22.480 --> 00:10:25.019
for I don't know how many weeks now. That one
00:10:25.019 --> 00:10:27.480
that has the drip on. RNTY, which is the yield
00:10:27.480 --> 00:10:30.000
max real estate one. I have the drip on on that
00:10:30.000 --> 00:10:31.700
one. Just accumulate shares until I actually
00:10:31.700 --> 00:10:35.679
need to tap it. QDTE, USOI, and XDTE will be
00:10:35.679 --> 00:10:37.360
the last ones I turn the drip off because they've
00:10:37.360 --> 00:10:40.480
been the most consistent performers in this portfolio,
00:10:40.700 --> 00:10:43.340
like with NAV staying pretty consistent as well
00:10:43.340 --> 00:10:47.120
as the payment being consistently in the... 30
00:10:47.120 --> 00:10:49.940
to 40 % range. So he could have the drip off
00:10:49.940 --> 00:10:52.100
and be manually reinvesting in these, but because
00:10:52.100 --> 00:10:55.120
of the consistency and the undervalue of some
00:10:55.120 --> 00:10:57.840
of these, you're choosing to do drip. So starting
00:10:57.840 --> 00:11:01.799
balance on June 1st in this account was $52 ,633.
00:11:03.179 --> 00:11:06.299
We transferred shares, I forget what day it was,
00:11:06.379 --> 00:11:09.720
of LFGY and WNTR into the Kony experiment. That
00:11:09.720 --> 00:11:15.720
was $1 ,456. We have taken out cash and... paid
00:11:15.720 --> 00:11:17.580
bills or put it in our checking or savings, whatever,
00:11:17.720 --> 00:11:21.639
of $2 ,322. So the total amount that we've actually
00:11:21.639 --> 00:11:23.639
withdrawn from this account in this quarter was
00:11:23.639 --> 00:11:27.759
$3 ,778. So if you take the balance minus the
00:11:27.759 --> 00:11:32.120
withdrawals, it would be $48 ,855. The balance
00:11:32.120 --> 00:11:36.919
as of August 31st was $47 ,065. So we lost $1
00:11:36.919 --> 00:11:41.000
,790 in portfolio value due to price loss or
00:11:41.000 --> 00:11:43.779
NAV erosion in this portfolio in the last quarter,
00:11:43.860 --> 00:11:46.950
which is not terrible no that's actually really
00:11:46.950 --> 00:11:49.429
good considering these things never rode so bad
00:11:49.429 --> 00:11:52.470
normally i expect that 1790 to actually reduce
00:11:52.470 --> 00:11:54.730
now that i'm actually moving money from the high
00:11:54.730 --> 00:11:58.330
like the 100 80 yielders into the 20 and 30 yielders
00:11:58.330 --> 00:12:00.250
i expect the nav erosion to be less than that
00:12:00.250 --> 00:12:02.970
or the portfolio value to like now the price
00:12:02.970 --> 00:12:06.000
loss i can't help so it's basically what it is
00:12:06.000 --> 00:12:07.799
like there's some sometimes i go up sometimes
00:12:07.799 --> 00:12:09.600
i go down but a majority of the time with these
00:12:09.600 --> 00:12:11.740
high yield etfs then when the price goes up it's
00:12:11.740 --> 00:12:14.700
not near as much as like the stock does yeah
00:12:14.700 --> 00:12:17.169
and when the price goes down It goes down as
00:12:17.169 --> 00:12:20.850
much or maybe more than the actual single payer.
00:12:20.950 --> 00:12:22.690
So like I can't help the price loss, but what
00:12:22.690 --> 00:12:24.950
I can help is the NAV erosion. And that actually
00:12:24.950 --> 00:12:28.889
comes from when they're redistributing your return
00:12:28.889 --> 00:12:30.750
of capital to you. So you basically pay them
00:12:30.750 --> 00:12:32.690
$1 ,000. They hold it and they give you like
00:12:32.690 --> 00:12:35.590
$100 each month. So your $1 ,000 is now worth
00:12:35.590 --> 00:12:38.070
$900. The price will reflect that. So you're
00:12:38.070 --> 00:12:40.429
just getting your money back in a monthly installment.
00:12:40.429 --> 00:12:42.610
It's kind of like an annuity. Yeah, it's not
00:12:42.610 --> 00:12:44.990
actually. Like dividend payout from their synthetic
00:12:44.990 --> 00:12:47.029
options. It's not good. So they actually will
00:12:47.029 --> 00:12:49.909
reduce their assets under management to fund
00:12:49.909 --> 00:12:52.450
the dividend at that point. That's when return
00:12:52.450 --> 00:12:54.610
on capital is bad. Right. I understand there's
00:12:54.610 --> 00:12:57.629
times when return on capital, like MLPs and BDCs
00:12:57.629 --> 00:12:59.690
and REITs and shit like that, where return on
00:12:59.690 --> 00:13:02.289
capital is good. But in these ETFs, return on
00:13:02.289 --> 00:13:05.299
capital is not good. Yeah, not good at all. So
00:13:05.299 --> 00:13:08.919
like if you have access to your email and you're
00:13:08.919 --> 00:13:10.679
a nerd like me, you can actually go into every
00:13:10.679 --> 00:13:13.019
one of the high yield ETFs that you invest in.
00:13:13.080 --> 00:13:15.799
You can sign up for the email subscription that
00:13:15.799 --> 00:13:17.639
you make every week. Well, here's what the payouts
00:13:17.639 --> 00:13:19.639
are going to be for all of our ETFs. And here's
00:13:19.639 --> 00:13:21.649
what the return of capital is going to be. Or
00:13:21.649 --> 00:13:22.970
you can just go on their website. Like if you
00:13:22.970 --> 00:13:24.889
have YieldMax, go on to YieldMax ETFs. If you
00:13:24.889 --> 00:13:26.769
have Roundhill, go to Roundhill ETFs, and they
00:13:26.769 --> 00:13:28.629
actually have a return on capital column in there
00:13:28.629 --> 00:13:32.409
so you can see. And the ones like GraniteShares,
00:13:32.509 --> 00:13:36.870
there's four that don't return capital. Oh, that's
00:13:36.870 --> 00:13:39.990
nice. YieldMax does a lot of ROC. There's like
00:13:39.990 --> 00:13:43.610
30 of them that do. But anyway, here is the breakdown
00:13:43.610 --> 00:13:46.409
of – there's a lot of green in this one, but
00:13:46.409 --> 00:13:49.059
the green comes with a caveat. So if you need
00:13:49.059 --> 00:13:51.259
access or want access to the spreadsheets that
00:13:51.259 --> 00:13:54.139
we're looking at for this podcast episode, they'll
00:13:54.139 --> 00:13:56.899
be in the show notes. And right now we're looking
00:13:56.899 --> 00:13:58.539
at the one that's the buy up to. So if you are
00:13:58.539 --> 00:14:00.440
interested in potentially replicating any of
00:14:00.440 --> 00:14:05.799
this right now, the Vanny or the current price
00:14:05.799 --> 00:14:07.580
is not showing because it's a calculation. We're
00:14:07.580 --> 00:14:09.940
offline because we're in the we're using my phone
00:14:09.940 --> 00:14:11.620
to record and we're not using it as a hotspot.
00:14:11.720 --> 00:14:13.639
But this number will populate when you open this
00:14:13.639 --> 00:14:15.580
chart as soon as you have Internet. So like I
00:14:15.580 --> 00:14:17.600
said, there's a caveat to this one. There's a
00:14:17.600 --> 00:14:20.059
lot of green in this high yield portfolio. Which
00:14:20.059 --> 00:14:22.100
means undervalued. But I don't expect the price
00:14:22.100 --> 00:14:25.100
to ever really get up to that amount. But if
00:14:25.100 --> 00:14:27.399
it did, that would be like my limit where I would
00:14:27.399 --> 00:14:31.320
turn the drip off and not buy it. But if you
00:14:31.320 --> 00:14:35.600
look at the yield, you'll see that's why you
00:14:35.600 --> 00:14:37.860
have a lot of yield cushion. But then you have
00:14:37.860 --> 00:14:41.019
to research like AVGW, for example, 73 % yield.
00:14:41.120 --> 00:14:42.639
Well, how much of that is coming back in the
00:14:42.639 --> 00:14:45.279
form of return on capital? And then you have
00:14:45.279 --> 00:14:47.139
to make a determination, well, the price is currently
00:14:47.139 --> 00:14:50.240
whatever it is. And here's how much they're returning
00:14:50.240 --> 00:14:53.200
on average return on capital. So the buy up to
00:14:53.200 --> 00:14:55.220
point actually has to start reflecting the return
00:14:55.220 --> 00:14:57.860
on capital. And you can actually go into any
00:14:57.860 --> 00:15:00.740
AI if you want. You can actually replicate. You
00:15:00.740 --> 00:15:03.600
can create your own formula for these ETFs, basically
00:15:03.600 --> 00:15:06.100
where the AI can actually pull all the data.
00:15:06.220 --> 00:15:08.539
They can crunch all the data for you and they
00:15:08.539 --> 00:15:10.299
can say, well, the probability of the return
00:15:10.299 --> 00:15:13.000
on capital plus the NAV erosion, this is what
00:15:13.000 --> 00:15:14.799
the price will be like in 12 months. You can
00:15:14.799 --> 00:15:17.700
do that. I might actually do a podcast on that
00:15:17.700 --> 00:15:20.960
one day, like how I basically might try to actually
00:15:20.960 --> 00:15:23.840
create a value. My GPT basically created a formula
00:15:23.840 --> 00:15:25.740
that I can plug these numbers into where I can
00:15:25.740 --> 00:15:27.320
say, well, this one doesn't make sense to hold
00:15:27.320 --> 00:15:28.580
anymore because that's what we did that with
00:15:28.580 --> 00:15:31.940
YBTC. I ran YBTC through the formula that the
00:15:31.940 --> 00:15:34.600
AI created and I determined that the probability
00:15:34.600 --> 00:15:39.340
of YBTC ever. Getting me back to my break -even
00:15:39.340 --> 00:15:42.580
point was negligible, maybe 1 % or 2%. So I just
00:15:42.580 --> 00:15:44.899
liquidated it, took it as a loss, and I redeployed
00:15:44.899 --> 00:15:47.860
the money into other things. We may do that.
00:15:48.000 --> 00:15:49.679
I might actually do a podcast about that. Well,
00:15:49.679 --> 00:15:51.200
in actuality, looking here at the spreadsheet,
00:15:51.340 --> 00:15:52.500
you have two that are red, which means they're
00:15:52.500 --> 00:15:55.620
overvalued, but we still own AAPW and AMZY. Now,
00:15:55.679 --> 00:15:57.519
Tim did not make the decision to liquidate and
00:15:57.519 --> 00:15:59.139
sell these, I assume, because that calculation
00:15:59.139 --> 00:16:01.120
came back and said that they're actually not
00:16:01.120 --> 00:16:04.259
going to have that NAV decay. Well, AMZY is all
00:16:04.259 --> 00:16:06.039
profit. Well, okay. So you have that component
00:16:06.039 --> 00:16:08.360
too. And MBDY is all profit. Well, I wasn't talking
00:16:08.360 --> 00:16:10.820
about MBD. That's not a red one. I'm saying out
00:16:10.820 --> 00:16:12.600
of the red ones. Well, that one. YRAM is brand
00:16:12.600 --> 00:16:15.019
new, so I don't know. Right. That one's like
00:16:15.019 --> 00:16:17.059
brand new, brand new. I don't know where it's
00:16:17.059 --> 00:16:20.480
going to settle. Yeah. So I just said that get
00:16:20.480 --> 00:16:22.919
started at 50. So don't over, don't spend more
00:16:22.919 --> 00:16:25.399
than 50, but I know it's at like 54, 55. Last
00:16:25.399 --> 00:16:27.700
time I looked at it, I think it might be 53 now.
00:16:27.779 --> 00:16:29.700
I don't know. So like we already made a lot of
00:16:29.700 --> 00:16:31.299
money. Unless you're willing to take a flyer
00:16:31.299 --> 00:16:32.899
because that one actually is really interesting
00:16:32.899 --> 00:16:36.840
because it's a macro economic. The macro trend,
00:16:36.899 --> 00:16:39.240
it's storage and memory, and they hold the companies.
00:16:39.340 --> 00:16:40.700
So they actually write options on the companies,
00:16:40.779 --> 00:16:43.840
which is rare for yield max. And we've been in
00:16:43.840 --> 00:16:45.500
these things for so long that we have noticed
00:16:45.500 --> 00:16:46.940
a pattern that typically when they're in the
00:16:46.940 --> 00:16:49.679
very beginnings, they tend to drop huge dividends
00:16:49.679 --> 00:16:51.919
and you can recoup your initial investment sooner.
00:16:52.259 --> 00:16:55.000
We do not invest in all the brand new ones, but
00:16:55.000 --> 00:16:56.460
this one caught our eye just because of that
00:16:56.460 --> 00:16:59.039
macro trend. So that's why we jumped into that
00:16:59.039 --> 00:17:01.600
one right out the gate. But what I was saying
00:17:01.600 --> 00:17:03.799
back here with AAPW and AMZY, like you didn't
00:17:03.799 --> 00:17:05.559
make the decision to essentially sell those off
00:17:05.559 --> 00:17:07.240
because of that equation. And you just said,
00:17:07.259 --> 00:17:09.299
what do you say? AMZY. Well, AAPW is like probably
00:17:09.299 --> 00:17:11.480
on the better round hills. Right. So that one
00:17:11.480 --> 00:17:13.700
did not actually. So I just keep that one. Right.
00:17:13.819 --> 00:17:15.680
We're up about 100 % in that one. I mean, and
00:17:15.680 --> 00:17:17.579
you're reinvesting, which I find hilarious. That's
00:17:17.579 --> 00:17:20.559
overvalued. You're reinvesting. AMZY is an all
00:17:20.559 --> 00:17:24.059
profit. AVGW is brand new. LFGY, we're about
00:17:24.059 --> 00:17:28.980
60 % recouped. And NVGW is about 50%. I don't
00:17:28.980 --> 00:17:30.579
know. Go to the actual dividend sheet. You can
00:17:30.579 --> 00:17:31.799
see how much we've prepared. All right. So now
00:17:31.799 --> 00:17:33.559
let's jump over to the dividend spreadsheet for
00:17:33.559 --> 00:17:34.980
these things. You can see what we've been getting.
00:17:36.420 --> 00:17:37.920
These aren't always apples to apples because
00:17:37.920 --> 00:17:39.779
share quantities do change over time. Well, at
00:17:39.779 --> 00:17:42.640
YRAM, we only made $10 .80, so that one's going
00:17:42.640 --> 00:17:44.839
to take a hot minute. $10 .80? On the first day.
00:17:44.839 --> 00:17:46.779
Yeah, okay, there it is. It was $0 .42, so I
00:17:46.779 --> 00:17:47.619
don't know if it's going to - But you don't have
00:17:47.619 --> 00:17:49.039
a ton of shares of that either, and you said
00:17:49.039 --> 00:17:50.720
you were kind of mad you wish you had more. You
00:17:50.720 --> 00:17:52.440
originally had Drupal, but then you turned it
00:17:52.440 --> 00:17:54.420
off. I turned it off because I don't trust it
00:17:54.420 --> 00:17:57.059
yet. It's YieldMax. You're right. It's YieldMax,
00:17:57.160 --> 00:17:58.740
and we've been burned I don't know how many times.
00:17:59.359 --> 00:18:03.769
But you'll see the bottom there is $16 .21. 51
00:18:03.769 --> 00:18:06.109
and 1830 were the outliers. Everything else has
00:18:06.109 --> 00:18:09.589
been between 15 and 1600. Now, there is something,
00:18:09.690 --> 00:18:11.970
too, with these because some months have four
00:18:11.970 --> 00:18:14.130
pays and some months have five. Some pay out
00:18:14.130 --> 00:18:15.690
on Tuesdays, some pay out on Fridays. We actually
00:18:15.690 --> 00:18:17.509
have an extra line down here that says, like,
00:18:17.529 --> 00:18:19.529
four Tuesdays, five Fridays. Some have four and
00:18:19.529 --> 00:18:21.309
four. Well, that normally is not something that
00:18:21.309 --> 00:18:22.349
you should be concerned with, but when you're
00:18:22.349 --> 00:18:24.400
in the high -yield ETFs, you should know. Yes.
00:18:24.480 --> 00:18:26.140
How many pays you're getting each month. Right.
00:18:26.200 --> 00:18:27.640
Because again, it helps your apples to apples.
00:18:27.859 --> 00:18:29.720
Tim said he also noticed that the ones that have
00:18:29.720 --> 00:18:32.920
the five week pays. One of them's trash. Yeah.
00:18:32.940 --> 00:18:36.000
One of them kind of is down lower. So it's, don't
00:18:36.000 --> 00:18:36.700
get your panties in a bunch. So like in January,
00:18:36.920 --> 00:18:38.619
for example, there was five Fridays. Eomax pays
00:18:38.619 --> 00:18:41.019
out on Fridays. Well, what I saw was a lot of
00:18:41.019 --> 00:18:43.779
the Eomax's had trash, a trash dividend one month
00:18:43.779 --> 00:18:46.440
of that. Week. One week. On March, there was
00:18:46.440 --> 00:18:49.059
five Tuesdays, which Roundhill pays out on Tuesdays.
00:18:49.059 --> 00:18:51.039
Well, one of the, one of the weeks in March was
00:18:51.039 --> 00:18:53.579
trash. And I've noticed that's actually been
00:18:53.579 --> 00:18:55.740
consistent. In May, we had another yield max
00:18:55.740 --> 00:18:58.819
that was trash. One week of yield max dividend
00:18:58.819 --> 00:19:01.440
trash. June was another week of round -hill trash.
00:19:01.900 --> 00:19:04.839
July was another week of yield max trash. And
00:19:04.839 --> 00:19:06.359
I'm assuming September, we're going to have a
00:19:06.359 --> 00:19:10.099
week of round -hill. But what I mean by trash
00:19:10.099 --> 00:19:12.519
is generally the dividends, say, between $0 .20
00:19:12.519 --> 00:19:15.740
and $0 .40, it'll be like $0 .08. Right. So the
00:19:15.740 --> 00:19:17.680
point of that is if you're in these things and
00:19:17.680 --> 00:19:20.839
you see that pattern set up, don't necessarily...
00:19:21.669 --> 00:19:24.089
get super concerned about that as like a consistent
00:19:24.089 --> 00:19:26.730
pattern of continuing every week going forward
00:19:26.730 --> 00:19:28.170
sometimes i don't actually see anyone else talk
00:19:28.170 --> 00:19:29.549
about that either because there's a lot of people
00:19:29.549 --> 00:19:30.809
that talk about these but they don't actually
00:19:30.809 --> 00:19:32.549
talk about hey there's some some months where
00:19:32.549 --> 00:19:34.390
you're going to get five payments so it's going
00:19:34.390 --> 00:19:36.690
to look like really good like that like that
00:19:36.690 --> 00:19:39.029
january one i don't know if people track the
00:19:39.029 --> 00:19:41.490
way we track because like we have a certain like
00:19:41.490 --> 00:19:43.769
a i guess a strategy or an experiment thing here
00:19:43.769 --> 00:19:45.710
so we're being like so i'm guessing if i had
00:19:45.710 --> 00:19:49.160
to guess scroll back to the left one sorry I'm
00:19:49.160 --> 00:19:52.279
guessing in the January of the 1951, I'm assuming
00:19:52.279 --> 00:19:54.480
that WPAY, which pays on Thursday, which means
00:19:54.480 --> 00:19:56.240
there was probably five Thursdays. That's why
00:19:56.240 --> 00:19:59.880
that 327 is just an aberration compared to the
00:19:59.880 --> 00:20:03.940
rest of the rest of it. And I'm assuming on March
00:20:03.940 --> 00:20:07.960
when we had five Tuesdays that there was a couple
00:20:07.960 --> 00:20:11.029
of those round hills didn't have as bad as. Of
00:20:11.029 --> 00:20:13.569
a dividend as it has in previous ones. I just
00:20:13.569 --> 00:20:16.390
had to guess. Just looking at this chart, like
00:20:16.390 --> 00:20:18.470
looking at this, you know, it's between $1 ,500
00:20:18.470 --> 00:20:20.190
and $1 ,600 consistently, except for those two
00:20:20.190 --> 00:20:21.950
outliers. I can explain the first one in the
00:20:21.950 --> 00:20:25.849
WPAY probably was, I don't know, $100 more than
00:20:25.849 --> 00:20:28.529
it should have been. Well, in WPAY, if you don't
00:20:28.529 --> 00:20:30.609
remember, that's the one that's like a... It's
00:20:30.609 --> 00:20:32.990
top W. It's like the index fund. Yeah, total
00:20:32.990 --> 00:20:36.849
market index of all the... Roundhill. Roundhill
00:20:36.849 --> 00:20:39.269
single payer stocks. Right. So it's kind of redundant
00:20:39.269 --> 00:20:42.980
to have that. Yeah, a little bit. But the concept
00:20:42.980 --> 00:20:45.220
of it initially was actually really good. And
00:20:45.220 --> 00:20:47.559
that was the same thing in YieldMax, but YieldMax
00:20:47.559 --> 00:20:49.660
went trash. That's what YMAX was. We got rid
00:20:49.660 --> 00:20:51.259
of that because that thing was not performing.
00:20:51.279 --> 00:20:54.140
Well, you see, we've so far accrued like $15
00:20:54.140 --> 00:20:56.700
,000. Right. So here's the thing that matters.
00:20:56.960 --> 00:21:01.059
We had initially the $52 ,000. Do you even have
00:21:01.059 --> 00:21:02.140
that number here? You don't have that number
00:21:02.140 --> 00:21:04.960
here. It's about $52 ,600, around there somewhere.
00:21:04.980 --> 00:21:06.299
And then you'll have to subtract that $14 ,000
00:21:06.299 --> 00:21:08.539
out of it. But essentially, we've recouped. So
00:21:08.539 --> 00:21:13.980
yeah, we have 29 .29 % recouped of the initial,
00:21:14.079 --> 00:21:17.240
if you take out the LFGY winter debacle thing
00:21:17.240 --> 00:21:20.680
that's in there. So yeah, we're about 29 .29
00:21:20.680 --> 00:21:23.460
% recouped. And we are how many months into this?
00:21:23.500 --> 00:21:26.160
We did this in January? Eight months. That's
00:21:26.160 --> 00:21:28.619
really good. Eight months. So I'm assuming we'll
00:21:28.619 --> 00:21:32.740
be about 40, maybe 40, between 40 and 45 % recouped
00:21:32.740 --> 00:21:34.990
by the end of the year. And that's looking pretty
00:21:34.990 --> 00:21:36.769
good on getting the initial investment back and
00:21:36.769 --> 00:21:38.670
potentially extending this thing past the original
00:21:38.670 --> 00:21:42.470
$52 ,000, $51 ,000 initial investment on this
00:21:42.470 --> 00:21:44.109
thing, which was the whole point of this was
00:21:44.109 --> 00:21:46.130
to be able to actually extract more money from
00:21:46.130 --> 00:21:49.490
that capital than just taking it in cash. We
00:21:49.490 --> 00:21:53.069
haven't added money to this and we've been basically
00:21:53.069 --> 00:21:55.450
playing with the money inside it, reallocating
00:21:55.450 --> 00:21:59.519
it or selling shares of certain things. Yeah,
00:21:59.640 --> 00:22:01.220
self -contained for the most part. Now we do
00:22:01.220 --> 00:22:03.319
draw on this. So those count as like paybacks
00:22:03.319 --> 00:22:05.180
because this is our living expenses if we need
00:22:05.180 --> 00:22:07.259
it. But we have been kind of in a crap situation
00:22:07.259 --> 00:22:08.799
the last couple of months. So he's been able
00:22:08.799 --> 00:22:12.220
to reinvest certain things more so in here. I
00:22:12.220 --> 00:22:14.460
think last month it was like 510 of the income
00:22:14.460 --> 00:22:18.380
you were able to reinvest out of 1600. But this
00:22:18.380 --> 00:22:20.599
spreadsheet shows you what we've made. The red
00:22:20.599 --> 00:22:23.099
ones we sold. Now I actually have a question.
00:22:23.180 --> 00:22:27.200
Is the management... bandwidth that this takes
00:22:27.200 --> 00:22:30.500
to manage this worth the extension of capital
00:22:30.500 --> 00:22:33.960
time. Time will tell. In our current situation.
00:22:35.299 --> 00:22:38.480
The longer that I can make this last to cover
00:22:38.480 --> 00:22:40.299
our living expenses or majority of our living
00:22:40.299 --> 00:22:42.460
expenses, the longer that the main portfolio
00:22:42.460 --> 00:22:46.059
can compound. So to me, the time is completely
00:22:46.059 --> 00:22:48.059
worth it. If you did something similar where
00:22:48.059 --> 00:22:49.660
you took a chunk of money and put it into something
00:22:49.660 --> 00:22:51.180
that I'm going to live off this as long as I
00:22:51.180 --> 00:22:54.259
can, while this part here is growing, it's totally
00:22:54.259 --> 00:22:57.039
worth the time. If it's just I'm dumping all
00:22:57.039 --> 00:22:59.799
my money into these, again, totally worth the
00:22:59.799 --> 00:23:02.119
time because it's all your money. You need this
00:23:02.119 --> 00:23:04.089
to last as long as you possibly can. Well, and
00:23:04.089 --> 00:23:06.009
if you really do need to get your initial out
00:23:06.009 --> 00:23:08.549
of this and then some, you kind of have to micromanage
00:23:08.549 --> 00:23:09.829
a portfolio like this. But if it was just a,
00:23:09.930 --> 00:23:12.990
I'm going to try this high yield thing, but I
00:23:12.990 --> 00:23:16.230
have my main investments in index funds or dividend
00:23:16.230 --> 00:23:18.369
growth stocks, it's not worth the time. Right.
00:23:18.430 --> 00:23:21.930
So if this was more like a... casino type thing
00:23:21.930 --> 00:23:24.769
fun just to see that's one thing but like our
00:23:24.769 --> 00:23:27.170
intention with this is much different and the
00:23:27.170 --> 00:23:28.730
other thing too i was telling him like tim likes
00:23:28.730 --> 00:23:30.410
video games he likes strategy he likes all that
00:23:30.410 --> 00:23:34.109
other stuff if this is a more productive bandwidth
00:23:34.109 --> 00:23:36.490
focus for him than screen targeting on some game
00:23:36.490 --> 00:23:38.769
that has no relevance in life i'd rather have
00:23:38.769 --> 00:23:41.369
him do this it's you're getting the same output
00:23:41.369 --> 00:23:44.730
from a strategic strategy Well, yeah, but this
00:23:44.730 --> 00:23:46.710
is all about... Than playing those stupid football
00:23:46.710 --> 00:23:48.509
coaching games that I hate so much. This whole
00:23:48.509 --> 00:23:51.309
thing is about making this last as long as I
00:23:51.309 --> 00:23:53.450
possibly can, where I can keep the dividends
00:23:53.450 --> 00:23:56.190
above $1 ,500, hopefully. I'm assuming at some
00:23:56.190 --> 00:23:57.849
point they'll probably drop down to $1 ,200 or
00:23:57.849 --> 00:24:00.970
$1 ,300. I'm okay with that, as long as I can
00:24:00.970 --> 00:24:02.849
keep the $1 ,500 to $1 ,600 going as long as
00:24:02.849 --> 00:24:04.670
possible. Right. And I think what will happen
00:24:04.670 --> 00:24:06.569
if it does go down below our actual expenses,
00:24:06.589 --> 00:24:08.130
it'll depend month to month because some months
00:24:08.130 --> 00:24:09.710
we do spend more, some months we spend less.
00:24:09.890 --> 00:24:12.309
The months that we actually spend more than the
00:24:12.309 --> 00:24:16.089
high yield ETF portfolio will pay out. We'll
00:24:16.089 --> 00:24:17.910
probably just tap it from the main. But as long
00:24:17.910 --> 00:24:19.589
as we're compounding majority of the main back
00:24:19.589 --> 00:24:22.490
as long as possible, I will be content. And if
00:24:22.490 --> 00:24:25.009
we can actually get more out than we initially
00:24:25.009 --> 00:24:27.009
put in, I would be really curious of pushing
00:24:27.009 --> 00:24:31.789
this to see how far it can actually go. This
00:24:31.789 --> 00:24:34.470
is a completely different strategy than you see
00:24:34.470 --> 00:24:36.329
online because most people are living off of
00:24:36.329 --> 00:24:40.029
this. This is partially that, it's partially
00:24:40.029 --> 00:24:43.309
to live off of, but the whole time there is that.
00:24:43.579 --> 00:24:45.299
program running in the background where we're
00:24:45.299 --> 00:24:47.799
growing the main portfolio because we don't have
00:24:47.799 --> 00:24:50.019
to tap any money that's the that's the whole
00:24:50.019 --> 00:24:52.880
objective of this right and the other thing too
00:24:52.880 --> 00:24:55.559
is that's why we decided to move this into a
00:24:55.559 --> 00:24:57.240
new experiment essentially because if we can
00:24:57.240 --> 00:24:59.440
push this as long as possible this is a much
00:24:59.440 --> 00:25:01.259
i think more elegant experiment because we get
00:25:01.259 --> 00:25:03.460
to change things as opposed to the coney where
00:25:03.460 --> 00:25:05.700
we went into it with like rigid freaking scope
00:25:05.700 --> 00:25:08.539
where we didn't want to change selling even though
00:25:08.539 --> 00:25:10.500
we should have sold at certain points and blah
00:25:10.500 --> 00:25:12.200
blah blah blah blah but like we kind of pigeonhole
00:25:12.200 --> 00:25:15.019
ourselves in that experiment by the initial like
00:25:15.019 --> 00:25:17.579
implications of it this is more we have the freedom
00:25:17.579 --> 00:25:19.799
and flexibility to change this around as much
00:25:19.799 --> 00:25:22.559
as possible based on variables that shift i really
00:25:22.559 --> 00:25:24.619
like this better because i like dynamic shifting
00:25:24.619 --> 00:25:27.460
with what is reality as opposed to trying to
00:25:27.460 --> 00:25:30.000
stay micro pigeoned into something that doesn't
00:25:30.000 --> 00:25:31.859
make sense to me like i don't give a shit about
00:25:31.859 --> 00:25:34.200
purity of something i give a fuck about like
00:25:34.200 --> 00:25:37.980
does it work in reality do like adapting in reality
00:25:37.980 --> 00:25:40.819
so i like this way better than the coney experiment
00:25:41.559 --> 00:25:44.039
The problem with this, what I'm seeing here though,
00:25:44.119 --> 00:25:47.460
is that I think between the main portfolio and
00:25:47.460 --> 00:25:49.460
this portfolio, we're going to be above like
00:25:49.460 --> 00:25:53.440
$55 ,000, $60 ,000 in dividends. That's good.
00:25:53.500 --> 00:25:55.200
Because again, reinvesting, all I care about
00:25:55.200 --> 00:25:56.619
is the reinvesting component. Luckily, we have
00:25:56.619 --> 00:25:59.059
tax write -offs for a couple of years to cover
00:25:59.059 --> 00:26:01.759
that. Well, so those aren't apples to apples.
00:26:01.859 --> 00:26:03.619
When you get into taxes, and this is the thing
00:26:03.619 --> 00:26:05.900
with this, ROC doesn't count as your taxable
00:26:05.900 --> 00:26:07.579
stuff. So that gets taken off. So that actually
00:26:07.579 --> 00:26:10.509
helps you with a lot of this. These... high yield
00:26:10.509 --> 00:26:14.369
typically are exempt from long -term capital
00:26:14.369 --> 00:26:17.470
gains deduction in the thing, but we are in a
00:26:17.470 --> 00:26:19.470
lower tax bracket. And then I've been doing my
00:26:19.470 --> 00:26:22.670
taxes the last couple of years. And because you
00:26:22.670 --> 00:26:25.390
have that, what do they call it? The thing where
00:26:25.390 --> 00:26:29.369
you take 15 ,000 off of your top, there's like
00:26:29.369 --> 00:26:31.549
buffer. And then because we've had loss, we've
00:26:31.549 --> 00:26:33.289
locked so many losses in over the last however
00:26:33.289 --> 00:26:36.630
years, I forget, I think we have like 27 ,000
00:26:36.630 --> 00:26:40.599
impossible gains that we can offset. with a lot
00:26:40.599 --> 00:26:43.240
of things so like it just it depends like your
00:26:43.240 --> 00:26:45.099
taxable thing i mean it should be factored in
00:26:45.099 --> 00:26:47.460
in your initial strategy or your actual strategy
00:26:47.460 --> 00:26:50.799
but like it differs it's so hard to give like
00:26:50.799 --> 00:26:52.859
across the board universal recommendation for
00:26:52.859 --> 00:26:54.519
because it really does differ from freaking thing
00:26:54.519 --> 00:26:57.200
to thing person to person circumstance to circumstance
00:26:57.200 --> 00:26:59.519
like this is all of our income but in the main
00:26:59.519 --> 00:27:02.759
portfolio anything that's held or excuse most
00:27:02.759 --> 00:27:04.480
of the stuff that's in there is like normal dividend
00:27:04.480 --> 00:27:06.720
stuff dividends get taxed at a lower rate than
00:27:06.720 --> 00:27:10.799
normal income and We don't sell as much stuff
00:27:10.799 --> 00:27:14.119
as we do. So we have access to the stuff that
00:27:14.119 --> 00:27:16.720
actually gets the long -term reduction in capital
00:27:16.720 --> 00:27:18.779
gains, which because we're in the lower tax bracket,
00:27:18.900 --> 00:27:21.059
a lot of those actually end up being zero. And
00:27:21.059 --> 00:27:22.779
then we're in the process right now of moving
00:27:22.779 --> 00:27:26.140
and relocating to South Dakota for the exemption
00:27:26.140 --> 00:27:29.799
for state income tax. So that'll knock off a
00:27:29.799 --> 00:27:31.339
good chunk of stuff too that we can, you know,
00:27:31.339 --> 00:27:34.960
pay for the income. Or the taxes, hopefully.
00:27:35.099 --> 00:27:37.839
It'll offset. So it is what it is. Again, not
00:27:37.839 --> 00:27:40.000
tax planners, not strategizing, just telling
00:27:40.000 --> 00:27:41.759
you that's kind of like the thing. We're not
00:27:41.759 --> 00:27:44.359
negating it, but it's not really that big of
00:27:44.359 --> 00:27:47.799
a deal for us. Eight months in, I think this
00:27:47.799 --> 00:27:51.380
is going to extend beyond the 30 months. You
00:27:51.380 --> 00:27:54.200
mean the original invested? Yeah. Just because
00:27:54.200 --> 00:27:57.519
it's always changing. Like I like say, for example,
00:27:57.640 --> 00:27:59.960
ICW pay like starts cutting their dividend and
00:27:59.960 --> 00:28:02.450
it's like, you know, it's 15 cents. Well. sell
00:28:02.450 --> 00:28:04.470
some shares at WPAY and I'll put it into something
00:28:04.470 --> 00:28:06.809
else that actually generates more. Right. So
00:28:06.809 --> 00:28:08.509
I think this, just because there's flexibility
00:28:08.509 --> 00:28:11.809
of being able to sell shares and put them into
00:28:11.809 --> 00:28:13.849
other things when I need to, like, I think this
00:28:13.849 --> 00:28:15.829
will actually extend, I think it'll extend more
00:28:15.829 --> 00:28:19.410
than four years, probably 50 to 60 months would
00:28:19.410 --> 00:28:22.569
be my guess before this is not feasible to actually
00:28:22.569 --> 00:28:25.309
live off of. I was actually, to not live off
00:28:25.309 --> 00:28:27.049
of. So you think it would actually take that
00:28:27.049 --> 00:28:28.730
long before it? I thought we were shooting. I
00:28:28.730 --> 00:28:30.809
thought you actually said that four or five years
00:28:30.809 --> 00:28:33.309
is when it would essentially. Because I'm moving
00:28:33.309 --> 00:28:35.490
from ones that are going to go to zero to into
00:28:35.490 --> 00:28:37.509
other ones. I think. Okay. Okay. I should be
00:28:37.509 --> 00:28:39.410
able to. I thought when you said that you meant
00:28:39.410 --> 00:28:40.750
it was literally going to nab decline to the
00:28:40.750 --> 00:28:42.710
point of essentially like negligible where we'd
00:28:42.710 --> 00:28:44.609
have to like scrap the whole thing. But if you
00:28:44.609 --> 00:28:47.250
mean the actual livable 1500 ish a month or whatever
00:28:47.250 --> 00:28:49.690
supporting her. I don't know if it's going to
00:28:49.690 --> 00:28:52.309
be $1 ,500, but I'm assuming 50 to 60 months,
00:28:52.349 --> 00:28:55.490
like I will be above $1 ,000 for 50 to 60 months,
00:28:55.529 --> 00:28:57.069
be my guess. That would be really interesting.
00:28:57.670 --> 00:29:00.230
But I think we were estimating one year past
00:29:00.230 --> 00:29:03.349
the initial recoup would be probably the thing.
00:29:03.430 --> 00:29:04.809
So it's like, would it be worth it? I don't know.
00:29:04.910 --> 00:29:06.569
Because again, we were back discussing taking
00:29:06.569 --> 00:29:08.809
OPM and potentially implementing a strategy like
00:29:08.809 --> 00:29:11.250
this. I don't know if we just don't learn a lesson
00:29:11.250 --> 00:29:13.109
or if we just like keep bashing something until
00:29:13.109 --> 00:29:14.990
we figure out how the hell to make it work. I
00:29:14.990 --> 00:29:17.009
feel like it's the second one because there's
00:29:17.009 --> 00:29:19.700
something there. I have so much balance transfer
00:29:19.700 --> 00:29:23.460
credit available. It just seems kind of, I don't
00:29:23.460 --> 00:29:26.339
want to say stupid, but you can exponentially
00:29:26.339 --> 00:29:28.559
get your stuff to grow by utilizing different
00:29:28.559 --> 00:29:31.039
tools and strategies as long as you do it appropriately.
00:29:31.299 --> 00:29:32.980
But we need to actually have proof in the pudding
00:29:32.980 --> 00:29:34.619
before we're willing to take on that level of
00:29:34.619 --> 00:29:36.980
debt. And we have to have a big enough yield
00:29:36.980 --> 00:29:41.299
to offset the risk component of that. So just
00:29:41.299 --> 00:29:42.799
looking at this, we're going to be above the
00:29:42.799 --> 00:29:44.779
$1 ,500 again. We'll probably be above $1 ,600
00:29:44.779 --> 00:29:47.640
again for this month. Just based on the fact
00:29:47.640 --> 00:29:49.539
that it's, what, the 12th? Yeah, it's the 12th.
00:29:49.539 --> 00:29:52.259
And we're already at 505. Loot, loot. And we've
00:29:52.259 --> 00:29:54.480
got five and four. And the USOI dove dividends
00:29:54.480 --> 00:29:58.019
at $1 .70, I think, or $1 .77. So that one's
00:29:58.019 --> 00:30:00.839
going to be $112 or $113. That's freaking awesome.
00:30:01.160 --> 00:30:03.200
Which is way more than I was making in USOI.
00:30:04.079 --> 00:30:05.980
So yeah, this one would probably be a, like,
00:30:06.039 --> 00:30:08.960
I would, like, we might do this month to month.
00:30:09.039 --> 00:30:11.180
I don't know yet. I think we're going to if you
00:30:11.180 --> 00:30:14.069
have enough. trades and stuff or movement to
00:30:14.069 --> 00:30:16.670
make it justifiable we might pump that to two
00:30:16.670 --> 00:30:19.549
months on updates or six weeks depending so but
00:30:19.549 --> 00:30:21.630
we will be updating that high yield i actually
00:30:21.630 --> 00:30:24.970
have it now as a youtube series that will be
00:30:24.970 --> 00:30:27.230
doing that those updates as necessary to help
00:30:27.230 --> 00:30:28.410
people if they're following through interested
00:30:28.410 --> 00:30:30.269
in seeing how this experiment unfolds because
00:30:30.269 --> 00:30:33.670
it's i think extremely interesting and we got
00:30:33.670 --> 00:30:35.650
massive skin in the game because that's what
00:30:35.650 --> 00:30:37.990
we're living off of now that i think we've depleted
00:30:37.990 --> 00:30:40.390
our savings essentially to our threshold points
00:30:40.390 --> 00:30:44.400
so this is our expendable income. Yeah. So that's
00:30:44.400 --> 00:30:46.400
that. That's the high yielder. That's awesome.
00:30:46.680 --> 00:30:48.339
It's doing what it should be doing. It's not
00:30:48.339 --> 00:30:50.519
as much as we wanted, but it's still better.
00:30:50.579 --> 00:30:52.220
You mean as much as we initially predicted, like
00:30:52.220 --> 00:30:54.079
we predicted like 2 ,500 initially, and I was
00:30:54.079 --> 00:30:55.920
really pissed that it was like 1 ,500, 1 ,600.
00:30:56.420 --> 00:30:58.980
But it's better than what I thought it would
00:30:58.980 --> 00:31:01.059
do. And if it's consistently sticking around
00:31:01.059 --> 00:31:04.319
the 1 ,600, 1 ,500, I am completely content with
00:31:04.319 --> 00:31:06.500
that riding, you know, three, three, four years.
00:31:06.539 --> 00:31:08.839
Stop eating plastic. Our cat's eating plastic.
00:31:09.059 --> 00:31:12.019
Time to go. Time to go. See you guys in the next
00:31:12.019 --> 00:31:12.900
update. That's all three.
