Good video, and I get it, and I agree — but do what works for you.
It’s kind of like the dividend vs. accumulating ETF debate. What most people forget to mention, though, is opportunity cost.
If you get monthly payouts, no one says you have to reinvest them in the same stock or ETF. You can put that money anywhere you see potential. Every payout gives you a choice.
Most people are probably better off just buying a global accumulating ETF and forgetting about it. But for me, parking money in JEPG makes more sense than leaving it in bonds or uninvested cash.
Sure, I could use IWDA, but then I’d have to realize losses instead of just seeing smaller monthly payouts. Plus, trading costs make it pointless as a “parking” option, at least for me with my small portfolio. Long term, you should stay invested — but monthly income let me stay flexible and jump on new ideas when I want.
I’m not trying to beat the S&P with JEPG. I just like having the freedom to invest when opportunities pop up.
In my view, JEPG should be compared to bonds or to not investing at all. The key is to understand the risk: during a market downturn, you’ll likely have less available capital with JEPG. You just need to decide whether that tradeoff works for you.
It’s kind of like the dividend vs. accumulating ETF debate. What most people forget to mention, though, is opportunity cost.
If you get monthly payouts, no one says you have to reinvest them in the same stock or ETF. You can put that money anywhere you see potential. Every payout gives you a choice.
Most people are probably better off just buying a global accumulating ETF and forgetting about it. But for me, parking money in JEPG makes more sense than leaving it in bonds or uninvested cash.
Sure, I could use IWDA, but then I’d have to realize losses instead of just seeing smaller monthly payouts. Plus, trading costs make it pointless as a “parking” option, at least for me with my small portfolio. Long term, you should stay invested — but monthly income let me stay flexible and jump on new ideas when I want.
I’m not trying to beat the S&P with JEPG. I just like having the freedom to invest when opportunities pop up.
In my view, JEPG should be compared to bonds or to not investing at all. The key is to understand the risk: during a market downturn, you’ll likely have less available capital with JEPG. You just need to decide whether that tradeoff works for you.
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@CompoundingCouchCo I must disagree with your statement that “JEPG should be compared to bonds (...)”.
This is because bonds have the risk profile of bonds.
And your JEPG has the risk profile of stocks.
You are exposed to the same risk of loss, with limited upside potential.
In other words, you have a lower expected return for the same risk.
Why would anyone do that...
Your reasoning is: “I'm not trying to beat the S&P with JEPG. I just like having the freedom to invest when opportunities arise.”
But that's nonsense. Because you have no planning certainty.
The shorttherme volatility of this produklt makes it unsutible as an inverstment resserve.
When the market crashes, this crashes too.
Just hold Bonds, or a Moneymarket fond.
This is because bonds have the risk profile of bonds.
And your JEPG has the risk profile of stocks.
You are exposed to the same risk of loss, with limited upside potential.
In other words, you have a lower expected return for the same risk.
Why would anyone do that...
Your reasoning is: “I'm not trying to beat the S&P with JEPG. I just like having the freedom to invest when opportunities arise.”
But that's nonsense. Because you have no planning certainty.
The shorttherme volatility of this produklt makes it unsutible as an inverstment resserve.
When the market crashes, this crashes too.
Just hold Bonds, or a Moneymarket fond.
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•@TotallyLost Thank you.
You’re absolutely right in many ways — and I’m probably wrong in just as many.
But how often do we really see true market crashes? The panic sells in recent years were mostly overreactions, and markets recovered quickly. In my view, bonds still deliver lower returns than JEPG.
Even in a 15–20% drawdown, JEPG — though down in value — would likely keep paying more monthly income than bonds. Sure, if you need to sell, you’re in a tougher spot, but if you can hold, it usually works out better.
For my investing style, JEPG just fits. Even during short-term crashes like COVID, I had no problem sitting it out. Man, would had been nice to have JEGP back then.
Overall, it’s been more beneficial for me than bonds. I have a smaller portfolio, so I can take on higher risk — and I’m doing it because I believe the world will keep moving forward and growing. I just can’t afford to build my strategy around uncertainty.
Smart people learn from others’ mistakes — I tend to learn from my own. But at least that way, I’m building a strategy that truly works for me.
You’re absolutely right in many ways — and I’m probably wrong in just as many.
But how often do we really see true market crashes? The panic sells in recent years were mostly overreactions, and markets recovered quickly. In my view, bonds still deliver lower returns than JEPG.
Even in a 15–20% drawdown, JEPG — though down in value — would likely keep paying more monthly income than bonds. Sure, if you need to sell, you’re in a tougher spot, but if you can hold, it usually works out better.
For my investing style, JEPG just fits. Even during short-term crashes like COVID, I had no problem sitting it out. Man, would had been nice to have JEGP back then.
Overall, it’s been more beneficial for me than bonds. I have a smaller portfolio, so I can take on higher risk — and I’m doing it because I believe the world will keep moving forward and growing. I just can’t afford to build my strategy around uncertainty.
Smart people learn from others’ mistakes — I tend to learn from my own. But at least that way, I’m building a strategy that truly works for me.
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•@CompoundingCouchCo I would prefer a high-yield bonds-ETF in local currency.
This should offer almost the same expected return with lower volatility.
https://extraetf.com/de/etf-comparison?products=IE0003UVYC20-etf,IE00B66F4759-etf
This should offer almost the same expected return with lower volatility.
https://extraetf.com/de/etf-comparison?products=IE0003UVYC20-etf,IE00B66F4759-etf
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•@TotallyLost thanks ! i would definitely look into it !
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