First position for monthly cash flow established

Harald@Madhatter5566

2Semana

I'm curious to see how that goes.

And why do you all need cash flow all the time? 🤑

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RandomDude@randomdude

2Semana

@Madhatter5566 I ask myself the same question. And why sacrifice performance and even pay taxes? Mysterious. It could be so simple: reduce your savings rate 😳

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Money Game@MoneyGame

2Semana

@Madhatter5566 @randomdude Savings rate is currently close to zero. I need the cash flow to live on. Yes, that really exists :D

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Harald@Madhatter5566

2Semana

@MoneyGame Then you're one of the first to use the word cash flow correctly, so you're in Deinvest. Great. Then I don't want to have said anything.

Most people mean cash flow, but reinvest everything that comes in at the same time (which is then net zero cash flow)

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RandomDude@randomdude

2Semana

@MoneyGame Then partial sales are an option.

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Harald@Madhatter5566

2Semana

@randomdude Yes, but in pure Deinvest you can go for dividends if you like it. The critical thing will be where the money came from. Because if an accumulating position was sold first and taxes were incurred and now taxes are being paid on the dividend again, it was a mess.

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profit_potential_1336@profit_potential_1336

2Semana

I'm about to try it out with a small amount for the time being. I find it exciting. As we will soon receive a larger sum from the sale of an apartment and my husband wants a secure investment, that would be an option. And then I can use the cash flow to further reduce my working hours.

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Harald@Madhatter5566

2Semana

@profit_potential_1336 If the money goes directly into a dividend position, this is probably not a problem. It is more of a problem if taxes are incurred to liquidate an accumulating position and then go into a dividend position, where taxes are incurred again on the dividend. Then you could have simply sold piece by piece.

If you buy a dividend position purely out of the amount that appears and then partially reinvest it, I don't see a problem. Even if something is paid back in and saved, that's not a bad thing in itself, as long as you're under no illusions that this will give you any advantage.

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Money Game@MoneyGame

2Semana

@profit_potential_1336 I would be careful with "safe investment". These are not really "dividends" in the classic sense. The ETF earns the money with options transactions. Personally, I think it's good because it's a hedge against a sharp fall in prices and I'm already heavily invested in growth stocks and NAS100. So it's a nice diversification. As the "largest position" in the portfolio, I would be skeptical as to whether it makes sense.

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Harald@Madhatter5566

2Semana

@MoneyGame Dividends from ETFs are never real "dividends". Even if the ETF only holds stocks that pay dividends. The money from the dividend flows to the ETF, but it does not pass it on 100%. This is due to taxes and, in some cases, reinvestment.

Options transactions as a hedge initially mean a certain degree of security. The position will still fall in the event of a crash and will not realize its full potential when it grows. But I see this as even safer than putting everything I know into Reits. After all, the aforementioned one tracks the NASDAQ.

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profit_potential_1336@profit_potential_1336

2Semana

@MoneyGame ok. Thank you. Do you have any ideas on how I can diversify it well? So far I have rather accumulating stocks in my portfolio and also cryptos. But since we are leaving the job in 3 years, I would like to see where I can get good dividends for our income. Thank you in advance 🙏

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Ver todas las 14 respuestas adicionales

N@Khlmysee

2Semana

Stories from the Paulaner garden.

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Alexander_Bitcoin@Alexander_Bitcoin

2Semana

Nice, 1k pro Monat Cashflow.

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Erzwo@FYBSTRD

2Semana

Geringverdiener

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Chris@1Chrischi1

2Semana

stabil

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N@Khlmysee

2Semana

@1Chrischi1 who believes it.

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mami_goes_boerse@mami_goes_boerse

2Semana

Not bad 👌

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Carles@Carles

2Semana

Didn’t know about the existance of this kind of ETF. I think it is going to be on my savings plan.. 👌🏼
How do you feel about BDCs as dividend income options?

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Money Game@MoneyGame

2Semana

@Carles Sorry, I don't know much about BDCs.

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Carles@Carles

2Semana

@MoneyGame you should check $ARCC and $MAIN they’re amazing dividend payers with a long positive track record and stock appreciation (better total return even than this ETF). They’re basically loan facilitators to small-mid cap companies and distribute aprox 80% of their profits by law (they have good tax incentives to do so)

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Giuse@Coyote980

1Semana

@Carles what u think about golub ?
Can i risk ? 😅 Here in Germany is it diffcult to find good informations about bdc's.

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Carles@Carles

1Semana

@Coyote980 I check on Seeking Alpha, good source of info for any american stock.

$GBDC is not a bad BDC, they’be been growing fast their porfolio of loans and income, but forecasts for next years are not as good as it has been on the income side, as interests are expected to go down (to be seen). Their Yield is higher than usual, due to supplementary distributions, but I don’t specially like it when Yield on a BDC is more than 10% as it usually means a risky play.
They have a good diversification in their portfolio (software being 27% of it and then healthcare 7%) and Top10 borrowers are 13% and top25 are 27% of it, so not concentrated risk.

In any case, I usually go for the safe plays, wich are $ARCC and $MAIN . Ares being the biggest BDC and being arround during many crisis, so good track record and increasing value of the stock over years even with a 10% yield (for comparison, $ARCC is 35% up, $MAIN is 97% up and $GBDC is 6% down). i also like $HTGC for their focus on tech and biotech. 6% down is not bad for an 11% dividend income yearly, but I still prefer to pay a premium NAV.

Many BDCs tend to go down long therm, as they distribute a high yield and don’t have big margin for failures, if an important borrower bankrupt it can has a big impact on the portfolio. Also if there is a crisis the price goes down fast and strong so carefull if you don’t have risk tolerance (they also go up fast when it’s clear they’ll survive). That’s why I usually look at their long therm performance.

I’d wait for a small “crack” to go into BDCs, you’ll get high return on the dollar if you wait to that moment and choose wisely.

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Carles@Carles

1Semana

@Coyote980 i own $ARCC , $HTGC and $OBDC and planning to sell $OBDC at some point and switch it for $MAIN or more of $ARCC. Overall they account for a 7% of my portfolio; 42% total return in 1,5 years of owning them, as they’re up since I bought

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Giuse@Coyote980

1Semana

@Carles thanks much for the Info. I make a little Position from the bdc..
The Main street, Ares and Hercules i have By they way ...
Now i would Take golub 😁...
I know, ITS very risky...i have Always have a Look ..

I Hope u Unterstand my english 😂

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Diogo@Gaiagenetic

2Semana

My god you buy 5900 shares 😅😅😅 don't you think it's a little bit risky ? 😅😅 Like I'm kinda new but 😅😅

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FinanzFluesterer@FinanzFluesterer

2Semana

@Gaiagenetic Are 9646 better?

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Diogo@Gaiagenetic

2Semana

@FinanzFluesterer no way you bought that many

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FinanzFluesterer@FinanzFluesterer

2Semana

@Gaiagenetic yes, I have them

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Diogo@Gaiagenetic

2Semana

@FinanzFluesterer omg 🤣☺️

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Oleg@ScorpionfromBW

1Semana

@Gaiagenetic Everyone should decide for themselves how to manage their money. I would never criticize someone who can cover their living expenses with their capital.

I also have 5230 of them and it feels good to be able to pay a monthly rent

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Diogo@Gaiagenetic

1Semana

@ScorpionfromBW ya, I would never criticize on anything about anything and in this case I will never judge anyone on there's way to do things, like I just got amaze on him that's it .😊😊

Like I'm new on this investment thing's and I read Alot on what everyone says and expressed there's way to see and act and I learn form everyone, I don't get influenced I just study and learn form everyone, like I say everyone here are more experience them me 😅

It's like the shark thank 🤣🤣 I'm Nemo here 🤣🤣 but I like to learn how everyone do and Acts, and I learn form everyone and form my mistake and victory's 😊😊😊

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Oleg@ScorpionfromBW

1Semana

@Gaiagenetic Everything is fine, everyone who invests in this ETF must also be aware of the risks. Otherwise it would be boring

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Diogo@Gaiagenetic

1Semana

@ScorpionfromBW can you advise on ETFs ? 😅

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Diogo@Gaiagenetic

1Semana

@ScorpionfromBW like things we should be aware and no 1 say, I know what it is an ETF I understand the concept I have 2 off them, but my main investment is on stocks

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Oleg@ScorpionfromBW

1Semana

@Gaiagenetic I don't think you need advice on ETFs. Unless they are theme ETFs. You can't go wrong with all world ETFs. And $VWRL is also my biggest position

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Ver todas las 11 respuestas adicionales

undraiser_1472@undraiser_1472

1Semana

Interesting. Only found the ETF yesterday and also invested. I will expand it 😁

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