026 - How To Use Ultra High Yield ETFs To Seed Your Retirement Portfolio

YieldMax™ ETFs sound too good to be true and they actually are if you view them as a regular stock investment. But if you treat them as a vehicle you're purchasing to generate income, they become a useful tool.You need to use a different investing strategy with these ETFs because of the higher risk for loss of value of the base asset. That's why we track our payouts until we get our initial investment back before we even consider turning on the DRIP. These ETFs still aren't as high risk as they seem. They have the majority of their funds in treasuries and only a small percent of their money is used to trade options. The options proceeds are how they generate their high monthly payouts. YieldMax™ ETFs are a great way to make money from popular stocks that don't pay dividends. We think everyone should hold some of these in their portfolio, but only up to 5% of your total investments. When you use these funds to generate extra income to funnel into other quality assets, you can really make it grow fast. Drop your comments or questions for this episode on one of our posts.  FacebookYouTubeBlog If you're looking for a more detailed summary of this episode, click here.We're trying to grow. Help us reach others who want to learn to invest with confidence. Spread the word and leave a review to help us rank in search. We appreciate your support!   Questions? Email Tim at [email protected] Want FREE weekly market updates, Tim's top 10 dividend picks, and our portfolio updates delivered right to your inbox? Subscribe to our email list. Stay connected. Follow us on social! **DISCLAIMER**Ticker metrics change as markets and companies change, so always do your own research. The content in this podcast is based on personal experience and is for educational purposes, not financial advice. See full disclaimer here. Episode music was created using Loudly.