Blueprint for a Million-Dollar Nest Egg in 4 Years

They’re a topic that’s been buzzing around as a shiny tool for those looking to beef up their income streams.

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Dividend Wealth Journal: YieldMax ETFs   Today in the Dividend Wealth Journal I’d like to talk about, YieldMax ETFs. They’re a topic that’s been buzzing around as a shiny tool for those looking to beef up their income streams through options trading strategies. These ETFs, like the YieldMax Magnificent 7 Fund of Option Income ETFs (YMAG) and YieldMax Universe Fund of Option Income ETFs (YMAX), promise to deliver not just diversified exposure but also enhanced income through what’s essentially a play on options. There are also YieldMax ETFs on most major stocks such as Nvidia, Microsoft, AMD, Tesla, Apple, and many more. But before we dive too much deeper into them, I think we need to discuss how they work How They Work: YieldMax ETFs operate on a "fund of funds" model. A fund of funds (FOF) is one that instead of investing in a pool of securities like stocks and bonds, buys shares in other funds. This means they're not just investing directly in stocks or bonds; instead, they’re pooling into other ETFs. The goal here is to leverage the collective benefits of various market segments, aiming to maximize returns through strategic plays. The real kicker with these ETFs is their income-generation strategy – primarily through writing options This involves selling call or put options on securities they hold or intend to buy. The premiums collected from these options are supposed to provide a steady income stream. On paper, this sounds like a great way to generate cash flow, especially in a low-yield environment. My Opinion On Them: The appeal of these ETFs is that they offer a potentially high yield. For instance, funds like YMAG (which uses the Magnificent 7 stocks) often provide substantial dividend yields based on the premiums collected from their options strategies. This can be particularly attractive if you’re after high immediate returns. However — and this is big — high yield doesn't always equate to a high total return… In fact, the YieldMax ETF on Nvidia (NVDY) has obviously performed pretty well as Nvidia has. But the reality is that you would have been better off just buying Nvidia itself and making a higher return on the stock than the combined performance of NVDY and its yield. I want to say that I think these YieldMax ETFs are fine… However, there’s a major imbalance: These ETFs won’t outperform their true stock counterparts from a growth perspective, and at the same time, they haven’t shown any superior ability to insulate investors from these losses. My skepticism comes from how they perform in market downturns. These ETFs have not consistently demonstrated the ability to mitigate losses or reduce drawdowns in volatile or bearish markets. The issue here lies in the nature of the option strategies they use. While they can cap losses to some extent, they don’t necessarily buffer against sudden market downturns as effectively as one might hope. Again, I think they are fine if you simply like the idea of a high yield and consistent cash payments. The product is certainly a unique and interesting concept… I’m just not completely sold on them. In my opinion, there are better instruments that combine potential growth and high yields… That’s why I run my own dividend service I call “Dividends Forever” and within it, I offer the Ultimate Dividend Portfolio. It’s a great way to set up a fantastic dividend portfolio and earn dividend income So I encourage you to check it out by clicking right here. — Nate Tucci

Dividend Wealth Journal: YieldMax ETFs   Today in the Dividend Wealth Journal I’d like to talk about, YieldMax ETFs. They’re a topic that’s been buzzing around as a shiny tool for those looking to beef up their income streams through options trading strategies.   These ETFs, like the YieldMax Magnificent 7 Fund of Option Income ETFs (YMAG) and YieldMax Universe Fund of Option Income ETFs (YMAX), promise to deliver not just diversified exposure but also enhanced income through what’s essentially a play on options. There are also YieldMax ETFs on most major stocks such as Nvidia, Microsoft, AMD, Tesla, Apple, and many more.   But before we dive too much deeper into them, I think we need to discuss how they work   How They Work:   YieldMax ETFs operate on a "fund of funds" model. A fund of funds (FOF) is one that instead of investing in a pool of securities like stocks and bonds, buys shares in other funds.   This means they're not just investing directly in stocks or bonds; instead, they’re pooling into other ETFs. The goal here is to leverage the collective benefits of various market segments, aiming to maximize returns through strategic plays.   The real kicker with these ETFs is their income-generation strategy – primarily through writing options This involves selling call or put options on securities they hold or intend to buy. The premiums collected from these options are supposed to provide a steady income stream. On paper, this sounds like a great way to generate cash flow, especially in a low-yield environment.   My Opinion On Them:   The appeal of these ETFs is that they offer a potentially high yield. For instance, funds like YMAG (which uses the Magnificent 7 stocks) often provide substantial dividend yields based on the premiums collected from their options strategies.   This can be particularly attractive if you’re after high immediate returns.   However — and this is big — high yield doesn't always equate to a high total return… In fact, the YieldMax ETF on Nvidia (NVDY) has obviously performed pretty well as Nvidia has. But the reality is that you would have been better off just buying Nvidia itself and making a higher return on the stock than the combined performance of NVDY and its yield.   I want to say that I think these YieldMax ETFs are fine… However, there’s a major imbalance: These ETFs won’t outperform their true stock counterparts from a growth perspective, and at the same time, they haven’t shown any superior ability to insulate investors from these losses.   My skepticism comes from how they perform in market downturns. These ETFs have not consistently demonstrated the ability to mitigate losses or reduce drawdowns in volatile or bearish markets.   The issue here lies in the nature of the option strategies they use. While they can cap losses to some extent, they don’t necessarily buffer against sudden market downturns as effectively as one might hope.   Again, I think they are fine if you simply like the idea of a high yield and consistent cash payments. The product is certainly a unique and interesting concept… I’m just not completely sold on them.   In my opinion, there are better instruments that combine potential growth and high yields…   That’s why I run my own dividend service I call “Dividends Forever” and within it, I offer the Ultimate Dividend Portfolio. It’s a great way to set up a fantastic dividend portfolio and earn dividend income   So I encourage you to check it out by clicking right here.   — Nate Tucci

ABOUT US:  We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Prosperity Pub are for your informational purposes only. Neither Prosperity Pub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Prosperity Pub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions.  Please visit https://prosperitypub.com/terms-conditions/ for our full Terms and Conditions. Unsubscribe This email was sent to diansastroxz.forex@blogger.com by Prosperity Pub 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, Florida 32081, United States Prosperity Pub

ABOUT US:  We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Prosperity Pub are for your informational purposes only. Neither Prosperity Pub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Prosperity Pub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions.  Please visit https://prosperitypub.com/terms-conditions/ for our full Terms and Conditions. Unsubscribe This email was sent to diansastroxz.forex@blogger.com by Prosperity Pub 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, Florida 32081, United States Prosperity Pub