"Part of that could be that the market expecting the Federal Reserve to cut rates this month, which will send safe-haven investors back into equities in search of yield. But another reason could arguably be YieldMax returns. And it's for this reason that people are getting some grand ideas about how much money they can make from this kind of investment strategy."
"For this Redditor, there is a genuine desire to earn around $10,000 annually through dividends. The good news is that this Redditor knows exactly what they are getting into, including potential tax implications. The hope is that this Redditor can find a good strategy and prove to their friend that this wasn't such a stupid idea. Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today."
Expectations of Federal Reserve rate cuts are drawing safe-haven investors back into equities in search of yield. YieldMax ETFs have boosted dividend attention by producing enhanced distributions. A Redditor aims to generate about $10,000 annually from a $200,000 investment, implying roughly a 5% yield, while acknowledging tax implications and not planning to quit work. The goal is supplemental income to upgrade housing. Friends caution that a dividend-focused approach may carry risks. YieldMax funds such as ULTY and MSTY can raise returns but introduce added fees, distribution sustainability concerns, concentration risk, and potential tax complexity.
Read at 24/7 Wall St.
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