"If you want a $7.7k monthly income on a $500k portfolio, some may call you crazy, but it is still possible. ETFs like the iShares 20+ Year Treasury Bond Buywrite Strategy ETF (BATS:TLTW ) , FT Vest Gold Strategy Target Income ETF (BATS:IGLD ) , and the Ubs Ag Etracs Silver Shares Covered Call ETN Exp 21 Apr 2033 (NASDAQ:SLVO ) give you very high yields and a respectable safety profile that can boost your yields massively if you put them in your portfolio."
"The catch is that these ETFs alone should not constitute your entire portfolio. If you have a portfolio of, say, $1 million, and you want a little more income, you can set aside $500k to higher-yielding ETFs like these to boost your overall income while having some funds to fall back on just in case they don't do as well."
"If not, you should only chase more yield if you fall into any of the two following categories: You are nearing the end of your retirement, and you want to end it lavishly. You're struggling to make ends meet, and you're willing to sacrifice some safety for yield. A $500k portfolio churning out $7.7k per month means $92.4k a year, or an 18.5% yield."
High-yield ETFs such as iShares 20+ Year Treasury Bond Buywrite Strategy ETF (TLTW), FT Vest Gold Strategy Target Income ETF (IGLD), and UBS Ag Etracs Silver Shares Covered Call ETN (SLVO) can dramatically boost portfolio income. These funds generate income through strategies like covered calls and option premium collection while offering a balance of yield and relative safety. Investors can allocate a portion of a larger portfolio—for example $500k of a $1M portfolio—to higher-yield ETFs to increase overall income while retaining fallback assets. Chasing higher yield is most appropriate near retirement end or when income needs outweigh safety concerns.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]