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As a high yield investor, my main goal is to continue to increase my income from my portfolio while growing its value over time.
Here's how I'm investing... (not financial advice)
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CashflowAccountant
250 posts
CashflowAccountant
@CashflowAcct
📈 Maximizing yield. Minimizing the 9-5. ⚖️ Documenting Accountant’s Investing Journey. "Nibble the dips, don't buy the dip" NOT FINANCIAL ADVICE
Katılım Eylül 2021
33 Takip Edilen49 Takipçiler
VOO and chill" sounds smart… until you realize it’s financial mediocrity sold as genius.
You proudly stack the S&P 500 for decades, patting yourself on the back like you cracked the code of wealth.
Then retirement hits and the illusion shatters. You flip from accumulation to liquidation mode — selling 4% of your portfolio every single year just to cover bills and survive.
Healthcare costs spike. Inflation quietly steals purchasing power. You live into your 90s.
Suddenly decades of compounding get devoured. Your kids don’t inherit the Wonka Factory. They get the empty wrappers.
That’s not generational wealth. That’s negative sum liquidation disguised as a smart strategy. Most families end up leaving scraps — or nothing at all.
The average “smart” indexer isn’t building legacy. They’re running a self-destructing portfolio that dies with them.
Real wealth requires a different approach: build a true cash flow plan for retirement. Create cashflowing assets that keep paying long after you’re gone.
Stop pretending VOO and chilling with the 4% rule is sophisticated.
VOO and chill if you want a quiet, comfortable retirement for yourself.
But if you’re serious about generational wealth, stop choosing to liquidate the future.
Have a plan to turn years of compounding into sustainable cashflow. Build something your bloodline actually inherits.
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@CashflowAcct Multiple em dashes, “that’s not x, that’s y” sybau
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@ConcertFinPlan You might wanna rethink the analogy again.
And what a surprise that the dividend gets spent. Who would have thought? Who would think of ever spending from their investments? What a crazy world we live in where people spend money. smh
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@CashflowAcct When they give you $0.03 of your own dollar back to you, you pay taxes and at best use the $0.02 to buy more shares at the lower price. Many of these accts act like the divs they get will be used for income, however, which would mean that $0.03 would be spent. Now you have less.
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Do all "financial professionals" justify their opinions by using strawmans in a vacuum?
No serious investor calls dividends free money. They are earned profits from a company being distributed. Yes, it drops the share price, but that doesn't make it free money. Nor does it make investing in it like transferring money from one pocket to another.
If anything, it's more like putting a dollar in someone else's pocket. They find some more money, put 97% of it in their pocket and give you the other 3%.
I'd like an opinion from @HighYieldHustle and @BrattoBiz who this chain all started from. If they tell me my understanding is wrong, I'll accept it.
Optimized Portfolio | John Williamson, APMA®@OptimizedPort
Sigh. The math is obviously implied based on the inescapable mechanism and sheer physics, but I'll spell it out for you if you insist. I have a $10 share of $SCHD. It pays me a $1 dividend. I now have a $9 share of $SCHD and $1 in cash. I pay 15% tax on that $1, so I keep $0.85. I reinvest that $0.85 for a total after-tax position of $9.85. I've, once again, effectively transferred money from my left pocket to my right pocket and paid taxes on it. $SCHD's balance sheet and the "mEcHaNiCs" thereof are irrelevant to my simple invariable outcome outlined above. Please explain to me, specifically, using numbers and verifiable logic, why this simple analogy is "grossly erroneous." You seem to agree with the numbers but not the metaphor. That does not compute, as they're saying the same thing. I fail to see how you can acknowledge dividends aren't free money while simultaneously saying such an analogy is a "gross misunderstanding." They are saying the same thing. That's what "unequivocally" means. Not a strawman. I am responding to your ostensibly conflicting belief. At this point I have to assume you don't realize those are saying the same thing, and I'm admittedly getting tired of walking you through the logic, so I'll leave you to continue researching that thread on your own time. I also can't figure out why all this requires explaining, especially to an accountant. 🙃
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@ducksays @cmsinvests Maybe 2-3 years from now. Have to add more credit history to my newer card
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@RyanWhite1975 I suggest you stay and watch. It’s fine if you don’t wanna though.
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@CashflowAcct This is over 20 year returns. What has changed to make you think funds with sky high expense ratios of 2% will outperform the market over the next 20 years?
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As a high yield investor, my main goal is to continue to increase my income from my portfolio while growing its value over time.
Here's how I'm investing... (not financial advice)
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@RyanWhite1975 Stay and watch. You can see what happens 😉
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@stockmom You’re waking up and I’m trying to fall asleep. How do you do it 🤨
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@stockmom BTC spiked up before the futures did. Potentially may be the best retail sentiment indicator being accessible 24/7. Or just a false flag. I don’t know anymore.
Just nibbling the dips at this point.
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I woke up for pre-market and Futures flipped green. Wild times. 🎢🟢
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@RyanWhite1975 You’re welcome to stick around and see what happens
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@CashflowAcct No, I am certain those funds will not allow you to retire sooner. I already showed the inferior total returns. Also, if you are trying to retire early, it implies we are in a taxable account, so now we are introducing tax drag on top of everything else.
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So many people tell you to buy the S&P 500 and wait over half a lifetime.
And that's okay if you want to retire when you're too old to do anything fun.
But if you want to retire before then, you need to understand HIGH-YIELD investing.
Here's 3 of high-yielders to look at ⬇️
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@RyanWhite1975 Maybe. Maybe not. With this mix, I’d give it a good chance to retire sooner.
Time will tell. If you stay, I’ll see you when I retire and we can revisit.
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@CashflowAcct Becoming a retiree will take much longer holding those high expense, low total return income funds.
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@RyanWhite1975 And you still get to hold onto a company that, given it is quality, continue to grow beyond the ex-sub date drop.
There’s no difference to an investor looking at pure portfolio value. There’s a difference to a retiree.
And the average investor is looking to become a retiree.
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@CashflowAcct There is no difference to the investor. Selling your stock is equity conversion to cash. A dividend payment is forced equity conversion to cash. The share price goes down on the ex-div date.
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The delivery method of the cashflow does make a difference. Cash flow for capital appreciation is a one time payment. Cash flow in the vehicle of distributions gives another chance for the company or fund to make more money to distribute.
If you think about it like a statement of cash flows, selling capital appreciation is like the 'cash flow from investing' portion while dividends are more like 'cash flow from operations.'
Total returns are important too. If it's not consistently positive, it's not gonna last.
my $0.02
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@CashflowAcct There is no difference between cash flow and capital appreciation. Capital appreciation can be sold for cash, cash flow can be used to appreciate capital. There is only total returns.
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@ThierryBorgeat Why pay when AI can go straight through the paywall?
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Chegg was THE edtech stock.
Homework help. Textbook rentals. Subscriptions. Growth.
Peak: $115/share (2021)
Then ChatGPT launched.
November 30, 2022.
Chegg: -95%
From $115 → $1.44.
AI didn't compete with Chegg.
It made Chegg IRRELEVANT.
Students stopped paying for homework help.
They just asked ChatGPT.
Free. Instant. Better.
This is what disruption looks like.
Not a slow decline.
A cliff.
The next Kodak moment is coming.
Who's next?
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@WealthonAutoHQ Buy...
Did you think I had a short position or something?
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If your portfolio dropped 30% tomorrow…
What would you do?
Be honest
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I see you are looking at price appreciation rather than cash flow you can extract from the fund. Looking at that perspective, yes, they're terrible. I don't expect to return more than the market when investing for income. I expect to be able to create a sustainable income stream while maintaining, or slowly growing the value of the assets post-distribution.
Off these charts, I'll admit $TOPW has failed miserably. Before it's recent prospectus revision, it held many hype stocks that I personally wouldn't touch with the strategy WeeklyPay funds use. In addition, the timing of the release of these funds were unfortunate as BTC crashed and the CapEx scare in addition to the market since the start of the year. So if your entry point was poor, you're likely looking at a lot of red. Long term, my thesis believes this isn't a permanent behavior of the funds like an ULTY.
Because this is built for cashflow rather than straight capital appreciation, I expect them to lag even on total return. What I do look for is for the total return to be positive and for NAV to not erode while the underlying grows. Both SCHD and MLPI have not had this issue. Obviously, SCHD has a much longer life span, but as I stated NEOS had proven to be a capable management team, so I expect them to slowly grow their NAV.
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@OptimizedPort @becker_gregory Then correct those people. Don't correct something that isn't there in a post.
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@CashflowAcct @becker_gregory Like @becker_gregory hinted at, you clearly severely underestimate the number of people who think and claim divs are free extra money created out of thin air. They are indeed financially illiterate. That's sort of the whole point.
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A lot of mental gymnastics to say you effectively transferred money from your left pocket to your right pocket and paid taxes on it.
Nicholas Bratto@BrattoBiz
My $SCHD dividends were paid early by @Fidelity $642 received for Q1 2026💰 This will buy another 21 shares or how I like to think about it: ~$22 of annual income for the rest of my life, plus annual raises on top of both!
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@ducksays @cmsinvests Shucks. I need to bring my credit score up 60 points...
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@cmsinvests yeah I agree... anything above 780 lets people do whatever they need to do
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Whoever does not know dividends come with a tax drag or think it magically somehow creates money out of thin air are either too rich to care or financially illiterate.
It's a liquidation event.
And many posts you quote tweet calling it 'money out of thin air' don't try to imply it's free money.
That's called being disingenuous.
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@CashflowAcct @becker_gregory I attack detrimental mental accounting bias, tax inefficiency, and misinformation.
It happens to be that those often accompany novice dividend investors.
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