Dec 19 2024 20 mins 8
I talk with people all the time who have an ETF or mutual fund that pays a fixed monthly amount. In most cases, they misunderstand it.
Most think they are receiving regular income—but chances are, it’s usually a brain fart.
Many investors misunderstand how these monthly pay investments work.
From covered call ETFs and dividend funds to monthly income funds, mortgage funds, T8/T6 mutual funds, and REITs, the mechanics can be confusing—and the implications even more so.
In my latest podcast episode you’ll learn:
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Why are monthly pay ETFs and funds a brain fart?
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How do fixed monthly pay ETFs or funds work?
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Why is a monthly distribution not part of your rate of return?
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What is the difference between a distribution and a dividend?
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Why is a monthly distribution not new money?
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Why does a monthly distribution = Selling shares?
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Why does a reinvested distribution = No distribution?
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Why do covered call funds usually have lower returns but higher tax?
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Why are monthly pay ETFs/funds a problem for retirement income?
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Why are monthly pay ETFs/funds a problem for leverage investors?
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How can we get out of the Brain Fart?
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How can you perfect monthly pay funds?
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What are self-made dividends?
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Why are self-made dividends a perfect fit for your life?
