That's an interesting and sensible way to phrase it. My expenditures vary substantially based on how much travel I do, but in round numbers it would have been closer to 20 times annual expenditures. At 27x, of course your risk is lower.

I haven't looked into them in great detail, but they're both business loan portfolios managed by Barings. I suspect there's more diversity in the MCI portfolio than the BDC portfolio. Over the past 10 years, MCI has delivered a total return of 180% vs BBDC's 33%. I'd want to understand why that's the case before considering BBDC.

@@armchairincomechannel Roberts Berzins wrote a good one about it on SA.

@@armchairincomechannel I forgot. MPV is a twin brother of MCI, but 20% cheaper now.

Thanks for tuning into the channel! I don't know of any stocks that won't suffer a major decline during a 2008 like crash. The good ones recover. You may be more comfortable in short term treasuries, but they will only pay well if rates remain relatively high. Also, if rates remain high, you might be interested in JAAA, a CLO fund with low volatility.

I have a new Q&A coming out Sunday that will address the question of higher yield vs higher risk. I don't invest in any ETF's that I think will suffer NAV erosion. Each asset class faces different risks. Covered call funds are at risk if the index corrects for a sustained period then recovers quickly.

Good question! I've been looking into convertibles, including ACV. They look interesting. Only so many hours in the day. I may add 1 or more convertibles in the future.

I don't hold any individual REIT's, but I do spend a lot of time researching BDC's. The average BDC is currently priced at $0.99 for each dollar of NAV so no surprise that the 2 you mentioned are below 1. You can see all of them on a chart on page 11 of the report linked below. BDC's borrow funds and then then them out at slightly higher rates, then distribute most of their income. Given the risks involved and the low profitability to the company, the market assigns a lower value than it would to other asset classes like manufacturing or technology. The value of a BDC is just the management's ability to borrow money for less than it can lend it out, and find new loans during all market conditions. It's hard to project that value years into the future. www.raymondjames.com/-/media/rj/dotcom/files/corporations-and-institutions/investment-banking/industry-insight/bdc_update.pdf

@armchairincomechannel Thank you! I am not a big fan of REITs. I'm looking to buy those two on a dip. FSK looks like it has faired well, OBDC looks like it is at a good price point.

Looking at an investment in isolation...we're in agreement. The reasoning is that there are always other opportunities to consider. If the price increases and the distributions remain constant, the current yield is now lower. You can sell, take the (now larger amount of) money, and buy an new income investment that yields the same as your original investment. In that scenario, your income has increased...something every true income investor is excited about. I'm assuming the comparable alternatives exist in the marketplace....which is often the case.

Thanks for the love. It's a great question. Unfortunately, the rise in cc funds is so new that there's limited data. JEPI did well during the 2022 bear market. Their distributions rose during that period because of increased volatility from the S&P 500. I don't invest in QYLD but it has a long history and its price corrected during the 2020 crash, however the distributions remained consistent.

FSCO is not a CLO fund. There are some similarities; both hold business loans. However, they're structured differently.

@armchairincomechannel I understand and I thank you for answering!

I appreciate that! You're most welcome.

If it remains flat and keeps paying 15% I'll be happy :) Thanks for sharing.

I'm not a tax advisor but most people use their IRA for less tax efficient investments and if they hold SPYI, given its tax efficiency, place it in their taxable account. You could put it in either, it depends on your personal tax situation.

@@armchairincomechannel Thank you so much, I appreciate what you do! I've been retired nearly 7 years, and you've inspired me to begin transitioning my IRA more to an income focus. My first goal is for it to produce enough income to cover my annual RMD, and I'm on my way. I'll keep watching!

I don't know the South African investment regulations. The most widely accepted platform I've seen for non-US residents is Interactive Brokers.

Thanks! I appreciated how candid he was too.

I'm assuming you're referring to my portfolio, not Steven's. You're not being rude. If you subscribed to Armchair Insider, a portfolio is attached to the end of every edition of the newsletter. It goes out approx once a month. Here's a link to all past issues: armchairinsider.beehiiv.com/

You're most welcome! I don't focus on trading or have a formula, so there isn't specific timeline or moving average I use. Each month, as dividend income flows in, I withdraw what I need and reinvest the rest in the best buying opportunities available at that time. When the market is correcting, there are more of those buying opportunities to choose from.

Thanks for watching!

I think he meant that his retirement account is much larger than his taxable account, but I've asked for clarification on that point.

ZVOL is down 20% for the year and just like SVOL, it needs low volatility to deliver strong returns. I'm not convinced we're heading into a period of low volatility. I just reduced my exposure to SVOL.

Thanks for your feedback. I don't agree with all of Jay's opinions but I do like how he manages PFFA :)

Thanks for sharing your perspective. I'm not a fan of gold but I'll take a look at IGLD. Thanks for the suggestion.

I think he meant that his retirement account is much larger than his taxable account, but I've asked for clarification on that point.

I don't know of a central database for that information. I have to check the individual fund websites.

thanks!

You're most welcome :) Thanks for watching!

Glad you enjoyed it!

Thank you for your feedback. I'll keep working to improve the interviews.

Glad you enjoyed it!

Glad it was helpful!

Glad you enjoyed it

Happy to help!

My pleasure!

Glad you enjoyed it!

Much appreciated!

You're most welcome!

He didn't mention the projected yield. We didn't discuss that fund. I was trying to find the same thing on the website. Once it has some history I'll take a closer look.

You're most welcome, and more to come!

Thanks for your feedback Jason. Jay isn't afraid to say what he thinks! Infracap just launched a high yield corporate bond fund last week. Once it settles in I'll take a look at it.