Snowball Dividend Tracker (Create a Free Account, and the 10% Discount will appear under "Subscribe"): armchairincome.link/snow
@ShelleyfromCali25 күн бұрын
I have a 3 fund portfolio but I have finally decided to invest in ETFs, alongside. I’m looking at SCHD, VOO, XLK or SCHG.
@MHousley25 күн бұрын
Great picks! I like XLK and SCHD equally!
@ShelleyfromCali25 күн бұрын
@@MHousley thank you! Actually would it be silly to have both?
@armchairincomechannel25 күн бұрын
None of those are high yield funds, but if your goal is growth, they're solid.
@MHousley25 күн бұрын
Not necessarily though there is a fair amount of overlap but that’s not necessarily a negative. Having a diversified portfolio is KEY; that being said my initial deposit of 120k has grown to over ~$710k in only just eleven months :)
@henrymitchell971724 күн бұрын
If one is in their 40s and just started investing (have 401k from work). Should they just focus on growth/high yield ETFs since it will be too late for them to see real benefits with dividends?
@joelschiffenbauer6671Ай бұрын
This video may become an income investing classic!
@armchairincomechannelАй бұрын
That's high praise! Thanks for the positive feedback.
@natemillsap7279Ай бұрын
Your choice of guests for your interviews is just top notch. This was amazingly clear and insightful. Thank you for allowing your guests the time to answer and not talking over them. Also, thank you for spreading the topics across various sectors.
@armchairincomechannelАй бұрын
Glad you enjoyed it! Your feedback is helpful. He knows more than me so I figured he should do most of the talking :)
@Pete-ql2pk12 күн бұрын
Yes, Nate is on point. Thank you so much. I also got his book in Audible and halfway through. Will get me a hard copy next.
@rOHRshackartpotteryАй бұрын
My retirement investments are divided in half. Half income factory and the other half Armchair Income. Both approaches are solid!
@armchairincomechannelАй бұрын
As long as you independently research each investment before making a decision, I'm glad to hear the channel is useful for you. I hope to supply income investors with new ideas :)
@rOHRshackartpotteryАй бұрын
@@armchairincomechannel I only invest in those that meet my further research. Personally, I think you have far too many in your portfolio but the choice is yours. I have only 20 in my taxable and another 20 in my tax exempt account. Thank you for that excellent video.
@RAri-rc3toАй бұрын
40? I only have 1.
@matanshalitАй бұрын
This is honestly a dream come true. Steven Bavaria's book has been immensely influential on my way of thinking and investing. Thank you for having him on the show! 🎉
@armchairincomechannelАй бұрын
I don't get to make dreams come true very often so today is a good day :) Thanks for sharing that!
@johnhale527112 күн бұрын
I have found that the personalities of income investment individuals strike me as being much more honest, believable, trustworthy, logical and sincere compared to all the snake oil salesmen trying to CONvince me to buy AI and high risk equities. Thank you gentlemen for taking the time to produce such great content that can make a huge difference in our financial future.
@armchairincomechannel12 күн бұрын
Thanks for your feedback. Perhaps its because we're older and we aren't trying to bet the farm on the next big thing. I'm not trying to beat the market, just want to pay the bills.
@jonathanfoster2263Ай бұрын
great video, and speaks to the mind shift I need in moving forward with regards to not obsessing over whether a stock is green or red. But focusing on the income over time. Not ignoring NAV but no longer live and die by it. I'm 68 days out from retiring and last week all my BDC's REITS and CEF's and covered call funds got slammed. But at the end of the week I realized none of my distributions are going to be cut so it doesn't matter that much in the end. The whole market is seeing red but I'm still making money. That is why love income investing.
@buzzz623Ай бұрын
Love this!
@antdel2087Ай бұрын
48 days out from retiring for me!!!!!!!!!!!!!!!!!!!!
@armchairincomechannelАй бұрын
Freedom is approaching!
@armchairincomechannelАй бұрын
Congratulations on your approaching retirement. A very exciting time! I agree that watching money being deposited into your brokerage account is nice during a correction.
@TonyCox1351Ай бұрын
This guy clearly knows his stuff. Felt like you could list any fund and he could rattle off the dividend yield, history, holdings off the top of his head! Great interview
@armchairincomechannelАй бұрын
He was a joy to interview and we could have talked for hours!
@DividendflywheelАй бұрын
@@armchairincomechannelplease feel free to create longer videos
@joeturnip4216Ай бұрын
A "college-level" video. Yes, I took notes & yes, I bought the book. Life Changing.
@armchairincomechannelАй бұрын
Thanks for your feedback. So happy to hear it had a positive impact :)
@MMT_RodАй бұрын
The flavor of the distribution also matters lot come tax time so when looking at CEFs I always dig into distribution details. A few CEFs make their distributions plans clear in their descriptions, such as NPDF for qualified dividends and muni CEFs for tax-free dividends; however, most CEFs do not make this obvious. I use the Fidelity CEF screener from there I can see that: RLTY distributions are about 80% return of capital and 20% dividend; XFLT is 100% dividend; and ASGI is about 65% long-term capital gains, 5% short-term capital gains, 10% dividend, and 5% return of capital. Thank you for publishing an another excellent interview. I've purchased Steve's book from Amazon and I look forward to learning more.
@armchairincomechannelАй бұрын
You make a good point about the breakdown/tax treatment of the distributions. Thanks for sharing.
@jamlaneАй бұрын
XFLT has total expenses of 8.5%. How does that factor into your decision making?
@MMT_RodАй бұрын
CEFs often use leverage and thus have high interest payments. But so do companies, only the SEC doesn’t require companies to so visibly post their leveraged interest payments. Leveraging is both a cost and an opportunity.
@logimanАй бұрын
I'm looking at retirement in a few years and am starting to research what I should be doing with my money. I love your channel and have learned much just in a few hours. This interview is outstanding! So much information for a newbie to the income investing approach. Wow! Many thanks for such a great channel.
@armchairincomechannelАй бұрын
Thanks for your feedback. Comments like this are great motivation to keep making more videos :)
@mr.f4016 күн бұрын
Bar None, Greatest investing video I have ever watched. Highly recommend his book The Income Factory
@armchairincomechannel15 күн бұрын
Thanks! You just made my day :) Glad you liked it.
@kanegs1Ай бұрын
Always a treat to here Steve Bavaria, big fan and follower of his Income Factory for my portfolio, currently close to 11% yield. Thanks for the interview, a great service...love your channel! Keep up the great work!
@armchairincomechannelАй бұрын
Thanks for your feedback and kind words of encouragement, I appreciate it!
@bluecollarbullionballer4269Ай бұрын
He changed my life and investing.The Income Factory is my favorite investing book.Happy imvesting/stacking.
@armchairincomechannelАй бұрын
Wow, that's impressive! He had a big influence on me too.
@bluecollarbullionballer4269Ай бұрын
@@armchairincomechannel Making income without working is awesome.I sell a little premium also.Made some income while vacationing/visiting family in Thailand.I will retire in five years and The income factory is a big part of that.Love the channel.Happy investing/stacking.
@Lawyerup904Ай бұрын
I bought his book a year ago and I’ve always kinda thought your KZbin videos and your investment style mirrored his approach. ( spend some and re-invest some to create a bigger stream ). Thanks for the video!
@armchairincomechannelАй бұрын
Occasionally I'll realize that some of the phrases I use came from reading his articles many years ago.
@nathanielcodina4056Ай бұрын
Steve Baveria book is responsible for opening my eyes on this style of investing. I am very much looking forward to watching your interview
@armchairincomechannelАй бұрын
He opened my eyes too. Thanks for sharing that and I hope you enjoyed the interview.
@adchaletАй бұрын
THANK YOU!! Excellent interview with Steven. So glad you were able to make this happen. Cheers!
@armchairincomechannelАй бұрын
Glad you enjoyed it. He was great to talk to.
@DividendflywheelАй бұрын
Thank You for this. Your channel is more valuable to me (and my retirement plan) than CNBC
@armchairincomechannelАй бұрын
That's high praise! I really appreciate your kind words :) Glad its helpful.
@zentravel1515Ай бұрын
Great interview. Seems to me some of the newer CC ETFs can accomplish the same kinds of results or arguably even better in many cases. Exciting times for the income investment sector.
@armchairincomechannelАй бұрын
I agree that the expanding number of choices for income investors is exciting. I like covered call funds too but they correlate to their index and I think its a good idea to also diversify into investments that don't do that.
@networkteacher1Ай бұрын
I have used something similar to this strategy because I consider cash in hand to be more valuable than unrealized gains. The 'however' is that receiving cash generates event whether we like it or not, whereas, the capital gain is subject to creating stock sale and even then you have control over the amount of the gain you want to generate. Its certainly a factor to consider in a situation where someone is dealing with maxing out that 0% tax bracket above provisional income.
@armchairincomechannelАй бұрын
Thanks for your feedback. I agree that tax is an important consideration.
@BlubbhaАй бұрын
This assures that I am on the right way to build an healthy income stream with 37 instead of focusing only on capital gains. Love that interview. Thanks for the effort.
@armchairincomechannelАй бұрын
Capital gains are wonderful, but income pays the bills!
@DividendflywheelАй бұрын
The requirements for accumulation phase might be very different from the de-cumulation phase. Best wishes
@BlubbhaАй бұрын
@@Dividendflywheel might be. I see it a bit as an individual risk vs. upside evaluation of what you want to achieve within a certain time. For me I can foresee my path with realistic numbers using a mix of income strategy and dividend ETF world approach. But this looks reasonable for me and might not work for others. I believe everyone needs to do some number crunching and compare it with their own level of uncertainty and risk to sleep well.
@dominiquetheeasyminimalistАй бұрын
That was a real treat, you led the interview brilliantly and Mr. Bavaria was so generous in sharing his knowledge. Thank you! I now have work to do on XFLT 😂
@armchairincomechannelАй бұрын
That makes 2 of us. He gave me some homework...the good kind!
@international_dividendАй бұрын
What a gem of an interview! Well done, Armchair.
@armchairincomechannelАй бұрын
My pleasure. Glad you found some value from it. I enjoyed making it!
@DividendflywheelАй бұрын
YES! YESS!! YESSSS!!! This goes in my favorite videos list
@enricomonesi5856Ай бұрын
I am a great fan of Steve Bavaria, so you having organised a one on one interview is OWESOME......thanking you once again for your time and effort 👍
@armchairincomechannelАй бұрын
Glad you enjoyed it! He has influenced my thinking.
@BTinSFАй бұрын
Shocked to realize all 4 of the equity funds he mentioned are among my largest positions (and I’m not really familiar with his work before this). I also recently switched from BIZD to PBDC because I compared them after noting you owned PBDC. From Cohen & Steers, my choice has been RNP but I’ll keep an eye on RLTY. Also my infrastructure choice has been UTF (because I figured out what Mr. Bavaria says: That Aberdeen has a history of stretching its yields). I’ll have to look into XFLT.
@armchairincomechannelАй бұрын
We share a lot in common! I have UTG but am constantly eyeing UTF, same for RNP, RQI, RLTY, etc.
@BTinSFАй бұрын
@@armchairincomechannel Yeah we do. We share about half our portfolios. Partly that’s because I’ve borrowed some of your ideas so thank you. I probably own a few more individual REITs than you do because they pay dividends below your range but I am looking for some capital gains as the Fed cuts rates. I also own a couple of pipeline MLPs-I believe you are Australian so I don’t know how complicated those might make your taxes. Which brings up another subject: There’s an Australia country CEF, IAF, that has a very nice yield and keeps trying to attract me. Any ideas about it?
@cumhurc4989Ай бұрын
Very informative. Your KZbin channel a lot of different than many others and I seem to learn more without any flashy headlines ! Keep up the great work !! Thx
@armchairincomechannelАй бұрын
Thanks for your feedback. I try to create the videos I would want to watch. You won't see any "Crash is Coming" thumbnails on the Armchair Income Channel ;)
@Baron1975Ай бұрын
All i can say is wow! Loved you're guest. Excellent content that could never be considered JUNK no pun intended.
@armchairincomechannelАй бұрын
Glad you enjoyed it :)
@30AndAWakeUpАй бұрын
Great interview. I have been following Steven for a while and been building my own income factory in part do to his great work on SA. Thanks for sharing.
@armchairincomechannelАй бұрын
You're most welcome! I've watched many of your videos, and I used to work on cruise ships. Our asia travels follow similar patterns too. If you'd like to connect, my email is armchairincomechannel@gmail.com
@30AndAWakeUpАй бұрын
@@armchairincomechannel I’ll drop you an email!
@momdittomomditto7705Ай бұрын
Thank you for this interview! Steven was great! His book is on my bedside table and I’ve read 90% of it. You are such a good interviewer and I was happy you asked about specific tickers. I’ll be looking at the ones I’m not familiar with.
@darrelgrove5304Ай бұрын
Book is a few years old; current portfolios are in his Seeking Alpha group but you may be able to find some older articles/updates outside the paywall.
@armchairincomechannelАй бұрын
I appreciate your kind feedback, thanks! Glad it was helpful.
@armchairincomechannelАй бұрын
Agreed. Books by nature are out of date as soon as they're published but the concepts are eternal.
@mikegolding6476Ай бұрын
I've followed the income factory for a few years now Glad you interview him
@armchairincomechannelАй бұрын
That makes two of us. Thanks for the feedback!
@Steverino70Ай бұрын
Good interview. My son who was employed in the "big ticket" division of one of the biggest banks in the U.S, has had some time to assist me when looking at BDC's and applying his expertise to this sub sector. A few of them are interviewing him due to 20+ years underwriting across 5 banks. Some of his observations are interesting. One, BDC's have much ore flexibility in "working out" non preforming clients than banks. I think he referred to it as somewhat cutthroat( a compliment) when compared to what banks can do. He really likes ARCC but is very wary of the amount of loan money coming into BDC's in general and is concerned that that much money chasing new loans leads to BDC's taking on increased risk due to competition.He has had me cut back by 1/2 my exposure to BDC's that have had significant share price appreciation such as CSWC, MAIN and HTGC and sell way above their NAV. He also really didn't like TRIN. Anyway, keep up the good work, a loyal fan.
@armchairincomechannelАй бұрын
Thanks for your feedback and insight into your son's experience. Not all BDC's make a great investment so it's important to be selective based on quality and pricing. I've cut back on the same BDCs as you over the past 6 months because of their valuation.
@J_InternationalАй бұрын
Excellent video. Steven was a major influence in my income investing journey.
@armchairincomechannelАй бұрын
That makes 2 of us. Even though our portfolios don't mirror Steven's exactly, the philosophy is valuable.
@jumbothompsonАй бұрын
For me the sleeping at night part is important. Market is down, oh well I continue to buy more while getting a higher yield. I'll still invest in individual stocks if I see an opportunity out there.
@armchairincomechannelАй бұрын
Sleep is underrated. I don't hold exactly the same investments as Steven but we have a few in common and his overall philosophy was a big inspiration to me. Thanks for your feedback :)
@cripz1436Ай бұрын
I've read this guy's book, and it's nice to see his views on these things.
@armchairincomechannelАй бұрын
Thanks for sharing that, and glad you enjoyed the interview.
@jbliss12345678Ай бұрын
At the 28:42 mark in the video where Steve talks about Net Investment Income, what websites will have this information available for non-CEF tickers like PBDC
@armchairincomechannelАй бұрын
I haven't found a tool that provides data for non CEF tickers in a good format like CEFConnect. For NII, I use the BDC tool from systematicincomeinvesting.com/ . However, that's a paid subscription.
@SummitMan165Ай бұрын
Very good interview ! A great hour++ of armchair income plus a visit into the Income Factory ! I’ll order his books for next winter’s reading ! Continu your good works
@armchairincomechannelАй бұрын
Thanks for your feedback and I'm glad you enjoyed it :)
@kejianniu2994Ай бұрын
Very nice interview. His Income Factory book had a big influence on my thinking. Glad he touched on CLO. Instead of XFLT, I like the pure play of CLO equity, e.g. ECC. But I think you may also like the various CLO debt funds, like EIC as he mentioned (focusing on BB traunch), CLOZ (BBB/BB), JBBB and JAAA.
@armchairincomechannelАй бұрын
Glad you enjoyed it and thanks for sharing some of your favorite tickers!
@DividendflywheelАй бұрын
This @57:34 is a brilliant strategy. There’s F U money for employment security. This is like an F U portfolio to stock market volatility. 😊😊
@armchairincomechannelАй бұрын
Thanks for the feedback. I didn't name it with those exact words but glad it was helpful :)
@KCInfernoАй бұрын
Thanks. I already have the book. I started down this road after reading the book.
@armchairincomechannelАй бұрын
He has influenced my investing too. Thanks for sharing that!
@jimsteinberg9291Ай бұрын
Excellent interview-particularly appreciate the view on less transparent vehicles, like XFLT and the reassurance on BDCs with rates falling-the look back approach to lower rate years is useful. Thx
@armchairincomechannelАй бұрын
Thanks Jim, glad you found it interesting.
@TheRealRaggedyAndyАй бұрын
Great interview.
@armchairincomechannel29 күн бұрын
Thanks for letting me know, glad you enjoyed it :)
@four5acpАй бұрын
Thank you so much for this Sir. I’m retiring early in 2.5 years and this type of information has been so helpful and eye opening. One question I have (I know you don’t usually cover taxes) but it would be awesome if you could cover some of the more tax efficient options for high yield. I know there are a few CEFs and some MLPs that can be good for a taxable account but your take on it would be invaluable! Thanks so much for everything!!!
@armchairincomechannelАй бұрын
Thanks for your suggestion. I try to point out the tax advantages of various funds where possible but I appreciate your suggestion to organize that information in a way that would be helpful.
@four5acpАй бұрын
@@armchairincomechannel thanks a lot I probably just missed it! Keep up the quality work. I for one greatly appreciate and enjoy it!
@169TomhАй бұрын
Really enjoyed this video… I know of him almost bought the book but read some reviews that kept me from it saying it was hard to read. Your interview was much informative and in essence your doing it your way. Wondering if you will dive into any of those tickers…. all though you have to some extent. Thanks for this armchair
@armchairincomechannelАй бұрын
Thanks, glad you enjoyed it. There will be some diving :)
@michaelbangert996Ай бұрын
Great Video, congrats for having such a competent guest on your channel
@armchairincomechannelАй бұрын
Glad you enjoyed it! He was a pleasure to talk to.
@arthursmith2056Ай бұрын
So a lot of these high yield investments give wonderful yield obviously, but some of them seem like they are on the verge of default. Is they key to fund investments that either appreciate or are stagnant and then reinvest until you’re ready to withdraw and you reinvest what ever the current inflation is and take the rest?
@armchairincomechannel29 күн бұрын
Your overview of the cashflow is mostly accurate. However, I don't revinvest just to cover inflation. It's also to cover risk. The higher the yield, the more I reinvest. So for SVOL's 16% yield I'd reinvest half. For MAIN (lower yield, lower risk, growing distributions) I'd withdraw it all. Not sure what you mean by "on the verge of default". I don't believe that applies to any of the investments I hold in my portfolio. I haven't researched every single investment in Steven's portfolio (there are quite a few!).
@arthursmith205629 күн бұрын
@@armchairincomechannel you're right. Verge of default was dramatic. NAV erosion is what I meant. I am fully on board with income investing but I feel more comfortable with a yield around 5-6% as long as i also have growth in the 4-5% range. Not for risk but because it's hard for me to understand how a negative NAV year after year is good long term even with a large yield. that being said, my exposure to this way of investing is very new and im sure there is a lot of ignorance.
@scottkeasler9317Ай бұрын
Another great video. I watched it in three sittings due to my time allotment and to make sure I soaked it all in. Do you personally subscribe to the Income Factory? Thank you so much for all you do, it's been a life saver for me since retiring last November!
@armchairincomechannelАй бұрын
It was long and I could have talked to him for another hour but you have to stop somewhere. I just joined "Inside the Income Factory" on a monthly subscription and I'm researching some of his picks. Congrats on retiring last November, that's fantastic!!!! Feel free to join the conversations in the FB group...I don't mention it anymore in the vides because its growing all by itself. Here's a link: facebook.com/share/u3gHAmv58TszyRwz/
@shawnswagerty5791Ай бұрын
Really good episode. Always enjoy and benefit from the words of Steven Bavaria. Appreciated the discussions of ASGI, XFLT, and RLTY in particular. My I suggest having someone from Seeking Alpha's "High Dividend Opportunities" team on some time in the future. Thanks!
@armchairincomechannelАй бұрын
I enjoyed the discussion with Steven. Thanks for the suggestion about HDO :)
@Baron1975Ай бұрын
Just bought Steve's book the Income Factory 🏭
@armchairincomechannelАй бұрын
Hope you enjoy the read. He was a pleasure to interview.
@chriswoolletАй бұрын
Great interview. Read his book last year and it changed my whole perspective.
@armchairincomechannelАй бұрын
Wow, that's fantastic! He had a major impact on me too.
@sdrs95aАй бұрын
Excellent video! I would have liked to heard a question like "What are your 3 most undervalued investments at Current Prices?
@armchairincomechannelАй бұрын
That's a good suggestion. I hope to interview him again one day.
@sdrs95aАй бұрын
@@armchairincomechannel You can always use it for other interviews.
@nathangilles2839Ай бұрын
Yes very very good info and video. I’m 51 and trying to catchup and not get caught up in the highp
@armchairincomechannelАй бұрын
Glad you enjoyed it! I agree, there's plenty of hype out there and I try to avoid it too.
@ucallthatatweetАй бұрын
Regarding what he says from 56:41 to 57:25, I continue to wonder how much of a US national debt is too much (when it comes to keeping the economy stable). With any luck, it will be more substantially addressed by Congress if we get another credit rating downgrade, or maybe something similar.
@armchairincomechannelАй бұрын
The growing debt is a long term problem but the election cycle is only 4 years, so I expect the government to continue to kick the can down the road.
@Rob-on-the-goАй бұрын
Wow! Excellent Interview and information. Thank you so much!
@armchairincomechannelАй бұрын
Glad it was helpful!
@happytravels2480Ай бұрын
Loved this. You are a great interviewer. Nice work👍
@armchairincomechannelАй бұрын
Glad you enjoyed it, and thanks for the feedback. Steven was a pleasure to interview.
@LasVegasStateOfMindАй бұрын
Another solid video. Very happy to have found your channel, this is so in line with my thinking as well. Thank you very much.
@armchairincomechannelАй бұрын
Birds of a feather....thanks for watching and commenting (again).
@LasVegasStateOfMindАй бұрын
@@armchairincomechannel welcome !!! thank you !!
@DP52001Ай бұрын
Wow - such a great video. Thank you as always for your insights…you truly make a difference!
@armchairincomechannelАй бұрын
You are so welcome!
@Rob-on-the-goАй бұрын
I signed up for Seeking Alpha through your link. Thanks!
@armchairincomechannelАй бұрын
Thanks! I think you'll find it useful :)
@gentillygirl54510 күн бұрын
I need to learn from this man!!
@armchairincomechannel10 күн бұрын
That makes 2 of us :)
@exilion1Ай бұрын
Outstanding. I am a fairly recent subscriber to your channel and can only imagine that this is part one of a series of interviews, as long as you’re both agreeable to continue this as an ongoing conversation. Best of luck making this happen. I’ve been a net accumulator since the 90s and have also followed Steven on Seeking Alpha for years. Thank you kindly for this. I enjoyed your conversational style. Are you interested in writing a book too? Sorry if I missed a previous announcement.
@armchairincomechannelАй бұрын
Thanks for your feedback. Based on the response to this interview, I'm open to another one in the future if Steven is agreeable. No plans for me to write a book, I'm enjoying retirement and making some YT videos :)
@exilion1Ай бұрын
@@armchairincomechannel I’m writing a book for my kids (and their kids, and so on - at this rate, it’ll be an audio or perhaps a video book). Thanks for the channel and best wishes for the upcoming conversations and future endeavors.
@user-ef2lz6gt7yАй бұрын
Great video I have watched 20 of yours best yet much thanks God Bless
@armchairincomechannelАй бұрын
Glad you enjoyed it, and thanks for watching so many videos. You may need glasses after that!
@minhytubeАй бұрын
Bravo! love this interview. Very informative. More stuffs like this please.
@armchairincomechannelАй бұрын
Thank you! Will do!
@UNOyayАй бұрын
Thank you for this. I wish you had asked him about taxes and how to be efficient with these type of funds.
@armchairincomechannelАй бұрын
That's a good point. Generally income investing is less tax efficient than growth investing so its better suited to retirees. Most income is ordinary income but there are some exceptions like MLPs, SPYI, QQQI, etc.
@fs2651Ай бұрын
Did the Apollo Tactical Income Fund that was mentioned merge into MFIC (MidCap FIC)?
@armchairincomechannelАй бұрын
Yes. I don't know if it has gone through officially yet, but that's the result of the merger.
@AlexStAmand-lh2dbАй бұрын
Do you think as a 33 year old who is still working that income investing is beneficial? I still make sure to contribute to retirement accounts but I i want to work up be able to have a consistent flow of income coming in that is not from my job.
@armchairincomechannelАй бұрын
It depends on your personality and your intended timeline for retirement. If you are decades away from retirement, then growth investing will deliver higher total returns and be more tax efficient. Regarding personality, some people find it easier to commit to investing if they see tangible income flowing back. If it helps motivate you to invest, then that's a plus. The most important thing is to understand the pros and cons of each investment style.
@rel399Ай бұрын
Just got Steven's book and in the process of reading it now!
@darrelgrove5304Ай бұрын
Updated portfolios are in Seeking Alpha group - as the book is a few years old.
@armchairincomechannelАй бұрын
Good point. By definition, any funds discussed in a book will soon become outdated. However, the philosophy is eternal.
@armchairincomechannelАй бұрын
Terrific! The value of the book is in the ideas more than the funds mentioned at the time it was published.
@uansam3439Ай бұрын
Wow…I really learned a lot about this video. Thank you so much for those great questions!!!! But one thing that I concern me is their high expense ratio.
@armchairincomechannelАй бұрын
Expenses are very confusing for funds with leverage because the interest gets mixed into the number. It's even more confusing for BDC funds because some of the expenses of the BDCs themselves are mixed in with the management fees of the portfolio manager. For example, PBDC's management fee is less than 1% but you have to read the prospectus to know that...it's not clearly explained on the home page.
@uansam3439Ай бұрын
@@armchairincomechannel thank you for the info
@dudewheresmyguitar21Ай бұрын
Wow two incredible income investors speaking together, amazing. Bet theres going to be some portfolio updates coming this week!! RLTY XFLT EIC looking really juicy
@armchairincomechannelАй бұрын
Glad it was helpful and thanks for sharing your reaction.
@FI-BeauceАй бұрын
Great youtube moment!! Thanks to both
@armchairincomechannelАй бұрын
It was weird to read his ideas for so many years and then finally talk to him!
@TheMally85Ай бұрын
Great interview, thank you!
@armchairincomechannelАй бұрын
Glad you enjoyed it!
@faisalsiddiqui6793Ай бұрын
I'm going to study CLOs more now. Thanks
@armchairincomechannelАй бұрын
Good idea :) Thanks for watching!
@Baron1975Ай бұрын
I own 520 shares in sphy. Think ill add more after this program.
@drosenth613Ай бұрын
What other funds were mentioned?
@Baron1975Ай бұрын
@@drosenth613 RVT,USA,PBDC,UTG,MAIN,BIZD,CSWC,and a few others I can't remember without watching again.
@fionafresh8435Ай бұрын
I’m also a fan and am always surprised more people don’t talk about it.
@armchairincomechannelАй бұрын
SPHY wasn't mentioned during the interview but thanks for your feedback. I'm not familiar with it but always open to looking at new ideas.
@nadavebert2339Ай бұрын
hey armchair! would you think a 50% div growth 50% fixed income like in this video (and some of your funds as well!) would be a good approach? to start building it 10 years before using the dividends
@danstevens64Ай бұрын
The time horizon is the most critical question. Check out a channel called "dividend growth investing" he talks about his core and satellite strategy with time horizon
@jumbothompsonАй бұрын
Why not? You can mix and match all kinds of strategies.
@armchairincomechannelАй бұрын
I couldn't say when you should start an income approach; it's different for everybody. In general, over a long time horizon and while you have a paycheck, growth is more tax efficient and delivers higher total returns. The closer you get to retirement, the more value there is from income and its reduced volatility. Growth requires that you sell when the market is up, and there's some random timing associated with your retirement date (you might be unlucky and retire at the start of a bear market). So its risky to assume you can simply sell all your growth stocks the day you retire, because you don't know what the market will look like.
@thebigredfishАй бұрын
Great interview. Thank you both.
@armchairincomechannelАй бұрын
Glad you enjoyed it!
@genesilvers1Ай бұрын
Wonderful interview, I've been a longtime follower of yours and really respect your picks, wondering why you don't have xflt in your portfolio since Mr. Bavaria touts it so highly, do you plan on adding it? Thanks
@armchairincomechannelАй бұрын
I'm looking into it. Steven has a long list of investments and that's one of the candidates I'm researching for my own portfolio. Our portfolios aren't identical but we share a very similar investing philosophy.
@likeicare300Ай бұрын
Incredibly valuable conversation thank you
@armchairincomechannelАй бұрын
Glad you liked it! He was great to chat with.
@pfd1972Ай бұрын
Amazing guest and interview!
@armchairincomechannelАй бұрын
Glad you enjoyed it. I could talk to him for hours.
@JonsbasecampАй бұрын
Thank you for the video! Would love to see an interview with Seeking Alpha's The REIT Forum Scott Kennedy.
@armchairincomechannelАй бұрын
Great point! I'm a huge fan of Scott and will email him next week with a request.
@MessedUpParodiesАй бұрын
Hummm. Not sure I share Steven's philosophy on investing. XFLT & EIC sure have some nice yields, but I'm uncertain about those picks, especially during a downturn. They may be OK, but not sure they are my cup of tea. I like ARDC better in this space.
@armchairincomechannelАй бұрын
I like ARDC too, although the price is getting a bit expensive. My portfolio and Steven's aren't the same but we have a few tickers in common. I found a lot of value in his philosophy but I practice my own version of it.
@bethhynes787Ай бұрын
Excellent interview & content - thank you
@armchairincomechannelАй бұрын
Glad you enjoyed it! Thanks for the feedback :)
@happycampers6592Ай бұрын
Excellent interview. Help me out please. Many of the popular CEFs have a downward trend NAV. I understand "math is math" and I'm not concerned with growth. If I can get an 8% distribution for 20 years and it is completely net of any capital gains, then I don't care. However, when a fund that is 20 years old has lost half of its value, I can only wonder what it will be worth in another 15 or 20 years and what will happen if its NAV approaches $0. The topic of NAV erosion has been beat to death but I really have not read/heard anything that eases my concern. Thanks for your help.
@armchairincomechannelАй бұрын
NAV erosion is an important consideration. Some funds suffer from it at launch and then flatten out. Some suffer from it but only under certain economic conditions (like a hike in interest rates). So its important to consider the fund in relation to what's happening with the economy and the market. There aren't many funds that pay high yields and appreciate under all market conditions. If the NAV is on a consistently downward path then I avoid it.
@joevelasquez2757Ай бұрын
Great job getting Bavaria. ❤
@armchairincomechannelАй бұрын
Thanks! He was a joy to interview.
@GionnyChannelАй бұрын
Super interesting interview
@armchairincomechannelАй бұрын
I enjoyed the conversation too. Thanks for letting me know :)
@Optimus-Prime-RibАй бұрын
Man i wish you guys went from another hour! 😉 Great interview
@armchairincomechannelАй бұрын
I appreciate that comment :) He was great to chat with.
@DividendflywheelАй бұрын
Yes. A part 2 or 3 would be appreciated. His insights (and experience) are priceless @ 58:57 generating more income when the market was down
@normansimonsen1203Ай бұрын
I appreciate this. That guy is smart.
@armchairincomechannelАй бұрын
I think so too. Thanks for watching Norman!
@user-jb8vt9dl4jАй бұрын
Great session, and great book
@armchairincomechannelАй бұрын
Glad you enjoyed it :)
@Willymayshayes444Ай бұрын
Great guy, have his book
@armchairincomechannelАй бұрын
He was a pleasure to interview. Thanks for your feedback :)
@BryanFinnegan-lv2cqАй бұрын
Highly recommend trying to do an interview of Steve Selengut. He's the author of a book titled, "Retirement Money Secrets." His income strategy centers around closed end funds too.
@tpafiremedicАй бұрын
Second this
@darrelgrove5304Ай бұрын
Income Factory member but could not even finish Selengut’s book. Wish I could return it to Amazon.
@armchairincomechannelАй бұрын
Hi name has popped up a few times but I'm not familiar with his work. I'll take a look. Thanks for the suggestion.
@AaronLS.Ай бұрын
What are the 3 funds?
@armchairincomechannelАй бұрын
Here are the funds and the exact moment they're discussed :) 43:33 Quick take on RLTY from the Income Factory Portfolio 46:24 Quick take on XFLT from the Income Factory Portfolio 50:56 Quick take on ASGI from the Income Factory Portfolio
@kenmurray2765Ай бұрын
Thanks! Great interview! Learned alot
@armchairincomechannelАй бұрын
Glad it was helpful!
@antimattr68Ай бұрын
Thank you for the content, really appreciate it
@armchairincomechannelАй бұрын
Glad you enjoy it!
@frankfrank488912 күн бұрын
Just looked up PBDC and it has a net expense ratio of 6.79% with a yield of 9.35% wouldn't that be a net yield of only like 2.5%? I can't wrap my brain around an expense ratio that high? am I miscalculating?
@armchairincomechannel12 күн бұрын
It doesn't work like that. First of all, the yield is calculated AFTER expenses, so you don't deduct one from the other. Secondly, most of that is the interest expense associated with the leverage. If you use leverage to buy real estate you'll have an interest expense too, doesn't mean that the real estate is "too expensive".
@fialee8ca132Ай бұрын
It sounds like you calculate your investment yields only at current prices vs looking at yields at cost. If the dividend the same, but if price is up (or price increases faster than dividends)... why exit when yield on cost is still the same or better?
@darrelgrove5304Ай бұрын
If it started at 10% and thru price appreciation dropped to 6% but you can take the whole thing and reinvest at 10% again on a similar fund-why not do it to earn more $$.
@armchairincomechannelАй бұрын
Correctamundo.
@armchairincomechannelАй бұрын
Opportunity cost. My goal is to maximize income, not to have the highest yield on cost. If I buy a stock with a 10% yield and it goes up in value x10, then the yield will only be 1%. I could sell it and buy new 10% yields and multiply my income by 10. In retirement, income is more useful to me than appreciation.
@fialee8ca132Ай бұрын
@@armchairincomechannel It's your choice, but just as discussed previously, you inject more risk, and run the chance its a dividend trap on the new investment. Take JEPQ as an example... last year it was throwing off 11%+ yield and today it's a tad more than 8%. If it climbs to $60+ and yield is ~7%... would you exit for something else to chase a min 8% yield? I don't know for myself, but knowing I'm making 11% off my initial investment sounds pretty good.
@arniet52579 күн бұрын
Should you only buy these at a discount?
@armchairincomechannel8 күн бұрын
That would be an oversimplification. For example, MAIN almost never trades at a discount but buying at any time and holding long term has delivered a good return. All other things being equal, a discount is preferable.
@arniet52577 күн бұрын
@@armchairincomechannel thanks for your help, I like your channel
@KristopherHessonАй бұрын
Fantastic interview.
@armchairincomechannelАй бұрын
Glad you enjoyed it :)
@spectreQАй бұрын
Would it be possible to get your videos in podcast form so theyre easier to listen to in the car?
@armchairincomechannelАй бұрын
I'm glad you want to listen to them! Thanks for the idea. I include and reference a lot of charts and diagrams but perhaps audio would still be useful. No immediate plans to create a podcast but I'll keep it in mind.
@moresugartradercc2744Ай бұрын
Enjoyed the interview thanks
@armchairincomechannelАй бұрын
I enjoyed the chat with Steven too. Thanks for letting me know :)
@lynnh1935Ай бұрын
I am new to income investing. Who are some of the writers on Seeking Alpha that you recommend?
@armchairincomechannelАй бұрын
Welcome to the community. I like Nick Ackerman, Trapping Value, Steven Bavaria, and Damon Judd.