The "Godfather" Of Income Investing: Steven Bavaria - The Income Factory Psychology

[@PassiveIncomeInvesting]

I was excited for this interview!! I tried to manage the topics and also have a back-and-forth conversation, but I did get some criticism for interrupting Steve. My bad, will do it better next time! 👍

[@international_dividend]

@@PassiveIncomeInvesting no one is perfect and we all learn from experience. Well done on the interview. My constructive criticism is Steven's theory is that income producing bonds can match the market average of 8-10% a year, but you kept saying that 'we all know in the long term equities outperform'. That's the opposite of his thesis I think you missed his main point. Whether his thesis it true or not is another matter entirely.

[@dubsdolby9437]

@international_dividend It's understandable you seemed excited. Just be patient 👍

[@godwinsibanda4255]

Glad you acknowledged your error. I actually cut the video 30% in as I was frustrated not knowing what the guests theories are. I came to comments and found your admission .... great acknowledgement. I would suggest you not interject at all - the guest is there because you brought them for their expertise - ask questions and let them teach. Don't even object, disagree, or opinionate, it is their knowledge and perspective that we want to hear (we already know yours as your followers, etc.) You can ask clarifying questions (short and sweet) if necessary, or you can always add a separate post interview summary and post-mortem of your opinions if necessary. But get out of the way and let the guests TEACH.😊

[@dominikfrohlich6253]

@@international_dividendthe equities have to pay the bonds so they must be making more to grow on top of that. That’s why bonds always underperform but have lower risk. It’s a trade, performance for safety.

[@jeromegraham5422]

Hey Adrian, I like your content and been a follower for years. Just a friendly word, try to be mindful of cutting off and overtalking your guests. Its really slowing down the guests' momentum when they speak. There were many times Steven was stopped and had to recalibrate his thoughts.

[@lrrogers7]

Would of liked to hear more from Steven Bavaria. He didn't get much time to speak. Just some constructive criticism. Still love all your work Adrian!!

[@lslurpeek]

You interrupt WAY too much

[@dubsdolby9437]

Agreed, he gets his number 1 guest on, then butts in constantly 🤔

[@jamiegamache9478]

💯 Fully agree- buddy sent me this clip and his interruptions drove me crazy!

[@thewheeldeal8439]

i like the way I can watch my monthly yield etf income grow, and measure it compared to my job income. it feels easier to measure my progress

[@jasonstupak4535]

Fantastic interview, thanks Adriano! I would agree with other comments in allowing guests to finish their thoughts before interjecting or moving forward. Otherwise, great.

[@godwinsibanda4255]

@@jasonstupak4535 ...I would say don't even interject. The guest is there for a reason and we want to hear THEM. We are already your followers and know you, and Passive Investing. So ask questions and then let the guest teach.

[@chrisphillips0000]

Kind of rude. Keeps cutting Steve off!

[@theocratickingdom30]

Added his book to my list. Will buy it soon.

[@adamd9166]

Im loving this interview and concept! Right now, my idea is to buy the high-yielding income divs, and then partially channel them into the safer growth stocks, allowing both income and growth to grow over time. Best of both worlds, but I think its best to start with the income stocks.

[@angelabarnett4972]

Excellent Book! Steven has changed so many lives with his book! Thank you, Adrian, for interviewing him!-----Your book should come next!!!

[@PassiveIncomeInvesting]

i think a book might be inevitable :) if i can find the time!

[@frankinfante791]

Great interview, another great guest you could consider to interview is Steve Selengut. Steve also has a couple of books out on income investing.

[@Lawyerup904]

Love it love it love it! Read the book a year or so ago and am building lots of little engines for my very own income factory including bdc’s, reits, mlp’s, and cef’s. Target date is 68 and I’m 12 years away … Hoping to never have to sell a share and just live off 75% of the dibs and reinvest 25% so my income factory keeps growing ! Ps: it’s only a matter of time before I run into him and get an autograph as I live close by :)

[@queenieguerra8351]

Thank you for this interview 🎉!!! Great info to be shared !

[@mac41776]

Steven and Adrian had an engaging and insightful conversation about generating monthly income from different types of funds. Their excitement was clear as they realized they'd found someone who truly shared their expertise and passion, making the discussion even more valuable for their audience.

[@Chessnut49]

What a GREAT video. I bought Steve's book on Audible and his analogies 100% confirm what you have been trying to explain to people for years. So glad I joined your inner circle. Thanks Adrian 😊

[@international_dividend]

Steven Bavaria makes a lot of sense

[@HIGHYIELDDIBIDENDWARRIOR]

I love Steve

[@bluecollarbullionballer4269]

Great interview his book changed my investing life.On track to retire in two years.Happy investing/stacking

[@jumbothompson]

Love it! Steven explains all these concepts in a way that anybody can understand.

[@abha801]

Thank you Adrian bro. Love your content. Thank you for bringing your guest :) Always grateful and thankful.

[@brycelandry6328]

This is great, thank you both for this!

[@randalxu4889]

Great interview with Steven! A lot of learnings and new perspective on income investing. The bottom line is that Income Investing is an easier strategy for average investors to execute, easier to handle psychologically during market downturn and be successful. Thanks Adrian!

[@francisyoung3584]

The statement about buying rental real estate is very true, in my past experience I decided that RE investing should be realistically referred to as a "business" much more than an investment.

[@michaeldo1988]

bro this a great interview. your style is improving adrian. keep going.

[@shawnm8011]

Thank You Sooooooo much for this and everything you do

[@lindysbabylon]

Great video Adrian Passing my knowledge on to my daughter now. She is the next generation of income investors. Have to read his book soon

[@lisa-mariebreton-lebreux4000]

Thank you so much for your videos and interviews. I am all in into the income investing because of your content. ❤️

[@georgetaylor2819]

Very interesting interview- how sad the majority of the tickers mentioned are not on Robinhood. Am new and will be watching this more than once - YES - am buying his book on AMAZON -- thank you

[@evewhitehead6149]

I enjoyed this conversation very much! Thanks! 😊

[@patrickbramhill3434]

Very good interview !❤ Congratulations

[@michybinkley]

Great Interview with Steve - I read his book and it helped to gel a shift in mindset. Nice compliment to your content Adriano. Well done!

[@mikelaba6734]

Thank you favorite book and good analogies. I always explain to my friends your RRSP and TFSA are farms and ETFs are different chickens and golden eggs are the dividends make more chickens or spend a portion.

[@jamesgoodman9259]

Steve turned me on to CEFs. Thanks! Another author added to this idea that has a rule to take capital gains if a fund price grows over X percent. This provides a nice kicker to your returns. This author has been investing in an 'Income Factory' for 30 plus years.

[@theworkinginvestor]

Pro tip! You should take the time to educate yourself on options. It will help tremendously understanding your option based etf funds.

[@kevinmendoza4402]

We need YieldMax! 🚀📈

[@PittwaterMowingAustralia]

Good Interview Thanks Adriano

[@jameskeefe1761]

The point he brought up that everybody always talks about BBB, AAA ratings regarding bonds, they also apply to stocks as well because they come from the same company, and in fact those ratings may be more pertinent to stocks because in bankruptcy, you'd get nothing out of a stock, since bond holders get everything. The rules of diversification apply to both.

[@dominikfrohlich6253]

Cash returns got me into income investing as well. If the market crashes, still no one can take your dividends from you. Piece of mind. You actually cherish pullbacks because you can grow your income faster than usual. And you never have to sell.

[@miguelaresgoiti]

Great video! Everyone’s investing journey is unique

[@andrewwalker9216]

Great book!!!

[@vivekparmar37]

Hi @PassiveIncomeInvesting, One quick question - If I hold YTSL - in my TFSA - Do I have to pay a 15% holding tax? As YTSL is Tesla ETF and Tesla is listed on the US stock exchange?

[@efullname]

I own evolve YTSL, it's listed in TSX so no 15% charge

[@vivekparmar37]

@@efullname It is about what YTSL is Holding - and YTSL actually holding TESLA so not sure we have to pay 15% on dividend income

[@soundsnags2001]

I don't know anybody about investing in corporate bonds. Do they operate on a ticker or is it a separate market?

[@web3tel]

It is great video. Steven is always fun to watch. Unfortunately, the major problem I see with this approach are taxes. Unless you invest at RRSP the distributions (especially from US funds) are heavily taxed (as opposite to capital gain) and also even at retirement we should have some flexibility with tax deferral. Even with TFSA the withholding tax of 15% is pretty significant.

[@thriftyniftyfun]

cool just heard about this book on thoughtful money and was wondering your thoughts! thanks for this!

[@PassiveIncomeInvesting]

did not read it

[@AnkitPatel-gl8ks]

I like his explanation of total return.

[@franks4973]

It’s not clear to me why income over growth matters if both are in a Roth account and tax free. 9% is 9% as long as no taxes on it.

[@fernandodoria8717]

Molto Bene Adriano!!

[@caitlincaitlin4703]

but will they cut dividends/distributions on the way down? didn't see that part of the video yet. they answered this question.

[@heinzhartweg2745]

Pure sales event for covered call ETFs.

[@vikasgupta1828]

Thanks

[@dominikfrohlich6253]

Imo covered call funds cannot safely yield 12%+ because they need time to recover after pullbacks. If you forego too much upside you don’t recover enough before the next correction, so you fall even lower next time. In the long run, NAV will erode away. I much rather prefer 8-9% yield and keep 4% upside potential and keep NAV stable.

[@Blayne-vq7sl]

Great video as always. Are any of these types of funds available to Canadians on the TSX?

[@PassiveIncomeInvesting]

almost none. we havel split funds and EIT. those are closed end funds

[@NatalieHannahq3g]

I am at the beginning of my "investment journey", planning to put 85K into dividend stocks so that I will be making up to 30% per year in dividend returns. Any advice?

[@WelcomeToTheMachine19]

for full disclosure , and I am fully invested in The Income Factory, the taxable income of ITIF assets are at Ordinary Income and LT capital gains are taxed at 0%, 15% or 20% depending on your tax bracket. In an IRA this of course does not apply

[@DingusCirc]

A covered call ETF will outperform the Index in a downtrend since you keep ALL of the premiums from selling Calls. You kind of said that but it wasn't clear.

[@jeffmay-melin8120]

Normally enjoy your content and was very interested in what this guest had to say. A little constructive criticism, please don’t interrupt your guests, allow them to explain fully before interjecting. I understand that you were excited to have this man as your guest and were eager to show your knowledge as well but you don’t need to do that, just craft great questions and allow your guest to do the talking.

[@jimm4260]

Big fan of CEF’s. Gonna ride them a long time

[@dwaynecunningham2164]

Finally got to watch the whole video. Thought it was a great discussion. Probably going to buy the book.

[@sonja8942]

What do you think of ECAT and BCAT that raised their dividends a few months ago to a 21%. Can this high rate last? I’m buying them!

[@DirkDiggler413]

Nav will decline - not sustainable.

[@international_dividend]

I don't think leveraged ETFs are allowed, Adrian. Could be wrong, but believe it's only allowed in CEFs.

[@iptvclub1575]

There are a bunch of leveraged covered call etfs. Hyld, encl, etc.

[@international_dividend]

@@iptvclub1575 Thanks, but same for those listed on the US stock exchange? I know there's something CEFs can do that US ETFs cannot... but it may be something else.

[@hulenbryant5637]

We're finally seeing the average joe investor having access to investments that were once only available to the investment "insiders".

[@kf434]

Surprised he never touched on the fact that dividends result in taxes each year for non retirement accounts , even if you don’t need the income then ,and you DRIP. Growth funds don’t until you sell, and then its only on any gains, not the amount you take out.

[@SaigonSaloon]

Gord Wilson should consider writing a book.

[@veneetbansal8559]

🎉

[@michaeldo1988]

clearly long XDTE for retaining balance in growth and retention

[@FI-Beauce]

Math is Math

[@gpoli75]

High yield strategy mean that you pay taxes every month instead of enjoying compounding effects from companies that perform buy back or invest in business growth. Bottom line not agree that total returns is sl that matter

[@PassiveIncomeInvesting]

#1 There’s no taxes in tax sheltered accounts. For a regular account , yes there’s taxes but there’s many ways to offset them . Also some people tend to be in higher brackets later in life . So in short : there are many factors to consider

[@francisyoung3584]

Guys, I have the PII account that he mentions at the end and it is worth while (and I am not a relative nor a personal friend nor employee -- hahaha)

[@barneyrubble7277]

Thank you for apologizing. Trying to mansplain income investing to Steven Bavaria sounds like trying to explain pop music to Taylor Swift.

[@ray650420]

👍

[@dwaynecunningham2164]

Giving you a like now dude. Watching it later.

[@moetoronto]

Hi thanks for all your help. Just wondering why QQQ is up 10% in last six months but QDTE is down over 8%.

[@spooler24]

Do some research my guy. Fun fact, QDTE is outperforming QQQ since its inception... Another fun fact, its also beating the SP500... Remember, there's a point in time during this video that they mention total return.. 🤯🤯

[@CFH298]

QQQ and selling your own calls will always beat out QDTE. QDTE will always drag behind QQQ in all market cycles. People are blinded by a few months of market high’s.

[@CFH298]

“Fundamentals of Finance” did a video on QDTE/XDTE/RDTE and is a CFA charter holder. He breaks down QDTE and how it’s long term performance is a gimmick. It’s a bait and switch with these funds and will drastically affect people’s wealth long term.

[@spooler24]

@CFH298 men lie, women lie, but numbers don't. IDGAF about feelings, just show me the facts... And facts say it does. 🤣😂. everybody has an opinion, my guy. You learn that very early in life...

[@ophirmayer1]

I would appreciate more actual numbers than political "the media" rants, to be quite honest

[@zz-jj9sc]

Stop interrupting him 😭

[@valveman12]

Second First😊

[@kf434]

Hint : Zoom has a background feature . we’re watching two dudes talking about serious financial stuff with beds in the background. Bush league. 😂

[@abha801]

It means both of them are chilled out now their $$$s are good lol.

[@theocratickingdom30]

I’d rather see their real background like the bed than something like that.

[@thriftyniftyfun]

I thought that too , just practical guys, nothing fancy! Because they are savers.

[@blugan]

No! I'm first!

[@Bittersweet721]

First

[@paldavi2876]

You have a guest to ask questions .not to make statement. . thats why you were given 2 ears and 1 mouth .