The 4% RULE is OBSOLETE! Achieve F.I.R.E Fast With This Strategy. Fastest Way To Live Off Dividends.

[@MrChepburn]

Adrian - you can start your own acronym - "F.I.R.E.D." ( Financially Independent, Retired Early - on Dividends )

[@PassiveIncomeInvesting]

Lol 👍

[@chessdad182]

I like it. My plan too. I want to say I am FIRED.

[@MrChepburn]

@@PassiveIncomeInvesting Let's get F.I.R.E.D. up !

[@mattyboofs]

This should be trademarked

[@MrChepburn]

@@PassiveIncomeInvesting I think it's worthy of a t-shirt - how about a black adidas shirt with the Passive Income Investing logo and text saying "I'm F.I.R.E.D. Up!" !

[@nickgiesinger8135]

Thanks Adrian. I have followed your strategy for few months now and I am getting 8.3% in my TFSA and 11.25% in my margin (started it sooner). It is possible! I should reach my FIRE is 3 years!! wohoo!!!

[@MrChepburn]

One thing Adrian doesn't mention in this video is compounding through reinvestment of the monthly income earned through dividends/distributions. (Because he uses the income to cover his living expenses). If you reinvest the income monthly - the amount of capital grows considerably through compounding - and if you set up DRIPs for your holdings there are no fees which can make a significant difference to the bottom line. My wife and I currently have approximately 400k our combined accounts, and I am earning 10.3% in our TFSAs and 12.5% in RRSPs. We don't need the income now ( retirement is 10+years out) so all monthly income generated is reinvested. If you use 10% ( which I feel is perfectly reasonable) - the monthly income generated on $400,000 is $3333 reinvested (compounded) monthly at 10% annually for 10 years grows to over $1,700,000 in ten years = $14,000 per month ( over $5,000,000 and $41,000 per month in 20 years ) so I'm not particularly concerned about inflation. That doesn't include any capital growth which WILL happen (just not as much as with pure growth investments). I have a balanced portfolio across all sectors of the Canadian and US markets plus some global exposure. I am confident and comfortable with the risk and the plan overall. I have built my portfolios based on Adrians advice ( and overall it's almost identical to his own ).

[@blanksy_-]

we do the same Chris in our TFSA (and wifes ).... .. i take the income in my non reg . and either move to my bank or reinvest when opps come along . works great for me . . i agree Adrian has changed my methods . no more growth or 60/40 investing

[@PassiveIncomeInvesting]

Well said !

[@richardlannon]

This sound like where we are now. If I go with retirement age, I am 5 years out and my wife, if we want her pension she retires in 10 years. So this is a good strategy for us at this point to create passive income and a DRIP. Granted each year I am working a little less. I will take CPP at 62. Let us have some other income sources. :)

[@reptilianskin]

I’m in my 40s and got a late start with focusing on building my portfolio. When I consider my own retirement picture, I take into consideration my company pension, CPP and OAS in addition to my growing dividend income. So my portfolio does not need to be anywhere near 1.2 million to have a considerable amount of income.

[@matt9121]

Adrian, I am pretty new to investing but have been following your advise. I began building my portfolio out, and am now 10k into this nearly 2 months in. Thank you for giving me the knowledge, advise and inspiration to get started.

[@thoughtcriminal19xx]

Upvoted. Now to watch the video... Yep, now that I'm finished it was worth the upvote (as always). You didn't say anything I didn't know already, but it's nice to hear you answer my voting choice anyways. You inspired me to start investing and I'm following your strategy, although I'm more aggressive with my use of split share funds. Currentl yield on my portfolio is 14.2%, so 8% is very conservative and attainable. Take care

[@Klaster961]

This strategy is amazing in your preservation and living of dividends stage of life But for the accumulation stage of life it is best to invest in the growth portfolio and transform it into covered call ETFs / split share funds at the very end In this way you will pay taxes only once + the total return will be higher Especially it makes sense if you are in 30+% tax bracket and use taxable accounts more than tax deferred due to contribution / annual limits

[@johanlorenzo]

People need to understand the importance of LOADING THE BOAT during a market crash. Hopefully after seeing that insane 10% yield in your portfolio, it will open their eyes! Great job, man. Congratulations!🎉 You've motivated me to step my game up. Keep it up! 💯💰

[@p288212]

I hope other subscribers appreciate you as much as we do - you have changed the game for us in terms of investing and working towards early retirement - thanks for all of your advice!!!!

[@PassiveIncomeInvesting]

Glad to hear it !! Thanks for the comment ! 🙏

[@alexj700]

Thank you Adrian. I started Investing from the begging when i watched your videos I am getting Dividend every month and reinvesting it back into the Stock Market. Thank you for being honest and showing us how to Invest. 100% Best Investing advise for me.

[@PassiveIncomeInvesting]

Easy right?

[@alexj700]

@@PassiveIncomeInvesting Yes I was thinking before to invest in Index fund and withdrawing 4% but it did not make sense to me, with this strategy investing in Covered calls, split funds and income funds its much better for me for generating monthly income to live off in the future and its passive income that's the beauty of it. Thank you without you I would have never come across this type of investing.

[@PassiveIncomeInvesting]

I have people like you in mind when I make these videos . I truly appreciate this feedback because it motivates us to just keep going . Helping people is a natural and organic instinct that develops once you become financially independent. And we owe it all to passive income 😎

[@smallmj2886]

I would use .06 instead of .08 to account for 2% annual inflation. You won't be able to live to the same standard on 4,000/mo in 10-20 years.

[@magicinternetmoney8715]

Imagine thinking that yearly inflation in the next 10-20 years is gonna be 2%

[@IsakuItou]

Welcome to 2023 inflation is nearly 12%😂

[@Jakkaribik1]

@@magicinternetmoney8715 Inflation will be Easy Over 2% for a Very Long Time

[@Jakkaribik1]

@@IsakuItou Guess he is really Quiet NOW :D

[@monex90210]

I like your strategy. One risk you don't talk about is inflation risk. Most funds you invest in have little or nearly no capital growth and the dividends are static over 5 years. So over a 5 year period while for the most part you are not drawing on capital (except on the funds you recommend that have return of capital) you will be worse off in purchasing power each year if you are not reinvesting the dividends or some portion.

[@memeuproar9691]

Ya, I'd love to know what his take is on this

[@motivationmastery684]

Was just about to ask the same. 😃

[@karthikdhanapal2849]

Even I was having the same question ..And My strategy to overcome inflation is to have some percentage say 20% or more of your portfolio in growth oriented dividend funds like EIT,VDY so that we can have both growth as well as dividend…any comments..

[@monex90210]

@@karthikdhanapal2849 I agree there is a place for these in your portfolio but also add some growth dividend ETFs to help with inflation risk. you won't have the same yield but total return will be greater.

[@James_48]

@@karthikdhanapal2849 Adrian’s approach does seem to lack inflation protection.

[@davdride4850]

my goal is $4000 per month i like this info great lesson I'm up to 9.8 % yield I'm watching all your videos i basically follow your investments

[@dionangelini9066]

Another brilliant one Adrian and Erica. So many reliable funds are yielding well over 10%: ENS, DFN and CGXF has taken a nice dip and plan to purchase more. All true and great video.

[@philelmo]

DFN and other split funds are NOT reliable

[@bradbastow7341]

An important factor, at least for the US (don’t know enough about Canadian social security/benefits) is continuing to have earned income (wages) (even if it’s a part time job) due to the social security calculation, as failing to have earned income for a number of years will hurt your SS benefits due to the nature that 0’s play into that calculation. Another important factor is taxes, you should always be able to do your own taxes, and understand how different income types are taxed. Plus you can use this part time income to pad emergency funds, and contribute to tax beneficial accounts, ensuring enough money for medical bills and retirement. One important factor of taxes is how income can raise your SS benefits into the taxable range for your filing status type.

[@MiguelGonzalez-py5ud]

great video Adrian. I started investing using this strategy. i now have almost $1k a month income. Thanks to you. Go Habs!

[@richardchambers1124]

When did you start investing?

[@MiguelGonzalez-py5ud]

@@richardchambers1124 June 2021

[@richardchambers1124]

@@MiguelGonzalez-py5ud oh I thought you just started investing in general. But you have been investing a while and just changed strategies?

[@Jenintoronto]

Wow! Thank you, Adrian. You've taken a great stress off of me. This simple explanation makes so much sense! I'm sticking with you!

[@PierreSouligny]

Hi, I am a Canadian citizen and resident that has invested in SVOL and TSLY funds in a RSSP. It is unclear to me whether these funds distribution are considered dividend and therefore double taxed if I have them in an RRSP? Should I be pulling them out of my RRSP and moving them to a regular taxable account? I welcome advice because my reading has not led to a clear answer.

[@paulsantori8920]

Another beauty Adrian!! Great advice.

[@horatiu70]

I was thinking the same thing for a long time regarding the 4% rule being obsolete. The other reason other than managing to earn more than the 4 % return/ year I consider the following: the 4 % or 5% or 8% rule is if you want to live just off the dividends while keeping your principal intact. What if you are 55 and you plan to deplete your entire portfolio in 20 years.

[@neillegault]

Adrien's plan is awesome and I'm on a race to get to FI. I started off working on the 4% and quickly moved to this. My hopes is that I can surpass my monthly expense need before I retire so that every year I get more and more coming in so I can increase my spending if I want to not just to live with my means. Snowball effect.

[@mike330i]

🔥 Man of the People 🔥

[@YuginSkolov]

Thanks Bro. Please keep posting new low cost good entry point covered call ETFs

[@JohnJBailie]

If your expenses are $4000/month, while being paid $4000/month in dividends regardless of yield, how do you deal with long term inflation rate assuming 2-3% annually? There's also the risk of companies you're invested in cutting or reducing their dividends putting you at a net loss overall. How do you account for these things long term?

[@PassiveIncomeInvesting]

Zzzzz I make 6k of dividends a month and thats just my main portfolio . Plus I have other sources if income as well .

[@JohnJBailie]

@@PassiveIncomeInvesting I don't mean you personally, I mean someone going off the information in this video. Income is only relative to expenses when looking to achieve financial independance. If someone is looking to achieve FIRE then would they not need more income than their exact expenses?

[@PassiveIncomeInvesting]

Yes I would say so , I’m not telling people they just quit their jobs once they hit FI , I’m just saying how I got there . That’s just step 1 for a better and free life

[@walnutinvesting689]

@@JohnJBailie to answer your question about keeping up with the typical 3 percent inflation. Most quality dividdnd growth stocks increase their dividend payments faster than the rate of inflation. Just have to do your research and hold a diversified basket of quality names with a long track record of dividend raises. If a few fail to pay you simply replace them. There's a book I reccomend DIVIDEND GROWTH MACHINE by Nathan Winklepleck which really makes it easy to understand.

[@realtalk5931]

Because dividend aristocrats and kings increase their dividend every single year by more than 2-3%

[@migelsker]

Whot about inflasion? Dos this cover call grow ind time ?

[@st6342]

Thanks for all your hard work and time spent educating.

[@advkow]

This is fascinating to me. I always thought I needed 1.5-2 million to retire and at only 40k I thought it was impossible

[@johanlorenzo]

It definitely goes to show, TAKE ADVANTAGE OF A MARKET CRASH! Add a ton of shares for cheap and when it all recovers, your portfolio will give you a much higher yield. 🔥

[@JK-rv9tp]

I'm about 80% aligned with you Adrian but as a retiree that hasn't the option of just going back to work if disaster hits, I can't bring myself to acquire any of the Class A splits. Just too much potential volatility with the leverage. If you bought GDV last April, it dropped 66%. Yikes. That's getting hammered by the leverage. My overall portfolio, similar to yours except for the splits, dropped about half that. My dividend target is a more conservative 6-7 points so, after much rooting around when you highlighted them, I ended up buying some of the Financial 15 Split Corp preferreds, an excellent deal. Over 6 points, paid monthly, and NAV is over 20 bucks so there is 60% downside protection right up front before the dividend or capital is at any risk. A pretty safe, pretty much investment grade 6+ points, very attractive to an old fart. Not to poo poo the splits too much, but ppl need to be aware they can be a wild ride.

[@ScubaSteveCanada]

All valid points. Adrian points out the potential volatility and his videos always state to limit how much of these ETFs are in a portfolio.

[@JohnJohn-mh9cw]

J K out of curiosity did any of the volatile funds like GDV or others you have seen that dropped principle value stop paying the dividends or cut them drastically? I'm 32 years old trying to reach 4k/m passive income with 45k saved so far at 12.7% with CLM/OPP/QYLD making up over half of the portfolio so far. I personally don't ever expect or want to get my principle back, once I hit the 4k/m I'm never looking back which might be different than other folks. Just trying to gauge if I can maintain 12-14% all the way to 400k or so with reasonably safe dividend security for the long term.

[@PassiveIncomeInvesting]

JK , drops mean nothing if you don’t sell . Gdv never missed a dividend , so it would have made 0 difference in your life 😎

[@JK-rv9tp]

@@JohnJohn-mh9cw Part of the problem is ppl only have experience of the markets since the 80s and assume the market will recover right away, 1 or 2 years, if it tanks. If the market crashes and there is a long term deflationary depression (not unlikely in my view with US debt at 130% of GDP), it might take 10 or 15 years to recover, not 1 or 2. The highly leveraged funds will get their dividends cut or eliminated, maybe for years, and you have to take that into account. The spit corp could decide to wind up at the end of the 5 year period instead of extending, and if the nav is 9 bucks, I the preferred holder gets the 9 bucks and you get zip. Anyway, if you are totally dependent on that income, that's a problem. My portfolio only represents about a third of my income stream, so I can tolerate a 1/3rd or 1/2 cut in dividend income in a worst case, but leveraged splits are still too aggressive for me. Margin buying of stocks is part of the bigger problem in the market today.. 1929 all over again. Anyway, that's why I like the preferreds. You guys take 3/4 of the risk holding the As, I still get a decent income stream and can sleep at night knowing that if the NAV drops from $22 down to $8, I'm only down 2 bucks if the fund is wound up.

[@johnmorgan8036]

Hi Adrian - love your videos. Two questions: 1. How much of your distributions do you assume will be eaten up by taxes (this will significantly increase your "FIRE number"); 2. Have you accounted for inflation? (You are a young man - in 30 years, your $48,000/year will have very little buying power.) Thanks for the videos - keep them coming!!!

[@PassiveIncomeInvesting]

1- none . All income that comes from our tfsa accoints is tax free , the rest is taxed but very little as these funds are very tax efficient . Also , if you don’t have salary income . Your allowed a certain amount of investment income that doesn’t get taxed .

[@sidb9540]

What a great concept! That's what my long term play is as well! NOTHING beats telling your boss where to go, than passive income! :P

[@chessdad182]

I currently have an overall 5.25 percent yield on my portfolio. This should be plenty with SS to retire on. The retirement countdown clock is ticking!

[@memeuproar9691]

Hey, love your stuff. Just wanted to ask what your take is on inflation? 4% rule is supposed to take inflation into account, but does this strategy?

[@miguelferruelo6997]

How about net% after tax?... I assume this video is not taking this in consideration.. thanks

[@frankkesel7252]

Lots of good videos, very interesting topic and approach . As a SP500 investor I am considering switching to dgi. Now for the constructive comments: 4% is not obsolete, its a general consensus. More over you dont take in account taxation in the calculation. Also I would agree 10% in div is risky . I would also be careful in you personal consultation if I were you unless of course you are registered financial consultant. Wish you the best.

[@blanksy_-]

he has explained in depth over many videos . over and over again .. 10% is not risky . sigh .. why dont people watch the videos ??

[@PassiveIncomeInvesting]

Thanks for defending me all the time 🙏🙏 you’re awesome . Don’t worry I’m used to it by now … all good questions

[@johanlorenzo]

@@blanksy_- He mentioned how he took advantage of the Market Crash during the Roni Rona. That's primarily why he has such a high yield. I guess it went over their heads, it happens lol.

[@Massow711]

@Frank Kesel is technically right. Giving personal financial consultation especially when not licensed is technically not allowed in most provinces of Canada. While one may argue this is a way disrupt the industry, this could result in penalties. On another note, if you hold these investments in RRSPs or Non-registered accounts, you will be TAXED on the distributions. Take EIT for example, they indicate on their website what the return on capital and capital gains are when you receive your T3! Dividends vs. distributions are 2 very different financial terminologies everyone needs to understand clearly. In case you're wondering, take a look at the tax info from EIT: www.canoefinancial.com/eit-income-fund/tax-information/. In most years the return on capital was 45% - not the same as dividend. Talk to a tax expert and they'll tell you dividends are taxed differently vs. capital gains. It's great we have TFSAs in Canada, but it's not large enough to protect you from those taxes even though most can contribute up to $75k CAD now. And when you draw down on your RRSPs, you will have to pay tax on it the year the withdrawal happens.

[@blanksy_-]

@@Massow711 watch the video on EIT .. taxes are explained and i am happy

[@Vinny1USA]

Game changing way of investing, Great job and great video as usual. 👍

[@miken4591]

The 4% rule indicates the minimum which can be withdrawn in the worst possible market, with. 50/50 stock/bond mix. This is inflation adjusted. In most cases a portfolio will provide more than 4%, normally 8 to 10%. However, stock markets can go down for up to 10 years, and a fire strategy needs to take account of that. In 95% of cases, if you follow 4%, your portfolio will grow reasonably fast and you will be able to adjust every 3 years or so and increase withdrawals.

[@mattyboofs]

You mentioned that you sold your old condo and that is now a bulk of your portfolio. Out of curiosity, do you rent currently or did you buy another condo?

[@richardlannon]

Excellent video. I have discussed the 4 percent rule many times with friends and family. We are now in our 50 and some family members say they don't have the money for the 4 percent rule. Amazing me how many people I know that did not invest over the course of their lives. Maybe this is an option for them.

[@PassiveIncomeInvesting]

It really is amazing !

[@jesus-xr9yo]

I love this channel... Others be like invest in coca cola, star bucks, apple cause they pay good dividend and with a .5-3% dividend yield I would need at least 1-3 million to live comfortable with work as an option. Which is unrealistic for me and most people

[@dondinero13]

Just came across this gem 💎. Thank you!! Keep up the great content 🙏

[@Michael-ke8on]

Forza Azzurri, Adrian! 🇮🇹 Good video!

[@edwinpalacios1377]

They've had it easy in euros so far. Wait till they go up against good teams

[@itsanogo]

Love all your videos, thanks for your help!

[@newguyguy2578]

Is this american dollars or Canadian dollars?

[@sabrina7455]

Hello. Would like yours thoughts on the decline in price of EIT.UN. Thank you very much!

[@PassiveIncomeInvesting]

What decline ??

[@blanksy_-]

it did an offering i think of $12.10 , if i am correct , but since it has slid well below that which is odd ??

[@sabrina7455]

@@blanksy_- thank you for your message

[@PassiveIncomeInvesting]

It’s common for a fund to drop after an offering

[@theok4712]

It was a good time to buy then. It's going up again!

[@qpronto5595]

Very informative. Thanks for the video!

[@andyharbath704]

Thank you for all of your valuable information on your covered call ETF passive income strategy. I will be moving into retirement soon and I am thinking that this strategy will help to meet my income needs as well as limit risk. My question deals with your approach to determining how much you need to invest in this strategy in order to meet your long term financial needs. Your explanation of how to obtain X income by investing Y in the strategy is very straight forward. However; due to inflation, your X income needed will increase year over year. Do you factor this into your strategy such that you increase your investment into the strategy in order to keep up with inflation? If so, do you use a DRIP strategy, utilizing a percentage of your dividend income, or do you invest in other growth ETF options to fund the purchase of additional covered call ETFs?

[@PassiveIncomeInvesting]

I will talk a about inflation in a video soon but I don’t drip , I manually drip . So I invest regularly every month , increasing my income every month . Also I my retirement accounts which are compounding also are not part of my main portfolio, I keep those separate

[@andyharbath704]

@@PassiveIncomeInvesting Thanks for the quick response. I look forward to your inflation video.

[@make-trix4036]

Great videos man, I show them to my gf to help her understand where I want to go financially. Much respect 👍

[@ryanmitchell4266]

Hey Adrian. Question: If you are holding a stock that, say, is worth $20/per and produces a 10% yield, (but the underlying share loses value over time), when the share goes down to, say, $10, has your dividend income not been cut in half, in addition to the initial investment?

[@PassiveIncomeInvesting]

Well it’s a hard one to answer , it really depends on the fund and it’s distribution policy . Normally with cc funds then income stays consistent . These funds don’t usually act like single stocks , they don’t fluctuate that much . Just look at some names in my portfolio

[@ryanmitchell4266]

@@PassiveIncomeInvesting OK, so rather than the dividend being a consistent 10%, It's always a set dollar (or cent) amount monthly, and the yield % will fluctuate depending on the price of the stock. Thanks for answering!

[@PassiveIncomeInvesting]

Yes , but of course once you buy your shares you lock in the yield % . Your yield is based on your book cost

[@AwakenedLogic]

Hi, is this in Canadian dollars or American dollars?

[@johngord752]

I am curious what you think of Brompton split share funds issuing more shares. They seem to be doing it with almost all the funds in your split share list. From what I have read it is diluting existing unit holders value. Most importantly for income investors, it means there are more units that need to be paid distributions so that potentially lowers the payout. EIT also issued more units recently but I think that one is different somehow and does not dilute value even though they also call it an overnight treasury offering. Maybe you can do a video on it if you are looking for ideas.

[@PassiveIncomeInvesting]

It’s normal and it doesn’t dilute anything as the distributions are set in stone for split funds . It’s to increase the size of the fund and they usually do this when it’s trading at a premium , which many finds do during a strong bull market

[@blanksy_-]

i admire how you can have patience when you see so many comments from people who don't attempt to understand passive investing or bother to watch your videos .. over and over again . sigh

[@PassiveIncomeInvesting]

Used to it ! This is why I keep going 😎

[@blanksy_-]

@@PassiveIncomeInvesting you are great . thanks

[@QuarterKnight01]

Hi Adrian, new to your channel... if you live entirely on incoming dividends, what do you do with your spare time? I want to be part of this FIRE movement but my income is too low. At the same time, I would think there's a 1st world problem after achieving FIRE in that, what do I do next? Good problem to have, of course.

[@PassiveIncomeInvesting]

I make KZbin videos and do 1 on 1 consultations . Besides that , I have a lot of fun . The world is big there’s lots to do ! 😎

[@AlpineDividends]

Another great video! I'm still hovering around 4% avg yield, but am open to getting that higher!

[@PassiveIncomeInvesting]

As long as you invest , dividend growth investor I assume ??

[@AlpineDividends]

@@PassiveIncomeInvesting Yeah mostly into individual stocks with reasonable growth in stock price and dividend growth atm, and quite a lot of REITs too

[@PassiveIncomeInvesting]

Yeah then 4% sounds about right . You make with money with half growth half income which is fine if it works for you . It’s the more mainstream strategy

[@blanksy_-]

for years i followed the 60/40 investing method . its all done . Adrians method of passive investing is great . now i am free to spend .. LOL

[@greengiant2486]

Truly a man of the people! Great vid thanks keep up the amazing work!

[@dwaynecunningham2164]

Awesome video, dude.

[@theRickLC]

Very much a noob here. So just open a brokerage account and buy the recommended divendend producers? Any particular brokerage firm/platform better than others?

[@blanksy_-]

questrade is good

[@coolasiandud3]

sweet content Adrian. you mentioned u sold your fully paid condo and invest it all. I also heard from a newly retired couple that they sold their fully paid home and invest the money while they are renting an apartment. are you also renting an apartment/condo? it so, can u explain why is that a good financial strategy. TIA.

[@PassiveIncomeInvesting]

Yes I am ! . And it’s because my rent is free plus I have much more flexibility and less stress

[@donacardenasHomes]

@@PassiveIncomeInvesting how is your rent free!

[@sharonhelleman7378]

HI Myka, I did the same. The idea is that the money from the sale of my house, once invested, much more than covers my rent. I am making almost enough to cover all my monthly expenses, all from the proceeds of my house sale.

[@sharonhelleman7378]

@@donacardenasHomes I did the same. The idea is that the money from the sale of my house, once invested, much more than covers my rent. I am making almost enough to cover all my monthly expenses, all from the proceeds of my house sale.

[@PassiveIncomeInvesting]

Exactly

[@zmollon]

Wish I'd bought some houses 2 years ago I could be financially independent now :D

[@walthodgson5780]

The 4% Rule does not take into account things like interest or dividends, or things like pensions or Social Security. It has been back tested and 4% is the bare *minimum* you can withdraw from your holdings and not run out of money. Most people would actually die with more than their principal if they invest minimally.

[@letsbakecake5458]

Did you create any videos regarding 3 or 4 fund lazy portfolios?

[@kevinvandenbreemen584]

Hey bud, thanks for yet another great video. Do you have a rainy day fund? Say for example in case your roof leaked or something like that?

[@harithaboud5353]

Hey Adrian awesome video. Curious to why you rent instead of own your place ?

[@coolasiandud3]

i have the same question. a recently retired couple sold their fully paid home and invest the money while they are currently renting an apartment/condo. im curious as well why is this a good financial strategy.

[@ScubaSteveCanada]

@@coolasiandud3 I also sold my Toronto house and invested the proceeds. Renting frees up the value of the home to use for investing, trips, new vehicles, etc. The rental fees can be claimed on income tax and yearly property tax payments are history (can be thousands and thousands each year). The house may be in an area with a high cost of living but the rental can be anywhere you choose to live (I chose a lower cost of living area since work was the only reason keeping me in Toronto). Yes, rents/leases go up each year, but the government limits by how much. Exemptions to the limit must be approved.

[@monex90210]

@@ScubaSteveCanada Stephen, i agree in the right circumstances rent can be better choice. What did you mean rental fees can be claimed on your income tax in Canada?

[@coolasiandud3]

@@ScubaSteveCanada thanks for the detailed explanations. i understand now and i like it. I know in MB you can also claim rental fees on income tax. but i dont think you can in AB. Do u know which provinces you can claim rental fees? Also is the total annual rental fees gets subracted from your annual income? is that correct? or it is like rrsp you get about 25% refund? TIA

[@PassiveIncomeInvesting]

Flexibility , no anxiety and less responsibility. Life isn’t all not about numbers 😎

[@Yiishkii]

Are you based in Canada?

[@leemehlhorn]

Adrian - I notice that you love the covered call ETFs. I understand why you love them so much, but my question is why are you not just writing covered calls against high quality dividend stocks? I do this with a number of stocks which boosts my income significantly.

[@PassiveIncomeInvesting]

I rather let the fund manager take care of that , I’m lazy I guess …😎I’d rather do other stuff with my time

[@leemehlhorn]

@@PassiveIncomeInvesting I appreciate your honesty. I guess there is always a price for convenience. True you give up a bit when having someone else do it, but you gain time to do other things.

[@PassiveIncomeInvesting]

💡

[@jasonstupak4535]

Watched and liked, thanks Adrian!

[@marsdam]

Hi the tunda you use are from canada they are not available for all markets. Dou you know american cover call funds? And second why dont you use the strategy of coved call directly on uour stocks? Isnt it better? Thank you

[@PassiveIncomeInvesting]

Yes and I have a playlist for American ones

[@marsdam]

@@PassiveIncomeInvesting where can i see it? Your website? Begginer in thisss sorry

[@PassiveIncomeInvesting]

No on my KZbin channel , just click on my channel name to see the playlists

[@marsdam]

@@PassiveIncomeInvesting is this one?#nasdaq #coveredcalletf #qyld QYLD ETF: Follows NASDAQ-100 Index: Apple, Google, Amazon, Netflix, Tesla, etc | Covered Call INCOME... thank you

[@PassiveIncomeInvesting]

That’s 1 video in the playlist yes

[@karthik448]

The 4% is only applicable to the first year of your retirement. Following that the percentage would change every year based on the actual inflation and your ROI numbers. Lot of ppl seem to assume you can just withdraw 4% every single year post retirement which is dangerous and not the intended meaning of the study results.

[@balo1512]

The 4% rule accounts for inflation

[@CM_Burns]

10% annual yield is actually pretty easy to achieve if you know where to look

[@Nistical]

Easy to achieve yes but more risk

[@ralphpal]

@@Nistical where Were

[@bosccoh]

@@Nistical not risky, if you pick the right funds/ETFs and never sell.

[@EduardoRodriguezRocks]

@@bosccoh that is risk so 1 year bear market you can’t ensure you will get growth or dividend

[@ScubaSteveCanada]

@@EduardoRodriguezRocks So, there is an risk that you will be laid off from your job too. You can't ensure you will have a job. Life is all about risk - the key is to minimize them.

[@lukesenisi8571]

Hi adrian, when you buy US stocks in RRSP, do you have to pay conversion fees?

[@PassiveIncomeInvesting]

Well you have to pay whatever the banks exchange rate is

[@lukesenisi8571]

@@PassiveIncomeInvesting but theres no 1-2% fee right ?

[@PassiveIncomeInvesting]

I haven’t seen any , but you can pretty much say they charge that because they always give you about it 2 cents less than google exchange rate . Like when you exchange Canadian dollars for US dollars at the bank …. Which is why people go to currency exchange places instead

[@cabinboybp1]

ETN USOI, monthly dividend, biggest dividend rate at 38% yearly. This past month trading between $5 and $5.40. So easy topump money in if you don't want to buy fractional shares. That said since it is an etn, best to put it in a non taxable account. Does anyone else hold this?

[@PassiveIncomeInvesting]

Me ! I got 10k worth in my tax sheltered retirement account

[@ArifKhan-ok1wj]

Keep Up the Amazing Work 👌

[@andyhermiz3075]

Love you bro❤❤ keep up the great work

[@edwinpalacios1377]

Adrian do you now of any good US covered call etfs? At least one for free

[@PassiveIncomeInvesting]

The best one is no secret: qyld . I even have a video on it plus a playlist just for us 🇺🇸 stuff 😎

[@Goforitmanager]

Great video as always, thank you.

[@anthonyyee5363]

1:00 YOO n64 gang lets goo! It was my BFF too. Mario Kart for dayssss

[@manuelespiritosanto9433]

Thanks for the content. Couple questions: Do your expenses include taxes? Do you do covered options (covered calls, cash-secured puts, poor man’s covered calls) on individual stocks yourself? If not, why not? Thanks

[@PassiveIncomeInvesting]

Yes they do , and no I don’t do it myself , I rather spend my time elsewhere and have the fund managers do it for me 😎

[@whansen101]

I like your strategy. Do you have a video or thoughts regarding changes you would make in an economic downturn?

[@PassiveIncomeInvesting]

No changes…. I’m a buy and hold income investor. I will buy more ! As much as I can

[@whansen101]

@@PassiveIncomeInvesting Thank you. I really have enjoyed your concepts and it sure seems like you’re doing this right.

[@vitoscaletta7917]

Hey Adrian, can you do a video about the NAV? i saw you posted a note not too long ago about Covered calls or ETFs and their NAV price. if its above 15$ then it will pay a dividend. i was wondering how this all works?

[@PassiveIncomeInvesting]

That’s for split funds . Please watch my split fund videos … I even have a playlist for them

[@vitoscaletta7917]

@@PassiveIncomeInvesting ok thank you will do

[@Bigbarry889]

Hum so in your excel you says that for example a stock is giving you $1.2 each year. Let say I have 600k. The share is $12. Equals $50,000 yearly dividend. Now let say the share rose to $24 and the dividend is still $1,2 for each share. Shouldn’t I sell my shares then buy back more to have mor shares thus more dividends?

[@MrLeSpatiate]

I don't think that's that easy. 600k$ multiplied by 2 since stock is now double of 12$, so 24$... Total value of 1,2M. 1.2M spent to buy shares at 24$ would give you the same number of shares you had.

[@sniperfx20]

Adrian, what happens when interest rates increase? How does that affect your investing strategy? Please make a video or answer this question!!

[@PassiveIncomeInvesting]

I don’t see how it would impact anything . If anything it would be good because I own a lot of financials 😎

[@sabo_meg]

It’s lit 🔥

[@jamesw7746]

Adrian, thank you for all your content. I was wondering if you would do a video analysis of an etf called REVS on the NYSE. It has a 20% yield and an annual dividend at the end of the year.

[@MyChannel108]

You are not presenting any backtests of your strategy. How should we then know it doesn’t have more risk than a normal dividend strategy?

[@PassiveIncomeInvesting]

I don’t dwell on the past … backtesting is pretty useless if you ask me .

[@softylol23]

Make a dividend portfolio of us high yielding ETFs and stocks

[@rickl124]

Adrian, most of my money is wrapped up in 401k\IRAs and my house, I'm 51, and years away from IRS penalty free 401k\IRA disbursements. I would love to switch gears and invest, retire early, and live off dividends but am wondering if it's too late for that now. What are your thoughts?

[@marcalvarado1915]

Google Roth Ladder conversions. You can convert your 401k/IRA to get access to that money sooner but it takes some time.

[@PassiveIncomeInvesting]

It’s never too late , time is the most valuable commodity , not $

[@brimill8257]

Good video Adrian! You explained that very well, I don’t need a million to retire!!👍

[@citizenm9590]

Between EIT and DFN if I was to hold in non-regiestered account which will be taxed lower?

[@neillegault]

Adrien talks about the split in this video kzbin.info/www/bejne/i5PNgGqZj7Wbhbs

[@neillegault]

For DFN www.quadravest.com/dfn-fund-documents

[@neillegault]

For EIT www.canoefinancial.com/eit-income-fund/tax-information/

[@citizenm9590]

@@neillegault thanks will check them out

[@PassiveIncomeInvesting]

I think it would be eit but remember how the income is taxed can change every year . Either way listen to Neil ! 😎

[@paob7580]

Legend!

[@EverywhereIsHere]

Commenting for the algorithm!!!

[@wizardgeo235]

I will buy your digital product when you include U.K. Portfolios.

[@PassiveIncomeInvesting]

Sorry I only cover the Canadian and U.S. stock markets

[@cindyjonessherk8985]

Great topic!!!!

[@samuraijim9243]

Your model is excluding inflation. 4% withdrawal is assuming 7% average index fund returns this builds in a 3% cushion to stop inflation from eating your portfolio.

[@דראילוןוולף-הכיווןהכלכלי]

Covered calls ETFs do not address the problem of inflation so the 4% rule will not be solved using these ETFs. The income will gradually erode and not keep up with inflation this is a real problem that one has to think of before using this instruments

[@PassiveIncomeInvesting]

That’s complete nonsense and a myth that you got brainwashed to believe . If you keep investing regularly , it’s a non issue . I also have compounding retirement accounts . I explain it here kzbin.info/www/bejne/d4HNk5Z5lNqMock . Getting less yield now to make a bit more later does not solve anything either . Investing and making 10% returns annually smashes inflation. How you get the return does not matter , whether it’s with growth or income

[@graceg8834]

Great info

[@anthonyjohnston3796]

Out of curiosity, if you sold off your condo to invest in stock market, where do you live now?!

[@amazingstar144]

That's exactly what I was thinking. If you don't mind telling us that Adrian? Thanks

[@DanielTojcic]

@@amazingstar144 they rent

[@jankay8569]

where the hell do you think his $4k monthly expense goes? lmao

[@PassiveIncomeInvesting]

I live in Montreal , saint Laurent borough

[@moneyindabank]

The 4% rule is like pay phones.

[@PassiveIncomeInvesting]

lol

[@rcommunication]

hey adrian, how is dividend investing faster than buy and hold index investing? I need to pay taxes on the dividends so the accumulation of wealth is slower no?

[@PassiveIncomeInvesting]

Your entirely dependent on the stock market …. I’m not . What if the market is flat for years ?

[@rcommunication]

@@PassiveIncomeInvesting gotcha, And Your strategy is good for residents outside of canada too?

[@PassiveIncomeInvesting]

Of course , it’s not a strategy based on location , it’s just an income focused strategy. And btw it’s even easier to adopt the strategy with the us stock market

[@jeffreymedeiros2402]

Are covered call ETFs safer than income funds?

[@ralphpal]

Different things Do both I am not an expert But like pokemon would tell you Collect them all But cover call etfs are probably a little more risky in a down market But again I am not wn expert Do both If you are worried

[@coolasiandud3]

@@ralphpal im not an expert in option trading but dont u mean covered call etfs are risky in a bull market?

[@ralphpal]

@@coolasiandud3 could be But these etfs are almost new So we really didnt have a long bear market But buy it What do you have to lose

[@sharonhelleman7378]

@@coolasiandud3 My covered call etfs dropped some during the crash last year, but much less than some of my individual stock picks. Most of my cov. call ETFs recovered fairly quickly too (the exeption was the BMO utilities etf, b/c of how far oil prices dropped)

[@TheRIGURAS]

With so much money invested in these ETFs, are you afraid one of them will ever tank? (lets say some of them get exposed for fraud or something)

[@PassiveIncomeInvesting]

Lol no . Have you looked what the ETF’s hold ?

[@TheRIGURAS]

@@PassiveIncomeInvesting No, I havent. Im moreso asking for myself. I want to start plowing chunks of money into these ETFs, but im worried that ill lose it because "Fund managers falsely report financials" or "ETF gets margin called and liquidates all its funds" etc etc.

[@PassiveIncomeInvesting]

Ah ok , you’re new that’s why you’re worried 😟 there’s nothing to worry about it’s what the wtf holds that counts

[@zombeloffical]

Yall need 4k a month is crazy to me. Im investing to reach just 1.5k€ per month. I can live a good life with it here in germany

[@PassiveIncomeInvesting]

That’s all subjective !

[@neolithic3]

I'm glad it is working for you but honestly I feel leary of this longterm. I mean okay maybe it has been 3 years and working great for you but you probably have another 45 years of life at least (not sure of your age). Lots can happen, in 40-50 years, could be a long bear market or something. Who knows.

[@PassiveIncomeInvesting]

My funds excel in a bear market lol . That’s the cherry 🍒 on top

[@badass6656]

What you do is not quite what you describe in this video. From our dicussions and other videos and other videos I have watched. I do find your videos entertaining.

[@PassiveIncomeInvesting]

??

[@badass6656]

@@PassiveIncomeInvesting Firstly I will say what you do is commendable and others will benefit by emulating your financial path. 6.25 you say simply invest enough to cover your expenses in passive income. in fact you have a multipronged approach of which this is one step. 1. You have income from your KZbin channel. 2. Your income producing assets produce more than $4,000 per month the surplus can be reinvested increasing your passive income over time. Your recent videos show how you earn more than $6,000 per month in passive income. 3. Reinvest simple, grow your income producing portfolio over time. Your portfolio is growing from one video to the next as your thumbnails show. 4. Have a retirement account which can be used in future to provide additional income. You have said in previous videos this is $250,000. If you simply invest enough to cover your expenses in passive income you will not need more than $500,000 invested yet your portfolio is over $700,000 add $250,000 from your retirement account, add income from your KZbin channel. In reality you have likely exceeded the 4% rule in terms of capital. You still have other sources of income just not a full time job. Those who follow your channel should replicate these other steps as well if they can.