@davisjasons: Always me with bad ratio#fyp

Davis Jasons
Davis Jasons
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Wednesday 25 December 2024 10:05:08 GMT
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Replying to @dad life ⚠️ The Risks of High-Yield ETFs like MSTY: 1. Dividend Isn’t Guaranteed Just because the yield is high now (e.g. 124.71%) doesn’t mean it’ll stay that way. MSTY pays dividends based on an options income strategy, and the payout can fluctuate monthly. 2. Share Price Can Drop A high dividend may feel exciting, but if the share price drops significantly, you can lose more in value than you earn in dividends. For example: You might receive $27/year in dividends, but if the share price drops $10, you’re in the negative. 3. Volatility from Options MSTY uses a derivatives/options strategy tied to the performance of a volatile stock (MSTR - MicroStrategy). This adds extra risk and price swings, especially in volatile markets like crypto or tech. 4. Return of Capital Risk Some of the dividend payments might come from return of capital, which reduces your cost basis but doesn’t reflect real income. This can also be a red flag for sustainability. 5. Tax Complexity Some of these dividends may be taxed differently depending on how they’re classified (ordinary income vs. capital gains vs. return of capital), which might impact your overall return after taxes. 🎯 Summary: High-yield ETFs = High reward potential + High risk. They can boost your income but shouldn’t be your only investment. Balance them with stable, dividend-growing stocks or ETFs like SCHD, VOO, or JEPQ for a safer, long-term portfolio. #mya_love777 #WealthBuilding #MSTY #smartmoneymoves #howtoinvest #PassiveIncome #DividendStocks #highyielddividend #fyp #investingforbeginners #LongTermInvesting #DividendInvesting #financialfreedom #buildingwealth
Replying to @dad life ⚠️ The Risks of High-Yield ETFs like MSTY: 1. Dividend Isn’t Guaranteed Just because the yield is high now (e.g. 124.71%) doesn’t mean it’ll stay that way. MSTY pays dividends based on an options income strategy, and the payout can fluctuate monthly. 2. Share Price Can Drop A high dividend may feel exciting, but if the share price drops significantly, you can lose more in value than you earn in dividends. For example: You might receive $27/year in dividends, but if the share price drops $10, you’re in the negative. 3. Volatility from Options MSTY uses a derivatives/options strategy tied to the performance of a volatile stock (MSTR - MicroStrategy). This adds extra risk and price swings, especially in volatile markets like crypto or tech. 4. Return of Capital Risk Some of the dividend payments might come from return of capital, which reduces your cost basis but doesn’t reflect real income. This can also be a red flag for sustainability. 5. Tax Complexity Some of these dividends may be taxed differently depending on how they’re classified (ordinary income vs. capital gains vs. return of capital), which might impact your overall return after taxes. 🎯 Summary: High-yield ETFs = High reward potential + High risk. They can boost your income but shouldn’t be your only investment. Balance them with stable, dividend-growing stocks or ETFs like SCHD, VOO, or JEPQ for a safer, long-term portfolio. #mya_love777 #WealthBuilding #MSTY #smartmoneymoves #howtoinvest #PassiveIncome #DividendStocks #highyielddividend #fyp #investingforbeginners #LongTermInvesting #DividendInvesting #financialfreedom #buildingwealth

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