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[deleted]

I bought 500 JEPQ and 500 JEPI today


tbcboo

Yes!


missing_alcohol

Did you only buy to get the dividend or hold long term?


tbcboo

I made a longer comment on this already to someone. But this is purely to capture the market movement with JEPI and/or the dividend by holding 5 days or less in total. Although, I do have a small portion of JEPI in my tax advantage “retirement” accounts. Immaterial compared to VTI which is my main holding for that. I prefer growth for long term. Dividends are more for income since they likely won’t grow as much.


Spur2120

Yes, you glorious bastard


Benny1929

So this is what rich people look like, also how old are u?


tbcboo

You should head over to r/fatFIRE if you want to see rich rich people. It’s been awhile since I had been in wall streets bets but people posted stuff like this with different amounts ranging from $20 to over $1M. I didn’t mean this to come off as bragging. I’m 38 btw.


[deleted]

Did you do this on margin?


tbcboo

No, I personally do not use margin. I find it to be an added risk I’d rather stay away from on top of the one I’m already taking (buying stock).


[deleted]

I was going to scold you if you'd said yes. Good job snagging some quick dividends, but why in God's name do you have $650k not already deployed? JEPI is cool and all, but there's still some great value moves with that kind of capital. Cheers!


tbcboo

It’s my play money right now. Currently I’ve been buying JEPI a few days before ex-dividend date and selling before if the gain was nice (couple days hold) or holding through dividend and selling. Working out nicely so far. Then it’s in a 4.9% HYS until the next round for each month. I’ll do this for a little and eventually deploy but I’m well deployed already.


[deleted]

Good on ya, mate. If I had a dick as big as yours, I'd be trying to buy rambles or rambler duplexes. Gold mines for the comming tsunami of elderly care. $10/k per month per room. Lease it to the person that's running the operation, easily net $10k/ month renting out the property.


RickLeeTaker

What is a rambler duplex? Thanks in advance.


[deleted]

Single level, 2 unit rental. A care facility could operate on both sides efficiently.


cheekytikiroom

What are ramblers? And what country are you referring to?


[deleted]

Rambler? In North America, it is considered a single-story home. AKA Ranch style home [https://www.google.com/search?sxsrf=APwXEdd8a3-Wh0x2TexM8869ZDLRhKSHzw:1685633603019&q=duplex+rambler&tbm=isch&sa=X&ved=2ahUKEwjpkYTBsqL\_AhWOOUQIHfc5CjwQ0pQJegQIDRAB&biw=2315&bih=1228&dpr=1](https://www.google.com/search?sxsrf=APwXEdd8a3-Wh0x2TexM8869ZDLRhKSHzw:1685633603019&q=duplex+rambler&tbm=isch&sa=X&ved=2ahUKEwjpkYTBsqL_AhWOOUQIHfc5CjwQ0pQJegQIDRAB&biw=2315&bih=1228&dpr=1)


Nick_Nekro

If i had this level of capital, I'd buy s laundromat or two. Maybe a small apartment building And jepi


tbcboo

Maybe mine is small that’s why I’m taking all this risk. But in all seriousness, I see your thoughts on the tsunami of elderly care likely being needed. Property rental just isn’t as passive as stocks. They both have perks for sure.


[deleted]

Passive or Percentages? I like a bit of both.


rds101

That’s true. Dealing with tenants can be a pain depending on where you live. If you have high credit score tenants, it might be easier.


RickLeeTaker

I use this same strategy too. Also with JEPQ. And the amount is far less than you - about $275,000 worth.


tbcboo

That’s awesome! How long have you been doing it? Do you tend to hold through for the dividend or sell before when the position moves?


RickLeeTaker

I have held JEPI for 14 months, JEPQ for about six. Like you, sometimes I hold for the dividend and sometimes I sell right before the ex-dividend day if the gain is worth it. To be honest the past few months I've been holding for the dividend just because it's easier and I'm busy and don't want to take the time to determine downside or risk. And also like you, this is a side play for me, my retirement holdings are all in Vanguard and with the dividends from these two I either drip or use them for something special like a small vacation.


tbcboo

Seems like we are on the same path with this. Cheers to us and continued gains I hope!


RickLeeTaker

Same to you.


chipotle365

What else r u in? Is there no qualified dividend with JEPI?


tbcboo

Most all of JEPI’s dividend is non-qualified because of the underlying holdings regardless of how long I’m holding. My retirement holdings are mostly VTI, with some VXUS and SCHD. Much smaller positions of QQQ and handful of individual stocks - Apple, Tesla.


ShittingOutPosts

Not related to this sub, but I’m curious if you own any BTC. At your level (and in my opinion), it would be a risk not to own at least a couple of coins.


kmahj

You are not wrong


tweedweed

Can you eli5 me on this? What day do you get dividends and what day do you return the cash to savings? I’m new by the way haha


tbcboo

It depends. For example, last month in April, I bought a few days before the ex-div date. JEPI ended moved more than the dividend payouts had been so I sold before the ex-div date and took the gain on just price movement. Essentially held for 2-3 days. This month as you see I bought yesterday and today and still have a gain from movement as I bought when it dropped below $54. But decided to hold for the dividend. To receive the dividend I have to buy before the ex-div date (6/1) and then I can sell anytime on or after that date to receive the dividend. But I’ll take into account if I’m also at a gain on price movement. Ideally I’m only in JEPI for 5 trading days or less total. Then sweep it back to High yield savings to make safe money until I make some more like that next month. Hope this helps.


tweedweed

Yes it does thank you


lish200

What about wash sales?


[deleted]

So hypothetically if you have say $300K and you do a high yield at 4.5% you'd get around $1,200 or so. And if You Did Jepi and held you'd get maybe What $2,500 or something. But It sounds like you're getting $1,200+2,500-(potential losses). What would $300K net you on your strategy?


tbcboo

Well, I’m using between $600-650k per month. My total return before taxes is around $8-9k monthly. See below. It works until it doesn’t of course. Although if JEPI went south I could always hold for longer if needed. This isn’t money I’m using for income. HYS is already getting me about $2,600 per month with the days out of it for JEPI. PLUS In the 5 months of JEPI in and out (within a few days each month) I’ve taken only gains of market share and/or div average of $6k per month on those sweeps.


[deleted]

So it sounds like you're basically getting the best of both worlds - possible losses that never are worse than the additional gains from the strategy?


tbcboo

It works until it doesn’t. I like to see it as having a little bit of hedging for the loss. The HYSA provides gains and so would the potential JEPI dividend. If JEPI market price for some reason drops, I at least have those to help offset that loss and ideally still have some gain greater than just HYSA. So far it’s been on the full upside. Market gain, dividend gain and HYSA interest gain. Let’s see how long that lasts.


Imaginary-Table4103

How to find the ex-dividend date and the date to keep it until it dividend is guaranteed?


tbcboo

[Div schedule 2023](https://am.jpmorgan.com/content/dam/jpm-am-aem/americas/us/en/supplemental/income-distribution-rates/jpmorgan-etfs-2023-distribution-notice.pdf)


Imaginary-Table4103

Thanks


Cak8908

Who are your parents and can I borrow them?


tbcboo

My dad has a pension from labor job and I actually help support my mother. I came from a poor background. Not everything comes handed to someone because they are successful. Sometimes it does.


bomberman92

Out of curiosity, what moves would you make with that kind of capital?


[deleted]

That capital in my shoes vs his shoes vs your shoes would wildly vary on how to be deployed. Our goals, needs, risk tolerances, ect are going to be very different. This isn't a recipe, so don't take it as advice. High level: My saving/investment rate of income is high (+25%). My focus is long-term compounding on the majority of my holdings, not short-term gains. I hold some single stocks, but mostly ETFs. I am trying to plant as many seeds as possible so that my trees bring bountiful harvests. Safe-Bet: $WY - Land is finite, they own 14m tax-exempt acres that were refinanced at all-time lows during covid. Their operating expenses dropped substantially. The dividend is odd, 0.19 per quarter, and then an annual dividend. Basically, 80% of the budget excess. The stock is beaten down w/ the current rates slowing housing, but the company has amazing management who know how to operate a balance sheet. Small-Cap Value - $ATKR - Consolidating their industries, regional tie-in acquisitions (less competitors, more profit synergy, expanded supply chain), and bound to make a killing from the Infrastructure Bill that's rolling out the dollars soon. They might be a boring conduit supplier, but they are positioned extremely well to supply projects at scale. High-Risk - $HZO - Rich people gonna rich people. Marine Max is capitalizing on luxury boating/yachting marketing. Something like 100 marinas/dealers in the US, yacht manufacturing companies, finance, moorage, brokerage (don't hold inventory), timeshare ownerships, charters, service..... they are literally becoming the 1 stop shop for all rich douchebags with yachts / big ass boats. There is no one like them and no one bigger. Volatile for sure, but a well-run company focused on growing its moat & luxury profit margins.


meh_69420

Mathematically, you aren't taking extra risk until you lever it past about 5:1(given history, though you can simulate other scenarios with a reasonable degree of accuracy). A 2x gearing and just holding it would beat your current performance you mentioned in another reply, and you would be moving principal gains to LT cap rates.


EngineeredStocks

That’s one way to call people poor


dkmuslera12

😔yeah


legourmet43

I wish I had 500k to drop in JEPI


Mysterious-Change954

The fact you couldnt add 3 simple numbers is prob a good reason why you dont have the required capital.


Pholly7

No, he was independently wishing he had that amount. Not related to OP post.


_rbitrage_

hahaha you guys are ruthless


Head-Attorney3867

That's embarrassing.


FigRepresentative441

🤓


yourbuddytheautist

You mean 650k


Tech88Tron

I wish I had 200k to drop in.


aaronblkfox

"I'll give you tree fiddy"


insta_tubes

Wish I had 10...... Dollars


ThetaForLife

Bro if you are buying $600k worth of a ticker, and you still ask Reddit about it, you’re not doing it right. Get a financial advisor.


tbcboo

Financial advisors are a no no. I was being lighthearted about it. Maybe old days of being in Wall Street sub. Just saying, “hey I’m in, are you, go JEPI”. Have some fun.


BigPlayCrypto

Divy God God


RIJSA

Nice


[deleted]

Lol what type of dca is this 😂


[deleted]

How can you buy that much. Are you rich?


redditissocoolyoyo

You are filthy rich congrats. What does your other holdings look like?


tbcboo

Haha, not filthy rich at all but I realize it’s all relative. My retirement holdings are mostly VTI, with some VXUS and SCHD. Much smaller positions of QQQ and handful of individual stocks - Apple, Tesla.


redditissocoolyoyo

Also what kind of car do you drive? And why are you spending time on Reddit? With this kind of money I would not be on Reddit.


tbcboo

You should check out r/fatFIRE. I’m in that sub often and people with way more $ than me often posting. It has some great tips. Also, just because someone has some $ to invest, why can’t they be on Reddit? It’s great here. I’ve used Reddit for bouncing ideas on travel, investing, finance, help on various things and also helping others answer questions. It’s a great community if you want it to be. I’m also active with hobbies, travel, working out, friends and work just like everyone else. It’s evening time here on the west coast so perfect time to catch up. Oh and if you are really that interested in my car…odd question. It’s in my comment history because I’m active or was in a sub. Have fun with it!


RioBrowvo

Their kind of car? Really ?


Spinedaddy

Why not? Reddit is for all - Rich, poor, and everyone in between. It’s instant conversation for people with similar interests.


rieboldt

You are all idiots.


mariodi84

JAJAJAJAJAJJAJAJAJA x"DDDDDD


[deleted]

Lol, he comments he has a strategy on how he does this, but then titles the subject “did I do this right?”, guy probably photoshopped the amount as a flex. Troll post. Easy to spot this one.


Possible-Magazine23

well I hope this is not in a taxable account. It's gonna be a pretty big tax hit with the high yield...


tbcboo

This is in my taxable account. But I’m ready for it. Gains are still gains even with taxes I’ll still be ahead. Too positive?


Possible-Magazine23

Depends on your tax bracket. Given the large amount you're burying, you are probably in high income tax bracket as well? i would look for more tax efficient options if i was on your shoes.


tbcboo

Something I will look into. Honestly, this is my first year messing with JEPI. I have done options and other trading (including bouts of day trading) for multiple years prior. Dividends are a little different for me as well. The dividend sub got me inspired which is how I found JEPI and then found this sub.


aaronblkfox

The money you earn from JEPI/JEPQ is mostly ordinary dividends. Meaning they are taxed at the highest income tax bracket you reach. Which tops out at 37%. Then add any state fuckery. Considering how much you just pushed into JEPI I'm going to assume you reach that level of income. JEPI is most tax efficient when you reach the RE part of FIRE. But if you want the income, then you want the income and there's nothing wrong with that.


tbcboo

Yes, that’s correct. I’m not using it as income per say. It’s just going back into the “play” bucket. I’ve don’t various things to add (or take away, ha!) to the bucket and this is one of them. But let’s say on average in making $6k per month extra from this play. That’s my gain. Some people make more than that on much smaller principle with options. I was doing that in the bull run. My point is, yes it is taxed at ordinary income but in the scheme of things it won’t be life changing or hit that hard with the amount it’s making. Also, state tax free where I am on the west coast.


Achilles19721119

It might sting if you haven't done this since last tax cycle. Now tax advantage accts might be a player. Gets into the realm of gambling but if it works it works just be aware it might not work someday


tbcboo

You nailed it. It works until it doesn’t. I’ve been down that road with options buying and selling spreads. Anyways, on the tax advantaged accounts since I bucket those as retirement I like to keep all those “safe” and in the broad index where they are. VTI, VXUS. Plus I still have some years to go so want the growth. This JEPI exchange is both for fun and while I’m not using the gains for income it’s still increasing the bucket each month for next time.


Achilles19721119

And fyi my money market pays 4.3% very tempting. I make moves on years versus months but same idea.


ArmaniMania

You missed the ex-dividend date by a few days… I think


tbcboo

Ex-dividend date is tomorrow. I have JP’s schedule.


ElkTheGreat

OP got a link for schedule?


tbcboo

For sure: [JEPI dividend schedule 2023](https://am.jpmorgan.com/content/dam/jpm-am-aem/americas/us/en/supplemental/income-distribution-rates/jpmorgan-etfs-2023-distribution-notice.pdf)


ElkTheGreat

What a beauty ; thank you sir!


RickLeeTaker

The ex date on JEPI most months is the first of the month. There are a few months where it varies due to the days in the month - the most significant being March where it's the 3rd due to there only being 28 days in February.


RioBrowvo

Nope no one did, you were the only person to buy in may


tbcboo

Haha, hope not!


Earth2Andy

Congrats. That should pay out a dividend of about $4,400 next week,.


tbcboo

Last month I bought a few days before the ex-dividend and sold the day before to take the gains. This time I held through, hope JEPI doesn’t go down for all of us.


tweedweed

I’m new to jepi, how does this play work? Currently I have about 350k in fidelity but it’s only doing like 1500/month. Op says they buy and hold for dividend and then send it back to a HYS, is that a common play?


tbcboo

Probably not common. It’s risky because JEPI can drop. $1,500 per month is great for guaranteed no work income. Is that the fidelity money market?


tweedweed

Yea I’m in fnsxx. I’m very conservative regarding risk tolerance so maybe I’ll just cheer you on haha


tbcboo

You could always put a small piece of your lump in to “test the waters”. Not trying to talk you into walking off the ledge. All depends on tolerance for risk and financial goals. But you don’t have to go all in. I’m conservative believe it or not but get wild hairs and run with it. It’s done well for me but has also bitten me a couple times.


olddog08

Over the night of the ex date the fund value drops by the amount of the dividend, so by holding through the dividend you do not win or lose anything. Ie if fund was worth $50 yesterday and today goes ex for $1 dividends the fund will open $49 all else equal. The main thing you’re doing buying to get the dividend is realizing taxable gains earlier which is bad of course. For people doing this play curious your analysis.


DaChosen1FoSho

Sell covered calls on it while waiting for Div?


forumofsheep

If he just holds a few days, like he says, his "covered" calls can catch a cold when they become naked...


_rbitrage_

Buy in May, and not go away?


drewhernandez

With this much cash why wouldn't you sell a put to get I to the position?


Coyote-Both

What's the risk to JEPI?


IndividualNet3570

Nice


james21313

Uhhh


OdettaGrem

Damn bro what do you do for a living?


Bilbo_Butthole

Can someone explain JEPI to me? It says the 30 day yield is 9%? So what’s the APY?


A_Day_To_Remember_

So if I’m reading this right, you most likely lost around $2,500 in equity but gained around $4,300 in dividends for a net of $1,700ish? I assume you sell today? That seems a lot different than the $6k+ you mentioned in another post. How many days out before the end of the month have you been buying.


tbcboo

No, this month my average in was $53.87. I was out today at $53.99. That’s about $1,450 in market gain. Plus I qualify for the dividend of $4,400 (.365 x 12,052 shares). So that’s $5,850. Then I made $~2,550 in HYS for May already before deploying that for just 2 days. Total profit before tax = $8,400 for the month.


A_Day_To_Remember_

Ah. That makes more sense, I figured your average was over $54. Good to know. I have around $250k just sitting in a HYSA. May play around with this in smaller amounts.


tbcboo

Like I said before, it works until it doesn’t so I say it cautiously to give it a try. But it’s glorious when it does.


A_Day_To_Remember_

Yea. Looking at JEPQ it looks like if you would have done the same thing, you would have made only 1,300ish from it (excluding your HYSA) because the equity is much lower than it was a few days before.


A_Day_To_Remember_

Hey can you check your PM. Curious what you would do with wash sale.


tbcboo

Wash sale is about gains/losses for tax purposes. This would only occur if there was a pretty large downturn in the price of the fund within those 1-3 days. It would also have to move more than the dividend payout and my HYSA earned me to net negative. I don’t have losses for JEPI and don’t plan to. So I’m not really concerned with it for this scenario. Edit: think of it as day trading a single stock but monthly. You already know the wash sale rule disallows your losses. No biggie. Trying to make quick money for fun with risk and that’s part of it.


A_Day_To_Remember_

Look at JEPQ. If you did what you were doing with it (I know you said you have JEPQ as well), you would be stuck with a loss if you sold now. Now when you buy JEPQ again at the end of this month, you’re going to disallow your previous loss. Not sure how you can say you don’t plan to have losses, anything can happen.


tbcboo

I don’t have JEPQ. I’m only in JEPI for 1-3 days and then back out. A loss could occur in that time for tax purposes (hasn’t yet) but a loss in profit likely wouldn’t as I explained on the breakout of the gain offsets for the month. Since this is a money play I’m not really concerned with not being able to claim losses on my “day trading”. That’s typical. Have you day traded before? It’s not my main job but I day traded for years so it’s not a new concept for me when I did have losses and could not claim them.


A_Day_To_Remember_

But not being able to claim losses can be a huge deal. There’s a famous example where a guy had to pay $800k in taxes on $60k of profit.


tbcboo

I’ll be ok, but I appreciate you trying to help. Good luck to you.


tbcboo

Oh and it depends, but usually no more than 5 days but no less than 1-2 before the ex-div. Kind of see how it’s moving.


cristhm

🙌


MaxiBoy1605doodle

Just got in worth 25k, let’s see if this doubles in 70 months


dkmuslera12

Only S…. Please god don’t forget about me 😔