Episode Details

I talk with people all the time who have an ETF or mutual fund that pays a fixed monthly amount. In most cases, they misunderstand it.

Most think they are receiving regular income—but chances are, it's usually a brain fart.

Many investors misunderstand how these monthly pay investments work. 

From covered call ETFs and dividend funds to monthly income funds, mortgage funds, T8/T6 mutual funds, and REITs, the mechanics can be confusing—and the implications even more so.

In my latest podcast episode you'll learn:

• Why are monthly pay ETFs and funds a brain fart?

• How do fixed monthly pay ETFs or funds work?

• Why is a monthly distribution not part of your rate of return?

• What is the difference between a distribution and a dividend?

• Why is a monthly distribution not new money?

• Why does a monthly distribution = Selling shares?

• Why does a reinvested distribution = No distribution?

• Why do covered call funds usually have lower returns but higher tax?

• Why are monthly pay ETFs/funds a problem for retirement income?

• Why are monthly pay ETFs/funds a problem for leverage investors?

• How can we get out of the Brain Fart?

• How can you perfect monthly pay funds?

• What are self-made dividends?

• Why are self-made dividends a perfect fit for your life?