How to Retire on Series Starring YieldMax Fund of Funds YMAX - Episode 2

Summary

In this video, the creator introduces a series on retiring on dividends, starting with an ETF called YMAX from YieldMax. YMAX is a fund of funds, investing in other high-yielding YieldMax ETFs. The channel owner calculates potential returns based on historical data, demonstrating how much income could be generated annually from an initial $50,000 investment, factoring in reinvestment and capital appreciation. The video includes a detailed spreadsheet analysis and emphasizes the importance of financial freedom, inviting viewers to suggest the next fund to explore.

Takeaways

• 📈 The video introduces a series on 'How to Retire on Dividends', focusing on high-yielding ETFs.
• 💡 The series will analyze historical performance data of selected ETFs to calculate retirement timeframes based on dividends.
• 🎯 The first ETF discussed is YMAX, a fund of funds under YieldMax, which invests in other YieldMax ETFs with a single underlying asset.
• 💰 YMAX has a high distribution rate of 43.6% and a management fee of 1.3%, considered high but justified by the high yield.
• 📊 YMAX's net asset value is $169 million with 8.4 million shares outstanding, priced around $20.19, and it equally weights its holdings.
• 🔍 The video provides a detailed spreadsheet analysis, showing capital appreciation, distributions, and total returns for YMAX.
• 📚 The presenter uses YMAX's historical data to project potential retirement income, assuming reinvestment of dividends.
• 🚀 With a starting investment of $50,000, the presenter projects significant growth in annual income over 10 to 20 years, reaching millions annually.
• 📉 The video acknowledges risks, including the possibility of capital depreciation, and adjusts calculations to account for this.
• 💡 The presenter emphasizes the importance of diversification in reducing risk and the potential for high yields to offset management fees.
• ⚠️ The video concludes with a disclaimer that it is for entertainment purposes and not financial advice, inviting viewers to suggest the next ETF for analysis.

Q & A

What is the main topic of the video series 'How to Retire on So What'?

The main topic of the video series is to analyze high-yielding ETFs, calculate their historical performance, and determine how long it would take to retire based on their dividends.

What is YMAX and how is it related to YieldMax ETFs?

YMAX is an ETF under YieldMax, which is a fund of funds that primarily invests in other YieldMax ETFs. It equally weights the covered call ETFs with a single underlying asset.

What is the distribution rate of YMAX according to the video?

The distribution rate of YMAX is 43.6%, which is considered very high and justifies the management fee of 1.3%.

When did YMAX launch and what is its management fee?

YMAX launched on January 16th, 2014, and its management fee is 1.3%, which is considered high but acceptable given the high distribution rate.

What is the net asset value and share price of YMAX as mentioned in the video?

The net asset value of YMAX is 169 million, and the share price is around $20.19.

How does the video creator calculate the total return of YMAX from inception?

The total return is calculated by adding the capital appreciation per share of $0.29 (1.46%) to the total distributions paid of $2.47, resulting in a total return of $2.76 per share and a total return percentage of 13.85%.

What is the average yield of YMAX according to the video?

The average yield of YMAX, calculated from the time of declaration, is 35.22%.

What is the purpose of the spreadsheet in the video?

The spreadsheet is used to demonstrate the calculations for determining how long it would take to retire on dividends from YMAX, including capital appreciation, distributions, and reinvestment.

How does the video creator plan to share the spreadsheet with the audience?

The creator plans to share the spreadsheet on Discord for the audience to download and use for their own calculations and analysis.

What is the estimated annual income from YMAX after 10 years, according to the video?

Based on historical data and assuming a 35% yield with 100% reinvestment, the estimated annual income from YMAX after 10 years is $187,000.

What is the video creator's disclaimer regarding the financial advice provided?

The video creator clarifies that the content is for fun and entertainment, and not financial advice. He is not a financial adviser and encourages viewers to do their own research.