The NEOS S&P 500 High Income ETF (SPYI) offers a 12% monthly distribution, but about 96-97% of these payments are classified as return of capital, not taxable income. This means investors receive a refund of their investment principal, which reduces their cost basis and defers taxes until they sell the shares or the basis hits zero. Older investors holding SPYI in taxable accounts and planning to leave shares to heirs benefit most, as heirs get a stepped-up cost basis that can eliminate deferred gains. Younger investors or those without estate plans may face larger tax bills later. Consulting a tax professional is advised before investing for estate planning purposes.
Four ETFs generate monthly income by selling options on volatile market indexes, with yields ranging from 9.98% to 14.83%. The highest-yielding fund, IWMI, focuses on small-cap stocks with greater volatility, while others like SPYI, JEPQ, and GPIQ ta...
A Roth IRA portfolio designed to yield 8.1% annually requires roughly $745,000 to generate $60,000 tax-free per year, or $5,050 monthly. The portfolio includes seven income sources like Nasdaq and S&P 500 option premium ETFs, net-lease real estate, a...
