The “4% Rule” concept is simple: save up a pile of money, sell off 4% each year, and hope for the best. I agree, for a time it seemed like a reasonable guideline.
SGOV for CSP collateral: Schwab DOES allow it - just need a margin account (not cash). You get ~70% buying power. Same with Fidelity, IBKR, tastytrade, E*TRADE - all work fine in margin accounts.
EPI vs SPYI:
High tax bracket + taxable account = SPYI (ROC distributions are tax-deferred)
IRA or want simplicity = JEPI (lower fees, more liquid, steadier payouts)
Thx for this. 2 questions:
1. Which brokerages permit using SGOV for cash collateral on CCPs? I know Schwab doesn’t.
2. JEPI>SPYI? I believe the latter is newer but the tax advantaged distributions seem compelling.
Hey JP
Quick answers:
SGOV for CSP collateral: Schwab DOES allow it - just need a margin account (not cash). You get ~70% buying power. Same with Fidelity, IBKR, tastytrade, E*TRADE - all work fine in margin accounts.
EPI vs SPYI:
High tax bracket + taxable account = SPYI (ROC distributions are tax-deferred)
IRA or want simplicity = JEPI (lower fees, more liquid, steadier payouts)
SPYI yields ~12.6% but newer/riskier.
JEPI yields ~8.3% but rock solid since 2020.
Can't go wrong with either tbh
Thanks, Mike!