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JP Buongiorno's avatar

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.

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Mike Thornton's avatar

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

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JP Buongiorno's avatar

Thanks, Mike!

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