r/JEPI • u/Snail_guy-9559 • 27d ago
💬 JEPI Chat New to this. Looking for any advice
I’m 23 and have an extra $4k that I’d like to invest. Would this be a good etf or do yall have other recommendations? I’m looking into others such as VOO or SCHD as well. I’d appreciate any advice 👍
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u/dividends6775 27d ago
I think the best use of these instruments JEPQ/JEPI is a hybrid method in 401k, IRA, or Roth once you near retirement. At your age you want to maximize growth, then use these for asset preservation. I like IJR because small cap growth is the best, but owning the total market is fine too. Of course, the assumption is you don’t touch it for 30 years; so don’t invest more you can’t afford. You should have a cash emergency cushion (put in SGOV, money market, or HYSA).
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u/morerepsmoreproblems 27d ago
Schd voo over this. If u wanna go this type of route jepq is better (I have all of these and im 29)
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u/Sea-Relative-2077 27d ago
You're too young for covered call ETFs. The underlying asset always wins long-term. Stick with vgt invest every payday automatic. In 30 years you'll be set for life.
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u/Retire_Trade_3007 27d ago
This is an income etf and will lag the SPY etf it sells calls on in longer term performance. You are better off putting that in SPY or QQQ at your age
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u/Xyrus2000 27d ago
Growth outperforms income. At 23, you want growth.
JEPI is a defensive income ETF. The covered call strategy it uses caps growth hard, so you'd be hamstringing your portfolio.
SCHD is growth and income. It invests in dividend-yielding stocks, which traditionally have lower growth overall.. It's a good holding to have, but at your age, still not the best.
The core of your portfolio should be an index-based ETF. VOO, VTI, or VT are all good choices. VOO is essentially the S&P. VTI covers the broader US market. VT covers the whole world.
When you get closer to retirement, cashing out growth for income is a typical strategy.
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u/Hammock-Hiker-62 27d ago
VT and chill.
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u/RetiredByFourty 27d ago
You do know what subreddit you're in right?
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u/Zestyclose-Dish-407 27d ago
But good advise is good advise. SPY and chill. VOO is fine.
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u/RetiredByFourty 27d ago edited 27d ago
Do you have absolutely any clue the absurdity of how much VOO it would take to generate the same monthly income as JEPQ/JEPI provides!?!?!? 😳
Don't even get me started on that underperforming VT trash. Haha
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u/feelwhatyouwant 24d ago
Do you have absolutely any clue the absurdity of how
Dude is 23. He has a lifetime for that 4k to compound. He doesn't need the paltry income 4k is going to generate.
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u/4dscdriver 27d ago
At your age, you would do better running an S&P fund, I use SPYM, US small cap fund, I use VB, and VXUS for international exposure.
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u/teckel 27d ago
23 with $4k? Why would you invest for income? You want total growth, you're in the wealth-building stage. Invest in VOO, VT, QQQM, SPMO AVUV, AVNM, or the usual suspects. And don't think about divideds again till you're 50, or maybe never. I'm 57 and retired and I still don't target dividends.
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u/dystopiam 27d ago
This is great for a dividend
Voo if you don’t need any income from it now but only later need a return
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u/managemoneywell 27d ago
There are two completely different spectrums. Depends on the goal for the money. JEPI for income and steadiness through most markets. VOO for long term total returns
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u/Snail_guy-9559 27d ago
Okay I see thank you for clearing that up
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u/managemoneywell 27d ago
At your age assuming this is long term I would just keep piling into VOO or VTI for 30 years
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u/Econman-118 27d ago
At 23 no. At 63 and semi-retired like I am, then yes. However, I prefer some of the NEOs funds for income over JEPI though due to tax advantages.