Income generation - Stocktrades Canada

I have a question however that makes me bounce back and forth on my investing “philosophy”. I recently received an alarming estimate for a home upgrade that I was not expecting to budget for. As it stands right now, it’s 30k out of pocket – ouch! I’m not exactly in a position to simply fork over that amount of money without some major sacrifice. All that to say, I’ve been bouncing back a forth between income generating ETFs, covered calls, or high yield dividend stocks that will help me recoup the loss of that 30k bill over the next 5-10 years. What are your thoughts on this? Are there best strategies that I should consider?
The majority of my portfolio is blue chip stocks with the intention of buying and holding for 10+ years. My fear is, I’d like to reap the financial reward of my hard earned money much quicker.

Marked as spam

Asked on February 6, 2024 7:26 pm

60 views

▲

▼

✔

Private answer

Hey there - unfortunately, there is no magic pill to accelerate earning your cashback without taking on additional risk. Sure, you could employ a covered call strategy through ETFs, or pick up high yield stock that might generate some of that cash back for you at a faster pace, but on the flip side, you might be sacrificing capital gains as a result.

I suppose, the answer to your question lies in whether or not you need the cash today, or if you can just continue building your portfolio and if required, sell assets to make up cash shortfall when required. Therein lies the crux to your answer. Bottom line is that if you are looking to make up that 30K quicker, than you are likely going to have to sacrifice something or another. Either take higher risks with high growth stocks, and/or do as you suggested and accelerate cash generation which could come with lower capital gains.

Does this make sense?

Mat

Marked as spam

Posted by Mathieu Litalien

Answered on February 9, 2024 9:52 am

« Back to Previous Page