The Goal: Replacement, Not Gambling
Most investors screw up their $100k by chasing 50% yields (Tier 5). They buy TSLY or NVDY, see a massive payout one month, and then watch their principal vanish the next.
This portfolio is designed for the Core Fortress (Tier 2/3/4). We are accepting capped upside in exchange for reliable cash flow that doesn't eat itself.
The Allocation
- 40% SPYI (NEOS S&P 500 High Income): The Foundation. Uses Section 1256 contracts for tax efficiency.
- 30% QQQI (NEOS Nasdaq-100 High Income): The Growth Engine. Capture tech volatility for higher premiums.
- 30% JEPI (JPMorgan Equity Premium): The Defense. Low volatility, defensive posturing.
The $100k Ladder
*100% Free for first portfolio.
Why This Mix Works
Tax Efficiency: SPYI and QQQI use a specific tax rule (60/40 split) that JEPI does not. This saves you money if you hold in a taxable account.
Diversification: JEPI uses "Equity Linked Notes" (ELNs) which behave differently than the Call Options used by SPYI/QQQI. This diversification of strategy helps smooth out the income.
The Risk Check
Nothing is risk-free. In a massive bull market (S&P up 20%), this portfolio will likely only be up 12-14% (Total Return). You are "paying" for the income with that capped upside.
In a crash, you still own stocks. If the S&P 500 drops 20%, your SPYI will drop too (though likely less, thanks to the option premiums).