•The Cons: Manager risk (what if NEOS fails?). Strategy risk (what if options stop working?). No asset class diversification.
•Verdict: Possible for Lean FIRE, but too risky for Fat FIRE.
The SPYI "All-In" Scenario
Let's say you have $500,000. You put 100% into SPYI.
The Result
Monthly Income$5,000
Expense Ratio0.68% ($3,400/yr)
Management Time0 Hours/Year
Why It Is Dangerous
Single Point of Failure: If the fund manager makes a mistake, or if the SEC changes the tax rules on Section 1256, your entire retirement plan breaks.
No Hedge: In 2022, bonds helped (a little). Gold helped. Managed Futures helped. If you are 100% SPYI, you take the full hit of the equity market.
The "Two Fund" Compromise
If you want simplicity, add just one diversifier. 80% SPYI + 20% BDCs (MAIN). Now you have two asset classes (Equities vs. Credit) and two managers. Much safer, almost as simple.