Steven Bavaria is back! - The Income Factory | Member Questions Answered!

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00:00 Intro
00:45 Markets at Record High's
03:58 Market Crash
09:08 Income Investing only for Retirees?
14:22 Income Investing solves "Drawdown risk"
20:24 Why I love Covered Call ETFs
21:15 Opinion on Bitcoin
27:18 Member #1 - New Book?
30:20 Member #2 - Income Investing only for Retirees?
32:44 Member #2 - Staying the course vs Adapt
35:40 Sleeping Well & Looking FORWARD to Market Crashes!
37:50 Covered Call ETFs - The Newer Income Factory?
41:35 Changing Lives with Income Investing

Main Mission of this Channel:
Empower everyday people to invest on their own. To create a source of Passive Income in order to reach Financial Independence and enhance quality of life

Primary Content of this Channel:
1) To share my Personal Investing Journey & Strategy with the world
2) Educational content on Income Oriented Investing with a particular focus on Covered Call ETFs
3) Keep you updated on the Income Oriented Landscape
4) Interview Fund Managers to get you the correct information straight from the experts

DISCLAIMER:
The videos and opinions on this channel are for informational and educational purposes only and do not constitute investment advice. Adriano Starinieri is not registered to provide investment advice and as such does not provide recommendations - those looking for investment advice should seek out a registered professional. Adriano is not responsible for investment actions taken by viewers.

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#passiveincome #investing #dividendincome #financialfreedom #livingoffdividends #covered call #high yield #income

[JohnsFishTales]

Much better job with the interview this time. You let your guest speak without interrupting which shows you’ve improved your communication skills.

[Lawyerup]

Big fan of the Income Factory after reading it about a year ago. Mostly in bdcs, reits, mlps, but will start adding cef positions soon. Thanks for the video!

[ianwilliams]

I love how Steven just politely went quiet whenever you talked down to him. Why on earth would you try to teach this guy about covered call strategies? This guy has been investing and writing about investing for decades

[TheProjectOverload]

Excellent interview, Adriano. Your approach truly sets your channel apart from the rest. We value the direct conversations you have with authors and fund managers, offering unique insights into covered calls and investments overall.

Income investing certainly has the potential to thrive during downturns due to income still being generated and opportunity to reinvest at lower share prices. Covered call income factory works for me.

[jumbothompson]

Steven is right. Market goes down and you can continue to build your income factory even faster that way. That's the big psychological advantage of income style investing. If I was holding growth stocks or stocks focused on certain sectors I might not be too happy during a 20% downturn.

[mikegraham]

So glad you had Steven on. I read his book about 4 years ago, around the same time I started following your channel, and the combined knowledge really changed my life. I am retiring early next year with a great performing portfolio. I agree Seeking Alpha is great but they have hardly any Canadian coverage which is sad.

[TheEgyptianStories]

I watched the video, but I found it a bit frustrating. As a viewer, I was hoping to hear more from Steven Bavaria, but there were frequent interruptions and a lot of focus on your own story. It would have been great to let Steven share more of his insights!

[jeffklugman]

the risk in a covered call strategy is a prolonged bear market. at first your covered call income will benefit from the increased volatility during the market drop. but then if the market becomes quiescent and volatility drops while your underlying capital is diminished. your calls are not going to generate the same income.

[jacquesfournier]

Good interview. I am a retired passive income investor with a 13% yield so I don't invest in 50% or plus income etf. My main concern is about the option market...will it continue to pay returns if there is a crach in the stock market...is there some research on that subject somewhere or more info on the option market?

[rkirby]

The problem with covered call boosted income is that when stocks have a 10% to 20% selloff (which isn't unusual), the value of the covered calls in the portfolio also go to zero since no one needs a call at a price much higher than the current market. This increases the downside volatility compared to debt income, whose downside is moderated because interest rates get slashed when there's a down market. You can look at historical graphs to verify for a particular investment.

[dwaynecunningham]

Great interview and discussion, guys.

[johnbuckley]

This strategy works in tax advantaged accounts; however, the strategy creates a tax burden in a brokerage account. 40% state and federal tax (5% state) leaves you will a 4-5% net return, which you can live on, but it doesn’t leave anything over to reinvest. Therefore, with NAV erosion that is common in many CEFS it still results in lower capital base and exposes you to sequence of return risks. You must reinvest a portion of the income to sustain the strategy long term, so you need to live on 2-4% to make this work, Qualifed dividends in a standard brokerage account only have a tax burden of 20-25% federal and state (5% state) and despite lower yields with market appreciation you come out ahead because of the lower tax burden. The bottom line is that you still need a growth component in your portfolio even in retirement, these assets that either degrade over time or remain stable cannot represent your only invest vehicle due primarily to the tax burden.

[anomanderrake]

great interview! I bought the book years ago now already. I'm Canadian and many things did not apply to me at that point in time, but I really, really, really loved the idea. :)

[kookiebush]

What are 3 of the best credit cef's or etf's?

[caseyjones]

Most comercial breaks ever. Finnaly gave up and left. My time is valuable

[fredrickthegreat]

Apples to oranges, covered calls are not comparable to credit investing CEFs. Covered call ETFs do not do well in a falling market. Compare the max drawdown between a CLO and the underlying index of a coverd call ETF. Not to mention the Sharpe ratios which cannot be applied to covered call ETFs due to the capped upside. Don't get me wrong, covered call ETFs do have there place in investing, but they are good when they are good. In a falling market nobody is buying calls, you will just see ROC payments eat away at your NAV. On another note, I am all in on the income factory's premise and love the book.

[international_dividend]

You still don't understand that average gains of 8-10% annually from the market or 8-10% annual gains from an income factory credit approach is the same thing - in this case, there is no 'best performing asset class' as returns are the same. That is Steven's main point!

[nadonadia]

What about taxes being paid each year because of receiving dividends.

[mysticjedi]

I am all in on HGY on the tsx. Anyone know of silver yield funds in canada you like? With yield?

[AdventuresWithDanaJodie]

I respect Steven's past investment ideas and bringing attention to those different types of investments, but I'm not sure he's opened to anything new.