I'm relatively new to the covered-call with leverage strategy, but I'm trying to understand how best to use the monthly income it generates. My goal is to build meaningful retirement wealth over the next five years while also creating a reliable income stream. I'm currently generating approximately $1,400 per month in my TFSA, and I'm wondering whether I should continue reinvesting that income into additional shares of the same strategy, or start directing some of that cash flow into more diversified and potentially safer ETFs. At this stage, I'm less interested in simply maximizing yield and more interested in finding the right balance between income, capital growth, diversification, and protecting what I've built. For those with more experience, how would you approach reinvesting that monthly income with only five years remaining before retirement?
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8 Comments
Michael Noël@therev · 6d
Have you considered maximizing growth until you retire? Then switching to income in retirement?
Max Penders@mjpenders · 6d
Why would you use a lower expected return strategy with margin?
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