I wanted to clarify a point from the latest KarMoe episode. Income products can serve different purposes: 1. @riggs uses them with margin to accelerate investing, and values the distributions for flexibility and cash flow. 2. Some people use them before retirement. 3. Some people use them after retirement. Someone can believe a covered-call portfolio is especially suited to retirement, and I respect that view. Iām not judging the mindset of someone who holds one, or saying it has to be the same as a growth investorās. Iām just saying: you donāt know enough from the label alone. People use the same tools for different reasons and in different circumstances. There are multiple styles under both the āincomeā and āgrowthā umbrellas. A useful discussion needs to get specific about the product, the goal, and how itās being used. I know āgrowth versus incomeā can get very tense, and a headline can bring broader thoughts about the topic into the comments. Sometimes people are responding to the show notes rather than what Moe and I actually said in the episode (not everyone has time to hear me ramble, I get that). Iāve come to expect that, and itās fair game. The same problem applies to the āgrowthā label. Calling me a āgrowth investorā doesnāt tell you much. My broadly diversified, CAGE-centered approach is very different from someone holding only NVDA, TSLA, and META, even if we both get put under the same label. Thatās why Iām always aware I have to navigate these terms with extreme caution. LOL.
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15 Comments
Rabid Money Badger
@riggs Ā· 15h
Iāll tell you what. Bigger numbers compound much nicer than smaller ones. I should probably do an update lol.
Nicolle
@moneymeetslegacy Ā· 14h
The label describes an attribute of the investment or portfolio construction or strategy, but it doesnāt necessarily define the investorās overall philosophy or investment identity. I think people defend what has worked for them. If someone has successfully built a portfolio around dividends or covered calls, criticism of āincome investingā can feel like criticism of their financial decisions. The reverse happens with growth investors too. I didnāt listen to your recent podcast episode yet but will get to it this week!
Heath
@incomewealthinvestor Ā· 7h
I donāt use labels, just the universal language $$$
Not Financial Advice @anpc86 Ā· 14h
Probably better to describe it as āRealizedāand āUnrealizedā Investors. Swing trading and income investing to me are on the Realized side of things. In the end, you can never satisfy everyone , someone will want to make their own labels. at same time, gives people something to debate over and discuss so good for social media platform
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