Don't Forget Taxes on Your ETF Income!
I think just because of the importance of income, you have to acknowledge taxes, right? Just keep in mind if this is a taxable account, these distributions, you're paying tax on them. So I can't possibly know what your after-tax return is. But with something like QQQI, just because of the way it's doing it, they have something called return of capital, right?
When you're getting these distributions, they're essentially deferring your taxes. So ultimately, you're going to pay taxes on all of this. It's just a matter of when. So if tax deferral is really important to you, QQQI, that will just, all that does is reduce your tax basis, your cost basis, and you'll pay that tax later. So you'll have some more tax deferred growth.
Just because of the tax efficiency with it, I'm going to give this one to QQQI. I just like that they're able to be a little bit more tax efficient and something that's frankly really hard to be because there's just no way to dodge taxes on income unless it's in an IRA. So just because they've sort of improved on this over the JEPQ products.
So just from, I know, obviously keep taxes in mind, but I think QQQI if that is what is most important to you, that might be a better choice than some of the other ones. So, I'll give that tax edge to the Neos.
