JEPQ
J.P. Morgan Nasdaq Equity Premium Income ETF
stock NASDAQ ETF

same except JEPQ. I have about 80% in ETFs and then 10 in JEPQ and 10 in other random stocks I like for the year

I hold QQQI, SPYI, and JEPQ.

Since we're retired, this is what we would do. (Assuming this $60k annual withdrawal is on top of our social security and pension.)
Emergency
• $200k cash
Income
• $500k JEPQ or similar 10% dividend, goes up with inflation
• $300k agency bonds or similar, 5.8% annually
Growth
• $400k voo or similar
• $400k spmo or similar
• $400k mix of fmtm and sphq depending on outlook
Theoretically, Growth would never be touched, it's for legacy.
Your given of $60k is a very low withdrawal rate for this $2.2M portfolio. If we wanted more spending money, we would probably pull some of the funds from Growth and buy more income generating etf's.

The DRIP comparison is close short-term, but it breaks down over full cycles. GPIQ/JEPQ cap your upside through the call overlay in a strong bull run like we've had, that capped upside is a real cost, DRIP or not. You're not "selling shares" to get income, but the fund is selling upside to generate that premium, so total return still lags the index in the good years. It just doesn't feel that way because the NAV isn't visibly declining the way it would if you were manually selling.
SCHD has no options drag, full participation in price appreciation, plus actual dividend growth over time instead of a fixed premium yield. Different tool for a different job: JEPQ/GPIQ smooth volatility and pay you now, SCHD compounds capital and grows the payout. Worth comparing total return (not just yield) over a 3-5yr window before deciding which fits your goal.

QQQI's derivative income (covered call strategy) is based on the NASDAQ 100 index. The covered call funds you initially discussed, JEPI, is based on the S&P 500 index. Funds comparable to JEPI would include SPYI and GPIX. funds comparable to QQQI would be JEPQ and GPIQ.
The NASDQ 100 is often considered to be more risky than the S&P 500 but has had greater returns. Although covered call funds thrive off of volitity, the value of the underlying holdings affects the funds ability to generate income. A stock market crash followed by a stagnant trading environment would decimate covered call funds.
If you do not need income right now I would find different sectors to diversify into instead of covered call funds:
AMLP
O
MAIN
SCHY

I understand your desire and I was in the same boat. The "Return of Capital" in NEOS funds set off my warning bells. The fact it's 100% ROC makes it a different product than JEPQ. JEPQ is what QQQI pretends to be — a genuine income-generating fund that earns real premium from options and distributes it to shareholders. The cost is capped upside and ordinary income tax treatment. The benefit is honest, earned, sustainable income without the capital recycling illusion. For your situation and bracket it is a fundamentally more appropriate instrument than QQQI for exactly that reason.
In other words QQQI recycles your money to avoid paying higher taxes where JEPQ actually generates a return.
If you pull the 14% distribution from QQQI on an annual basis and the fund stays flat or has minimal gains, you will run out of money.

JPMorgan isn't even in the top 5 largest asset managers in the world. Also, the poster did not say anything about JEPQ. Also, JEPQ doesnt distribute over 15% (and is very tax inefficient in a taxable account compared to the large NEOS, TAPP and Goldman covered call funds).

For starters JEPQ and JEPI are exception in the covered call space. JEPQ is not tax efficient. The dividends of JEPQ are tax just like work income which is the highest dividend. The most tax efficient fund generate ROC dividends. I believe all NEOS funds are tax efficient.
ROC dividends are subtracted form the cost basis If theist basis is above zero you are not taxed on the dividned income. If the cost basis is zero the dividned are taxed at the capital gains rate. with is still lower than the ordinary dividend of JEPQ. To calculate how lone these funds are not taxed dividend 100 by the yield. for example QQQI 13% yield 100/ 13= 7.7 years.
Due to the tax efficiency many actually have tax efficient covered call funds in ther taxable account. This and the high yields make them a good way to supplement your work income. if you have CC fund in Roth IRA you will not be able to access the income until age 60. So if you want access to the dividned income now use a taxable account.

same except JEPQ. I have about 80% in ETFs and then 10 in JEPQ and 10 in other random stocks I like for the year

I hold QQQI, SPYI, and JEPQ.

Since we're retired, this is what we would do. (Assuming this $60k annual withdrawal is on top of our social security and pension.)
Emergency
• $200k cash
Income
• $500k JEPQ or similar 10% dividend, goes up with inflation
• $300k agency bonds or similar, 5.8% annually
Growth
• $400k voo or similar
• $400k spmo or similar
• $400k mix of fmtm and sphq depending on outlook
Theoretically, Growth would never be touched, it's for legacy.
Your given of $60k is a very low withdrawal rate for this $2.2M portfolio. If we wanted more spending money, we would probably pull some of the funds from Growth and buy more income generating etf's.

The DRIP comparison is close short-term, but it breaks down over full cycles. GPIQ/JEPQ cap your upside through the call overlay in a strong bull run like we've had, that capped upside is a real cost, DRIP or not. You're not "selling shares" to get income, but the fund is selling upside to generate that premium, so total return still lags the index in the good years. It just doesn't feel that way because the NAV isn't visibly declining the way it would if you were manually selling.
SCHD has no options drag, full participation in price appreciation, plus actual dividend growth over time instead of a fixed premium yield. Different tool for a different job: JEPQ/GPIQ smooth volatility and pay you now, SCHD compounds capital and grows the payout. Worth comparing total return (not just yield) over a 3-5yr window before deciding which fits your goal.

QQQI's derivative income (covered call strategy) is based on the NASDAQ 100 index. The covered call funds you initially discussed, JEPI, is based on the S&P 500 index. Funds comparable to JEPI would include SPYI and GPIX. funds comparable to QQQI would be JEPQ and GPIQ.
The NASDQ 100 is often considered to be more risky than the S&P 500 but has had greater returns. Although covered call funds thrive off of volitity, the value of the underlying holdings affects the funds ability to generate income. A stock market crash followed by a stagnant trading environment would decimate covered call funds.
If you do not need income right now I would find different sectors to diversify into instead of covered call funds:
AMLP
O
MAIN
SCHY

I understand your desire and I was in the same boat. The "Return of Capital" in NEOS funds set off my warning bells. The fact it's 100% ROC makes it a different product than JEPQ. JEPQ is what QQQI pretends to be — a genuine income-generating fund that earns real premium from options and distributes it to shareholders. The cost is capped upside and ordinary income tax treatment. The benefit is honest, earned, sustainable income without the capital recycling illusion. For your situation and bracket it is a fundamentally more appropriate instrument than QQQI for exactly that reason.
In other words QQQI recycles your money to avoid paying higher taxes where JEPQ actually generates a return.
If you pull the 14% distribution from QQQI on an annual basis and the fund stays flat or has minimal gains, you will run out of money.

JPMorgan isn't even in the top 5 largest asset managers in the world. Also, the poster did not say anything about JEPQ. Also, JEPQ doesnt distribute over 15% (and is very tax inefficient in a taxable account compared to the large NEOS, TAPP and Goldman covered call funds).

For starters JEPQ and JEPI are exception in the covered call space. JEPQ is not tax efficient. The dividends of JEPQ are tax just like work income which is the highest dividend. The most tax efficient fund generate ROC dividends. I believe all NEOS funds are tax efficient.
ROC dividends are subtracted form the cost basis If theist basis is above zero you are not taxed on the dividned income. If the cost basis is zero the dividned are taxed at the capital gains rate. with is still lower than the ordinary dividend of JEPQ. To calculate how lone these funds are not taxed dividend 100 by the yield. for example QQQI 13% yield 100/ 13= 7.7 years.
Due to the tax efficiency many actually have tax efficient covered call funds in ther taxable account. This and the high yields make them a good way to supplement your work income. if you have CC fund in Roth IRA you will not be able to access the income until age 60. So if you want access to the dividned income now use a taxable account.

JEPI and JEPQ are what some call the "Second Generation" of Covered Call ETFs. The number of ETFs and the Strategy has grown since then leaving these to under-perform compared to what is now the third generation of CC ETFs.

If you want to stay index based (which I think is best) then I would look at GPIX/GPIQ, SPYI/QQQI, TSPY/TDAQ. The first in each set being based off the S&P 500 and the second in each set being based off the Nasdaq 100.

I like JEPQ more than JEPI

Im thinking the same on JEPQ.

what about JEPQ bro? jp morgan is the richest asset manager in the world. woudl you say the smae about them?