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No. of Recommendations: 4
... focus on funding living expenses with capital gains and tax-paid returns of capital.

A number of CEFs do the latter.

For example, NUSI (Nationwide Risk-Managed Income ETF). Distribution yield is 7.80%, paid monthly. Most of it is Return Of Capital. Non-destructive ROC, which is the good kind. Usually ROC is just a return of your money and therefore comes right out of the NAV and therefore is bad.

Fairly new fund, began in Jan 2020.

Initial NAV $25.00, current NAV $27.80. Total paid to date: $3.68. The ROC did not reduce the NAV. Good. Very complex tax & accounting treatment, something about the way options are treated lets the distributions (yield) be ROC and not taxed.
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