Skip to main content
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.
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.