Ep #107- BITO- Why Is This Better Than SCHD Or VOO?(What About Reverse Splits?)

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Season 2, Episode #107, Not Me, But You! Podcast. 

Connect with me/Follow me on X at: Waypa Today. Email me at [email protected] if you want a FREE 15 to 20 minute call to see if it makes sense for us to work together. I offer 1:1 Coaching OR Small Group Coaching (up to 3 people). 

Our entire lives revolve around Cash Flow!! We need to BUY/HOLD ASSETS that pay us weekly/monthly cash flow. Use the "Cascading Waterfall Approach" that I teach, to invest. By doing this, we keep LOWERING our risk! 

Regarding ETF's, let the reverse splits happen! Wait until you're on the other side of the reverse split. Look for a similar RATIO. If your ETF did a reverse split of 5 to 1, you now have a lot less shares. To use real numbers if you started with 100 shares BEFORE the reverse split...then after the reverse split you have only 20 shares! But check to see if the DIVIDEND also 5X!!  If it did, its the same MONEY! 

Here is a real life example. If you had 100 shares paying you 5 cents per share BEFORE the reverse split...then AFTER the reverse split when you only have 20 shares...is the dividend paying you 25 Cents per share????? IF IT is,,,let's do some SIMPLE math.  100 times .05/share = is a $5 dividend. What is 20(shares) times .25/share??... Answer: $5!! See it's THE SAME MONEY! So who cares about the PRICE PER SHARE or the fact that the ETF reverse split??? 

Always know WHAT is your investment goal, BEFORE you invest any money. IF your goal is CASH FLOW, then we don't care if the price/share goes UP or DOWN! 

I use an example where I discuss BITO. The yield is over 73%! And it pays a MONTHLY dividend. I also explain how to calculate ROI on any investment. We compare SCHD or VOO to the high yield/high risk ETF's that I discuss and own. 

I'm not a financial advisor. This podcast is for education/entertainment purposes only. You will need to do your own research and accept responsibility for the results of any money you choose to invest. I love using Schwab.com to buy/sell stocks/ETF's/closed end funds/options. Schwab has a very user friendly app/website and their customer service is excellent. I can easily get to speak to a human being whenever I have questions.