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When it comes to building wealth through investing, there are two popular schools of thoughts — growth investing and income investing —and each comes with its own philosophy, goals, and trade-offs.
Growth investors prioritize capital appreciation—the increase in the value of their assets over time. Rather than focusing on regular payouts, they invest in companies or funds expected to grow significantly in value, often reinvesting any dividends back into the portfolio. Income investors, on the other hand, prioritize cash flow—they aim to generate consistent income through dividends, interest, or distributions (a.k.a. passive income). Covered call ETFs, REITs, dividend-paying stocks, and bonds are popular tools in this strategy.
⚖️ So Which Strategy is Better?
I don’t think there is a one-size-fits-all answer. Some investors pursue growth in their early years to build wealth quickly, then shift to income strategies as they approach retirement or seek lifestyle flexibility. Others, focus on high-income strategies earlier in life to generate regular income and create time freedom sooner without having to manually sell any of their shares/holdings —even if that means potentially accepting lower long-term growth. There are also investors who are essentially a hybrid investor (combining multiple approaches) or some, like me, who are investing broadly in the entire stock market through ETFs such as XEQT, VTI and VT. In the end, the best strategy depends on your goals, risk tolerance, tax situation, and lifestyle aspirations.
In this video, I sat down with Perry, an avid Blossom user, for his reflections on this topic of growth vs income investing. He shares his $1.58 million investment portfolio that generates nearly $494,000 in annual passive income (distributions) which he has built using high-yield covered call ETFs. He shows transparently the good and the bad in his portfolio, and shares his take on income investing vs growth investing.
Please note, covered call ETFs may not be for everyone. Please do your due diligence before deciding whether to invest in any of the shares discussed in the video. The content on this channel is for entertainment and informational purposes only and should not be considered financial, investment, or tax advice. I am not a licensed financial advisor, and the opinions expressed here are my own based on personal experience and research, or my guests’ opinions. Always do your own due diligence before making any financial decisions. Investing involves risk, and you should consult with a qualified financial advisor, accountant, or tax professional before acting on any information provided in here or on any other video. All investments carry risk, including the potential loss of principal. Any mention of past or potential performance is for informational purposes only and does not constitute a recommendation or guarantee of any specific result. The information in this video is accurate as of the date it was posted, but may not remain current over time.
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➡️Perry’s Channel: https://www.youtube.com/@PerryFpii
❓Which approach to investing are you pursuing in your portfolio?
⌛Video Chapters:
0:00 Intro
1:40 Perry’s Performance
12:01 Passive Income Distributions
13:30 Yield on Cost
14:28 Total Return
19:47 Income vs. Growth
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#investingforbeginners #stockmarket #dividendincome #investing
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Great breakdown of all this information. Have a great week
Another great video. Keep up the great work!
Perry! Awesome. I love watching his journey. My goal is to get to that kind of monthly income🎉
he's talkin nonsense at the end with that 400 "analogy", what he is leaving out is that his 100 will not compound as fast as that 2 or 300 that he is leaving out on the table just because he needs only a 100 lol that's the dumbest analogy, what he is saying, trying to sound smart is that he likes to lose money in the process of making money lol, it's just simple maths which he is trying to so hard to argue with, another nonsensical thing he is saying that selling each month is timing a market hahaha so is buying every month at the 1st of the month is timing the market ? no, he's got the money, he gets the divvies but he is a bit dumb and ignorant
Good one guys!! 😊
This was hard to watch tbh. An entire section on total returns, without actually providing any total returns data. "I'm likely beating the SP500 because of distributions in year." How can you not calculate this? You showed your spreadsheets, you track every single distribution.
Then at end of video there is a clear underperformance for 5 yr (or 2.5 year). Portfolio 29.1% versus SP500 47.9%. That's 6 figures worth of difference.
Its like a data and word vomit smokescreen. Lots of data being shown, and lots being omitted. Whatever fits the narrative. Admittedly they claim to not need higher total returns. They are ok with leaving money on the table. But somehow they are OK with $40,000 a month in distributions, which is also clearly more cashflow than is needed. Doesn't make any sense.
Very nice, majority of my portfolio is XEQT but I'm starting to gradually get into the Canadian CC ETF's… kind of as an experiment to see how the monthly dividends grow to a point where I can eventually live off them.
Correct me if I am wrong. The guy withdraw 10k a month, rest is reinvested just to keep up with S&P 500. So his actual real "passive income" is 120k a year or about 7.7%
fix the sound