I’m not a financial advisor. This is not financial advice. Investing is risky, please do your own research. I’m not responsible for any financial losses.
The Quad-Fecta is an investment strategy that I stumbled into on Reddit, it was created by the user VanguardSucks. It revolves around using four different funds that use covered calls to generate passive income. Although it’s possible to manually use the covered call strategy yourself, it becomes much more passive when you have these funds do it for you.
I’m often looking for ways to increase my level of passive income. Without it, I wouldn’t have the time to work on passion projects like this blog. Diversifying the types of passive income I receive gives me peace of mind. If one type of investment underperforms or fails, I can rely on another. The Quad-Fecta has become a major part of my overall investment strategy.
The Quad-Fecta is popular with investors who prefer income NOW, instead of holding growth stocks until you retire and selling them off as you need cash. Older people or those who plan on retiring soon would benefit the most from covered call strategies. In the long term, the Quad-Fecta probably won’t be as profitable as traditional growth stock investing.
This post isn’t meant to be a detailed guide or analysis on covered calls. I’m going to keep this short and just embed the original thread from Reddit below. If I see a lot of interest in this topic, I will expand on it later.