Jan. 14 at 2:59 PM
https://seekingalpha.com/article/4859590-high-yield-in-retirement-bdcs-vs-cefs-and-the-after-tax-income-trade-off
Not all 8–10% yields are created equal.
For early retirees living off taxable portfolios, after-tax income is what counts. BDCs like
$ARCC and
$OBDC throw off ordinary income, while CEFs like
$ADX and
$UTG can distribute mostly long-term capital gains. That difference can mean thousands more kept each year.
Both structures can deliver similar total returns, but taxes quietly tip the scales. If you’re bridging income before 59½, CEFs may do more of the heavy lifting with less drag. 📊💰
#Income #CEFs #BDCs #TaxAlpha #Retirement
