My 30 year mortgage is forever paid for with my passive income investments from JEPI (and JEPQ). JEPI is a covered call ETF that distributes income in the form of a premium to me as a shareholder every month. This income I receive is 100% passive. The way JEPI is set up, I should continue to receive monthly distributions and over time, these distributions should slowly increase. Now obviously past performance is never a guarantee of future performance. Because JEPI has a much higher starting yield, I need less capital invested to receive my desired income target. For example, investing into an ETF like SCHD or an individual stock like Coca Cola would require significantly more capital to achieve the same target income to pay my mortgage. JEPI is ideal for someone like my wife and I because we have a short time horizon before we plan to fully live off our dividend growth portfolio.
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