Been is SCHD for a while. It has held up well in the good times and bad(2021 and 2022 for example). For me, if I can get enough in Qualified Dividends to cover our property taxes, home and auto insurance, that would be perfect. We will be otherwise debt free at retirement and just having these 3 expenses covered with tax free income(hopefully) will be great.
dividend stocks are for beginners, people like the idea of it but the truth is every 1 dollar a company pays out it loses 66cents of value i'd rather invest in stocks that reinvest that money to better perform and grow the company, people are tricked by div, i try to avoid if i can stocks that pay div, if i need to live off something later on i'll sell a few stocks instead.
I wish I could have retired in my 50's. I'm 65 now, I started investing late . After some research, I found a strategy that helped. I'm pleased to say I'm retiring with at least $2 million.
@@ClemonSteve I usually avoid making specific recommendations because everyone's situation is unique. However, my experience with Julie Ann Lerch has been quite positive. You might find it worthwhile to see if her approach fits your needs
@@EbrahamAljalil I looked for the name online and found her page.I will get intouch with her,Thanks for the help I emailed and made inquiries. Thanks for the help
SCHD outperformed VTV over 5 and 10 years and is very low cost. Just had bad luck this year. Many of us have a boatload in the S&P500 index in 401k's, so not having apple, Microsoft etc as top holdings (if at all) in SCHD is a good thing. Still have the bulk of my $500k portfolio in SCHD.
I’m taking the hybrid approach, VOO, SCHD as my foundation, with growth like MA, UNH, HD. And slow growth like O and PEP. I have a 20 year time horizon. But the best part is I still enjoy my life while I do this. Travel, and buy ONLY things I love. It’s the best combo, plus I love the small victories with receiving dividends/dividend growth/share price appreciation.
SCHD is an excellent portfolio addition, but relying solely on it for retirement may not be optimal. I retired at 48, grew my portfolio to $1.5 million in 10 years starting with 35,000 through the help of an investment advisor and dividends now supplement my retirement income. Invest wisely, build your nest egg, and don't sell the chicken that lays the egg!
If all you ever do is work for your money, then ALL you will EVER do is work for your money. This is not double-speak, it means you have to have your money working for you too. Start investing ASAP, develop a plan, and stick to it. Discipline and small sacrifices today pay off HUGE down the road.
I feel you. I just turned 30 and started investing in my retirement. I would do anything to be able to go back 10 years and start at 20. What a waste of 10 good years of investment time.
Buying of ETFs is easy, but buying the right one without a time-tested strategy is incredibly hard. Hence which is best to buy now or put on a watchlist? I’ve been trying to grow my portfolio of $260K for sometime now, my major challenge is not knowing the best entry and exit strategies... I would greatly appreciate any suggestions.
Just because there are opportunities in the market doesn’t mean you should go in blindly. To understand the potential factors that contribute to your financial growth, I'll advise you to seek the help of a professional.
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.
@@knowledgeseeker5499 years many years of sacrifice and hard work! I currently drive a 2003 Accord! It's all about choices. There's a whole bunch of stuff I had to do without but it's definitely worth it! I live in a paid off house! It takes lots of time to accumulate wealth!
@@dustinadams2839 about 2 years to really see the ball rolling! I have been investing since I was 18 I'm 48 now. It takes time to accumulate wealth and choices! I drive a 2003 accord LX nothing fancy. The only 2 things I own that are out of character for me are a gold chain and a OP Rolex that's it! Also my house is paid off!
I have recently been thinking more and more about scaling a $10,000 position in SCHD just based on the dividend and reliability.. Great video, thank you for the insights!
12% stock apreciation + 3% dividents thats 15% each year for 20 years straight.. thats optimistic. Last decade we had low interest rates, this next one money will not be so cheap any more. I agree it s a good investment though
@@dwightschrute7342 I am honestly shocked that this is a CPA and believe it’s realistic that SCHD will continue to grow at that rate. Plus, look at the projected dividend yield over time. There is no way SCHD get up to 6% yield. At best the stock grows at 8% and the dividend tops out at currently levels.
@@dwightschrute7342 You are mistaken. He has the price estimate at $542.83 (year 19) and a dividend in that same year of $35.66, which is a yield of 6.57%. The distortion in the poorly setup spreadsheet does start to show up way earlier though. In year 10 the yield based on dividend / price is already solidly in the 5% range.
I started investing in stocks at 35, grew portfolio to $600k by 42. Recently, lost over 30% and want to mitigate risks. Also, planning to buy a home soon and want portfolio to grow. What should I do?
Dont think here is the place for personalized investment guidance. However, I suggest consulting with a reliable advisor to ensure appropriate investment planning.
True. I’ve been investing in the stock market for 11 years now, last 5 years with the help of a financial advisor. Through this period of advisory support alone, I've been fortunate enough to achieve a 10x return compared to my previous efforts as a DIY investor, summing up nearly $1m roi as of today. My best so far.
To> be successful in markets, traders should understand the crossover between asset classes & liquidity flow. Julia David focuses on Multi-asset trading, a single strategy to manage risk, profit, and the code or the actual decision-making across multi-asset classes. Her skills set is top notch.
If you wanna be successful, you most take responsibility for your emotions, not place the blame on others. In addition to make you feel more guilty about your faults, pointing the finger at others will only serve to increase your sense of personal accountability. There's always a risk in every investment, yet people still invest and succeed. You must look outward if you wanna be successful in life. I Invested through Mrs Maggie Wilson, same woman that an anchor kept mentioning on CNBC, She is licensed and made multiple of my start up capital within three months.
Amazing seeing others with Maggie Wilson, I sta'rted my inve'stment wit $15,00'0, a week later, we had grown to $55,0'00. This woman!! absolute genius.
After watching so many RUclips tutorial videos about trading I was still making losses until Mrs Maggie Wilson started managing my investments now I make $10,567 weekly. God bless Mrs Maggie, she’s been a blessing to my family.
My long term goal is to own at least 3900 shares; I have currently 1800 and am accumulating 5-10 per week (roughly). I want dividend income of 5K per quarter (I am relying on dividend growth to make up for the shortfall).
Up to 6,200 shares of SCHD in our brokerage which represents 39% of our dividend portfolio followed by VYM, VYMI, FDVV, SPYD, VIG, DGRO and IDV. A few small postions in CEF's and some corporate preferred etfs and we're retiring at the end of the year at 54 with no debt and a nice little dividend stream.
This is the second time watching your video..good one. Anyway, I’m a dividend investor, I’m 39 with a $300k portfolio and plan to retire at 60. My goal is to reach 2 million by then...I repositioned some of my dividend stocks using my broker Olivia Rene Reyes. Now, I’m buying fractional shares of SCHD, TSLA, AMC, NIO and NVR again. Before I was after dividends for passive income but it’s slow growth so i took my chances on high growth stocks and I've gotten a 120% increase this year but hopefully I’ll reach a million sooner.
you need to manage risk, and stick to your broker’s plan through thick or thin, While also continuously learning from mistakes and improving. I also hope to trade with the big dogs soon
The funny thing is you’re not wrong … it took me 5 years to stop trying to predict what’s about to happen in the market based on charts studying, cause you never know. not having a mentor cost me 5 years of pain lol. I just searched your guy on the web out of curiosity. i’m not gonna lie…I’m impressed, she’s professional, mature and he’s worked with some really successful people in the past.
@@tylerforeman667 True, she really seems to know her stuff. I also found her online page and read through her resume, educational background, qualifications and it was really impressive. She is a fiduciary who will act in my best interest. So, I booked a session with her
I feel investors should focus on under-the-radar stocks, especially given the current rollercoaster nature of the stock market, because 35% of my $270k portfolio comprises of plummeting stocks that were once admired, and I'm at a loss for what to do.
Putting well-earned money into the stock market can be over emphasized for first-time investors, unlike a bank where interest is sure thing! Well, basically times are uncertain, the market is out of control, and banks are gradually failing. I am working on a ballpark estimate of $5M for retirement, and I have a good 6-figure loaded up for this, could there be any opportunity for a boomer like me?
Sincerely it's best to seek an advisor right now, unless you're canny yourself. As a business owner in both the service industry and eBay reseller of all product categories, I can tell you we’re in a deep recession and everyone is running out of money.
Very true, people downplay advisors role, until burnt by their mistakes. I remember just after my layoff early 2020 amidst covid outbreak, I needed to stay afloat, hence researched for license advisors.
My consultant is NICOLE DESIREE SIMON, She has since provide entry and exit points on the securities I focus on. You can look her up online if you care for supervision. I basically follow her trade pattern and haven’t regretted doing so
deep recession? do you even know what a recession means? stock market can't be at record highs and unemployment at record lows during a recession, let alone a deep one.@@Natalieneptune469
Interesting video! Today is the first day i saw this video but about the time you were making this video i was restructuring my portfolio, and i took a 10K position in SCHD. Now to let time and compounding due the rest!
I like SCHD and VIG for blue chip reliable dividends and dividend growth. I also like allocations to VOO and QQQ for some more emphasis on growth. By the way, I think the only time since inception at which SCHD div yield was as high or higher was 2020 market crash.
I'm 60 and live on a fixed income. I currently hold 328 shares of SCHD, DRIP and buy as able.I also hold SCHG and SCHX. I may be on a fixed income but I'm absolutely reinvesting and padding my brokerage account. I'm not using any of the dividends for income. So, letting it ride...
how much do you need to live on a fixed income? meaning how much are you getting? curious cause your 60.. im 48 and plan to not work ( not retiring) for bosses by 50
Nice realistic examples Mark! Always nice to add some in at certain times of the year such as a tax refund, etc.. Time and patience sure pays off. Thanks again.
This is inspiring because although I want the full 50k, I only require 20k to justify quitting my 9-5 and working part time again. If I live below my means and invest more than your chart says, I could quit in 10 years 🤯
I don't think it's smart to assume SCHD is going to have the same price appreciation and dividend growth that it's had forever. Mature companies like the ones it's made up of tend to have much less growth than it's had. It's lifetime growth looks good because it was started just after the 09 market crash.
I think that is hard to judge because the contents of SCHD will like slowly change over time. Still the numbers used in the example are extremely optimistic.
Thank you for sharing. It is great to invest in high quality dividend ETF. With a long term average inflation rate of 3.28%, $49k in year 19 will be equivalent to today’s $26k. Nice to have though.
I have a portfolio consisting of SCHD and individual tech stocks such as AMZN, APPL, GOOGL, NVDA, and TSLA. A mix of growth (tech) and peace of mind investing (SCHD). I have a long time-horozn. This makes sense right Mark? Thanks. Subbed.
Have SCHD and JEPI as a core investment. 5600 DIV from TSLY in June, I am loving this ETF. Just 200,000 in TSLY will give you 12,270 shares at 0.81 shares is 9,939 a month. You could easily retire off of TSLY and yes the div will change each month but if you believe in Tesla going up then TSLY DIV will also go up! I am retired and all i care about is dividends!
Concluding 2023 with a 20% decline in the S&P 500, long-term investors find a promising entry into 2024. Noteworthy ETFs include: $VOO for S&P 500, $VTI for total US market, $QQQ for tech growth, and $SCHD for growth with dividends. Calculating my annual dividends, I'm thankful for $167k-attributing it to discipline and focus.
In the past month, my "unexciting" index funds provided me with over $6,000 in dividends, giving me the option to spend without selling shares. Currently, I've opted to reinvest the dividends to acquire additional index funds for future growth.
Seeking advice on dependable monthly investment options. My goal is to eventually enhance my work income with consistent monthly returns from investments, alongside my long-term investment strategy, for a supplementary monthly income.
While unfamiliar with such turbulent markets and the accompanying chaos, the current apprehension is reasonable considering the historic duration of the US Stock Market's bull run. Nevertheless, lucrative prospects abound with the right guidance. Collaborating with an investment advisor to diversify my portfolio, I managed to achieve a substantial profit of over $260k in the preceding year.
I'm guided by Camille Alicia Garcia an experienced coach with extensive financial market knowledge. While you can consider other options, her strategy has yielded positive results for me. She offers valuable insights, including entry and exit points for the securities I concentrate on.
Thanks for your great video! Can you briefly describe how taxes affect the tables you show, assuming this is a taxable account; both if dividends are dripped back in and if dividends are taken as cash payments? Thanks again
As you mentioned, the account you use plays a HUGE role. For me, I hold all my SCHD shares in my Roth IRA. However, if you do not, you will have to pay taxes on the dividends you receive, whether they were Dripped or not.
The last example is assuming that SCHD will pay $35/share annually. Currently I am not aware of any company paying that rate of dividend currently. What is the likelihood that we would see $35/share?
Mark, as always, great info. What will be the difference between periodic investments of 10K to reach 100K versus a one-time investment of 100K in the beginning? The latter will grow faster. How big will the difference be? Thanks
So what do you think about putting $100,000 in SCHD and let it go. Rollover all dividends back to buy more shares. Also what about the same thing with JEPI. I am a little to old to wait around for 30 years of growth
Another excellent investment idea video presentation, Mark! Kudos to you and thank you! We are, and have been, long SCHD, which is the best dividend growth ETF currently available for all of the reasons you have mentioned in your presentations on SCHD. And I highly recommend the book behind you in your video, The Psychology of Money, to all of your viewers. One of Morgan Housel's best books on money and happiness.
Great video...think I'll wait a bit for SCHD (market) to correct and than hopefully jump in between the $55-65 levels.....wish I was in this back at interception...wow that would have been some nice retirement reinforcements. 🤔
he said it "perfectly" .. it takes years and years of patience investing to see good returns. (not guarantee but high %) People see other youtubers showing $5000 dividends a month and they think they can get that.. not for me. Realistically, if you have 12.5K what can you do? just turn 48 this year..
$100,000 in SCHD @ 3.67% is $3,670 a year. Where are you getting these numbers? And in what reality are you living in that you think SCHD will reach $195.75 in 10 years? If that were true, invest $100k in VOO, because by your standards it should be worth $3500 per share at that point.
@@christianchua8408 and figuring a year later its worth less than what was. seriously, 100k invested gets you a 50% dividend return..thats crazy talk? if it was that easy everyone would be rich! plus in 20 years, that maybe 2500 bucks a month, after the taxes, isn't going to be worth much.
Got $32,000 in there right now. Plan to do $50,000 additional each year. even at 8% stock growth with 10% a year avg Div growth, in 15 years I’m looking at $100,000 a year before tax. 20 years, $220,000 30 years $1,000,000
Even though I engage in investing, I feel disheartened by my lack of expertise in assessing the performance of individual companies and determining the optimal timing for stock purchases. The erosion of my financial reserves due to inflation adds to my concerns. At this point, I require precise market trajectory information, but I find myself unsure about the appropriate course of action.
Especially in this challenging market, numerous opportunities exist to achieve impressive returns. However, executing such complex transactions requires the expertise of experienced market professionals.
I wholeheartedly concur, which is why I opt to entrust the day-to-day decision-making to an investing coach. With their specialized knowledge and extensive research, it is highly unlikely for them to underperform. Their expertise is centered around harnessing the asymmetrical potential of risks while also employing measures to safeguard against unfavorable outcomes. I have been collaborating with an investment coach for more than two years, and as a result, I have generated over a quarter million dollars in returns.
Do your due diligence and opt for one that has tactics to help your portfolio continue consistent and steady growth. "Helene Claire Johnson" is accountable for the success of my portfolio, and I believe she has the qualifications and expertise to accomplish your objectives.
Most RUclipsrs try to sell Schd and that’s when I purchase this ETF. Unfortunately this is the one of my all etf holdings that is not performing. I don’t know why and why RUclipsrs try to advise us to buy?? I plan to sell them all shortly.
Looking at the yearly chart of schd it had a high of about 77 in 2021, 78 in 2022 and it pulling back from a high of 76 in 2023. Nothing saying it can’t have a really good few years but I wouldn’t just expect 12% a year
Sell covered calls against every 100 share lot of SCHD to juice returns. Reinvest the premium, especially in a tax deferred account. With 100K, that is about 13 100 lots. Can add an additional 6-10 shares a month if done well.
I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my portfolio for retirement. I'm seeking to invest $200K across markets but don't know where to start.
If SCHD is so transparent with its holdings, would it make more sense to simply copy their portfolio percentage-wise to have effectively the same returns and dividends but w/o a management fee. ?
I am going to sell my SCHD shares (have about 700) and just invest in the individual stocks that have the highest dividends to avoid the fee and also avoid all the financial issues hitting the news about schwaab and everyone selling and yanking their money out of their banks.
You can, but then you will need to keep an eye out of all your investments and rebalance as necessary. For people like me, thats too much BS to worry about, let the ETF people do it for me while I don't even have to look at any charts.
What Dividend reinvestment calculator do you recommend? I've used Tip Ranks, MarketBeat and a few others online and I get very different results when using the same data.
Folks this is an example of benefits of compound interest. Yes, assumptions on growth and CAGR may be optimistic. Also taxes, inflation relevant. However, understanding compound growth is important for investing and he does good job doing that. Steve
I am 58 years old. I just rolled over a roth account to Schwab. I am looking to work until 70 which means i have 12 more years of being able to add 7500 a year. This will give me an additional 90K to add in. What are your thoughts as to putting it all in SCHD and just keep adding the yearly to SCHD or should I follow the 110 rule and put the other portion in rolling CD's?
It would be helpful to see the inflation adjusted value compared to the nominal value in your calculations. For example, I assume 3% inflation and 11% annual compounding rate for SCHD. Using my current monthly savings amount, the nominal value in my personal example is about $18M at retirement RMD age, but inflation adjusted it’s $8.7M. There is a whole discussion on SA about the minimum amount that is needed to “retire”. My personal belief is that the nominal amount is about $10M if you plan to retire in 20 years and never work again.
Great video! I like this example because it is so close to my actual investing strategy. I'm investing $500.00 per month into SCHD; so $6,000.00 per year. I'm also investing what I can into some other ETFs and stocks every month, but SCHD is my primary investment. It's exciting to see where I could potentially get to if I stick to my strategy. My goal is at least $50,000.00 per year.
Impressive video. I started a bit late (graduated from my doctorate program at age 30 in 2016 with 170k in school loan debt). Managed to pay off my debt by 2019 and currently have a house and 250k total in investments (combo of profit share, 401k and a brokerage account). I'm not very knowledgeable in investing, so I just have my investing currently in index funds mainly voo, but have been putting a lot into schd the past few months. I dunno if that's the optimal strategy, but psychologically it is very set it and forget it, and prevents me from obsessing over individual stock performance.
@@tylerforeman667 Sounds great. I could really use the expertise of an advisor, just can’t find while I’m away for work in New Zealand for another year. My portfolio has been stagnant. Who’s the person guiding you can I get a phone number?
@@adamtennant129 She runs her firm under her name Olivia Rene Reyes. You can find her contact page if you research her. Do your due diligence you'd find all you need to know.
I appreciate your work here, but could you explain your math a bit? - you say that assuming 12% return is conservative and less than the 5 yr and 10 yr however in fact the 10 year av return for SCHD is just under 12%. - The Dividend yield you show is increasing by 16% YoY. The past 10 yr average dividend yield increase is 12%, so your 16% is quite a bit higher. - by my math, at year 10, dividend yield could optimistically be around 4% which at a share price of $195.75 would yield $8 per share. With 206.07 shares, your annual dividend income would total $1648.56. -Adding this same math to your 19 year chart, the 19 yr annual dividend income would be closer to $29,000. Far less than your $49k estimate. I’d be interested in understanding what I might be missing, or why you’ve made the estimates you have? Thanks
50K a year is good now BUT what would the average salary be in 20 years at the end of your example? Save as much as you can for as long as you can even 25k per year in dividends will probably double your income (With Social Security) in retirement. Great Vid
I'm confused, though. If I'd invested 100k on Jan 3, 2023, I'd be down 2,700 in capital depreciation, and up 2,200 on the yield. So, I'd be down 500 this year so far. If I'd just bought AAPL on Jan 3, I'd be up 44k. Hard to bite the bullet, given such a disparity.
Its easy to cherry pick dates, if you aren't investing in the long term, then stick to individual stocks as you can be more proactive in watching them. Most don't care and will let the ETF do it's thing without the stressing about buying and selling.
@@Fanta.... What I was trying to illustrate is that the whole market went up massively in 2023. And this did not. In fact, it didn't even break even this year, which is insane. It lost 1.6%! Why would I sit in this, watching the entire market pass me by? If it can't even go up in strong bull years, of what value is it to me long term? And if we go by the logic of not cherry picking dates, then look at its entire history. Since inception in 2012, SCHD has returned 73% total capital appreciation on initial investment + 15-25% in dividend returns. So, 100%, give or take? A simple investment in AAPL in that same time would have returned 668%. Even boring ol' etf VOO returned 132% in that time, + 15% in dividend returns, on half the expense ratio. SCHD isn't even matching a basic S&P 500 ETF, let alone the most boring big cap of all. To each his own, I suppose.
@@Fanta.... SCHD was down 1.8% last year when the market went up 23%. Not good. Since it's creation, in 2012, it's done okay, but hasn't even matched VOO, let alone the 600+% return on boring ol' Apple in that time. Just not for me.
Hi, if i am already maxing my 401k because I started saving for retiremnt late in my late 40's. What acct do i open and add divident ETF to? A taxed brokerage acct??? Your advice?
Mr. Roussin, say if I had $100,000, theoretically, could I buy Schd ETF in a lump sum? And make that $49,000 a year?????? I am shocked...in a good way. I have a child with special needs that i want to secure income for once he becomes an adult as I know he may be under-employed snd make minimum wage. Your thoughts about moving this capital into SCHD and VOO. For more stsbility? As a 10 year horizon to draw money from?
I’m a big advocate/investor in SCHD, however I did notice one issue… Your model is assuming very explosive growth for companies that are out of their growth stage. SCHD’s 10 year average return should be taken with a grain of salt, as it was almost all during one of the biggest bull runs in history. I’d think a more realistic expectation is about 9-9.5% per year after dividends in the long-run since the more growth-heavy SP500 averages just over 10%. That means that the share price appreciation in your model should be more like 6%, which would result in much smaller numbers than the 12% model from the video.
I was wondering the same thing too! I was surprised there weren't that many comments on that. But I agree SCHD is a good fund, but I don't agree with the assumption of 12% growth.
Hi Mark. Great video. I have a doubt though... The growth avg CAGR of 15% for 5 years is inclusive of the 3.7% dividend I think. Can you please confirm this?
I'm new to studying dividend stocks. I'm confused about the math. In year 10 there are 206.07 shares selling for a price of $195.75 ($40,338.20). $40,338.20 x 0.0374 = $1,508.64. I see you are increasing the dividend. Why is the dividend increasing? For year 10 the stock price is $195.75 and the dividend is $9.70. that is a dividend of 0.0496%. are you assuming that the dividend yield will increase? Thanks
All the math is based on constant share price growth and dividend growth. Now this is more so shown to explain the Power of Compounding. As the dividend increases and your share count increases (reinvesting) your dividend income will increase as well.
@@MarkRoussinCPA thanks for your reply. Is it typical for a dividend ETF to have a yield as high as 5%? Generally the Schwab dividend ETF looks very good.
If you are young and have income, invest in SP500 and QQQ will be a better combination. If you are retired and need fixed income, SCHD will be a great choice, get income and participate market growth
I agree, the dividend reinvestment and compounding make SCHD seem very attractive, but it's not right for young people who want to maximize the potential for growth. I've been in Fidelity Growth Company Comingled Pool Class 3 as well as the SP500 and I'm glad I am. I'm certain it has outproduced SCHD. Think of growth companies as reinvesting their dividends in themselves and growing their business. Companies only start paying a dividend to shareholders when they start having difficultly growing their business in a big way.
This is a nice encouraging video of how to keep going and what it can look like. My only thing would be to add a caveat not to have everything invested in just one Stock but to have at least 4 stocks/assets in different sectors of the market.
All you have to do is live to be 100 and you can finally draw dividends to have a comfortable life. Dont think dividends unless you're very young or you have at least $500k in capital.
I appreciate the message of the video, but it seems unreasonable to assume an annual dividend growth of +15%, with the current dividend growth being 1.22% acc. to Stockanalysis
What is your annual goal when it comes to dividends?
Making consistent income
Making between 4.5 or 5% per year on $200,00
Been is SCHD for a while. It has held up well in the good times and bad(2021 and 2022 for example). For me, if I can get enough in Qualified Dividends to cover our property taxes, home and auto insurance, that would be perfect. We will be otherwise debt free at retirement and just having these 3 expenses covered with tax free income(hopefully) will be great.
So can I just buy 100 k now that
dividend stocks are for beginners, people like the idea of it but the truth is every 1 dollar a company pays out it loses 66cents of value i'd rather invest in stocks that reinvest that money to better perform and grow the company, people are tricked by div, i try to avoid if i can stocks that pay div, if i need to live off something later on i'll sell a few stocks instead.
I wish I could have retired in my 50's. I'm 65 now, I started investing late . After some research, I found a strategy that helped. I'm pleased to say I'm retiring with at least $2 million.
I'm currently evaluating my portfolio and could use some guidance. How can I get in touch with your advisor?
@@ClemonSteve I usually avoid making specific recommendations because everyone's situation is unique. However, my experience with Julie Ann Lerch has been quite positive. You might find it worthwhile to see if her approach fits your needs
@@EbrahamAljalil I looked for the name online and found her page.I will get intouch with her,Thanks for the help
I emailed and made inquiries. Thanks for the help
SCHD outperformed VTV over 5 and 10 years and is very low cost. Just had bad luck this year. Many of us have a boatload in the S&P500 index in 401k's, so not having apple, Microsoft etc as top holdings (if at all) in SCHD is a good thing. Still have the bulk of my $500k portfolio in SCHD.
I’m taking the hybrid approach, VOO, SCHD as my foundation, with growth like MA, UNH, HD. And slow growth like O and PEP. I have a 20 year time horizon. But the best part is I still enjoy my life while I do this. Travel, and buy ONLY things I love. It’s the best combo, plus I love the small victories with receiving dividends/dividend growth/share price appreciation.
SCHD is an excellent portfolio addition, but relying solely on it for retirement may not be optimal. I retired at 48, grew my portfolio to $1.5 million in 10 years starting with 35,000 through the help of an investment advisor and dividends now supplement my retirement income. Invest wisely, build your nest egg, and don't sell the chicken that lays the egg!
@@Jamesbrown1126 Mind if I ask you recommend this particular professional you use their service? i have quite a lot of marketing problems
Thank you for this amazing tip. I verified her and booked a call session with her. She seems Proficient.
Mind if I ask you recommend this particular professional you use their service? i have quite a lot of marketing problems
If all you ever do is work for your money, then ALL you will EVER do is work for your money. This is not double-speak, it means you have to have your money working for you too. Start investing ASAP, develop a plan, and stick to it. Discipline and small sacrifices today pay off HUGE down the road.
Exactly, even if starting with a low amount. It builds a process and from there you can grow that amount over time.
@@MarkRoussinCPA Not to mention, seeing that growth will motivate you to find more ways and revenue sources to make it grow. It becomes a game!
I want to receive $100,000 in dividends annually. That's my ultimate goal 👍🏾.
Right there with you
I'm in my early 40s and my biggest regret is not investing sooner. I missed so much compounding time.
I'm 37 brother. I feel the same. But when I was younger I was pissing off my money on court restitution and booze. Now's is our time though!
Right. Same boat here!
As they say, the best time to invest is 20 years ago, the second best time is 10 years ago, the third best is today.
im 21 right now do you have any advice?
I feel you. I just turned 30 and started investing in my retirement. I would do anything to be able to go back 10 years and start at 20. What a waste of 10 good years of investment time.
Buying of ETFs is easy, but buying the right one without a time-tested strategy is incredibly hard. Hence which is best to buy now or put on a watchlist? I’ve been trying to grow my portfolio of $260K for sometime now, my major challenge is not knowing the best entry and exit strategies... I would greatly appreciate any suggestions.
Just because there are opportunities in the market doesn’t mean you should go in blindly. To understand the potential factors that contribute to your financial growth, I'll advise you to seek the help of a professional.
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.
I need advice on how to rebuild my portfolio and develop more successful tactics. Where can I find this coach?
Sonya Lee Mitchell is the manager I speak with. Just search the name. You’d find necessary details to work with to set up an appointment.
I looked up her full name online and found her page. I emailed and made an appointment to talk with her; hopefully, she gets back to me.
Perfect timing! I just crossed $100,000 in schd today!!!
Congrats, that is HUGE!
Congrats buddy!
How much time ? Nice
@@knowledgeseeker5499 8 years I think! Bought the most in the last 3 years for sure.
I currently have 4500 shares of SCHD! I love it SCHD is my retirement plan! I began with 1350 shares then here I am!
Nice after how long?
Yes - how long did that compounding take? Thats awesome 😊
@@knowledgeseeker5499 years many years of sacrifice and hard work! I currently drive a 2003 Accord! It's all about choices. There's a whole bunch of stuff I had to do without but it's definitely worth it! I live in a paid off house! It takes lots of time to accumulate wealth!
@@dustinadams2839 about 2 years to really see the ball rolling! I have been investing since I was 18 I'm 48 now. It takes time to accumulate wealth and choices! I drive a 2003 accord LX nothing fancy. The only 2 things I own that are out of character for me are a gold chain and a OP Rolex that's it! Also my house is paid off!
@@RB-je3yj awesome thanks
That’s great dedication and patience 👍❤️
I have recently been thinking more and more about scaling a $10,000 position in SCHD just based on the dividend and reliability.. Great video, thank you for the insights!
if only i have 1.2M to invest then i wont have to work and live off the passive income..
12% stock apreciation + 3% dividents thats 15% each year for 20 years straight.. thats optimistic. Last decade we had low interest rates, this next one money will not be so cheap any more. I agree it s a good investment though
Not to mention the 15% 5 year dividend CAGR.
@@dwightschrute7342 I am honestly shocked that this is a CPA and believe it’s realistic that SCHD will continue to grow at that rate. Plus, look at the projected dividend yield over time. There is no way SCHD get up to 6% yield. At best the stock grows at 8% and the dividend tops out at currently levels.
@@DAVE-THA-PLUMBERI may be mistaken, but I think that is the yield on cost not the actual yield of the ETF.
@@dwightschrute7342
You are mistaken. He has the price estimate at $542.83 (year 19) and a dividend in that same year of $35.66, which is a yield of 6.57%. The distortion in the poorly setup spreadsheet does start to show up way earlier though. In year 10 the yield based on dividend / price is already solidly in the 5% range.
I started investing in stocks at 35, grew portfolio to $600k by 42. Recently, lost over 30% and want to mitigate risks. Also, planning to buy a home soon and want portfolio to grow. What should I do?
Dont think here is the place for personalized investment guidance. However, I suggest consulting with a reliable advisor to ensure appropriate investment planning.
True. I’ve been investing in the stock market for 11 years now, last 5 years with the help of a financial advisor. Through this period of advisory support alone, I've been fortunate enough to achieve a 10x return compared to my previous efforts as a DIY investor, summing up nearly $1m roi as of today. My best so far.
Your advisor appears skilled. How can I contact them? I've recently sold property and aim to invest in stocks, seeking guidance.
I searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you
@@SaintYvesswhich company’s advisor? How much they charge?
Started buying SCHD around 35, one of my favorites, and recently I have been expanding my position. Great ETF.
To> be successful in markets, traders should understand the crossover between asset classes & liquidity flow. Julia David focuses on Multi-asset trading, a single strategy to manage risk, profit, and the code or the actual decision-making across multi-asset classes. Her skills set is top notch.
I'm surprised you know her too, I've been making a lot of profit investing with her for a few month now.
Wow, amazing to see others who trade with Julia David, I'm currently on my 5th trade with her and my portfolio has grown tremendously.
You invest with Julia too? Wow that woman has been a blessing to me and my family.
Please how can i liaise with her, i'm new to this
She often interacts on Telegrams, with the user name written below
If you wanna be successful, you most take responsibility for your emotions, not place the blame on others. In addition to make you feel more guilty about your faults, pointing the finger at others will only serve to increase your sense of personal accountability. There's always a risk in every investment, yet people still invest and succeed. You must look outward if you wanna be successful in life. I Invested through Mrs Maggie Wilson, same woman that an anchor kept mentioning on CNBC, She is licensed and made multiple of my start up capital within three months.
i am a beginner how can i reach her on TELEGRAMS?
She's frequently engaged on the platform known as TelegramS,
@ tradewithMaggie ---- is her username.
Amazing seeing others with Maggie Wilson, I sta'rted my inve'stment wit $15,00'0, a week later, we had grown to $55,0'00. This woman!! absolute genius.
After watching so many RUclips tutorial videos about trading I was still making losses until Mrs Maggie Wilson started managing my investments now I make $10,567 weekly. God bless Mrs Maggie, she’s been a blessing to my family.
My long term goal is to own at least 3900 shares; I have currently 1800 and am accumulating 5-10 per week (roughly). I want dividend income of 5K per quarter (I am relying on dividend growth to make up for the shortfall).
i wish i have 125K+ to invest.. dang..
Up to 6,200 shares of SCHD in our brokerage which represents 39% of our dividend portfolio followed by VYM, VYMI, FDVV, SPYD, VIG, DGRO and IDV. A few small postions in CEF's and some corporate preferred etfs and we're retiring at the end of the year at 54 with no debt and a nice little dividend stream.
This is the second time watching your video..good one. Anyway, I’m a dividend investor, I’m 39 with a $300k portfolio and plan to retire at 60. My goal is to reach 2 million by then...I repositioned some of my dividend stocks using my broker Olivia Rene Reyes. Now, I’m buying fractional shares of SCHD, TSLA, AMC, NIO and NVR again. Before I was after dividends for passive income but it’s slow growth so i took my chances on high growth stocks and I've gotten a 120% increase this year but hopefully I’ll reach a million sooner.
you need to manage risk, and stick to your broker’s plan through thick or thin, While also continuously learning from mistakes and improving. I also hope to trade with the big dogs soon
The funny thing is you’re not wrong … it took me 5 years to stop trying to predict what’s about to happen in the market based on charts studying, cause you never know. not having a mentor cost me 5 years of pain lol. I just searched your guy on the web out of curiosity. i’m not gonna lie…I’m impressed, she’s professional, mature and he’s worked with some really successful people in the past.
@@tylerforeman667 True, she really seems to know her stuff. I also found her online page and read through her resume, educational background, qualifications and it was really impressive. She is a fiduciary who will act in my best interest. So, I booked a session with her
I might as well just work with your FA mine's a total mess
love this comment, i would like to start investing so i looked her up and i'm willing to go long term. Thanks for the tip
I'm investing $96k in SCHD this week. I hope you're spot on!
I feel investors should focus on under-the-radar stocks, especially given the current rollercoaster nature of the stock market, because 35% of my $270k portfolio comprises of plummeting stocks that were once admired, and I'm at a loss for what to do.
How many times has this exact same conversation happened on RUclips lol goons
Stick with index funds fool
Individual stocks is not the way to go
So many women with great credentials
@@Zegeebwahyeah, saw it for the 3rd time
Putting well-earned money into the stock market can be over emphasized for first-time investors, unlike a bank where interest is sure thing! Well, basically times are uncertain, the market is out of control, and banks are gradually failing. I am working on a ballpark estimate of $5M for retirement, and I have a good 6-figure loaded up for this, could there be any opportunity for a boomer like me?
Sincerely it's best to seek an advisor right now, unless you're canny yourself. As a business owner in both the service industry and eBay reseller of all product categories, I can tell you we’re in a deep recession and everyone is running out of money.
Very true, people downplay advisors role, until burnt by their mistakes. I remember just after my layoff early 2020 amidst covid outbreak, I needed to stay afloat, hence researched for license advisors.
My consultant is NICOLE DESIREE SIMON, She has since provide entry and exit points on the securities I focus on. You can look her up online if you care for supervision. I basically follow her trade pattern and haven’t regretted doing so
deep recession? do you even know what a recession means? stock market can't be at record highs and unemployment at record lows during a recession, let alone a deep one.@@Natalieneptune469
I think this is too optimistic, but SCHD is a good choice for invest. As interest going down, people will put their money back to SCHD.
I'm sitting on about $104K in SCHD now, considering moving some things around and picking up another $100K.
Interesting video! Today is the first day i saw this video but about the time you were making this video i was restructuring my portfolio, and i took a 10K position in SCHD. Now to let time and compounding due the rest!
I like SCHD and VIG for blue chip reliable dividends and dividend growth.
I also like allocations to VOO and QQQ for some more emphasis on growth.
By the way, I think the only time since inception at which SCHD div yield was as high or higher was 2020 market crash.
This is eye opening, thank you for educating me in dividend ETF fund. God bless as you have helped this single parent with a spec needs teen ❤
I'm 60 and live on a fixed income. I currently hold 328 shares of SCHD, DRIP and buy as able.I also hold SCHG and SCHX. I may be on a fixed income but I'm absolutely reinvesting and padding my brokerage account. I'm not using any of the dividends for income. So, letting it ride...
how much do you need to live on a fixed income? meaning how much are you getting? curious cause your 60.. im 48 and plan to not work ( not retiring) for bosses by 50
Nice realistic examples Mark! Always nice to add some in at certain times of the year such as a tax refund, etc.. Time and patience sure pays off. Thanks again.
Thank you for watching!
out of curiosity I did a research about Lanngel Mark on the web. he has a great resume.
@@tommorgan4735 Lanngel Mark? I didn't realize he'd been let out of prison yet. Do you have his contact info?
@@utubewillyman I heard he got caught in a pedo ring, not even kidding. he definitely was though.
I'm investing in the S&P for my Roth, and a target date fund, but now I'm also going to go big into SCHD.
This is inspiring because although I want the full 50k, I only require 20k to justify quitting my 9-5 and working part time again. If I live below my means and invest more than your chart says, I could quit in 10 years 🤯
I don't think it's smart to assume SCHD is going to have the same price appreciation and dividend growth that it's had forever. Mature companies like the ones it's made up of tend to have much less growth than it's had. It's lifetime growth looks good because it was started just after the 09 market crash.
Excellent point.
Even if half the current cagr, 7% cagr not bad😊
You're correct insofar as a market rotation is a possibility.
I think that is hard to judge because the contents of SCHD will like slowly change over time. Still the numbers used in the example are extremely optimistic.
SCHD is down 5% since this video was posted. Good job! Beware of self-proclaimed gurus.
The stock market will do that. Derp.
Thank you for sharing. It is great to invest in high quality dividend ETF. With a long term average inflation rate of 3.28%, $49k in year 19 will be equivalent to today’s $26k. Nice to have though.
I just recently bought more SCHD for my kid’s account
I have a portfolio consisting of SCHD and individual tech stocks such as AMZN, APPL, GOOGL, NVDA, and TSLA. A mix of growth (tech) and peace of mind investing (SCHD). I have a long time-horozn. This makes sense right Mark? Thanks. Subbed.
Tech heavy but solid for long-term investor
Have SCHD and JEPI as a core investment. 5600 DIV from TSLY in June, I am loving this ETF. Just 200,000 in TSLY will give you 12,270 shares at 0.81 shares is 9,939 a month. You could easily retire off of TSLY and yes the div will change each month but if you believe in Tesla going up then TSLY DIV will also go up! I am retired and all i care about is dividends!
I'm surprised you know her. I've been making a lot of profits investing with her for a few months now.
Mrs Rose changed my life because of the high profits I got from investing with her.
You invest with Mrs Rose too? Wow that woman has been a blessing to me and my family.
I'm new at this, please how can I reach her?
I was skeptical at first till I decided to try. Its huge returns is awesome. I can't say much.
Concluding 2023 with a 20% decline in the S&P 500, long-term investors find a promising entry into 2024. Noteworthy ETFs include: $VOO for S&P 500, $VTI for total US market, $QQQ for tech growth, and $SCHD for growth with dividends. Calculating my annual dividends, I'm thankful for $167k-attributing it to discipline and focus.
In the past month, my "unexciting" index funds provided me with over $6,000 in dividends, giving me the option to spend without selling shares. Currently, I've opted to reinvest the dividends to acquire additional index funds for future growth.
Seeking advice on dependable monthly investment options. My goal is to eventually enhance my work income with consistent monthly returns from investments, alongside my long-term investment strategy, for a supplementary monthly income.
While unfamiliar with such turbulent markets and the accompanying chaos, the current apprehension is reasonable considering the historic duration of the US Stock Market's bull run. Nevertheless, lucrative prospects abound with the right guidance. Collaborating with an investment advisor to diversify my portfolio, I managed to achieve a substantial profit of over $260k in the preceding year.
*@kristenpierce8661* Please can you leave the info of your investment advisor here? I’m in dire need for one.
I'm guided by Camille Alicia Garcia an experienced coach with extensive financial market knowledge. While you can consider other options, her strategy has yielded positive results for me. She offers valuable insights, including entry and exit points for the securities I concentrate on.
Can you do an example for older people who have more interest in a shorter timeframe and have more money to invest up front?
I have the same questiom...?
Thanks for your great video! Can you briefly describe how taxes affect the tables you show, assuming this is a taxable account; both if dividends are dripped back in and if dividends are taken as cash payments? Thanks again
As you mentioned, the account you use plays a HUGE role. For me, I hold all my SCHD shares in my Roth IRA. However, if you do not, you will have to pay taxes on the dividends you receive, whether they were Dripped or not.
IF you buy cheap and sell high. Do you have to pay taxes on the profit even if you never withdrew the money from your brokerage account?
@@villafontananorte Yes.... unless its an IRA.
My niece started investing @8 years old. Everything she gets for gifts goes into $&P and a couple other etf’s.
She will be millionaire
@@chiragmehta8212 I hope she will as it’s probably gonna take more than a million to survive when she retires.
The last example is assuming that SCHD will pay $35/share annually. Currently I am not aware of any company paying that rate of dividend currently. What is the likelihood that we would see $35/share?
if the stock is high enough in value, 35 a share will probably be reasonable. 3.5% of a grand is 35 dollars.
Mark, as always, great info. What will be the difference between periodic investments of 10K to reach 100K versus a one-time investment of 100K in the beginning? The latter will grow faster. How big will the difference be? Thanks
I love this EXAMPLE it is very doable. Thank you ❤
So what do you think about putting $100,000 in SCHD and let it go. Rollover all dividends back to buy more shares.
Also what about the same thing with JEPI. I am a little to old to wait around for 30 years of growth
I’m in the same boat. I’ve got the cash to invest, but not 20 years to see it compound. I’d like to get some income now…
Look into SCHD, JEPI, CSWC, O, MAIN, STAG, VTI.
I accumulated 78 shares trading another stock. I’m going to keep doing to see how it goes! Praying!
@@pamelawatson8837 What you need is a time machine. good luck!
Another excellent investment idea video presentation, Mark! Kudos to you and thank you!
We are, and have been, long SCHD, which is the best dividend growth ETF currently available for all of the reasons you have mentioned in your presentations on SCHD.
And I highly recommend the book behind you in your video, The Psychology of Money, to all of your viewers. One of Morgan Housel's best books on money and happiness.
Thank you for the kind words, truly appreciate it!
Great video...think I'll wait a bit for SCHD (market) to correct and than hopefully jump in between the $55-65 levels.....wish I was in this back at interception...wow that would have been some nice retirement reinforcements. 🤔
can't time the market. it's easier to have time in the market. you can always buy more when and if it goes down later.
Compare the QQQ to SCHD over five years with total return, thats why we don't just want a dividend ETF and we also want growth
I agree, SCHD should not be your ONLY investment
Schg!!!! JEPI, Jepq, Schd!!
@@bossballheaddawg2588jepi is trash
Hello, would you do a video stepping through hypothetical results long-term investors can expect, taking expense ratios and taxes into account?
he said it "perfectly" .. it takes years and years of patience investing to see good returns. (not guarantee but high %) People see other youtubers showing $5000 dividends a month and they think they can get that.. not for me. Realistically, if you have 12.5K what can you do? just turn 48 this year..
go back in time and invest more money. do you have a time machine?
$100,000 in SCHD @ 3.67% is $3,670 a year. Where are you getting these numbers? And in what reality are you living in that you think SCHD will reach $195.75 in 10 years? If that were true, invest $100k in VOO, because by your standards it should be worth $3500 per share at that point.
Agreed. His math is not mathing. He probably just pulled up a random chart somewhere
@@christianchua8408 and figuring a year later its worth less than what was. seriously, 100k invested gets you a 50% dividend return..thats crazy talk? if it was that easy everyone would be rich! plus in 20 years, that maybe 2500 bucks a month, after the taxes, isn't going to be worth much.
Got $32,000 in there right now. Plan to do $50,000 additional each year. even at 8% stock growth with 10% a year avg Div growth, in 15 years I’m looking at $100,000 a year before tax. 20 years, $220,000 30 years $1,000,000
Great plan!
Even though I engage in investing, I feel disheartened by my lack of expertise in assessing the performance of individual companies and determining the optimal timing for stock purchases. The erosion of my financial reserves due to inflation adds to my concerns. At this point, I require precise market trajectory information, but I find myself unsure about the appropriate course of action.
Especially in this challenging market, numerous opportunities exist to achieve impressive returns. However, executing such complex transactions requires the expertise of experienced market professionals.
Considering the prevailing economic climate, I recommend seeking a mentor or a knowledgeable advisor who can provide guidance and support.
I wholeheartedly concur, which is why I opt to entrust the day-to-day decision-making to an investing coach. With their specialized knowledge and extensive research, it is highly unlikely for them to underperform. Their expertise is centered around harnessing the asymmetrical potential of risks while also employing measures to safeguard against unfavorable outcomes. I have been collaborating with an investment coach for more than two years, and as a result, I have generated over a quarter million dollars in returns.
I need a guide so i can salvage my port-folio due to the massive dips and come up with better strategies. How can one reach this advisor?
Do your due diligence and opt for one that has tactics to help your portfolio continue consistent and steady growth. "Helene Claire Johnson" is accountable for the success of my portfolio, and I believe she has the qualifications and expertise to accomplish your objectives.
Thank you for this video bro it really helped!
Most RUclipsrs try to sell Schd and that’s when I purchase this ETF. Unfortunately this is the one of my all etf holdings that is not performing. I don’t know why and why RUclipsrs try to advise us to buy?? I plan to sell them all shortly.
I'm doing catchup contributions on my Solo 401k. Should dividend stocks/ETFs be bought within the 401 or separately?
Looking at the yearly chart of schd it had a high of about 77 in 2021, 78 in 2022 and it pulling back from a high of 76 in 2023. Nothing saying it can’t have a really good few years but I wouldn’t just expect 12% a year
Awesome I’m forwarding this to my niece she wants to investing for retirement.
Sell covered calls against every 100 share lot of SCHD to juice returns. Reinvest the premium, especially in a tax deferred account. With 100K, that is about 13 100 lots. Can add an additional 6-10 shares a month if done well.
Utilizing options can really benefit investors when done the right way.
I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my portfolio for retirement. I'm seeking to invest $200K across markets but don't know where to start.
If SCHD is so transparent with its holdings, would it make more sense to simply copy their portfolio percentage-wise to have effectively the same returns and dividends but w/o a management fee. ?
I am going to sell my SCHD shares (have about 700) and just invest in the individual stocks that have the highest dividends to avoid the fee and also avoid all the financial issues hitting the news about schwaab and everyone selling and yanking their money out of their banks.
You can, but then you will need to keep an eye out of all your investments and rebalance as necessary. For people like me, thats too much BS to worry about, let the ETF people do it for me while I don't even have to look at any charts.
If you like making those charts, I just invested 135,000 into SCHD. What would a 5 or 10 year chart look like?
Love your videos!!
$100k in MO is even more life changing for same time period and in a Roth account as well 🤑
What Dividend reinvestment calculator do you recommend? I've used Tip Ranks, MarketBeat and a few others online and I get very different results when using the same data.
Forbes Advisor dividend calculator is easy.
Folks this is an example of benefits of compound interest. Yes, assumptions on growth and CAGR may be optimistic. Also taxes, inflation relevant. However, understanding compound growth is important for investing and he does good job doing that. Steve
I recently started investing and wished I had started a few years back. But I want to be able to generate at least 40k by the time I’m grey 😅
That is a great goal!
Nice video 👍👍. My ultimate goal is to receive $100,000 in dividends annually
I am 58 years old. I just rolled over a roth account to Schwab. I am looking to work until 70 which means i have 12 more years of being able to add 7500 a year. This will give me an additional 90K to add in. What are your thoughts as to putting it all in SCHD and just keep adding the yearly to SCHD or should I follow the 110 rule and put the other portion in rolling CD's?
It would be helpful to see the inflation adjusted value compared to the nominal value in your calculations. For example, I assume 3% inflation and 11% annual compounding rate for SCHD. Using my current monthly savings amount, the nominal value in my personal example is about $18M at retirement RMD age, but inflation adjusted it’s $8.7M.
There is a whole discussion on SA about the minimum amount that is needed to “retire”. My personal belief is that the nominal amount is about $10M if you plan to retire in 20 years and never work again.
Great video! I like this example because it is so close to my actual investing strategy. I'm investing $500.00 per month into SCHD; so $6,000.00 per year. I'm also investing what I can into some other ETFs and stocks every month, but SCHD is my primary investment. It's exciting to see where I could potentially get to if I stick to my strategy. My goal is at least $50,000.00 per year.
That is awesome!
If I knew this advice when I was 18 I'd be better off today financially.
Me too!
dont we all.... i just started knowing about stock market in 2021..48 now too late for me on dividends..
This should be taught in high school instead of some useless class like social studies. Looks like they want to keep the poor poorer.
Impressive video. I started a bit late (graduated from my doctorate program at age 30 in 2016 with 170k in school loan debt). Managed to pay off my debt by 2019 and currently have a house and 250k total in investments (combo of profit share, 401k and a brokerage account). I'm not very knowledgeable in investing, so I just have my investing currently in index funds mainly voo, but have been putting a lot into schd the past few months. I dunno if that's the optimal strategy, but psychologically it is very set it and forget it, and prevents me from obsessing over individual stock performance.
Although I'm not sure if I should utilize different brokerage accounts, I'm considering doing the same. Simply curious. pros and cons?
@@tylerforeman667 Sounds great. I could really use the expertise of an advisor, just can’t find while I’m away for work in New Zealand for another year. My portfolio has been stagnant. Who’s the person guiding you can I get a phone number?
@@adamtennant129 She runs her firm under her name Olivia Rene Reyes. You can find her contact page if you research her. Do your due diligence you'd find all you need to know.
I appreciate your work here, but could you explain your math a bit?
- you say that assuming 12% return is conservative and less than the 5 yr and 10 yr however in fact the 10 year av return for SCHD is just under 12%.
- The Dividend yield you show is increasing by 16% YoY. The past 10 yr average dividend yield increase is 12%, so your 16% is quite a bit higher.
- by my math, at year 10, dividend yield could optimistically be around 4% which at a share price of $195.75 would yield $8 per share. With 206.07 shares, your annual dividend income would total $1648.56.
-Adding this same math to your 19 year chart, the 19 yr annual dividend income would be closer to $29,000. Far less than your $49k estimate.
I’d be interested in understanding what I might be missing, or why you’ve made the estimates you have? Thanks
You can compound with total stock market ETF or SP500 and it will automatically reinvest dividends because non dividend stocks do that for you.
This was really an incredible video and gave me so much motivation!
114KUSD already invested in SCHD... every month I continue adding 1,000KUSD into this ETF
50K a year is good now BUT what would the average salary be in 20 years at the end of your example? Save as much as you can for as long as you can even 25k per year in dividends will probably double your income (With Social Security) in retirement. Great Vid
I'm confused, though. If I'd invested 100k on Jan 3, 2023, I'd be down 2,700 in capital depreciation, and up 2,200 on the yield. So, I'd be down 500 this year so far. If I'd just bought AAPL on Jan 3, I'd be up 44k. Hard to bite the bullet, given such a disparity.
Its easy to cherry pick dates, if you aren't investing in the long term, then stick to individual stocks as you can be more proactive in watching them. Most don't care and will let the ETF do it's thing without the stressing about buying and selling.
@@Fanta.... What I was trying to illustrate is that the whole market went up massively in 2023. And this did not. In fact, it didn't even break even this year, which is insane. It lost 1.6%! Why would I sit in this, watching the entire market pass me by? If it can't even go up in strong bull years, of what value is it to me long term?
And if we go by the logic of not cherry picking dates, then look at its entire history. Since inception in 2012, SCHD has returned 73% total capital appreciation on initial investment + 15-25% in dividend returns. So, 100%, give or take? A simple investment in AAPL in that same time would have returned 668%. Even boring ol' etf VOO returned 132% in that time, + 15% in dividend returns, on half the expense ratio. SCHD isn't even matching a basic S&P 500 ETF, let alone the most boring big cap of all. To each his own, I suppose.
@@Fanta.... SCHD was down 1.8% last year when the market went up 23%. Not good. Since it's creation, in 2012, it's done okay, but hasn't even matched VOO, let alone the 600+% return on boring ol' Apple in that time. Just not for me.
Can you share a reliable dividend calculator
great video, thank you!
Thank you!
Thanks. Great video
Hi, if i am already maxing my 401k because I started saving for retiremnt late in my late 40's. What acct do i open and add divident ETF to? A taxed brokerage acct??? Your advice?
Mr. Roussin, say if I had $100,000, theoretically, could I buy Schd ETF in a lump sum? And make that $49,000 a year?????? I am shocked...in a good way.
I have a child with special needs that i want to secure income for once he becomes an adult as I know he may be under-employed snd make minimum wage.
Your thoughts about moving this capital into SCHD and VOO. For more stsbility? As a 10 year horizon to draw money from?
No, Year 1 income would be how many shares $100K could buy times dividend per share.
@@MarkRoussinCPA ok! Got it 👍
I’m a big advocate/investor in SCHD, however I did notice one issue…
Your model is assuming very explosive growth for companies that are out of their growth stage. SCHD’s 10 year average return should be taken with a grain of salt, as it was almost all during one of the biggest bull runs in history. I’d think a more realistic expectation is about 9-9.5% per year after dividends in the long-run since the more growth-heavy SP500 averages just over 10%. That means that the share price appreciation in your model should be more like 6%, which would result in much smaller numbers than the 12% model from the video.
I was wondering the same thing too! I was surprised there weren't that many comments on that. But I agree SCHD is a good fund, but I don't agree with the assumption of 12% growth.
Thank y again.Y are the greatest 🎉
Appreciate that!!
What about withholding tax on dividends paid by an ETF? How much is actually received by the investor?
Depends on the type of account you hold the position in and your tax situation
@@MarkRoussinCPA thanks, will check because I am not a US resident.
Can you post the formulas / google sheet you used for the +$5000/year example?
what lights are you using for background effect?
Hi Mark. Great video.
I have a doubt though... The growth avg CAGR of 15% for 5 years is inclusive of the 3.7% dividend I think. Can you please confirm this?
Yes it does, his projections assume very explosive growth. I’m a huge SCHD fan, but also want to make sure expectations are realistic
Well explained video. I'm going to forward it to my son
I'm new to studying dividend stocks.
I'm confused about the math. In year 10 there are 206.07 shares selling for a price of $195.75 ($40,338.20).
$40,338.20 x 0.0374 = $1,508.64.
I see you are increasing the dividend. Why is the dividend increasing?
For year 10 the stock price is $195.75 and the dividend is $9.70. that is a dividend of 0.0496%. are you assuming that the dividend yield will increase?
Thanks
All the math is based on constant share price growth and dividend growth. Now this is more so shown to explain the Power of Compounding. As the dividend increases and your share count increases (reinvesting) your dividend income will increase as well.
@@MarkRoussinCPA thanks for your reply. Is it typical for a dividend ETF to have a yield as high as 5%?
Generally the Schwab dividend ETF looks very good.
If you are young and have income, invest in SP500 and QQQ will be a better combination. If you are retired and need fixed income, SCHD will be a great choice, get income and participate market growth
I agree, the dividend reinvestment and compounding make SCHD seem very attractive, but it's not right for young people who want to maximize the potential for growth. I've been in Fidelity Growth Company Comingled Pool Class 3 as well as the SP500 and I'm glad I am. I'm certain it has outproduced SCHD. Think of growth companies as reinvesting their dividends in themselves and growing their business. Companies only start paying a dividend to shareholders when they start having difficultly growing their business in a big way.
This is a nice encouraging video of how to keep going and what it can look like.
My only thing would be to add a caveat not to have everything invested in just one Stock but to have at least 4 stocks/assets in different sectors of the market.
My annual goal of dividend income is $150,000 , that's a decent income to live off of.
What would it be if someone went in right now with the $100k how would it turn out by next year? In a sooner video!
I have 406 shares right now. I want to get 500 by the end of the year.
Hi
Can you explain how dividend increases from 2.64 to 9.70 in year 10.
I’m not understanding the math either
A dividend is a percentage of the etf's unit value. as the price per unit goes up, so does the percentage value of that etf
All you have to do is live to be 100 and you can finally draw dividends to have a comfortable life. Dont think dividends unless you're very young or you have at least $500k in capital.
Thoughts on schy
I appreciate the message of the video, but it seems unreasonable to assume an annual dividend growth of +15%, with the current dividend growth being 1.22% acc. to Stockanalysis