Amazing content like always. Thank you so much for taking the time to create this cross analysis between the blending of these ETFs. Your time and knowledge is very much appreciated!
Always quality content! It's safe to say that if you're looking to add a dividend ETF to a long-term strategy, SCHD is the one to lay heavier on from this. Currently I'm purchasing $10 each, SCHD and VOO every day regardless of the market in my ROTH and then with what's left over I hand pick some of my favorites. This has done well for me so far, when the S&P was down 18% I was still up 4.2% for 2022
Awesome! Yes, I have a video coming out with SPY as an SCHD replacement to see how that performs but I really like SCHD as a foundational piece in a dividend portfolio. 👍😎
The most important takeaway is that for any amount of income, over any time period since the inception of these 3 funds, investors would have been better off taking distributions from a portfolio of 100% SCHD. Even more so if taxes are a consideration.
As an early retiree, I've been doing 16:42 since 2001. Always keep in mind the saying "Past performance does not indicate future results". Based on Vanguard's projected future returns my guess moving forward SCHD will have less of a lead with capital appreciation. As always no one can truly predict future returns.
Purchasing a stock may seem straightforward, but selecting the correct stock without a proven strategy can be exceedingly challenging. I've been working on expanding my $210K portfolio for a while, and my primary obstacle is the lack of clear entry and exit strategies. Any advice on this matter would be greatly appreciated.
The strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.
Even with the right strategies and appropriate assets, investment returns can differ among investors. Recognizing the vital role of experience in investment success is crucial. Personally, I understood this significance and sought guidance from a market analyst, significantly growing my account to nearly a million. Strategically withdrawing profits just before the market correction, I'm now seizing buying opportunities once again.
Angela Lynn Schilling is a hot topic among financial elitist in The US. She's gained some reputation for her works during Covid. All the info. you need to set up an appointment is on her web page.
As a francophone, I have to watch at a lower speed and pause your videos to grasp everything! 😂 Nearing retirement, so I’ll stick with DIVO and JEPI for now. In Canada we get tax deductions when investing in our retirement accounts, and they’re tax free until we start to withdraw them. I absolutely look forward to your next amazing analysis, great work!
Great video, you really put a lot of work into this. But this is really what people should be doing and I own all three with a focus more on SCHD because I run my own portfolio with covered calls so want more growth, but I also helped my mom with more in JEPI/DIVO b/c she needs the income but wants some growth as well. I also put her in VYM b/c it’s more defensive than SCHD.
I split my dividend portfolio account between QYLD, SCHD, JEPI, RYLD, XYLD and DIVO (in order of current market value). Current dividend yield of about 10%. Future investment will be split between SCHD, JEPI AND DIVO which will lower the dividend yield but increase potential capital appreciation.
So, for a long term retirement scenario, the best play is to run pure SCHD for the capital appreciation and then rebalance into something with a higher yield like JEPI or SDIV.
SCHD, Jepi, and O. Those are going to be my long term blend. Jepi to provide the core of the income. SCHD to provide growth. O to be some what of a filler for schd lacking reits. My personal goal is 45k in dividends per year from Jepi and once I hit that number I want that number to grow roughly 1-2k a year. Everything beyond that into O and schd. My reasoning is fairly simple. I am perfectly content with an ordinary income from Jepi at that amount. Going up a few brackets wouldnt be so great, but I feel like that level is perfectly comfortable.
Great video! I have a 4 fund portfolio nearly equally balanced with SCHD, DIVO, JEPI & JEPQ. I will be living off of the dividends in 19 more months, when I turn 59 1/2. I will go heavier into JEPI & JEPQ if I need more income.
Wow, what a GREAT VIDEO! I think this is the video a lot of people were waiting for. For my position, nearing retirement, wanting current income to live off of, the 60% JEPI/20/20 allocation makes the most sense for me. Very cool. Thanks.
I am new to the stock market. Every stock that I bought so far, I was out of luck because I bought them when they were expensive. I feel I missed out on all the stock opportunities so far for the tech stocks.I believe having 175K yearly income would be a good investment so I want to plug all my savings into the stock market. I know this sounds a bit dull but I would like to know if I should learn investing or let somebody else (more capable like a FA) do it for me? Please share your thoughts. I am kind of tired of searching for a good stock to buy and losing all the good opportunities..
This really helped a lot. I’m helping someone who is retired and needs to live on more income other than Social Security so it looks like SCHD JEPI, DIVO are the best to stay with.
Hey Joe, I like your vids but one comparison which I'd like to see is how these various portfolios perform if instead of just "living on the dividends" you compare how the SCHD and DIVO ETF's performs when withdrawing the JEPI income level. Most people investing in JEPI are doing it to receive a targeted amount of income and are willing to tolerate capital erosion to get it. How do SCHD and DIVO perform when you're having to sell a portion of the portfolio each month to get to the JEPI income level? That would seem a better comparison than simply just comparing the dividend and ending balance.
@@AverageJoeInvestor Take a look at Portfolio Analyzer. It works well for this type of analysis. I looked at the data and the results were closer together but similar in terms of SCHD ending with the best final balance regardless of the draw-down rate. Makes me wonder if there are market conditions where JEPI or DIVO would ever win out. Not sure.
Very happy I subbed to your channel, I was already looking at all three on my own and I saw you uploaded a video on it. Glad to see I'm doing something right.
Excellent analysis. I love this kind of video where you blend different ETF`s. I hope you make more of these. I love those funds you mentioned. I am creating my own blend of ETF`s for my own personal situation.
For JEPI specifically, just take your tax bracket percentage and divide the total income for the year. $5,000 x 0.24% (24%) = $1,200 in taxes Each month when you receive your JEPI or any monthly income in a taxable account, don’t DRIP initially but let it hit the cash account. Take your tax percentage bracket, say 24% and then take that amount and put into a HYSA. DRIP the remaining balance. Your paying yourself for tax time and then using the rest of the money at your own will. Done. Rinse. Repeat. Build shares.
This may not be perfect but overestimate the tax bracket. Once the taxes are paid, take the remaining balance from your HYSA and DRIP into your stocks.
Inflation is producing a slew of problems throughout the world, including food shortages, diesel and heating fuel shortages, and housing prices and financial market crash. This global collapse might end up being a part of us for a very long time. With inflation currently at about 9%, my primary concern is how to maximize my savings/retirement fund of about $300k which has been sitting duck since forever with zero to no gains.
There are lot of ways to make a killing right now, but such high-volume near impeccable trades can only be carried out by real-time experts. Trying to earn big in this down market without an advisor is like trying to win the Indy 500 riding a llama.
I'm sure the idea of an invstment-Adviser might sound controversial to a few, but a new study by Bloomberg found out that demand for Financial-Advisers sky-rocketed by over 42% since and based on firsthand encounter I can say for certain their skillsets are topnotch. I've accrued north of 580k within 16-months from an initially stagnant Portf0lio worth 105k.
@@mariahhayes5089 Inflation is over 10% here, but as we know it's definitely way more than the Government would like to admit. My plan is to earn more passive income and ride this out, can your Investment-adviser assist?
@@danielkey1463 DefiniteIy!! All of this occurred in less than a year after “”MARGARET ANN WARNKEN”” started coaching me. I started with a few thousands and i'm now considering retirement shortly... You can search her up if you require assistance.
@@mariahhayes5089 I just Googled her name and her website came up right away. It looks interesting so far. I'm going to book a session with her and hopefully it all goes well. Thanks.
I blend LVHI, RIVI, SCHD, JEPQ, JEPI, and DIVO. LVHI and RIVI provides more international dividend exposure with an average dividend yield of around 4 to 5% I believe. Thanks for all the great content!
Excellent video Joe, I've been waiting for this one! But now you have me wanting more! I can't wait for the next video seeing the results of adding a low cost index fund! I'm at the point where I have more than enough monthly cash flow coming in from dividends and wish to grow my portfolio (as you mentioned).
Hard to say… You could make the case that income/dividends may be a better choice due to inflation/interest rates. We will just have to find out. Or we can just do both!! 👍😎
Great job, by far one of your best videos. Great info. I do have an addition for you to "test" . The only problem is it hasnt been around long. Dollar/yield to dollar its better than JEPI so far.............Drum roll. Its JEPQ ! The benefit as an addition to your above thesis is it gives your alloy ETF exposure to the NASDAQ. Now I know for the past 2 yrs the NASDAQ has stunk up the place, but you and I know, the only certainty is CHANGE. When she (NASDAQ) is sweet she is oh SO SWEET. But when shes bad, oh well the last year has shown that ! LOL.Because their yields are close, the income heavy portion of your thesis involves an even split of JEPI/JEPQ, inserted into your "alloy" ETF with your above proscriptions.
my strat is actually somewhat similar to this vid. i buy schd, divo, and jepi equally every week, but i add a 4th fund. sptm which gets slightly more than the other 3. once ive been fully prepared, i plan to add extra money to jepi first to create a much larger monthly cashflow buffer. the point where i can slowdown on loading up on jepi is once the monthly yield is enough to fund the whole 4 fund strategy on its own. this will free up the cash i invest manually into other parts of the fund for much more growth.
Please also add the spy and check if a mix of jepi/divo for div income and spy for capital appreciation makes a better job than using schd for capital growth.
Uncle joe- Ive noticed you have really MATURED in your analysis's lately. You are finally starting to understand the Markets more like a Morgan Stanley Analyst . VERY GOOD VIDEO !!!
6:30 Awesome video on thses ETFs. I would like to see who jepi would perform if we just used the difference between JEPI and DIVO at reinvested the rest. So for JEPI that had almost $30k dividend vs DIVO's almost $18k. If we hold JEPI and just reinvested 18k of the 30k and used the 12k.
Thanks for the great video and your effort to break them down in understandable bites. Are these total dollar outcomes after the ETF funds are paid? What if you took the cash flow from JEPI and used the distributions to invest in SCHD each month? Is there a percentage of the three funds that would do best with this scenario?
It would be AWESOME if you showed the tax effect...especially now with everyone prepping for tax season...I like e SCHD and I love your approach but I'm still hesitant with JEPI...they have REITS, extremely high yield and who knows how covered calls are taxed! Of course this relates to holding these in taxable account ..would love to see a separate video in this! Great work 👏 👍 👌
Glad you commented this. I just checked JEPI holdings, and 2.81% in the real estate sector. While not much I'm guessing a percentage of the dividend returns would not be qualified and taxed at a higher amount. My strategy has been to supercharge portfolio for a couple of years with JEPI, reinvest divs into growth and back it down, then closer to time of living of Divs, ramp it up again. Hmmm. Rethinking now. Have to be careful in taxable account.
@Bryan Harrell thanks. After further research I'm not going with jepi in taxable...I'd be paying 24% on qualified dividends! I'll stick with schd in taxable...jepi great to supplement pension...2 more years! Or I'll just keep schd!
Just take a percentage of the income from JEPI, 24% and sock away into a HYSA for tax time in April. I’d much rather build up my JEPI/JEPQ gradually instead of selling shares of VOO/VGT and trying to time the market. To each their own, but don’t be afraid of taxes. It takes money to make money. And with the savings plan above and HYSA, the taxes are super simple!
Great Work. Various/adjustable weightings has a huge effect. Fun flesh out. I can see, in a person's life time horizon, when the shifting would be optimal. I think you are right to bring in an index growth ETF! Fun. Some of those would be rocket fuel and may turbo charge the income covered call paying ETFs. Momentum is a good thing! I like SPMO and some of the other Momentum players in this sideways/swinging market.
Well said Martie! I deleted the SPAM comments. They are pervasive... Interesting idea with the momentum though I don't personally like to take this direction. THANK YOU for watching and for leaving your $0.02 in the comments! =)
After watching a bunch of your videos I came up with a 5 part premium ultimate dividend profolio... Let me know what you think... SCHD, DGRO, IXUS, ICLN, IRBO.... And maybe a 6th one of SPYI or IWR...
SCHD should be held in a taxable account vs JEPI/DIVO in a non-taxable account for maximum tax efficiency. THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎
Thanks - good explanation of the benefits of each blended portfolio - suggest some metric related to volatility - seems a person in retirement might also want more stability for the risk.
Love this video. I like to have some real estate to balance things from stocks. Could you see about replacing DIVO with XLRE? Wondering if I should stick with my 50/30/20-SCHD/JEPI/XLRE.
Great Video as always :) Will you do a quick one on JPHY and JEPQ as well? Are these worth adding in, our creating another portfolio with? Why/Why not? Appreciate you always.
As always, GREAT video. Thank you. Would it be a worthwhile exercise to explore results where you allocate all 100k to JEPI for the max cash flow then use the distributions each month to purchase SCHD?
I would if you are in the green on JEPI and buy more SCHD with the distributions. If you are red/down in JEPI I would just keep your automatic DRIP mode to keep accumulating shares.
Interesting idea! And then the opposite strategy as well. That’s an interesting idea… THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎
I like how easy it is to choose between income and growth depending on need. JEPI seems like a good choice for my bridge years to social security, should make the bridge last more years.
I also hold $GOF, has a slightly more aggressive dividend than JEPI. Stock price fluctuates more, but I'm still pretty even with a roughly 13% dividend. I carry more JEPI though
I like JEPQ but there’s so little data at this time that it’s hard to jump in right now. THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎
Seems like you should just buy SCHD unless you need more income, then rebalance toward JEPI accordingly, but hold as much SCHD as possible and leave DIVO out of it. Idk
It’s not a terrible idea at all. JEPI makes the most sense in retirement to turn in the extra cash flow as needed. THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎
what about just betting on SCHD and selling covered calls far enough out of the money, so that the capital appreciation is not damaged, and, in case of imminent assignment of any call, including rolling the calls to avoid any assignment and cash in some more premiums in comparison to solely betting on SCHD alone?
I don’t think it’s a terrible idea at all. I personally owned over 400 shares of SCHD and I sell cover calls. I like the strategy! Thank you for watching and for leaving your $0.02 in the comments!
Excellent video. Very interesting and informative. Why do you exclude JEPQ though? I know it is new. Is there concern about it? Are there any advantages to balancing JEPI and JEPQ?
Currently hold Schd, Vymi and mega cap growth MGK. Will sell MGK for Jepi when I'm 50, 38 atm and will keep Schd and Vymi. The goa is to live off divends.
I wonder what it would look like if you added a 4th etf $QLD, the leverage etf, maybe allocating a smaller amount, say 5%. So JEPI 50%, SCHD 30% and DIVO 15%. Also, rebalancing every quarter. During the quarters where QLD jumps to 12-15% of the portfolio, you'd sell some and vice versa when qld dips to 3% of the portfolio you'd buy more. The rebalancing helps fix the decay that occurs with QLD
Interesting idea Tim though I’m not sure it’s worth the effort when you can get pretty good cash flow from JEPI already. THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎
Love your stuff. We learn enough to make our own decisions based on our needs. Seems you've been focused a lot on dividends and covered calls etfs for income. But what do you think of ETFs with good income. Like cash flow and good moats? Do you have an opinion on stuff like COWZ etf from pacer?
If we think there is going to be more volatility in coming years vs the bull market we have had the last several years what weighting would be the best weighting between SCHD,DIVO,JEPI , I suspect a greater weighting with DIVO would be best, your thoughts?
Im looking to save for a house but I am looking to make an etf portfolio to help with the money. Would this portfolio help in generating the money for buying a house in the future?
It’s exactly that. Given the fact that we are living off the dividends, and we are not adding new money to the portfolio, what is the value of the portfolio at the end of the period? That is what I used.
It’s not a terrible way to diversify at all. I’ll expire that potentially in a new video. THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎
I like the analysis, but the Living On Dividends isn’t equal or fair when you take over 10% from one and under 5% from another and then compare them. Rather you should deduct a fixed amount such as a straight $5000 or $10000 per year, or better yet a fixed percentage of 5% or 10% a year. I would be very interested in seeing how this affected each funds share balance and annual payout.
Since Tech and Small Caps is down, why not add RYLD and JEPQ as there is an upside down the road. These will significantly diversify the portforlio more without taking a hit on captial appreciation or dividend. I would also look at SPHD. Keep some liquidity by holding some ladder CD. SA recently have been warning on the pitfalls of JEPI during growth times, but for the volatile time we are in JEPI is a safe bet. I, like most retiree, want dividend income but would like to retain portfolio value as much as possible.
I was about to do this same comparison, and you beat me to it, thank you lol! Great analysis! I feel like you did the Dr. Strange time lapse, now we have an idea on what we can expect in those etfs. Would like to hear your thoughts on bonds as rates rise, and the potential of their terminal rates.
Oh man thanks for this I been toying with a similar thought for some time,there was on thought that has kept me up tho that you may have already done in your calculations but- when you reinvested dividends what if instead of the normal drip you reinvest across the board with the same initial weight(ex even 1/3 portfolio would reinvest dividends evenly 1/3) giving SCHD a higher yielding drip from the overall cashflow 🤔
@@AverageJoeInvestor if it DOES prove too strenuous I’ll settle for a video comparison if a lump investment in a fund like SCHD dripped vs some lump sum deposits on income funds where the dividends were used to buy SCHD😄
Man, I think you spend more time breaking this down for us than most people give you credit for. This video needs to get wide distribution.
This 84 year old got a ton of value out of your analysis. Thank you.
Amazing content like always. Thank you so much for taking the time to create this cross analysis between the blending of these ETFs. Your time and knowledge is very much appreciated!
THANK YOU for the feedback!! THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎
Always quality content! It's safe to say that if you're looking to add a dividend ETF to a long-term strategy, SCHD is the one to lay heavier on from this. Currently I'm purchasing $10 each, SCHD and VOO every day regardless of the market in my ROTH and then with what's left over I hand pick some of my favorites. This has done well for me so far, when the S&P was down 18% I was still up 4.2% for 2022
Awesome! Yes, I have a video coming out with SPY as an SCHD replacement to see how that performs but I really like SCHD as a foundational piece in a dividend portfolio. 👍😎
I like writing OTM calls on SCHD. Maybe a portfolio of 25% JEPI, 25% DIVO and 50% SCHD with OTM covered calls. Good video.
Interesting idea… I write covered calls on SCHD myself. 😎 THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎
The most important takeaway is that for any amount of income, over any time period since the inception of these 3 funds, investors would have been better off taking distributions from a portfolio of 100% SCHD. Even more so if taxes are a consideration.
Also Joe as you mentioned at the end taxes can sway results wouldn’t mind watching a video on how things would look based on different tax brackets.
That’s an interesting idea. I will take that away for a potential future video. THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎
As an early retiree, I've been doing 16:42 since 2001. Always keep in mind the saying "Past performance does not indicate future results". Based on Vanguard's projected future returns my guess moving forward SCHD will have less of a lead with capital appreciation. As always no one can truly predict future returns.
New subscriber here, you are absolutely killing it with this series. I've found it all VERY helpful, thank you!
Thanks so much for the feedback Jose! THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎
Purchasing a stock may seem straightforward, but selecting the correct stock without a proven strategy can be exceedingly challenging. I've been working on expanding my $210K portfolio for a while, and my primary obstacle is the lack of clear entry and exit strategies. Any advice on this matter would be greatly appreciated.
The strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.
Even with the right strategies and appropriate assets, investment returns can differ among investors. Recognizing the vital role of experience in investment success is crucial. Personally, I understood this significance and sought guidance from a market analyst, significantly growing my account to nearly a million. Strategically withdrawing profits just before the market correction, I'm now seizing buying opportunities once again.
I've been getting suggestions to use one, but where and how to find one has been challenging, Can i reach out to the one you use?
Angela Lynn Schilling is a hot topic among financial elitist in The US. She's gained some reputation for her works during Covid. All the info. you need to set up an appointment is on her web page.
My needs are kind of unique and complex. I'll contact her nonetheless, and I hope I'm able to make something out of it.
As a francophone, I have to watch at a lower speed and pause your videos to grasp everything! 😂 Nearing retirement, so I’ll stick with DIVO and JEPI for now. In Canada we get tax deductions when investing in our retirement accounts, and they’re tax free until we start to withdraw them. I absolutely look forward to your next amazing analysis, great work!
AWESOME and THANK YOU for the feedback! THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎
Great video, you really put a lot of work into this. But this is really what people should be doing and I own all three with a focus more on SCHD because I run my own portfolio with covered calls so want more growth, but I also helped my mom with more in JEPI/DIVO b/c she needs the income but wants some growth as well. I also put her in VYM b/c it’s more defensive than SCHD.
Awesome Richard! Thank you for the feedback. 👍😎
I split my dividend portfolio account between QYLD, SCHD, JEPI, RYLD, XYLD and DIVO (in order of current market value). Current dividend yield of about 10%. Future investment will be split between SCHD, JEPI AND DIVO which will lower the dividend yield but increase potential capital appreciation.
AWESOME JOHN! THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎
So, for a long term retirement scenario, the best play is to run pure SCHD for the capital appreciation and then rebalance into something with a higher yield like JEPI or SDIV.
SCHD, Jepi, and O. Those are going to be my long term blend. Jepi to provide the core of the income. SCHD to provide growth. O to be some what of a filler for schd lacking reits.
My personal goal is 45k in dividends per year from Jepi and once I hit that number I want that number to grow roughly 1-2k a year. Everything beyond that into O and schd. My reasoning is fairly simple. I am perfectly content with an ordinary income from Jepi at that amount. Going up a few brackets wouldnt be so great, but I feel like that level is perfectly comfortable.
Great video! I have a 4 fund portfolio nearly equally balanced with SCHD, DIVO, JEPI & JEPQ. I will be living off of the dividends in 19 more months, when I turn 59 1/2. I will go heavier into JEPI & JEPQ if I need more income.
I like it Brian! CONGRATULATIONS on your upcoming retirement! 👍😎
Let me know how that works out for you, I am 55 and at 60 will move over to those funds.
Wow, what a GREAT VIDEO! I think this is the video a lot of people were waiting for. For my position, nearing retirement, wanting current income to live off of, the 60% JEPI/20/20 allocation makes the most sense for me. Very cool. Thanks.
AWESOME JON! THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎
I am new to the stock market. Every stock that I bought so far, I was out of luck because I bought them when they were expensive. I feel I missed out on all the stock opportunities so far for the tech stocks.I believe having 175K yearly income would be a good investment so I want to plug all my savings into the stock market. I know this sounds a bit dull but I would like to know if I should learn investing or let somebody else (more capable like a FA) do it for me? Please share your thoughts. I am kind of tired of searching for a good stock to buy and losing all the good opportunities..
@jaypritchett3414 Hi , please who is the expert assisting you and how do I reach out to them?
@jaypritchett3414 Thanks for sharing, I just looked her up online and I would say she really does have an impressive background on investing
This really helped a lot. I’m helping someone who is retired and needs to live on more income other than Social Security so it looks like SCHD JEPI, DIVO are the best to stay with.
Hey Joe, I like your vids but one comparison which I'd like to see is how these various portfolios perform if instead of just "living on the dividends" you compare how the SCHD and DIVO ETF's performs when withdrawing the JEPI income level. Most people investing in JEPI are doing it to receive a targeted amount of income and are willing to tolerate capital erosion to get it. How do SCHD and DIVO perform when you're having to sell a portion of the portfolio each month to get to the JEPI income level? That would seem a better comparison than simply just comparing the dividend and ending balance.
That’s an interesting idea though it does add quite a bit of complexity. I’ll have to look into that. 👍😎
@@AverageJoeInvestor Take a look at Portfolio Analyzer. It works well for this type of analysis. I looked at the data and the results were closer together but similar in terms of SCHD ending with the best final balance regardless of the draw-down rate. Makes me wonder if there are market conditions where JEPI or DIVO would ever win out. Not sure.
Very happy I subbed to your channel, I was already looking at all three on my own and I saw you uploaded a video on it. Glad to see I'm doing something right.
Excellent analysis. I love this kind of video where you blend different ETF`s. I hope you make more of these. I love those funds you mentioned. I am creating my own blend of ETF`s for my own personal situation.
Retired 60. My Stock Portfolio: SCHD 35%, SCHY 15%, DIVO 20%, JEPI 15%...Individual Stocks 15%: ARCC, BX, O, WPC. The Bomb.
For JEPI specifically, just take your tax bracket percentage and divide the total income for the year. $5,000 x 0.24% (24%) = $1,200 in taxes
Each month when you receive your JEPI or any monthly income in a taxable account, don’t DRIP initially but let it hit the cash account. Take your tax percentage bracket, say 24% and then take that amount and put into a HYSA. DRIP the remaining balance. Your paying yourself for tax time and then using the rest of the money at your own will. Done. Rinse. Repeat. Build shares.
This may not be perfect but overestimate the tax bracket. Once the taxes are paid, take the remaining balance from your HYSA and DRIP into your stocks.
Great video. What do you think to include JEPQ in this portfolio?
I’d love to. It’s just so new that I don’t have enough historical data to make it happen.
Inflation is producing a slew of problems throughout the world, including food shortages, diesel and heating fuel shortages, and housing prices and financial market crash. This global collapse might end up being a part of us for a very long time. With inflation currently at about 9%, my primary concern is how to maximize my savings/retirement fund of about $300k which has been sitting duck since forever with zero to no gains.
There are lot of ways to make a killing right now, but such high-volume near impeccable trades can only be carried out by real-time experts. Trying to earn big in this down market without an advisor is like trying to win the Indy 500 riding a llama.
I'm sure the idea of an invstment-Adviser might sound controversial to a few, but a new study by Bloomberg found out that demand for Financial-Advisers sky-rocketed by over 42% since and based on firsthand encounter I can say for certain their skillsets are topnotch. I've accrued north of 580k within 16-months from an initially stagnant Portf0lio worth 105k.
@@mariahhayes5089 Inflation is over 10% here, but as we know it's definitely way more than the Government would like to admit. My plan is to earn more passive income and ride this out, can your Investment-adviser assist?
@@danielkey1463 DefiniteIy!! All of this occurred in less than a year after “”MARGARET ANN WARNKEN”” started coaching me. I started with a few thousands and i'm now considering retirement shortly... You can search her up if you require assistance.
@@mariahhayes5089 I just Googled her name and her website came up right away. It looks interesting so far. I'm going to book a session with her and hopefully it all goes well. Thanks.
ALL very interesting. I appreciate the work you put into showing us the different scenarios.
I blend LVHI, RIVI, SCHD, JEPQ, JEPI, and DIVO. LVHI and RIVI provides more international dividend exposure with an average dividend yield of around 4 to 5% I believe. Thanks for all the great content!
No BST, no portfolio.
THANKS for the feedback! 👍😎
Excellent video Joe, I've been waiting for this one! But now you have me wanting more! I can't wait for the next video seeing the results of adding a low cost index fund!
I'm at the point where I have more than enough monthly cash flow coming in from dividends and wish to grow my portfolio (as you mentioned).
AWESOME! Yes it will be interesting to see what happens by adding SPY vs SCHD. 👍😎
Watched and liked. Thanks for comparing these etfs Joe!
You bet! THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎
Schd 👑
Haha, hard to argue it depending on your goals. THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎
My platform won't support DIVO. So my portfolio is SCHD, DGRO and JEPI. Quite happy with it.
So what about a mix of just schd and jepi? Cut out the middleman DIVO and do you get a best of both worlds?
New Subscriber! It was a really great explanation and very informative approach. Thank you!
Great video! SPY will easily crush this portfolio over the next 5-10 years.
Hard to say… You could make the case that income/dividends may be a better choice due to inflation/interest rates. We will just have to find out. Or we can just do both!! 👍😎
Great job, by far one of your best videos. Great info. I do have an addition for you to "test" . The only problem is it hasnt been around long. Dollar/yield to dollar its better than JEPI so far.............Drum roll. Its JEPQ ! The benefit as an addition to your above thesis is it gives your alloy ETF exposure to the NASDAQ. Now I know for the past 2 yrs the NASDAQ has stunk up the place, but you and I know, the only certainty is CHANGE. When she (NASDAQ) is sweet she is oh SO SWEET. But when shes bad, oh well the last year has shown that ! LOL.Because their yields are close, the income heavy portion of your thesis involves an even split of JEPI/JEPQ, inserted into your "alloy" ETF with your above proscriptions.
my strat is actually somewhat similar to this vid. i buy schd, divo, and jepi equally every week, but i add a 4th fund. sptm which gets slightly more than the other 3. once ive been fully prepared, i plan to add extra money to jepi first to create a much larger monthly cashflow buffer. the point where i can slowdown on loading up on jepi is once the monthly yield is enough to fund the whole 4 fund strategy on its own. this will free up the cash i invest manually into other parts of the fund for much more growth.
Interesting strategy. THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎
Please also add the spy and check if a mix of jepi/divo for div income and spy for capital appreciation makes a better job than using schd for capital growth.
GREAT IDEA MARCO! In fact it’s my next video coming out 01-31! THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎
Thanks.. I am creating a strategy based on the three funds, SCHD, DIVO, JEPI. I currently have some of. SCHD and JEPI, but not DIVO yet...
AWESOME! THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎
Yes! This is how I do it!
Uncle joe- Ive noticed you have really MATURED in your analysis's lately. You are finally starting to understand the Markets more like a Morgan Stanley Analyst . VERY GOOD VIDEO !!!
Thank you for the feedback Dave! 👍😎
6:30 Awesome video on thses ETFs. I would like to see who jepi would perform if we just used the difference between JEPI and DIVO at reinvested the rest. So for JEPI that had almost $30k dividend vs DIVO's almost $18k. If we hold JEPI and just reinvested 18k of the 30k and used the 12k.
Thanks for the great video and your effort to break them down in understandable bites. Are these total dollar outcomes after the ETF funds are paid? What if you took the cash flow from JEPI and used the distributions to invest in SCHD each month? Is there a percentage of the three funds that would do best with this scenario?
It would be AWESOME if you showed the tax effect...especially now with everyone prepping for tax season...I like e SCHD and I love your approach but I'm still hesitant with JEPI...they have REITS, extremely high yield and who knows how covered calls are taxed! Of course this relates to holding these in taxable account ..would love to see a separate video in this! Great work 👏 👍 👌
Glad you commented this. I just checked JEPI holdings, and 2.81% in the real estate sector. While not much I'm guessing a percentage of the dividend returns would not be qualified and taxed at a higher amount. My strategy has been to supercharge portfolio for a couple of years with JEPI, reinvest divs into growth and back it down, then closer to time of living of Divs, ramp it up again. Hmmm. Rethinking now. Have to be careful in taxable account.
@Bryan Harrell thanks. After further research I'm not going with jepi in taxable...I'd be paying 24% on qualified dividends! I'll stick with schd in taxable...jepi great to supplement pension...2 more years! Or I'll just keep schd!
Just take a percentage of the income from JEPI, 24% and sock away into a HYSA for tax time in April. I’d much rather build up my JEPI/JEPQ gradually instead of selling shares of VOO/VGT and trying to time the market. To each their own, but don’t be afraid of taxes. It takes money to make money. And with the savings plan above and HYSA, the taxes are super simple!
Great Work. Various/adjustable weightings has a huge effect. Fun flesh out. I can see, in a person's life time horizon, when the shifting would be optimal. I think you are right to bring in an index growth ETF! Fun. Some of those would be rocket fuel and may turbo charge the income covered call paying ETFs. Momentum is a good thing! I like SPMO and some of the other Momentum players in this sideways/swinging market.
SPAM
Well said Martie! I deleted the SPAM comments. They are pervasive... Interesting idea with the momentum though I don't personally like to take this direction. THANK YOU for watching and for leaving your $0.02 in the comments! =)
After watching a bunch of your videos I came up with a 5 part premium ultimate dividend profolio... Let me know what you think... SCHD, DGRO, IXUS, ICLN, IRBO.... And maybe a 6th one of SPYI or IWR...
SCHD has a dividend that varies, sometimes as much as .19 cents . How can you calculate return, when the payout isn’t consistent?
is it ok to hold SCHD in a taxable account or hold in a roth IRA account?
I just bought SCHD in my Roth so I have the same question.. also same question for Jepi??
SCHD should be held in a taxable account vs JEPI/DIVO in a non-taxable account for maximum tax efficiency. THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎
Thanks - good explanation of the benefits of each blended portfolio - suggest some metric related to volatility - seems a person in retirement might also want more stability for the risk.
Interesting John. I will take that away for the future. =) THANK YOU for watching and for leaving your $0.02 in the comments!
60% fidelity 500
20% Schd
20% jepi
Buy weekly forever and let the compound interest snowball
Love this video. I like to have some real estate to balance things from stocks. Could you see about replacing DIVO with XLRE? Wondering if I should stick with my 50/30/20-SCHD/JEPI/XLRE.
Great content, timely and complete.
Thanks Paul! THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎
First! Been waiting for this one!
AWESOME!! THANK YOU for watching and for leaving your $0.02 in the comments!
Great video! I'm curious what charting software or website you're using to create the charts in your videos. Thanks.
Great video and comparison Joe. Thank you for taking your time in doing it 🤙🏾
You bet!! THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎
I am in a position to do this , and this video is almost a sign to do it ! 😁
AWESOME AMER! THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎
Nice. Thanks Joe!
You bet Tom! THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎
Not on subject,but whats your opinion on TSLY is a new one out there.
I have not seen or heard anything about TSLY honestly so I don't really hold an opinion.
@@AverageJoeInvestor Thats fine . This is new so was curious on your thoughts on it.
wonderful content...
Great Video as always :)
Will you do a quick one on JPHY and JEPQ as well? Are these worth adding in, our creating another portfolio with? Why/Why not? Appreciate you always.
As always, GREAT video. Thank you.
Would it be a worthwhile exercise to explore results where you allocate all 100k to JEPI for the max cash flow then use the distributions each month to purchase SCHD?
I would if you are in the green on JEPI and buy more SCHD with the distributions. If you are red/down in JEPI I would just keep your automatic DRIP mode to keep accumulating shares.
Interesting idea! And then the opposite strategy as well. That’s an interesting idea… THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎
I like how easy it is to choose between income and growth depending on need. JEPI seems like a good choice for my bridge years to social security, should make the bridge last more years.
3 good picks and I would add vym.
I also hold $GOF, has a slightly more aggressive dividend than JEPI. Stock price fluctuates more, but I'm still pretty even with a roughly 13% dividend. I carry more JEPI though
Awesome work
I’ve added JEPQ, thoughts?
I like JEPQ but there’s so little data at this time that it’s hard to jump in right now. THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎
Hopefully you can review it at some point. It definitely adds beta to my portfolio to balance JEPI and has a great yield. +6% appreciation in 2023
Great video Joe! Thank you
You bet! THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎
Seems like you should just buy SCHD unless you need more income, then rebalance toward JEPI accordingly, but hold as much SCHD as possible and leave DIVO out of it. Idk
It’s not a terrible idea at all. JEPI makes the most sense in retirement to turn in the extra cash flow as needed. THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎
what about just betting on SCHD and selling covered calls far enough out of the money, so that the capital appreciation is not damaged, and, in case of imminent assignment of any call, including rolling the calls to avoid any assignment and cash in some more premiums in comparison to solely betting on SCHD alone?
I don’t think it’s a terrible idea at all. I personally owned over 400 shares of SCHD and I sell cover calls. I like the strategy! Thank you for watching and for leaving your $0.02 in the comments!
Excellent video. Very interesting and informative. Why do you exclude JEPQ though? I know it is new. Is there concern about it? Are there any advantages to balancing JEPI and JEPQ?
JEPQ is not BAD just nowhere near enough data to use in this analysis. 👍😎
Joe, what do you think about adding QYLD for the added monthly dividends? Maybe a breakdown of SCHD 25%, DIVO 25%, JEPI 25%, and QYLD 25%?
Excellent break down thank you
You’re welcome! THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎
Thanks 👍We Love ❤️ this kind of video!👏 we're looking for the Best Dividend Stocks to retire on!
Thanks for the vid!
You bet! THANK YOU for watching and for leaving your $0.02 in the comments!
I want to set it and forget it for a few years and build a bigger balance. Should I just go 100% SCHD?
do you share the spreadsheet? like the video
Currently hold Schd, Vymi and mega cap growth MGK. Will sell MGK for Jepi when I'm 50, 38 atm and will keep Schd and Vymi. The goa is to live off divends.
I wonder what it would look like if you added a 4th etf $QLD, the leverage etf, maybe allocating a smaller amount, say 5%. So JEPI 50%, SCHD 30% and DIVO 15%. Also, rebalancing every quarter. During the quarters where QLD jumps to 12-15% of the portfolio, you'd sell some and vice versa when qld dips to 3% of the portfolio you'd buy more. The rebalancing helps fix the decay that occurs with QLD
Interesting idea Tim though I’m not sure it’s worth the effort when you can get pretty good cash flow from JEPI already. THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎
Love your stuff. We learn enough to make our own decisions based on our needs. Seems you've been focused a lot on dividends and covered calls etfs for income. But what do you think of ETFs with good income. Like cash flow and good moats? Do you have an opinion on stuff like COWZ etf from pacer?
If we think there is going to be more volatility in coming years vs the bull market we have had the last several years what weighting would be the best weighting between SCHD,DIVO,JEPI , I suspect a greater weighting with DIVO would be best, your thoughts?
Hard to say Richard. You could easily make the case for JEPI as well.
Can't wait for your next video
Im looking to save for a house but I am looking to make an etf portfolio to help with the money. Would this portfolio help in generating the money for buying a house in the future?
Bro, thank you so very much for this
How does the portfolio balance get figured in when you live off the dividends (and appreciation I assume?)
It’s exactly that. Given the fact that we are living off the dividends, and we are not adding new money to the portfolio, what is the value of the portfolio at the end of the period? That is what I used.
If I use these in my ROTH it should make for great growth
Especially if you use SCHD! THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎
How would SCHD stack up against say some of Fidelity's mutual funds? FBGRX, FXAIX.
FACTS!
How about adding a REIT like Realty Income to the mix?
It’s not a terrible way to diversify at all. I’ll expire that potentially in a new video. THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎
Great video and explanations!
THANK YOU for the feedback! I appreciate it! 👍😎
Joe, can you do a video on BDC’s like Bizd for example? It pays high yield as well.
I like the analysis, but the Living On Dividends isn’t equal or fair when you take over 10% from one and under 5% from another and then compare them. Rather you should deduct a fixed amount such as a straight $5000 or $10000 per year, or better yet a fixed percentage of 5% or 10% a year.
I would be very interested in seeing how this affected each funds share balance and annual payout.
Since Tech and Small Caps is down, why not add RYLD and JEPQ as there is an upside down the road. These will significantly diversify the portforlio more without taking a hit on captial appreciation or dividend. I would also look at SPHD. Keep some liquidity by holding some ladder CD. SA recently have been warning on the pitfalls of JEPI during growth times, but for the volatile time we are in JEPI is a safe bet. I, like most retiree, want dividend income but would like to retain portfolio value as much as possible.
If you want Portfolio value then why pick any of the YLD ETFs they're complete trash, holds no value/appreciation and always down. 😂
Thoughts on DIVO now that it slashed its dividend?
Is investing only in Schd ok if I have 22 years to invest? I'm only wanting to build my dividend income over this time. Thanks!
I was about to do this same comparison, and you beat me to it, thank you lol! Great analysis! I feel like you did the Dr. Strange time lapse, now we have an idea on what we can expect in those etfs. Would like to hear your thoughts on bonds as rates rise, and the potential of their terminal rates.
Is it riskier to have more than 1 covered call ETF? I have JEPI now but i want to add DIVO
Oh man thanks for this I been toying with a similar thought for some time,there was on thought that has kept me up tho that you may have already done in your calculations but- when you reinvested dividends what if instead of the normal drip you reinvest across the board with the same initial weight(ex even 1/3 portfolio would reinvest dividends evenly 1/3) giving SCHD a higher yielding drip from the overall cashflow 🤔
That’s an interesting thought… I’ll have to see how hard that is to implement in my spreadsheet. 👍😎 THANK YOU for the feedback!
@@AverageJoeInvestor if it DOES prove too strenuous I’ll settle for a video comparison if a lump investment in a fund like SCHD dripped vs some lump sum deposits on income funds where the dividends were used to buy SCHD😄
Nice analysis!
Thanks Jason! I appreciate it! 👍😎
Great video, should try to add in TLTW to see how it pans out
THANK YOU for the feedback! 👍😎
Nice analysis. Thank you!
You bet! THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎