Happy to respond to comments and questions. IMPORTANT: I will never leave a comment asking you to text or call me. If you see such a comment, even if it has my name and picture, it is spam. I delete them and report them to RUclips as I find them. Let's all be careful out there!
Living off the Dividends are great when you also have a state pension that your collecting from. So basically living off of the Dividends is great as a side pension but bot a main pension.
@@sonny12681 You're missing the point. Let's try a simplified example. Assume you have some money to invest. Company A's stock sells for $100. Company A sees no route for growth, they are a 'mature' company, so they take their 5% annual profits and send them out as dividends. Company A's stock price stabilizes at $100. Company B's stock also sells for $100. Company B sees a route to growth and rather than send out their dividends they invest in growth. The next year their stock is worth $105 ($100 + $5 reinvested) plus some earnings from growth. Each year Company B's stock gets worth more and more. And if you need to take out $5 by selling some shares your capital will still be growing.
Dividends from the stock market were a key motivator for me to start investing. In my view, if you make sound investments that generate additional income alongside dividends, you can eventually live off that dividend income without the need to sell assets. This approach not only provides financial security for yourself but also creates a lasting legacy for your children, giving them a financial advantage. Over the years, I’ve invested more than $600,000 in dividend stocks and continue to buy more, especially during market dips.
Hearing insights from seasoned investors who have successfully navigated market downturns is always reassuring. It can be challenging to see your portfolio fluctuate from gains to losses, but if you focus on high-quality companies and remain committed to your strategy, you'll be in a strong position to weather market volatility.
A comment I've recently heard that resonated with me is that value *is* growth. What most people think of as growth is in reality speculation on overvalued assets, and while these assets can grow prodigiously over short periods of time, they aren't going to beat the growth of underpriced and fundamentally strong value companies over the long run.
I liked your video. The most helpful tidbit of information for me was to focus on total return instead of dividend yield. Total return ensures your investments grow while providing income.
Selling shares is all good and well in a 10 year bull market, sure, but try that in a "lost decade" or even a long bear market. Dividends provide stability.
It really depends on each person situation, let’s say you have a pension after retiring that covers all your monthly expenses and just need enough to complement your yearly fun expenses… during a recession it wouldn’t matter because is not money that you are needed to live. It’s all situational
Investing in a Roth IRA can be a good choice since they are funded with after-tax dollars, and your contributions can grow tax-free over time. When you withdraw money from your Roth IRA in retirement, you won’t have to pay tax on it, which will help you keep more of your hard-earned money. I retired with 2 million dollars.
@@BarbaraLouise-i3r Certainly, I've been consulting with a Certified Financial Planner (CFP) since the outbreak. Beginning with an initial fund of $80k, my advisor makes decisions on when to enter and exit positions in my portfolio, which has now expanded to around $350k.
@@JacobReynolds-t7v Due to the market falls, I need advice on how to rebuild my portfolio and develop more successful tactics. Where can I find this teacher?
@@JoeWilmoth-k2w Victoria Carmen Santaella is the licensed advisor I use. Just research the name. You’ll find the necessary details to work with a correspondence to set up an appointment.
Great job. I'm about 5 to 8 years from retirement, and the portfolio visualizer is a huge help. Past performance is no guarantee, but it provides a decent enough guide.
Every problem you mention on dividends is an issue that will also adversely effect the underlying asset. When things get sticky, dividends will buoy your portfolio, even when everything is dropping. The only difference is that when the market recovers, you still have the underlying asset from which to draw income. Selling securities in the midst of the market calamity you discuss will set you back a whole lot more. Invest in dividend kings/aristocrats and keep doing it. It is possible to live well - very well, with a disciplined plan. Thank you Gen Ex Dividend Investor for the motivation, and thanks Rob, for a thoughtful video.
A 2 million dollar portfolio with a 5% dividend yield (Aristocratic stocks) is 100 k a year. That’s fine with me. Especially being paired with multiple pensions and real estate-that my position and plan.
And hopefully most of those dividends are qualified, meaning better tax treatment than if you used other fixed income assets whose distributions might be treated as ordinary income.
Great content! Subscribed. I'm 31 learning about this now so I can start asap. Seems like I have more to learn as now I see there are multiple options/funds/etfs. I'm glad I waited until watching this because I was about to invest in a few high yield.. hope to learn more in the next video
Thank you for your time. Not a fan of the 4% rule. Not selling equities to fund retirement. Dividend income will work just fine here, in combination with a pension and social security.
Thanks so much for your honesty about the dividends. A lot of other content creators make it sound like you can live like a king off of dividends and take a vacation to Tahiti every year.
A dividend just gives you back a piece of the company in cash. The sum of the parts is still the same. It's a matter of taxation. With dividends, the company decides you are taking a taxable event of timing and size of their choosing, and there is no way to offset it with another company's dividend.
I absolutely agree that total return is the only way to look at it, but I'd qualify with total return + risk. For all the folks that said they get 5% yield and reduce their risk by ignoring volatility, they clearly prefer risk reduction over total return. To nitpick Rob's approach, he chose dividend reinvestment (did not even mention this). If taxes are involved, it's clearly less efficient than pocketing the dividends and selling only the amount need to reach 40K (in this example).
I'm living off dividends but trust me I don't have anything in my portfolio that yields 1-2% ... I'm a bit confused as to why somebody would say "I'm banking on dividends" but then pick a 1.x% yield ... smh
The comparison of US Large Cap to US Large Cap Value is a good example of sequence risk. Change the start year from 1972 to 1979 and you'll get much different results.
It's a bit better today. We have a 70/30 portfolio with a good percentage of growth funds (SCHG, VTV, DGRO ...) Interest and dividend is about 3% now for our portfolio.
Not to mention, dividends in a recession is better than, selling shares in a recession. At least with dividends you’re getting something, albeit somewhat less.
If price of the share goes down it doesn’t mean that you are going to have less dividends, the dividends go associated with the number of shares you have
My first rule was to have everything paid off and my bills low enough that social security covers ALL them. Investment wise I own physical real estate for monthly cash income. Ticker symbol investments is split up between SCHG and SCHD along with a few growth stocks i like. Unused cash from stock sales or dividend income gets tossed into short term t bills right now.
Rob -Question. What are your views of living off capital gains distributions in retirement? (in addition to living off dividends). This would be using your 3 fund strategy…. Thanks in advance
I have been doing some research on a bunch of EFT dividend yeilds on the TSX. I have found quite a few that are as high at 15%. It does take a lot of work and research. But it is worth the time.
@@rob_berger thanks. Seems like if you are living on 75K pre tax you can live off 60K on dividends since you aren’t paying federal taxes. Makes the goal for retirement a little lower based on tax situation
Good points Rob. Some people want to live a simple life in retirement and leave a large portfolio to their heirs. They strictly calibrate their spending according to their income, i.e what cash dividends they have coming in and as a strict rule never dip into their capital. But, you are right, if you do not wish to leave anything after you pass, then drawing down and expending capital to the point where there is zero left when you pass, then that is a perfectly good strategy too...
Gosh Rob; you know I did not realize the fallacy on dividends' safety--everyone touts the greatness of them; but like you showed; it's more complicated than we were led to believe. Appreciate the education.
If you do the same VOO vs SCHD from 2012 to 2022, SCHD wins! But then gets crushed the next two years when growth kicks back in again. That's because in 2022 the SP500 went down about 18% whereas SCHD went down about 5.5%. Funny since at 14:45 you're pointing out how VOO doesn't just go down whereas dividend etfs stay up, but that's exactly what happens in 2022.
Man yieldmax roundhill defiance changed all this! Been semi living on and spending 50-60% of my dividends for over a year now. Averaging around 30-50% yearly return. And still seeing my account grow. It does take some active management and planning/hedging but totally doable.
If you can live off 50% dividends, then re-invest the rest. Eg in Australia the general market is around 3-4% yield plus tax credits. Just don’t go for yield alone or spend too much (in Australia the dividend ends up being around half your TSR).
So if you are looking to maximize total return while in retirement at age 73 one reasonable way is to do 60/40 (60 S&P 500 Index and 40 (Total market bond fund)?
I have plenty of money but I’m still afraid to retire. The stock market has all my money and it could crash. I should say that my portfolio is up about 1800% over my original investment. I’ve done well.
Rob, do you still feel the same if you were to believe the latest report from JPMorgan that says the next decade to expect only 3% per year growth? Thanks
Another good video with great points, Rob. Keep in mind that your portfolio visualizer example had reinventing dividends "on" so for those living off dividends the interest earned would be decreased from what was shown in the video.
Well, technically yes, although since I was withdrawing more than the dividend yield, they would come right back out. And Portfolio Visualizer forces you to reinvest dividends when you are taking cash withdrawals, but again, they would have come right back out.
Very well articulated; I wish I had more time for trial and error, but I'll be 56 in August and I need ideas and advice on what investments to make to set myself up for retirement, especially with the looming inflation and recession; my goal is to have at least $1 million by the age of 60.
Hey Rob what is your opinion on being invested in sp500 ETF for the majority of my working life and then switching to a high dividend ETF when nearing retirement.
I can see creating one's own retirement "ETF" of 30 quality companies with a 10 year plus history of not cutting their dividend, with that dividend being no less than 4%, but it's arguably a tall order to find 30 such companies. In many cases the company and/or the dividend is shakier that I'd prefer, and I'd rather not expose more than ~3.5% of my portfolio to any single stock position.
Would you consider addressing using dividend investments to supplement a retirement income? In my case, I have a pension, social security and require additional to balance out my income. Can dividend investments help with this?
SCHD and SPY had almost Identical total returns. SCHD is not the highest yielding etf but good enough for a test. its dividend currently is 3.4% would you still choose SPY?
I think this video ignores the issue that the years where the dividends dropped were also the year's in which the S&P did really badly. It ignores market risk in retirement. If your S&P 500 dropped during the year that you need to sell the shares for retirement income, you would be in the same situation if you had used the dividend strategy you are arguing against. I'm not saying dividends are better, I just feel like the risk is equivalent in terms of income. Notionally if you don't need to sell shares you should be able to take advantage of markets recovering.
I think any investor that is involved enough to be watching this type of video can put a portion on their portfolio in BDC dividend payers or mutual fund, BIZD. These pay 8-14% I find 2% not interesting. Overall portfolio is allocated 45% stock, 45% single family rental, 10% metal. 1/10 of the stock port is in high dividend payers 6+%.
The only way I'd live off my dividends is either while already in retirement or I already had say 2.5mil in the market now lol. Otherwise, that's all just getting reinvested
Ill graduate next year with a mech eng degree at age 42. Starting from zero retirement. My strategy is to put 10% into my roth 401k, get my 10% company match, and max out a roth ira with shares of SCHD. This would be appx 19% of my post-tax income. My starting wage the day i graduate will be over 75k, and it will go up quickly. If i retired at age 68 the SCHD shares would generate appx 3k a month in today's dollars. Plus id have my 401k, plus social security, and id probably pick up a rental property or 2 along the way. I think this is a pretty sound strategy but id love to hear input
![I.N "HALLUCINATION" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/n5B5q1Hwt_U/mqdefault.jpg)
Happy to respond to comments and questions. IMPORTANT: I will never leave a comment asking you to text or call me. If you see such a comment, even if it has my name and picture, it is spam. I delete them and report them to RUclips as I find them. Let's all be careful out there!
Yes, those impers are getting out of hand. They have hit the Money Guy and Heritage Wealth too - an army of crooks. Most of them are Bitcoin scammers.
@@vinyl1Earthlink To the right of each comment are three horizontal dots.
Your portal to smacking spam.
I commend you for calling them out and booting them off. A lot of channel owners ignore them, perhaps to plump up their comment counts?
Living off the Dividends are great when you also have a state pension that your collecting from. So basically living off of the Dividends is great as a side pension but bot a main pension.
@@sonny12681
You're missing the point. Let's try a simplified example. Assume you have some money to invest.
Company A's stock sells for $100. Company A sees no route for growth, they are a 'mature' company, so they take their 5% annual profits and send them out as dividends. Company A's stock price stabilizes at $100.
Company B's stock also sells for $100. Company B sees a route to growth and rather than send out their dividends they invest in growth. The next year their stock is worth $105 ($100 + $5 reinvested) plus some earnings from growth. Each year Company B's stock gets worth more and more. And if you need to take out $5 by selling some shares your capital will still be growing.
Dividends from the stock market were a key motivator for me to start investing. In my view, if you make sound investments that generate additional income alongside dividends, you can eventually live off that dividend income without the need to sell assets. This approach not only provides financial security for yourself but also creates a lasting legacy for your children, giving them a financial advantage. Over the years, I’ve invested more than $600,000 in dividend stocks and continue to buy more, especially during market dips.
Hearing insights from seasoned investors who have successfully navigated market downturns is always reassuring. It can be challenging to see your portfolio fluctuate from gains to losses, but if you focus on high-quality companies and remain committed to your strategy, you'll be in a strong position to weather market volatility.
Not only do you produce excellent videos. Your voice is perfect. Your videos are easy to u derstand. Thank you, Rob.
A comment I've recently heard that resonated with me is that value *is* growth. What most people think of as growth is in reality speculation on overvalued assets, and while these assets can grow prodigiously over short periods of time, they aren't going to beat the growth of underpriced and fundamentally strong value companies over the long run.
I liked your video. The most helpful tidbit of information for me was to focus on total return instead of dividend yield. Total return ensures your investments grow while providing income.
Thanks for always indexing your videos
Selling shares is all good and well in a 10 year bull market, sure, but try that in a "lost decade" or even a long bear market. Dividends provide stability.
Selling shares creates a taxable event, so where will that money come from....and you lose the dividends that you were earning from those shares.
Exactly. What would be the outcome if this was in the 70s and 80s
It really depends on each person situation, let’s say you have a pension after retiring that covers all your monthly expenses and just need enough to complement your yearly fun expenses… during a recession it wouldn’t matter because is not money that you are needed to live. It’s all situational
Really appreciated some of the considerations you raised in the latter part of this video. Thank you.
Investing in a Roth IRA can be a good choice since they are funded with after-tax dollars, and your contributions can grow tax-free over time. When you withdraw money from your Roth IRA in retirement, you won’t have to pay tax on it, which will help you keep more of your hard-earned money. I retired with 2 million dollars.
@@BarbaraLouise-i3r Certainly, I've been consulting with a Certified Financial Planner (CFP) since the outbreak. Beginning with an initial fund of $80k, my advisor makes decisions on when to enter and exit positions in my portfolio, which has now expanded to around $350k.
@@JacobReynolds-t7v Due to the market falls, I need advice on how to rebuild my portfolio and develop more successful tactics. Where can I find this teacher?
@@JoeWilmoth-k2w Victoria Carmen Santaella is the licensed advisor I use. Just research the name. You’ll find the necessary details to work with a correspondence to set up an appointment.
@@JacobReynolds-t7v I looked her up, and I have sent her an email. I hope she gets back to me soon. Thank you.
@@JacobReynolds-t7vspam reported
Great job. I'm about 5 to 8 years from retirement, and the portfolio visualizer is a huge help. Past performance is no guarantee, but it provides a decent enough guide.
Every problem you mention on dividends is an issue that will also adversely effect the underlying asset. When things get sticky, dividends will buoy your portfolio, even when everything is dropping. The only difference is that when the market recovers, you still have the underlying asset from which to draw income. Selling securities in the midst of the market calamity you discuss will set you back a whole lot more. Invest in dividend kings/aristocrats and keep doing it. It is possible to live well - very well, with a disciplined plan. Thank you Gen Ex Dividend Investor for the motivation, and thanks Rob, for a thoughtful video.
A 2 million dollar portfolio with a 5% dividend yield (Aristocratic stocks) is 100 k a year. That’s fine with me. Especially being paired with multiple pensions and real estate-that my position and plan.
And hopefully most of those dividends are qualified, meaning better tax treatment than if you used other fixed income assets whose distributions might be treated as ordinary income.
Aristocrats with yields that high is a VERY short list. That's a lot of eggs in one basket.
I agree. Even $50K in dividends is a nice supplement !
5% Yeild! That is horrible. I expect 20 to 50% per year.
@@kevinsellers7566 Then you must also be prepared to lose your principal. Them's the trade-offs. Life's FULL of choices!
Rob. I am 39... loving your videos.
Thank you.
Calm, logical, non-emotional analysis. Just the facts. Love the channel.
Thank you Rob, I’m glad that I came across your channel. My future self thanks you
Great content! Subscribed. I'm 31 learning about this now so I can start asap. Seems like I have more to learn as now I see there are multiple options/funds/etfs. I'm glad I waited until watching this because I was about to invest in a few high yield.. hope to learn more in the next video
Thank you for your time. Not a fan of the 4% rule. Not selling equities to fund retirement.
Dividend income will work just fine here, in combination with a pension and social security.
Agreed. I have ETFs that give me 8%. I pull what I need and allow the difference to help increase and buy more shares
100% agree.
Thanks so much for your honesty about the dividends. A lot of other content creators make it sound like you can live like a king off of dividends and take a vacation to Tahiti every year.
Great video, glad a stumbled on your channel, another perspective for my portfolio
A dividend just gives you back a piece of the company in cash. The sum of the parts is still the same. It's a matter of taxation. With dividends, the company decides you are taking a taxable event of timing and size of their choosing, and there is no way to offset it with another company's dividend.
I absolutely agree that total return is the only way to look at it, but I'd qualify with total return + risk.
For all the folks that said they get 5% yield and reduce their risk by ignoring volatility, they clearly prefer risk reduction over total return.
To nitpick Rob's approach, he chose dividend reinvestment (did not even mention this). If taxes are involved, it's clearly less efficient than pocketing the dividends and selling only the amount need to reach 40K (in this example).
I'm living off dividends but trust me I don't have anything in my portfolio that yields 1-2% ... I'm a bit confused as to why somebody would say "I'm banking on dividends" but then pick a 1.x% yield ... smh
Social security is like a bond. If someone has a 60/40 investment, would they actually have a total retirement 60/40 mix?
The comparison of US Large Cap to US Large Cap Value is a good example of sequence risk. Change the start year from 1972 to 1979 and you'll get much different results.
So helpful! Cheers from Brazil´s investors!
US dividends are fairly low by international standards. In the UK many companies pay around 4%.....
I’ve been loving your videos! Solid information. Keep it up.
It's a bit better today. We have a 70/30 portfolio with a good percentage of growth funds (SCHG, VTV, DGRO ...) Interest and dividend is about 3% now for our portfolio.
All those funds are value funds, not growth
Important to have enough cash in account to begin/ take advantage of living on interest and DCA if possible.
I think the dividend dropping during a resection is a good thing it keeps you from over spending your portfolio when its most vulnerable
Good point. Could be a built-in dynamic spending rule.
Not to mention, dividends in a recession is better than, selling shares in a recession.
At least with dividends you’re getting something, albeit somewhat less.
It's different for everyone. Not everyone will be the same outcome.
If price of the share goes down it doesn’t mean that you are going to have less dividends, the dividends go associated with the number of shares you have
My first rule was to have everything paid off and my bills low enough that social security covers ALL them. Investment wise I own physical real estate for monthly cash income. Ticker symbol investments is split up between SCHG and SCHD along with a few growth stocks i like. Unused cash from stock sales or dividend income gets tossed into short term t bills right now.
Rob -Question. What are your views of living off capital gains distributions in retirement? (in addition to living off dividends). This would be using your 3 fund strategy…. Thanks in advance
Enlightening, as always, thank you. Given the current situation, would you modify this advice, or does it still apply?
Not at all. I take the dividends the market gives me, but I don't seek more than that at the expense of total returns.
What do you think about the tax advantages of qualified dividends vs liquidating the capital gains for income?
I have been doing some research on a bunch of EFT dividend yeilds on the TSX. I have found quite a few that are as high at 15%. It does take a lot of work and research. But it is worth the time.
Sure, but how has the long term performance been? I'm all for dividends but I question the safety of such a large yield.
Thank you for this info 👍
Thank you so much for showing us portfolio visualizer! so much value in this video it's crazy.
The majority of dividend ETFs do not have capital appreciation there are a couple that do
You do a really good job. Thank you.
But arent dividends taxed at zero if you are married, filing jointly? And you make under like 80K? Isnt that good?
Absolutely.
@@rob_berger thanks. Seems like if you are living on 75K pre tax you can live off 60K on dividends since you aren’t paying federal taxes. Makes the goal for retirement a little lower based on tax situation
Good points Rob. Some people want to live a simple life in retirement and leave a large portfolio to their heirs. They strictly calibrate their spending according to their income, i.e what cash dividends they have coming in and as a strict rule never dip into their capital. But, you are right, if you do not wish to leave anything after you pass, then drawing down and expending capital to the point where there is zero left when you pass, then that is a perfectly good strategy too...
Gosh Rob; you know I did not realize the fallacy on dividends' safety--everyone touts the greatness of them; but like you showed; it's more complicated than we were led to believe. Appreciate the education.
If you do the same VOO vs SCHD from 2012 to 2022, SCHD wins! But then gets crushed the next two years when growth kicks back in again. That's because in 2022 the SP500 went down about 18% whereas SCHD went down about 5.5%. Funny since at 14:45 you're pointing out how VOO doesn't just go down whereas dividend etfs stay up, but that's exactly what happens in 2022.
Man yieldmax roundhill defiance changed all this! Been semi living on and spending 50-60% of my dividends for over a year now. Averaging around 30-50% yearly return. And still seeing my account grow. It does take some active management and planning/hedging but totally doable.
to withdraw the same amount as usual in 2008 and 2009 is a terrible idea. the crash should make you withdraw less, that's a benefit not a problem
What about jepi, nusi and qyld?
Great video
If you pick your own stocks you can get 5% Yield safe if you're going only etf it will just take more time or money
VUG tracks very closely with the NASDAQ. No surprise that it looks very strong in recent years.
If you can live off 50% dividends, then re-invest the rest. Eg in Australia the general market is around 3-4% yield plus tax credits. Just don’t go for yield alone or spend too much (in Australia the dividend ends up being around half your TSR).
Rob - what about SCHD compared to SPY over the last 10 years?
Thnx Rob for this very informative video!! New subscriber and great job!!
You can easily invest in high quality stocks and ETFs that will give you an overall dividend yield of over 6%. I'm doing that.
So if you are looking to maximize total return while in retirement at age 73 one reasonable way is to do 60/40 (60 S&P 500 Index and 40 (Total market bond fund)?
I have plenty of money but I’m still afraid to retire. The stock market has all my money and it could crash. I should say that my portfolio is up about 1800% over my original investment. I’ve done well.
Rob, do you still feel the same if you were to believe the latest report from JPMorgan that says the next decade to expect only 3% per year growth? Thanks
You move to south east Asia or Latin America and you’ll be living comfortably with 1k a month. make it 1.5k= 18k a year. That’s very very feasible.
Isn't taxes on dividends vs. capital gains taxes on selling stock a major consideration?
What are the implications of high dividend yields vs growth between a tax deferred account vs taxable?
Do you have any videos/resources to share on drawdown strategies?
Great Vid! What do you think about BLV? Pays a div of almost 3 compared to BND. Thanks Jeff in NY
What do you think of the QYLD nasdaq covered call ETF pays 12 percent?
Another good video with great points, Rob. Keep in mind that your portfolio visualizer example had reinventing dividends "on" so for those living off dividends the interest earned would be decreased from what was shown in the video.
Well, technically yes, although since I was withdrawing more than the dividend yield, they would come right back out. And Portfolio Visualizer forces you to reinvest dividends when you are taking cash withdrawals, but again, they would have come right back out.
there are plenty of dividend stocks that pay 4-5%
Very well articulated; I wish I had more time for trial and error, but I'll be 56 in August and I need ideas and advice on what investments to make to set myself up for retirement, especially with the looming inflation and recession; my goal is to have at least $1 million by the age of 60.
Not enough for one person.
Can you speak to Covered Call ETFs like QYLD, JEPI, or NUSI?
Hey Rob what is your opinion on being invested in sp500 ETF for the majority of my working life and then switching to a high dividend ETF when nearing retirement.
VUG is most tech stocks , and they are overvalued at the moment. I buy VUG only when there's a stockmarkedcrash.
Great video where can I get those tools with the back testing?
We continue to worry about Brics. what are your thoughts, Rob?
Thanks this was excellent!
You speak the truth young investors don’t want to hear. Love that! 👌🏼💯
Well you sure called the inflation =) Time to load up on value?
Does IVV 40%, SCHD 20%, SLYV 20%, QQQM 20% seem reasonable?
I have a 3 fund portfolio with a yield of ~ 4%. Safe withdrawal rate for retirement according to PV should be ~ 7.7%
I can see creating one's own retirement "ETF" of 30 quality companies with a 10 year plus history of not cutting their dividend, with that dividend being no less than 4%, but it's arguably a tall order to find 30 such companies. In many cases the company and/or the dividend is shakier that I'd prefer, and I'd rather not expose more than ~3.5% of my portfolio to any single stock position.
Would you consider addressing using dividend investments to supplement a retirement income? In my case, I have a pension, social security and require additional to balance out my income. Can dividend investments help with this?
Here's my take on dividends in retirement: ruclips.net/video/fhAu61STtcY/видео.html
SCHD and SPY had almost Identical total returns. SCHD is not the highest yielding etf but good enough for a test. its dividend currently is 3.4%
would you still choose SPY?
I don't mind living of dividends because the stock market is very cheap in my country. I can easily buy stocks with dividend yield above 5% 😎
I’m 31 and don’t make a lot of money. Is it too late for me to start investing?
Never too late. Time value of money in the market is amazing.
My portfolio is heavily invested in SCHD and VTI and seems to be performing nicely
Same here!
In all fairness -- there's no guarantee a SALARY will go up by inflation. Mine certainly has not.
I think this video ignores the issue that the years where the dividends dropped were also the year's in which the S&P did really badly. It ignores market risk in retirement. If your S&P 500 dropped during the year that you need to sell the shares for retirement income, you would be in the same situation if you had used the dividend strategy you are arguing against. I'm not saying dividends are better, I just feel like the risk is equivalent in terms of income. Notionally if you don't need to sell shares you should be able to take advantage of markets recovering.
That's why you have fixed income outside of stocks
Too many people retiring at the same time and it’s driving down yields.
What do you think of a covered call strategy to increase yields with a portion of your portfolio?
Great approach. I've been doing this for years to enhance yield and my overall return. There are ETFs doing this today eg QYLD and RYLD
You failed to mention that dividends can and do go up as well. You should have a more balanced approach in your opinions.😊
Does anyone know which version of Portfolio Visualizer he uses? Thanks!
The paid version. The example he showed can be done on the free version.
I think any investor that is involved enough to be watching this type of video can put a portion on their portfolio in BDC dividend payers or mutual fund, BIZD. These pay 8-14% I find 2% not interesting. Overall portfolio is allocated 45% stock, 45% single family rental, 10% metal. 1/10 of the stock port is in high dividend payers 6+%.
Live simple, live healthy, take special care of your brain, love others, love the one true God. That’s all we CAN do.
The only way I'd live off my dividends is either while already in retirement or I already had say 2.5mil in the market now lol. Otherwise, that's all just getting reinvested
Does the portfolio yield increase via reinvestment of dividends?
Just buy some safe individual stocks with a great track record that have a good dividend.
Great video!!!
I will be retired for about 30 years - how can I get the same data for 30 years???
What about a 50/50 mix?
Bonds are trash
what if you own 15 different funds and companies and have a yield of over 12% , works for me.
I'm actually in agreement, I want to invest for the best overall returns. If dividends are included in that, great!
Ill graduate next year with a mech eng degree at age 42. Starting from zero retirement. My strategy is to put 10% into my roth 401k, get my 10% company match, and max out a roth ira with shares of SCHD. This would be appx 19% of my post-tax income. My starting wage the day i graduate will be over 75k, and it will go up quickly. If i retired at age 68 the SCHD shares would generate appx 3k a month in today's dollars. Plus id have my 401k, plus social security, and id probably pick up a rental property or 2 along the way. I think this is a pretty sound strategy but id love to hear input
Your company will not match 10% they match the first 3-4% 100% then the next 1-2 50% meaning they will match a max of 5% to your 7-8%