SCHD RETIREMENT LIES. The Truth About SCHD ETF
HTML-код
- Опубликовано: 6 фев 2025
- 📧 Get my free weekly investing newsletter: austin.substac...
🦅 Follow me on Twitter: / liebermanaustin
#dividendinvesting #dividendstocks #passiveincome
DISCLAIMER: All of Austin's trades, strategies, and news coverage are based on his own opinions alone and are only done for entertainment purposes. If you are watching Austin's videos, please Don't take any of this content as guidance for buying or selling any type of investment or security. Austin Lieberman is not a financial advisor and anything said on this RUclips channel should not be seen as financial advice. Austin is merely sharing his own personal opinion. Your own results in the stock market or with any type of investment may not be typical and may vary from person to person. Please keep in mind that there are a lot of risks associated with investing in the stock market so do your own research and due diligence before making any investment decisions.
![Blox Fruits Dragon Rework Update [Full Stream]](http://i.ytimg.com/vi/EqDAp8udhm0/mqdefault.jpg)
It’s one thing to disagree with someone it’s another thing to call someone a liar
Exactly 💯, give your Facts keep it moving.
They are lying.
this is one of the weird videos i have watched in a white!
This video is giving a more responsible look at the etf long term… 12% is unrealistic
But they are lying. SCHD hasn’t done a thing in 30 months.
Dividends from SCHD are generally taxed at the qualified dividend rate, often providing a tax advantage over ordinary income rates for many investors. However, current market attention is centered on Nvidia, which has significantly contributed to the S&P 500’s recent earnings growth. Nvidia’s stock, up over 90% year-to-date, gained another 2.5% on Monday in New York, propelling the Nasdaq 100 to a new record high. I’m actively seeking new opportunities to enhance performance within my $350K portfolio and open to strategic ideas.
I believe the next significant trend will be in Artificial Intelligence. For sustained growth comparable to what META achieved, it’s essential to avoid impulsive decisions based on short-term market movements. Prioritize patience, maintain a long-term outlook, and, most importantly, consult a financial advisor for well-informed investment decisions.
Many underestimate the importance of financial advisors until they experience setbacks driven by emotional decision-making. A few summers ago, following a challenging divorce, I needed a significant boost to stabilize my business. I conducted thorough research on licensed advisors and found one with exceptional credentials. Despite inflation, she has successfully grown my portfolio from $275K to $850K.
@@Toni__Michelle This is certainly significant! Could you recommend any professional advisors I could consult with? I’m in urgent need of strategic guidance on optimal portfolio allocation.
Rebecca Lynne Buie has consistently been my top recommendation. She’s widely recognized for her expertise in financial markets and has a strong track record. I highly recommend her.
@@Toni__Michelle I have been curious, is this advertisement or real. I see this kind of comment everywhere.
Luv the ETFs. I own both SCHD, QQQ and individual stocks that I collect dividends, which are well managed.
so big on stocks and it has worked well for me, but I also like to have a well balanced, low-cost set of ETFs that keeps the money in my pocket. How effective are your managed efts with this lot?
SCHD is About 35% of my Roth IRA SPDR S&P 1500 value Tilt ETF is about 31% of my Roth. The rest is covered call ETFs for all 4 US market indexes, international, extra concentration with sector ETFs with energy, health care, utilities, WTI futures and general commodity futures ETFs.
Kenderdine tbh adhering to well established patterns from a professional, even as a rookie, can bring tremendous value! I’ve trimmed, added also and now my average growth has increased 88% in the past year while participating behind a top performer. It’s truly great to see steady growth.
I'm looking to start a position in JEPQ with dividends of existing stocks. It's going into an IRA and I'm really looking for growth over time. I will be reinvesting dividends, so my position size will grow over time. Okay if I ask for referral from you.
a lot of people into ETF let it ride for the long-term given its solid returns overtime.
SCHD outperformed VTV over 5 and 10 years and is very low cost. Many of us have a boatload in the S&P500 index . 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 10 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
SCHD is an excellent portfolio addition, but relying solely on it for retirement may not be optimal. I retired at 62, grew my portfolio to $1.5 million in 10 years starting with 300,000 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
Market behavior can be complex and unpredictable. Mind if I ask you to recommend this particular coach to whom you have used their services?
Sharon Ann Meny is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Thanks, I just googled Sharon and I'm really impressed with her credentials. I reached out since I need all the assistance I can get.
You didn't account for the dividend growth year to year. SCHD has increased its dividend every year
What dividend growth year to year. He specifically focused on 12%🤔, it feels like you guys are typing nonsense before watching the whole video
A couple issues with your argument. 1) taxes & inflation affect any investment. SCHD has qualified dividends unlike REIT’s, oil trusts or covered call etf’s like JEPI and QYLD. Second, the 12% return is reasonable because its a total return. 8.5% market return plus 3.5% dividend yield. That is within your range of 8-10% S&P return. Lastly, you don’t forecast a flat return for SCHD, you need to include dividend reinvestment which is what most people do. So good luck with your crypto plan to be a millionaire while the rest if us actually get there with SCHD.
This is the biggest lie that retail investors swallow - the long, steady race will eventually lead you to be a millionaire. One divorce or cancer diagnosis will crush your dreams in a heartbeat. This is the reason why some people go balls-to-the-walls on crypto despite it obviously being a scam.
You are not guaranteed to become a millionaire no matter how frugal your lifestyle or diligence in investing.
@@realanalysis42 What the fuck do you suggest, Socrates
@@realanalysis42 Just saying a bunch of shit with literally 0 context or solution lol
@@realanalysis42 yeah what a shitty pessimistic take
@@realanalysis42 Divorce and cancer are in ones control. Don't marry and don't eat shitty food or live a toxic lifestyle. It's that simple
SCHD is great ETF. My opinion, it would be a nice part of a portfolio and is part of my portfolio. Using SCHD as total retirement plan, in my opinion, is not the way to go.
What about SCHG ?
@@impec I got both and SCHG is totally outperforming on returns, schd still flat and I bought at same time about year and four months ago.
I'm all in the schd for the dividends.... is that bad? Currently at 3000 shares and planning to go all in for 30 years with drip and 1000 investment per month
@@catzee4720 yea to be honest, looking at the numbers I don't understand why folks go with SCHD. I understand that theres the dividend growth, but there just seems to be better ways of growing your retirement.
You need 1-2 million dollars in SCHD to make it something you can just live on, and unless your just dumping money in there, its not going to appreciate as fast as a growth fund or even the S&P recently, so I feel like an optimal strategy would be to buy growth funds then shift over to SCHD or another dividend ETF as you get closer to retirement and you want passive income.
@@ChasingHaze1993for total return it is not the best strategy. It depends on your individual situation and investment strategy
This is giving me small man syndrome vibes.. sure you may disagree with someone’s figure given as an example. But to be all fired up and pissed off, calling them out for being “click baity” then you use their face on your thumbnail.. 😳 I think you need to stop evaluating his videos, and reevaluate yourself.
Well said! It's one thing to disagree with someone's narrative, completely different to continuously call them out by name, If I was Dr G, i would totally ignore you.
I stand with Prof G. He didn’t mean it that way you mean. Your vigilance will hurt you. Ease up
ok fanboy
The calculator you used doesn't take into account the compounded growth of dividend reinvestment.
This is the comment I was looking for. He used a run of the mill, "buy and hold - buy low sell high", savings-like investment calculator at investordotgov. I'm surprised no one has mentioned the reinvestment of dividends for the extra compounding affect it has on a total growth compounding over the years. While I do think 12% over 30 years is a bit much, the concept of capital appreciation of the stock rising along with the dividend yield AND reinvestment each quarter of dividends for the "snowball effect" of dividend stock/ETF investing strategy.
Actually it does. He was making the assumption of all of that rolled together in that 8% projection which is the way to do it.
You’re looking at returns but what about the dividend growth compounding returns?
12% is an unrealistic rate of return to assume over a 20-30+ year period. The US is coming off one of the best bull markets ever and SCHD happened to be created at the beginning of it, which explains it’s 13% return since inception.
A more realistic rate of return would be 7-8% adjusted for inflation. The S&P 500 has had an inflation adjusted return of about 6.5-8% historically depending on what time period you’re looking at. It’s better to underestimate than overestimate when it comes to retirement planning.
Agree 100%
“When it comes to the future, no one can predict it” ~Warren Buffet
It's tough to make predictions; especially about the future. Yogi Berra
Retirement is wonderful if you have two essentials - much to live on and much to live for. Invest wisely and get good returns.
thank you, can you give a pointer the best investment now ? i am thinking of getting stocks or cryto
The key to making money in stocks is not to get scared out of them. An important key to investing is to remember that stocks are not lottery tickets. get a financial assistant
I currently work with KATRINA VANRENSUM a financial expert i met in a seminar
search her name on web to reach her through her website
I just added $200,000 to my portfolio within two weeks
The S&P 500 finished down 20% in 2022. This means long term investors have a great starting point in 2023. Here are 4 very popular ETF’s: $VOO- S&P 500 fund $VTI- Total US stock market $QQQ- High growth, tech $SCHD- Growth + Dividends| I just tallied my dividends for the year;$167k Blessed and grateful, disciplined and focused.
My "boring" index funds just paid me over $6,000 in dividends last month. This is money that i can choose to spend without having to sell any of my shares. But for now i have it all set to reinvest to buy me even more index funds.
Anyone have recommendations for a reliable monthly investment? I hope to ultimately supplement my income from work with a monthly income from investments. I will still make long-term investments, but it would be wonderful to have a little additional money each month.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000
Mind if I ask you to recommend this particular coach you using their service?
'Carol Vivian Constable, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
i think nolan took the accepted rate of return which is 8-9% and added the 3.58% dividend to get the 12%. atleast thats how i think i remember it happen when prof G did his calculations.
That’s not how it works and he knows that
that is exactly how he did it. He took the actual total return from the past 10 years and forecasted. with dividends reinvested, that would be the return, so I'm not sure why this guy is crying about the calculation. Seems like austin doesn't know how dividend funds work
This video is totally click bait! Professor Nolan G and his videos are great. This Austin Lieberman isn't and is trying to use this video to get clicks. SCHD is one of my foundational ETFs and is great! My portfolio is 40% VTI, 50% SCHD, 10% QQQ. I'm age 60 and don't like bonds. When I reach 70, I will reallocate my portfolio and just be 100% SCHD. Don't listen to what this Austin Lieberman says!
That's the problem, and it's a big one, with these investment videos. There is virtually no debates among these authors of these channels. They are all talking heads with one-sided opinions. The worst of the worse are the channels that show the authors making an insane amount of money. You know who they are. They would show the expensive cars they drive, the fancy house(s) they live in, and the exotic vacation locals they go to. Human beings are naturally greedy. If you have discovered a secret to make you money effortlessly, odds are you won't be sharing it with the world. You don't see billionaire investors who actually have billions have RUclips channels "teaching" you how to make money like they do. At best, they would give out some general vague advice. Things like diversifying your investments or not putting too much money in speculative stocks, but they never would ever tell you specific stocks to buy. By contrast, many investment channels would actually tell you what stocks to buy. If they were so sure of the stock's trajectory to the Moon, their greedy nature would certainly make them keep that a secret.
As an investment enthusiast, I'm intrigued by how top-tier investors manage to become millionaires through their investments. While I have a substantial amount of initial capital, I'm uncertain about the strategies and approaches necessary to achieve returns exceeding $400k, as some have done this season.
I agree, just because the market presents opportunities doesn't mean we should rush in headfirst. For this reason, we should look for appropriate market analysis or guidance or, alternatively, seek advice from certified market strategists.
Use a calculator with the DRIP option and dividend growth option. Your numbers are way off by missing the entire concept and strengths of dividend funds.
This dude sounds like a crybaby , obviously you need to save the money to invest
10% is actually a great return for investment. It is not like Tesla rise 50 percent in 4 days😂
I do 50% schd, 40% FXAIX and 10% percent growth ETFs (I alternate between BOTZ, SCHG and SOXQ. I don't feel the need for bonds...SCHD is a little more volatitle than bonds, but the last downturn showed that bonds are no longer guaranteed to soften the blow in a downturn.
Great video. I based my future retirement on a 6% return 15 years ago. Let's just say I'm comfortably ahead of schedule. It's better to estimate a little low versus high. I'm in FIRE mode now and will be out before my 50th birthday. I'm just trying to decide if SCHD would be wise to dollar cost average into over the next 6 years. I see the light at the end of the tunnel.
So your main point is SCHD doesn’t perform at 12%? Do you agree it’s better than bonds (BND) for performance?
I'm part of the fire movement and retired in my mis 30s. I hold 30% SCHD, 30% JEPI and 40% JEPQ. Enough said.
Unless you're already rich you'll be back to work in 5 years😢😮😅😊
Except SCHD is compounded quarterly, not annually.
Yeah I wasn't sure why he wasn't using another calculator or if he was just using Total return. At least he should do it quarterly
It’s really best to expect no return. The key is saving your money and anything above and beyond is just icing on the cake.
Yes! Yes! Yes! Thank you. Finally, someone speaks the truth.
I don’t think your analysis includes dividends that could be reinvested into SCHD. But I agree, I wouldn’t put all of my eggs in one basket either.
I respect this so much. Infuriating how finance bros act like context of earning 45k vs 145k is irrelevant for retirement and surviving. Almost never discussed working on increasing income
Best predictions come from historical data and you did not even take into account DRIP which is what makes this magic happen for SCHD. Their math is hell lot more accurate than yours.
I believe Prof G is also including the dividend. If you get 7-9% growth plus about 3% dividend, Prof G may be pretty close.
I'm confused. According to Morningstar, the annualized total return for SCHD since its inception (20 October 2011) is 13.18%. For ten years it's 12.13% and for five it's 12.25%. Prof. G assumed a lower annualized total return (i.e., 12%) than SCHD's actual annualized total return. We know what an "assumption" is and that past performance doesn't guarantee future performance. What's the issue?
How are you confused we were in a different market due to the low interest rates. When interest rates are higher stocks just do not do as well, and they are over double as high as they use to be and may be going higher. I think it remains a great chance to buy because if the rates drop you will be in a great position for growth. If it doesn't you still have a solid investment with companies that. "may" hike dividend of encourage investments if they can. But in harsh environments even that can fail.
@@HonestOne this response was so bad.
@@WHlSKYx u are so bad
The stock market has been in a massive bull market since the 08/09 crash. Coming out or an almost 15 year bull market 📈 and trying to plan that for the next 15, 30, or 40 years is kidding themselves. That’s why you need to be conservative in these long term plans. It’s possible/likely that for 10 years that it only returns negative or a few percent a year. Stocks don’t only go up.
@@nathanvanwie643 buy when high or low.
Always somebody to poo poo somebody else. This video is classless and uncalled for. Stay in your lane and comment on your experience…not some one else.
Just to make sure I’m following you correctly here… are you saying SCHD’s “expected” growth going forward (due to current economic conditions) would be 6-10% annually and that also includes dividend reinvestment? (Which he always includes / suggests in his videos)
If someone is making 30 year assumptions, yes, that’s a much more realistic range to consider
@@AustinLieberman how can you know the future ?
@@blackcatcaptain2022 It's common sense really. Do you know any other stock or fund that has returned 12% over 30 years?
Do you have any SCHD alternatives that have a good total return and reliable decent yield?
As a beginner, who just started investing last month, I’ve watched several of Nolan’s videos. If looking at the past 10 years showing average growth of 12% then why is it so wrong? The 8% you selected is 4% less than the average. I’m not understanding even after watching the video
The average return is closer to 8% in the long term. 12% is very optimistic and not likely to continue into the next few decades.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
@Christina-Gisela Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. Alice Marie Coraggio, a licensed fiduciary whom has made me over 5 figures in profit in less than seven months, handles my investments. I could leave you a lead if you need help.
@Christina-Gisela Alice Marie Coraggio
Lookup with her name on the webpage
Very accurate. Becoming a millionaire is s marathon. Must invest lots of money over the long term and using a 5-8% return is realistic.
Yes, ...very accurate. I named my portfolio "Invert" to remind me of Munger's advice to not do inherently dumb stuff. We have to not take wild bets in other words. I did that when I was young and cocky and got punished for it. I used to think 3 or 4 stocks was diversified. Looking back after 30 yrs in the market I probably got better advice from Jack Bogle than I did from reading Peter Lynch.
@@fendermonmy dumbest mistake was selling stocks after the 2016 election because soon after the results, markets were in the red. I feared for the future and sold. Didn’t really get back in until a couple years later. Most of my mistakes have been in selling when I shouldn’t have.
Yes, it's easy to do. I followed my gut in 2000 and got wiped out.@@thecapone45
I always want to estimate returns to be lower in retirement to have a safety net and have some wiggly room. Life happens and things happen. No one can predict the future
For non US investors the withholding tax is 30%. Killer. Any alternative suggestions will be welcomed
Maybe I’m mathin wrong. But does the 12% estimated account for DRIP? Using the compound calculator doesn’t allow DRIP calculations.
Not disagreeing just trying to understand how to calculate.
Prof G is not going to collaborate with you. Quit your clout chasing.
I’m confused, you didn’t mention the reinvestment of the dividend yield which is a a main point included in the calculations. Additionally, you say that he didn’t account for inflation, but the market accounts for inflation automatically so I’m not sure what your point is there.
Im going SCHD, SCHH for many years to come. Do you think that is a good idea
Thank you for this more honest video. There are too many clickbait videos about dividend retirement. While SCHD does sound like a good idea, it's important to be realistic about the numbers. Too many people are acting like they can predict the next 30 years.
is this factoring just dividends earned or also stock price appreciation as well?
Another mistake is to assume that the past 40 years of US growth out of thousands of years of history should be used to assume 8-9% returns going into the future. The US is at a much greater risk of a currency crisis, sovereign debt crisis, peak oil / energy crisis and demographic crisis going into the next 40 years than any of the past 40, all of which would destroy returns of broad market investors in favor of those who are more selective with their investments and those who invest outside of the US.
I actually think rates of returns will increase due to technology, if 8-10% returns were accomplished long term in times where there wasn't even internet for communicating efficiently just imagine how good returns will be with the increased efficiency in the future.
Lol, how would a “demographic crisis” break the market 😂
Looks like someone is trying to leverage Professor G " to get views/ get clicks.
I hold SCHD in a tax advantaged account that is 82% large cap and 18% small and mid cap: all of this with an optimized mixture of growth and value. The net result is not only a portfolio that is vastly more diversified than holding the S&P alone, but at least with regard to historical data that omits the most recent tech spike (and it would perform even better if I didn't) outperforms the S&P by itself as well.
Fact is it's better to invest vs not doing anything at all and SCHD or VOO will some what guarantee consistent return and growth
I believe you’re being more heated than necessary. In your video you called that guy a liar, for essentially being far less conservative than you. It also seems like you’re treating SCHD’s future growth like you would with VOO/SPY more so than someone would with the rules that SCHD follows. Just my opinion.
No mention of dividend and dividend growth.
Even here I think the historical 12% dividend growth is too high to rely on as the 12% total return is possibly too high.
Nobody mentions or discusses why SCHD's dividend growth is more likely to be lower in future.
Everyone is talking about SCHD because it outperformed a bad market last year. Before last year, it lagged the S&P and many other ETFs. People need to do their homework..
The comparison video that you made is kind of all right, but I hate it when people do this. just give your Contant bro it’s not like we can’t go to the other video or just look up SCHD and find out from other people. Also we’re making our own decisions. So you know I just don’t think that you need to bring up another video so much
You’re correct very correct and that’s why, people who I know are being mislead and misinformed by this people. My calculations I do even different I bring the amount to 7% or 7.5% . I always calculate the lowest.
I don’t care about any of the nitty gritties of 8% or 12%… As long as the younger generation is inspired to save, it’s a noble cause. Prof G is doing a great job of explaining and inspiring the youth. Keep going Prof. G
and when their expectations which have been set, do not happen, guess what will happen to their resolve to save/invest?
You might want to watch the video again as that wasnt what he was saying , its no wonder he has more viewers than you calling out people when you don't even have all youre facts correct you only have youre opinion yet call him out , nice . Unsub!
what calculator are u using?
Market news is the correct calculator to use . You may need to put in dividend increases of 8 percent instead of the 3 percent it shows as last year but it will get you close
u know the old saying - "if it sounds too good to be true, it probably is too good to be true." might be a good idea to consider the 20 years has many years in the part of your life where you're buying a house, building a family, may hit a lay-off or a bear market. then the kids need to go to college. so be prepared for some bumps in the road.
I love SCHD. I love the truth more. That’s why you earned a subscriber in me. Slainte
Could you elaborate please, did you learn something bad about SCHD? As I see this vidoe is more about our expectations and not SCHD itself. I am confused
This is a very heated way of saying "past performance does not indicate future returns"...not fanboying on prof g, but he does say it takes a ton of capital to retire on this strategy as well in his videos.
I'm understand SCHD as a safe way to diversity a portfolio. I do agree it hasn't done much, but it hasn't crashed either.
How are any of all you RUclipsrs numbers "Real" if none of any of your calculators include rolling cost of share purchases and annual fees factored in?????????
Blasphemy! Leave Nolan alone!
ok fanboy your fake professor 😅😅
Did you do the backtest portfolio? Historically SCHD does average over 13% annual gains since its inception. But it’s not that much better than VOO/the overall market.
7% vs 12% returns are astronomically different. That’s millions or hundreds of thousands of dollars over the span of an investor’s lifespan.
@@DennisFinancialDoctor If someone actually gets 12% over their investing life someone will write a book about them.
@@fendermon They already have. His name is Warren Buffett :)
This is still inaccurate. You are doing simple returns without doing compound drip rates and growth of the dividend. Yes, it is misleading to not use inflation adjusted numbers and rates, but this is still not accurate to the performance over long time for dividend paying stocks/etfs. Also a good dividend paying etf/stock that trades flat or down during periods isn't bad as it allows for a massive growth opportunity when the stock begins to move again and that's what you are counting on for long term horizons. It's no different than dcaing into the market during down years. You can backtest all this and see the rates and cagr for 30+ years across dividend stocks and etfs through portfolio visualizer much better than a basic interest calculator.
Use SCHD for income generation I have it but I don't have it solely as a retirement fund. I have pretax growth, Roth ETFs for income, some ETFs for growth and a bit of income in a taxable account. Eventually add physical rental real estate property.
Returns are returns, there is nothing special about dividends
What is the link to the calculator
Your missing the point of SCHD. We buy it for the dividends not the rate of return.
Why is it that the first video I click when I view your channel is you talking about investing 50k in SCHD?
He isn't saying the ETF is bad, he's saying that the way financial gurus explain it, is.
People look from 2020 to now and think its normal. The spending packages stopped the money printer is off. Interest rates are up debt is high in every category. If you think the market qqq or spy will continue the recent rates of return permanently you are sadly mistaken. From recent all time highs could be years before they break above again. We could see 3-5% returns over the next 10-15 years.
Yes a lot of the videos out there, including Professor G, aren’t realistic with long term return. They just look at the recent gains over a short period of time and extrapolate that for the long term. SCHD is mild compared to some other ETF’s promoted to get 18 to 20% returns. Probably just to get view as you mentioned. Not realistic!
This was a great honest video. From a person that invested and is living off of the stock market. You are absolutely correct. Don't be swayed by these haters in your comment section because lies don't get you to retirement. KEEP TELLING THE TRUTH. Ostriches that have their head in the sand will be the ones that are disappointed when retirement time comes.
Thank you for being realistic i new i was right by investing more you are a life saver
Does your calculator include DRIP, pretty sure he was accounting for that in his video. He also said that you cant expect that return year over year. He was just showing a best case scenario.
Anybody who mentions that they are a 'professor' at least 3-4 times per video doesn't really instil much faith. The guy talks like he is talking to 15 year Olds. Does my head in personally.
8 to 10% is too big a range in MHO. The actual return per Berkshire Hathaway shareholder return 2022 is 9.9%. We know the future may not be like the past, but since we do not have any other guide except the actual number from the past, why not use the actual number, and then do a 2% variance from that?
It definitely doesn't go staight up, My IRA took big hits in 2008, 2018, 2020,2021, 2022. I am sure i am missing a couple of years.
I thought that was a fair critique and professional criticism to open up more dialogue. This is necessary in the financial sector and in all aspects of life.
Dedollarization --> Hyperbitcoinization.
Why are you wasting your money on stocks? They barely match inflation.
12% returns does seem optimistic. This doesn't seem to account for dividends reinvested though? Are you assuming that the 8-ish% includes dividends reinvested?
Prof G is also including the dividend. If you get 7-9% growth plus about 3-4% dividend, Prof G may be pretty close.
Well now I'm just confused. The calculator used looks different than the calculators I use which provide inputs for dividend yield, dividend growth, stock price and the option to DRIP. I didn't see these inputs in the one he used. Why no mention of dividend reinvestment that purchases more of the stock each quarter, which provides a larger dividend next quarter to repurchase more of the stock and so on?
Because DGR and drip are inconvenient truths. Time is the biggest factor for schd, investment second. As long as it maintains a 9% DGR avg over say 25 years you only need a full paycheck and a cup of coffee a day to get a solid retirement out of this fund with just a 6.5% avg total return (3.5%dvd,3%rtn)
I am not sure if the returns beat the SP500 but he's saying is SCHD is wayyyy better than Bond.
if you pullback 5 years from today's date, the average annual return is 13%. If you pull back 10 years to 2013 , the average annual return is 16% so I don't see what the problem is. Also if people don't understand averages then its really their own fault. SCHD might go up 5% next year, then 18% the year after. Maybe down 20% next, and 30% up afterwards. If SCHD avg 7% growth plus 3% dividends reinvested, that easily gets you 10% total avg returns
Thank you. I needed to hear this.
I usually do these tests and only consider the worst outcomes hoping it just holds its value or increase 2 to 3% per year
And now they have reduced dividends. Their price is roughly the same as the YOY price. Too expensive. I like it at $60-65 tops.
15% turnover ratio and way underperformed the market YTD due to low technology holdings. I'm not sure they can keep up the track record anymore.
In retirement, keep your full time job, collect social security, and collect on your investments. You cannot fail if you do that.
Name one RUclipsr that doesn’t lie, hore out or deceive just to get extra views. 😅
Exactly. Comments makes below are more fair & insightful.
Calls someone else for misleading, puts 100k as starting position in a portfolio.
Your video about schd hits the nail on the head. Schd is good but is not that super good
A lot of people when they do the calculation they don't often use 12% return that is too aggressive. I usually use a more conservative 7 or 8%, when I see all these RUclipsr use 12% I am kinda crunch a little. That is just too high for future calculation.
Great video. Thank you( and no, you don't need to dial it back).
SCHD has never let me down. Why the hate?
This is a great sanity check, thank you!
Did you factor in the 11%+ annual dividend growth rate and what twenty and thirty years of double digit dividend raises do to your numbers ?
Where is the drip in this calculator? There can be a big difference in this video if included aswell agree with 8% range though
You’re not calculating the dividends being re invested though