Which portfolio is closest to your investing time horizon? Try M1 Finance: bit.ly/TryM1Finance How to transfer to M1: bit.ly/TransfertoM1 Seeking Alpha Premium (get 58% off): bit.ly/SeekingAlpha-DGI Instagram: instagram.com/dgi_jake/ Dividend Reinvestment Calculator: docs.google.com/spreadsheets/d/1W8UvXLZdEpVX-UPTKiHIT1oYIkj7Omvf30FgB3FTKWY/edit?usp=sharing
Love how you broke it down. This is what a lot of new investors needed to understand. Your age is just as important as the stock you buy because it might be a good stock but your age May dictate how much you're actually get out of investing in it
So as of this past friday I decided to change my strategy. Originally i wanted to keep investing to cover all my expenses as soon as possible, but I would like to buy a home. So my plan is invest until my dividends cover my expenses except the rent, and then use them. This way my 9-5 job will cover just my rent and I can save 4k a month to eventually have enough for a down payment
That is the great thing about dividend investing is it provides you with so much flexibility. It is very possible as things in your life change, you may shift your strategy again in the future - and there is nothing wrong with that! If the facts in your life change, it is ok to change your mind.
Excellent, excellent video. Would recommend it to any new dividend investor looking for a place to start, but doesn't want to invest in individual dividends stocks. There are so many great dividend focused ETFs to match anyones strategy and time horizon, as you highlighted in this video. Thanks for the great content. Bert - Dividend Diplomats.
Very insightful video, I think ETFs and indexes are solid for anyone and everyone not looking to spend much time shopping around and doing due diligence and of course one's timeline plays a MAJOR factor!
Indeed! And having ETFs instead of stocks means you can choose a few over a lot for stocks for the diversification. I personally feel like having one stock as a major percentage block in my portfolio, means I should keep tabs on that company (aka. "Homework"). This isn't that bad, you should do this anyway... But in a flat/bear-market I think it's best to not look too much at all the reds in your portfolio. But this is all dictated by your nerves :D
I really liked your take on the different time horizon portfolios. I was wondering though, one thing I notice throughout some of your videos is that your portfolio has changed over time just like with how the time horizons change, but I was wondering if you could explain how you would transition your portfolio using M1 Finance when your time horizon changes. Did you sell all the previous holdings taking a taxable event to put towards your new investments or do you still hold them and they are not added to anymore.
Yes, but understand that the dividend income will be lower. However, your portfolio will be higher so you could rebalance later into higher dividend ETFs.
The 5-10 Years dividend portfolio looks good if you hit a lottery jackpot like 5M$ after taxes and want to live on dividend for life without any stress.
Ok, how would these portfolios change if they were inside a traditional IRA and also if someone were planning to make a lump sum investment?? This is a suggestion for a future video.
@@DividendGrowthInvesting It definitely has! I love your channel, especially as I'm a new investor in my 18's trying to invest for my future. Although in my country New Zealand doesn't have this fancy stuff M1 Finance has haha. Keep up the good work!
Hi Jake: Just leave a note for you to thank you for the video. Your video is making me more confident on long term investing strategy(also lots of fun 🤣).
So what if we have about 20+ years on are horizon so we are in the 4th portfolio and as time goes on we near the 3rd 2nd 1st ect. Do you suggest that as we age we transition into those new ETFS and the percentage you suggest or just stick the ones that we had from like portfolio 1 if that is where we started? I would think it would be good to transitions into these new ETFS but you would think you would cap yourself at whatever you were at when you moved over compared to having those extra 20 years if you stuck to the ETFS you had from the start.
Thank you for breaking this down for us, really appreciate it! Question, Im 49 and im looking to use my taxable account (Dividend account) as an additional source of income, i notice all the ETFs you picked all payout on Mar, JUN, SEP, DEC months - what other stocks would you add/replace so that I can get a payout for every month? Im looking at retiring in 10 yrs. I also have a 401K and Roth IRA. Thank you! you are awesome!
I'm new here, and I'm a dividend-growth investor too. My Portfolio is VYM45% DGRW45% XLRE5% JEPI5% so it's similar to the second one. Sadly, I can't invest in SCHD here.
Given how volatile the market is right now, should someone just beginning to invest start out with dividend ETF portfolio vs a 401k or roth IRA? just looking for a little extra cashflow in the next 5-10 years.
can you make video about what kind of portfolio you prefer in worst case scenario like 1999-2008 period ?for some reason no one is considering this scenario but it could happen again
Im 13 years old right now and I have around 3800 into stocks. This includes Mcdonalds, VTI, VOO, VIG. Realty Income, Apple, and Intel. I also trade options but I only stick to spreads. I do this to get the money needed to buy additional shares of my holdings. Im planning on holding these etf's and stocks for decades. Should I continue options trading or stop and just put the rest of the buying power I have left from it and put it into one of my holdings and just wait till I can get a job to buy more shares or should I continue Trading options and still get a job when Im old enough. I know with compund interest eventually the profits from trading options will be miniscule compares to the others holdings but would it be worth it to keep of doing it to be able to buy extra shares early.
I’m 38 so I have some time to go until I retire . I like both the 10-15 Pie and 20 year Pie. I just opened up a m1 finance account so would it be worth it to throw 50 bucks A week into the pie or would it have to be more ?
Hi . This is such a useful video . I have 14 years for retirement and money is in IRA. In a taxable account I'm on you with NOT including any covered call ETFs. But on a tax deferred account is it a good idea to allocate some portion of the portfolio say 10% to 15% on a covered call ETF like JEPI ,JEPQ etc. ? What are your thoughts?
Thank you so much for this email! It has really helped me prune my portfolio down to the essentials. Any reason why you are avoiding international ETFs in anything sooner than 20 years?
Good video - my take on the 10 year plan is pretty close - except for lack of REGL in the 10 or 15 year time horizon. With 20% annual dividend growth - why not?
OMG Oh I wish I could go back in time and tell my 20 year old self if you just in past 10% of your check into your a retirement you could be a millionaire by the time you retire and possibly retire early. You never think the day will never come and then all of a sudden you realize the time is gone and there is not enough time to save for retirement. I need the highest earning dividend I can get so the risks are so much greater because I did not save as much as I should have😖
So, this is a separate investing account from a 401k and roth IRA? I think what you said in this is that this is a separate investing account that provides you with cashflow, is that right? And you get taxed on the income made from this investing account?
I'd suggest watching this video where I talk in detail about SCHD. Around the 13 minute mark I compare VYM vs SCHD and the fund overlap. ruclips.net/video/ylH_5-rFFRs/видео.html
Great video Jake thank you! Question: for the 5-10 plan - if opting to take out VNQ, where would you suggest allocating the newfound 10%? Allocate and add the 10% to a new ETF or beef up one of the existing ETF's?
Hello! I just started my journey in january. I have the QYLD with an initial investment of $600 and the SPYD with an initial of $507. Next one will be the DGRO with a similar amount and I also have a few individual stocks, I'm planning to reinvest the dividends for a minimum of 5 years and also add $300 every month into the portfolio. Do you think is too risky or am I in the right path? The SCHD is also going to be added next month. I'm 33 years old and single so I dont really have any high expenses. Thank you for the video, Greeting from Chile!
Hey there!! That sounds like you have a good plan made out for yourself! One thing to be aware of is how the dividend is taxed. For example, someone in the US would pay a higher tax on SPYD and QYLD vs SCHD. Cheers from Texas!
@@Omar-nr8fm It is a mixture. It has qualified and non-qualified in it because it holds REITs. At the end of the year, on your tax statement you will see the percentage of qualified and non-qualified. If you want 100% qualified, you would want to look at an ETF without any REIT (e.g. VYM or SCHD or HDV).
Hi Again Jake, so I've watched this again and it makes more sense from my previous question. The only thing I am a bit throw off about is the assumption of voo in an roth. I keep maximizing my contributions but I don't invest in anything. After watching this, I was thinking to put 50% on voo and the remainder on reits and these less tax favored dividend etfs like jepi but you said you were not a fan of putting jepi in a roth. Because im self employed im in a high tax bracket so im searching for an answer to this question, is it true that we pay 0 taxes on capital gains up to 80k if filing jointly? Because that would make me feel a lot better about investing in a taxable account.
A Roth is a great place for an ETF like JEPI and REITs. It comes down to the growth rates of the investment in this case. I would suggest looking into the rule of 72. If you have a longer time horizon, you ideally want to focus on investments with a higher growth rate. You can actually earn more than 80K with the standard deduction on top of that :)
@@DividendGrowthInvesting thank you i just saw the video that you said you are in Germany. Enjoy it, its one of my favorite places to visit. The last part of your comment you said I could earn more than 80k, did you mean on a taxable account? Cuz if thats the case I'll pick 4 or 5 agressive growth dividend etfs and make that my taxable core. Thanks so much, just clarify that for me if you can :)
Jake what do you think of my situation, I have a roth ira that the biggest holding are Apple, Microsoft, Home Depot, Berk.B and Abbvie.(there is almost 33k in it) my current work roth/401k just has VFIAX that i put 8% of paycheck in and my company matches 6%(13000 in that account) I just turned 26 but im just wondering should i sell out of those single stocks and go to etf? i just love the CAGR of the positions, most are double digit CAGRs. thank you i also make 75-77k a year
Well first off those are all really great companies. Whether you want to hold just ETFs or a mixture of ETFs/individual companies really comes down to you and I think both options could work. When it comes to this, I don't think there is a right or wrong approach here and it would all depend on your personal preference and risk tolerance. I would just suggest not having one company make up more than 5% of your overall portfolio and no more than 25% in a single sector if you invest into individual stocks. I personally like having just ETFs in my Roth IRA because I have a 25 year time horizon and I just want to set it and forget it. You have 33 years before you will access your Roth IRA.. I personally would prefer to actively manage my taxable account and set my retirement account on auto pilot - but that's just my two cents.
@@DividendGrowthInvesting that was an awesome answer, yeah i would say that tech is a majority of my portfolio and abbvie has become my biggest position because of the run its been on. i do not own schd but i may trim some stocks and put profits into SCHD and make account more set it and forget because i don't want to be 30 with a million gray hairs, I'm always looking how my individual stocks are doing in my roth lol thanks Jake
I invest around £700 per month into the sp500 through my stocks and shares isa, is this a good idea? I eventually want to retire early and live off dividends. I'm 19 and I'd love to be financially independent by 25-30, nothing crazy just the option not to work a 9-5 should I wish. Any tips on reaching my goals? :)
@3:25 I refuse to believe candy corn is the favorite candy of my fellow Illinoisans. Obviously many of these are just jokes. I mean, they have Maker's Mark as the favorite candy of Kentucky, lmao.
Hi Jake is me again, I am interested in your portfolio 10-15 years horizon. However I found out the overlap between DGRO and VYM about 63%, is it okay to own - SCHD, VYM and DGRO in my portfolio ?
Hey Jake! When looking for the CAGR of a particular stock or ETF, would it be best to look at the 3, 5, or 10 year CAGR as a benchmark? Thank you in advance!
Hi Connor, I'd say it depends on your investment horizon: if it's 5 years then the 5 or even 3 year CAGR should be more relevant than the 10; if it's 10 years, then the 10 year CAGR makes more sense for the same reason.
I'm 27 and recently changed employers. I rolled over my 401k to a fidelity rollover ira which was a total of 3.1k I split it into SCHD and DGRO, I was just planning to add about 1k a year because its what I can afford, is that a good idea?
Include some JEPI as well. The fact you are starting at 27 gives you a lot of time for your capital to grow. Just stay disciplined and you could retire early...oh and by the way (suggesting JEPI) this isn't investment advice by any means. Good luck!
@@vi3tboitai hey Clark, it all depends on your timeline. If you plan on retiring in the next 5 years then it would be prudent to put $ into Jepi. If you're not, I wouldn't advise it as you should be looking for total return which SCHD and DGRO would provide. Obviously not investment advice but just my two cents!
@@DividendGrowthInvesting I understand, right now with all of the options it seems hard to put 15-25% of our investment income into a class that has underperformed on the notion that international stocks really have no where to go but up.
@@DividendGrowthInvesting I am getting a very late start and 15 years would be the absolute earliest, 20 years is most likely but in that case, I dont know if risking international funds is worth the risk of lower expected returns on the premise that the US cant be number 1 forever..dunno, just thinking and every mistake adds years to my career
Normal inflation if you google what inflation has been each year over past 50 years or whatever, is 0-2% on average for normal years. 2021 and 2022 are rare anomalies that have only happened a few times before this. So you only need to make 3% bare minimum year to year to outpace it. And with dividend growth, it should easily exeed that.
Wouldn’t you just not pay taxes on this stuff if they are qualified taxes and you have a high yield but don’t go over the long term threshold and can live off of it still?
Thank you so much for this! Started my retirement journey in January haha! I know right.... But I have learned so much by just experimenting and listening to you! Thank you so much! 1 question: I have some Canadian dividend stocks in my Roth IRA (TU, BNS, ENB, RY). Will these have a withholding tax applied to them even though their in my roth?
When you hold an investment in a Roth IRA, you will not pay any tax on that investment now or in retirement. There are some differences when you hold MLPs, but I would suggest googling about that if you have questions around those. You will still be subject to an international tax regardless of the account type if the company's country of origin charges an international tax..
Which portfolio is closest to your investing time horizon?
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docs.google.com/spreadsheets/d/1W8UvXLZdEpVX-UPTKiHIT1oYIkj7Omvf30FgB3FTKWY/edit?usp=sharing
You should do a mini series in which you review some of your viewers portfolios, and give them a rating.
Love how you broke it down. This is what a lot of new investors needed to understand. Your age is just as important as the stock you buy because it might be a good stock but your age May dictate how much you're actually get out of investing in it
so true!
I'm currently 42 and I intend on retiring in 15 years. Thank you for the various scenarios!
Thanks for watching!!
Another version of my favorite video of yours? Super excited to see the title.
Yeah it’s similar but just focused on ETFs. So glad to hear you enjoy this type of topic!
So as of this past friday I decided to change my strategy.
Originally i wanted to keep investing to cover all my expenses as soon as possible, but I would like to buy a home.
So my plan is invest until my dividends cover my expenses except the rent, and then use them. This way my 9-5 job will cover just my rent and I can save 4k a month to eventually have enough for a down payment
That is the great thing about dividend investing is it provides you with so much flexibility. It is very possible as things in your life change, you may shift your strategy again in the future - and there is nothing wrong with that! If the facts in your life change, it is ok to change your mind.
super helpful
i wanted to live off of dividends but was not thinking about time horizon!!!!
:)
Excellent, excellent video. Would recommend it to any new dividend investor looking for a place to start, but doesn't want to invest in individual dividends stocks. There are so many great dividend focused ETFs to match anyones strategy and time horizon, as you highlighted in this video. Thanks for the great content.
Bert - Dividend Diplomats.
Thank you, Bert! I really appreciate you saying this!
Thank you for this video and explaining the timeframes. Great work.
Glad it was helpful!
Very insightful video, I think ETFs and indexes are solid for anyone and everyone not looking to spend much time shopping around and doing due diligence and of course one's timeline plays a MAJOR factor!
Indeed! And having ETFs instead of stocks means you can choose a few over a lot for stocks for the diversification. I personally feel like having one stock as a major percentage block in my portfolio, means I should keep tabs on that company (aka. "Homework"). This isn't that bad, you should do this anyway... But in a flat/bear-market I think it's best to not look too much at all the reds in your portfolio. But this is all dictated by your nerves :D
Hay love the video. It's always great how you help the new people. I went and recommended your channel last week to a new investor
Hey James!! Thank you so much for recommending the channel! I'm always excited when I read your comments!
Thanks Jake! It's certainly been a year of tightening belts and buckling down on investing in companies with growth!
Lol omg I love this! I got a huge smile on my face from reading this.
@@DividendGrowthInvesting do you like the M1 platform better than something like Fidelity?
@@TB-um1xz I personally like it but it is very different than most other brokerages. It is not for trading.
I really liked your take on the different time horizon portfolios. I was wondering though, one thing I notice throughout some of your videos is that your portfolio has changed over time just like with how the time horizons change, but I was wondering if you could explain how you would transition your portfolio using M1 Finance when your time horizon changes. Did you sell all the previous holdings taking a taxable event to put towards your new investments or do you still hold them and they are not added to anymore.
That ending was, superb! Thank you.
Thank you for watching!
Please do an updated version of this if anything has changed :)
Great video .. in the 10-15 year portfolio could I replace splg with vug ?
Yes, but understand that the dividend income will be lower. However, your portfolio will be higher so you could rebalance later into higher dividend ETFs.
I would recommend O'Leary Shares Ticket OUSA ETF as well.
Thanks for the recommendation!
The 5-10 Years dividend portfolio looks good if you hit a lottery jackpot like 5M$ after taxes and want to live on dividend for life without any stress.
Great work. A lot of people are going to spend a lot of money on courses and membership when they should just be doing what you outlined here.
Thanks for watching!!
Always a pleasure watching! THANK YOU!
Thanks for watching, Nick!
Ok, how would these portfolios change if they were inside a traditional IRA and also if someone were planning to make a lump sum investment?? This is a suggestion for a future video.
Thanks for the video suggestion!
This is perfect, I was literally looking for this yesterday. Thank you for your work!
Hey Hans!! So glad to hear this video helped you!
@@DividendGrowthInvesting It definitely has! I love your channel, especially as I'm a new investor in my 18's trying to invest for my future. Although in my country New Zealand doesn't have this fancy stuff M1 Finance has haha. Keep up the good work!
Hans Leander we visited NZ right before the pandemic. One of favorite places I’ve ever been!! Def plan on going back soon!
Hi Jake:
Just leave a note for you to thank you for the video. Your video is making me more confident on long term investing strategy(also lots of fun 🤣).
@Dividend Growth Investing: Excellent video, thank you!
Thanks for watching, Eric!
So what if we have about 20+ years on are horizon so we are in the 4th portfolio and as time goes on we near the 3rd 2nd 1st ect. Do you suggest that as we age we transition into those new ETFS and the percentage you suggest or just stick the ones that we had from like portfolio 1 if that is where we started? I would think it would be good to transitions into these new ETFS but you would think you would cap yourself at whatever you were at when you moved over compared to having those extra 20 years if you stuck to the ETFS you had from the start.
another fantastic vídeo. perfect approach. congrats again.tks.
Thank you for breaking this down for us, really appreciate it! Question, Im 49 and im looking to use my taxable account (Dividend account) as an additional source of income, i notice all the ETFs you picked all payout on Mar, JUN, SEP, DEC months - what other stocks would you add/replace so that I can get a payout for every month? Im looking at retiring in 10 yrs. I also have a 401K and Roth IRA. Thank you! you are awesome!
Don’t know if this is true, but these months are all at end of each quarter. Is that perhaps the only time companies pay dividends?
Excellent video. I like investing in dividend ETF`s rather than stocks.
Thank you!!! There are some great ETFs out there!
Thank you partner 😊
Thanks for watching, partner! 🤗
Loved the super Mario Bros. clip!!!
lol :)
Great sharing. All the best
I'm new here, and I'm a dividend-growth investor too.
My Portfolio is VYM45% DGRW45% XLRE5% JEPI5% so it's similar to the second one.
Sadly, I can't invest in SCHD here.
Great video jake
Thank you Doug!
Could you give an allocation percentage for a 40+ years portfolio? I’m 20 and I would appreciate it if you could do a longer term portfolio.
id say for nebraska that we love reeses! i love your videos
Thank you!!! You all know what's up in Nebraska!
Given how volatile the market is right now, should someone just beginning to invest start out with dividend ETF portfolio vs a 401k or roth IRA? just looking for a little extra cashflow in the next 5-10 years.
Good video Jake, fyi I am 68 and like your videos.
Thank you, Jim!
Would you recommend including some individual stocks as well?
Yup!
OMG I love this . Thank you so much.
So glad you enjoyed it!!!
can you make video about what kind of portfolio you prefer in worst case scenario like 1999-2008 period ?for some reason no one is considering this scenario but it could happen again
@IC.Wiener - you just keep dollar cost averaging all the way through it. Dividend stocks did better until 2008-10 when dividends cuts happened.
Great video. My 32 yr old son with a 20-30 year time horizon has a $100k lump sum 401k rollover for me to invest. GO.....what would you do?
A lot of value in VNQ right now if you are lump sum investing.
@@DividendGrowthInvesting I’m more of a diversified investor. You have a fund portfolio to suggest?
Great stuff here, thank you
Thanks for watching!
Beginners just start with low cost etfs..SCHD, VYM, Jepi keep it simple.
Most things in life are better when you keep it simple.
How much $ should i invest into these stocks? Like whats a good start and how often should i keep investing?
Great video; one thing I don’t understand is that qyld is yielding 13%; why would reinvestment of that monthly be the way to go
Well depends on if you want to live off the dividend today or wanted to reinvest for even more dividend income in the future
Which movie is the belt clip from? 😂
lol super mario bros 1993
Im 13 years old right now and I have around 3800 into stocks. This includes Mcdonalds, VTI, VOO, VIG. Realty Income, Apple, and Intel. I also trade options but I only stick to spreads. I do this to get the money needed to buy additional shares of my holdings. Im planning on holding these etf's and stocks for decades. Should I continue options trading or stop and just put the rest of the buying power I have left from it and put it into one of my holdings and just wait till I can get a job to buy more shares or should I continue Trading options and still get a job when Im old enough.
I know with compund interest eventually the profits from trading options will be miniscule compares to the others holdings but would it be worth it to keep of doing it to be able to buy extra shares early.
I wish I started at 13!! Learn about compounding and I think you will have your answer :)
@@DividendGrowthInvesting Exactly my wish man...
I’m 38 so I have some time to go until I retire . I like both the 10-15 Pie and 20 year Pie. I just opened up a m1 finance account so would it be worth it to throw 50 bucks A week into the pie or would it have to be more ?
Well depends on your expenses, income and goals. As much as makes sense for you
Hi . This is such a useful video . I have 14 years for retirement and money is in IRA. In a taxable account I'm on you with NOT including any covered call ETFs. But on a tax deferred account is it a good idea to allocate some portion of the portfolio say 10% to 15% on a covered call ETF like JEPI ,JEPQ etc. ? What are your thoughts?
Thank you so much for this email! It has really helped me prune my portfolio down to the essentials. Any reason why you are avoiding international ETFs in anything sooner than 20 years?
Good video - my take on the 10 year plan is pretty close - except for lack of REGL in the 10 or 15 year time horizon. With 20% annual dividend growth - why not?
Love the videos, but always a little sad that the majority of ETFs mentioned aren´t available for the EU investor.
OMG Oh I wish I could go back in time and tell my 20 year old self if you just in past 10% of your check into your a retirement you could be a millionaire by the time you retire and possibly retire early. You never think the day will never come and then all of a sudden you realize the time is gone and there is not enough time to save for retirement. I need the highest earning dividend I can get so the risks are so much greater because I did not save as much as I should have😖
whats the point of VYM and SCHD, they overlap alot and SCHD is just flat better in almost every metric?
So, this is a separate investing account from a 401k and roth IRA? I think what you said in this is that this is a separate investing account that provides you with cashflow, is that right? And you get taxed on the income made from this investing account?
Yes exactly. Pros and cons to this but because we want to retire before 59.5, it makes sense for us.
Does it make sense investing in both VYM and SCHD? Isn't there too much overlapping? What is the benefit investing in both rather than picking one?
I'd suggest watching this video where I talk in detail about SCHD. Around the 13 minute mark I compare VYM vs SCHD and the fund overlap. ruclips.net/video/ylH_5-rFFRs/видео.html
SCHD
VIG
HDV
Invest equally into these 3 etf's.
Great video Jake thank you! Question: for the 5-10 plan - if opting to take out VNQ, where would you suggest allocating the newfound 10%? Allocate and add the 10% to a new ETF or beef up one of the existing ETF's?
thx bud, great video
Thanks for watching!!
Hi ! Jake Great Video. what do you thing about vti 35% vxus 25% dgro 15% and schd 25% for taxable account?
What are your thoughts on BST?
good income investment but has a high expense ratio
Very interesting, regards.
Thanks for watching!!
I'm from Louisiana. Booze is indeed my favorite candy.
lol omg
What accounts for the tax differences of the different ETFs in the same portfolio?
should you be reinvesting dividends back into the same etf for all dividend etfs?
no right or wrong answer - depends on your goals.
Curious if SPYG is similar to VUG and what overlap there is between the two. Same goes for DGRO and VIG.
OMG dude, i am from Louisiana, and almost fell out of my chair laughing at the states top candy!
Hello! I just started my journey in january. I have the QYLD with an initial investment of $600 and the SPYD with an initial of $507. Next one will be the DGRO with a similar amount and I also have a few individual stocks, I'm planning to reinvest the dividends for a minimum of 5 years and also add $300 every month into the portfolio. Do you think is too risky or am I in the right path? The SCHD is also going to be added next month. I'm 33 years old and single so I dont really have any high expenses.
Thank you for the video, Greeting from Chile!
Hey there!! That sounds like you have a good plan made out for yourself! One thing to be aware of is how the dividend is taxed. For example, someone in the US would pay a higher tax on SPYD and QYLD vs SCHD. Cheers from Texas!
I thought spyd is qualified dividend ??
@@Omar-nr8fm It is a mixture. It has qualified and non-qualified in it because it holds REITs. At the end of the year, on your tax statement you will see the percentage of qualified and non-qualified. If you want 100% qualified, you would want to look at an ETF without any REIT (e.g. VYM or SCHD or HDV).
@@DividendGrowthInvesting Would you recomend moving all the funds in the spyd and ayld into schd?
The Porcupine could make sense if you have this in a taxable account and want to optimize for tax efficiency.
Hi Again Jake, so I've watched this again and it makes more sense from my previous question. The only thing I am a bit throw off about is the assumption of voo in an roth. I keep maximizing my contributions but I don't invest in anything. After watching this, I was thinking to put 50% on voo and the remainder on reits and these less tax favored dividend etfs like jepi but you said you were not a fan of putting jepi in a roth.
Because im self employed im in a high tax bracket so im searching for an answer to this question, is it true that we pay 0 taxes on capital gains up to 80k if filing jointly? Because that would make me feel a lot better about investing in a taxable account.
A Roth is a great place for an ETF like JEPI and REITs. It comes down to the growth rates of the investment in this case. I would suggest looking into the rule of 72. If you have a longer time horizon, you ideally want to focus on investments with a higher growth rate.
You can actually earn more than 80K with the standard deduction on top of that :)
@@DividendGrowthInvesting thank you i just saw the video that you said you are in Germany. Enjoy it, its one of my favorite places to visit. The last part of your comment you said I could earn more than 80k, did you mean on a taxable account? Cuz if thats the case I'll pick 4 or 5 agressive growth dividend etfs and make that my taxable core. Thanks so much, just clarify that for me if you can :)
Fabiano Pina yeah you add the standard deduction on top - but the standard deduction amount can change.
@@DividendGrowthInvesting thank you very much
Hi Jake just wondering if you'd put SCHG in wherever you put SPYG since these two etfs are both growth-oriented with the same expense ratio
yeah that could make a lot of sense.
Jake what do you think of my situation, I have a roth ira that the biggest holding are Apple, Microsoft, Home Depot, Berk.B and Abbvie.(there is almost 33k in it) my current work roth/401k just has VFIAX that i put 8% of paycheck in and my company matches 6%(13000 in that account) I just turned 26 but im just wondering should i sell out of those single stocks and go to etf? i just love the CAGR of the positions, most are double digit CAGRs. thank you i also make 75-77k a year
Well first off those are all really great companies. Whether you want to hold just ETFs or a mixture of ETFs/individual companies really comes down to you and I think both options could work. When it comes to this, I don't think there is a right or wrong approach here and it would all depend on your personal preference and risk tolerance. I would just suggest not having one company make up more than 5% of your overall portfolio and no more than 25% in a single sector if you invest into individual stocks. I personally like having just ETFs in my Roth IRA because I have a 25 year time horizon and I just want to set it and forget it. You have 33 years before you will access your Roth IRA.. I personally would prefer to actively manage my taxable account and set my retirement account on auto pilot - but that's just my two cents.
@@DividendGrowthInvesting that was an awesome answer, yeah i would say that tech is a majority of my portfolio and abbvie has become my biggest position because of the run its been on. i do not own schd but i may trim some stocks and put profits into SCHD and make account more set it and forget because i don't want to be 30 with a million gray hairs, I'm always looking how my individual stocks are doing in my roth lol thanks Jake
Why not choose VUG over SPYG? Any reason why?
I invest around £700 per month into the sp500 through my stocks and shares isa, is this a good idea? I eventually want to retire early and live off dividends. I'm 19 and I'd love to be financially independent by 25-30, nothing crazy just the option not to work a 9-5 should I wish. Any tips on reaching my goals? :)
It’s really much much easier, just invest in a treasury bond ladder going out three years and everything else goes in S&P 500 index fund
What website are you using to invest into dividend stocks?
M1 Finance
In nc it's the crunch bar
Is Lower dividend yield growth because the yield is expected to grow over time?
@3:25 I refuse to believe candy corn is the favorite candy of my fellow Illinoisans. Obviously many of these are just jokes. I mean, they have Maker's Mark as the favorite candy of Kentucky, lmao.
Hi Jake is me again, I am interested in your portfolio 10-15 years horizon. However I found out the overlap between DGRO and VYM about 63%, is it okay to own - SCHD, VYM and DGRO in my portfolio ?
In my opinion yes. I own all 3. Each ETF is different and screens companies with a different index and methodology.
@@DividendGrowthInvesting My time horizon is about 10-15 years, and i watch this video, do you recommend I still add some JEPI in to it ?
Another WONDERFUL video Jake! Hope you and your family are doing Great and keep up the awesome work:)
Is this suitable for foreigners investing outside the US, in terms of TAX?
I'm no longer waiting for GRANT LOAN because I earn $29,700 every 10 days recently
Same here lol,My previous profit withdrawal investing with Mr jason was over $18200 and it's still counting high
Hey Jake! When looking for the CAGR of a particular stock or ETF, would it be best to look at the 3, 5, or 10 year CAGR as a benchmark? Thank you in advance!
I like the 10 year. Some sites only show 5, but the more time the better imo
Hi Connor, I'd say it depends on your investment horizon: if it's 5 years then the 5 or even 3 year CAGR should be more relevant than the 10; if it's 10 years, then the 10 year CAGR makes more sense for the same reason.
for the 20+ years portfolio, instead of VTI & SPYG, can i put 50% in VOO?
Yeah there isnt much dif between VOO and VTI. You will get more growth with SPYG though.
@@DividendGrowthInvesting i see. what about splitting vgt and qqqm instead of only vgt?
@@josh995 VGT is just an example. There are a ton of great growth ETFs out there. I like VUG as well
Is it better to switch QYLD to JEPQ now?
I'm 27 and recently changed employers. I rolled over my 401k to a fidelity rollover ira which was a total of 3.1k I split it into SCHD and DGRO, I was just planning to add about 1k a year because its what I can afford, is that a good idea?
Include some JEPI as well. The fact you are starting at 27 gives you a lot of time for your capital to grow. Just stay disciplined and you could retire early...oh and by the way (suggesting JEPI) this isn't investment advice by any means. Good luck!
@@ARGunsmoke would that even be a good idea? I would only have 80$ a month to split between those 3
@@vi3tboitai hey Clark, it all depends on your timeline. If you plan on retiring in the next 5 years then it would be prudent to put $ into Jepi. If you're not, I wouldn't advise it as you should be looking for total return which SCHD and DGRO would provide. Obviously not investment advice but just my two cents!
😎👍 Ty
Why no international exposure like VXUS?
These were merely examples. VXUS is a great ETF. I own VXUS in my Roth IRA.
@@DividendGrowthInvesting I understand, right now with all of the options it seems hard to put 15-25% of our investment income into a class that has underperformed on the notion that international stocks really have no where to go but up.
@@DividendGrowthInvesting I am getting a very late start and 15 years would be the absolute earliest, 20 years is most likely but in that case, I dont know if risking international funds is worth the risk of lower expected returns on the premise that the US cant be number 1 forever..dunno, just thinking and every mistake adds years to my career
The links you provided for time horizens are expired. Can you reshare? The link you clicked on has expired. We apologize for any inconvenience.
Thanks for letting me know! I just updated them.
*Number one tip:* Always always always, DRS your shares - otherwise you never actually own them.
Massachusetts favorite candy is farts lol
lol
Fellow Texan, no air heads are not my favorite. Stocks are my favorite candy.
lol yeah same...
Doesnt inflation beat the 2% dividend yield though? You're relying on the growth and not the dividends?
The dividend should be growing faster than inflation over time.
@@DividendGrowthInvesting thank you!
Normal inflation if you google what inflation has been each year over past 50 years or whatever, is 0-2% on average for normal years. 2021 and 2022 are rare anomalies that have only happened a few times before this. So you only need to make 3% bare minimum year to year to outpace it. And with dividend growth, it should easily exeed that.
Bro Nc is the tobacco state lol. Cigs are our favorite candy that one made me laugh
First 😉
YESSS!!!!!!!!!!!!!!!!!!!
35th? 👎🏽.. It's ok, I was working out while watching you guys videos 😁.. Have a great week! 🤙🏽
@@norttorres lol better late than never!! I also watch youtube videos/podcasts while working out!
Massachusetts resident here to confirm that farts are definitely everyones favorite candy
Is it okay to have a 100% Schd portfolio
I personally wouldn't have all of my eggs in one basket, but if you were going to go all in on one ETF, I really like SCHD.
Can someone tell me what number it says under the " based on annual investment" I am unable to read the number for the 10-15 yrs. Thank you.
Wouldn’t you just not pay taxes on this stuff if they are qualified taxes and you have a high yield but don’t go over the long term threshold and can live off of it still?
What if you have 10yrs or less & you’re adding $2,000 mph and hopefully more over time?
"adding $2,000 mph" ~ Whether it's a mistake or not the 'mph' seems fitting. I get the 10 years, you want to step on the gas, for sure!
I'm confused, these are not portfolios for a Roth?
Thank you so much for this! Started my retirement journey in January haha! I know right.... But I have learned so much by just experimenting and listening to you! Thank you so much!
1 question: I have some Canadian dividend stocks in my Roth IRA (TU, BNS, ENB, RY). Will these have a withholding tax applied to them even though their in my roth?
When you hold an investment in a Roth IRA, you will not pay any tax on that investment now or in retirement. There are some differences when you hold MLPs, but I would suggest googling about that if you have questions around those. You will still be subject to an international tax regardless of the account type if the company's country of origin charges an international tax..