Invest in growth today and buy dividends later

Invest in growth today and buy dividends later
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More about dividend growth investing:
The Simple Path to Wealth with dividend investing (Core and Satellite Portfolio): • The Simple Path to Wea...
DGRO or DGRW which dividend growth ETF is right for you: • DGRO or DGRW which div...
Why I chose dividend investing vs 4% rule to retire early: • Why I chose dividend i...
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#DividendGrowthInvesting

[@DividendGrowthInvesting]

*** I sadly had to cut out the funny clip... *** ▸ Try Seeking Alpha Premium: seekingalpha.me/dividendgrowthinvesting ▸ Try M1 Finance: dgitofi.com/TryM1 ▸ My favorite business cash back credit cards: dgitofi.com/CashBack ▸ My favorite rewards credit cards: dgitofi.com/RewardsCreditCards ▸ Book 1:1 time with me to talk about your portfolio: dgitofi.com/TalkWithJake

[@delbomb3131]

I understand this concept, but it doesn't work for me. It's soooo motivating for me to see the income grow. I've spent so many years working 70 hours a week and each boost to my dividends mentally takes hours of work off my schedule.

[@DividendGrowthInvesting]

I'm right there with you!

[@delbomb3131]

@@moderndaygoodfellai never drip, usually build positions until I'm happy with the payment, then use those payments to build other positions.

[@dustindodge5974]

Have you ever held a growth fund for a long period of time? I also love to see dividends grow, however, when I see my Roth growth fund up 120%, it's an incredible feeling!

[@Worldranked]

Do you use a mixed strategy?

[@Lucas-wn5wm]

​@@Worldranked im using mixed method. As a singaporean i got no dividend tax from Singapore dividend stocks! We got no cap gains from American stocks too. So i buy into american growth stocks and once it grows quite high i will cash out and park it into dividend stocks and repeat.(may not work not sure im still trying out)

[@chimchu3232]

I still prefer dividend investing. Building a foundation of dividend stocks now is going to yield incredible yield on cost by the time i retire. Seeing my dividend income come in is what keeps me motivated

[@BrettBayer-gj3uo]

The above returns only work in a BULL market. What if the stock returns were in a "lost" decade like the 2000s? One must consider all types of markets (bull, bear, and sideways). In a bear market or sideways, the dividend growth would hold up better due to the compounding of the dividends and the larger accumulation of shares.

[@todaynottomorrow367]

You nailed it. Matter of fact, the dividend income during a market downturn would likely accelerate, higher YOC, while the growth strategy suffers (highly dependent on appreciation)

[@Jpsantos94]

@@todaynottomorrow367 I think the key factor in this is time though. For myself, I'm 30. I could handle a few down years and a crash holding growth ETFs and easily recover and still end up with a higher total return later on.

[@TinkerToFIRE]

Hi Jake, thanks for the video. I think I found a flaw in your SCHD/DGRO calculations. The $80858 in divs assumes you rebuy SCHD/DGRO at 2.78% yield at retirement. With holding and not selling you are missing the CAGR of the dividends. Using your calculator with 10k starting, 8.75% Appreciation, 10.75% CAGR, and a STARTING yield of 2.78%. After 30 years it would be a portfolio value of 3.67 million and $165k in annual dividends with a YOC of 5.11%

[@DividendGrowthInvesting]

true! Yeah I noticed that after I uploaded. Thank you for commenting this! Good catch!

[@TinkerToFIRE]

@@DividendGrowthInvesting No worries! Thanks again for your awesome content!

[@juicyfruit100x]

Oh wow, so just SCHD/DGRO would basically be on par with example 3 as far as annual dividends go. YOC rocks

[@tvlookplay]

Thank you for pointing that out.

[@baileysmith680]

Thank you for this! Very important to know

[@norttorres]

Combination of both 👌🏼

[@DividendGrowthInvesting]

easy peasy

[@JJ-jn7ei]

That’s what I’m thinking + the numbers are off. Your ROTH IRA will be nowhere near the amount as your taxable account simply based on the contribution limits

[@DividendGrowthInvesting]

@@JJ-jn7ei yeah I put a note on the screen saying you’d need another account t like an HSA to get that 12k if you are single.

[@supercruchynoodle]

Barista fire ?

[@noxiousnews]

@@supercruchynoodlemeans his basics are met by his investments but he is still working for extra cash, but doesn’t depend on a career to survive. The difference between slaving in a job you hate, but can’t leave vs. doing something you like but can leave anytime you want without suffering.

[@a32tl]

I’ve given this topic much thought over the past year and watching your video confirms what I’ve been considering. I’ve been investing heavily into dividends and growth but have decided to focus primarily on growth in my tax advantaged accounts and convert them to income producing holdings near or after retirement since it wouldn’t create a taxable event. I’ll continue buying some dividend positions in my taxable account but will still focus more on growth in that account since I’ve got about 20 more years until retirement. Thanks. I enjoyed watching.

[@DividendGrowthInvesting]

Glad to hear that it was helpful! Thanks for watching!

[@RS-lw9cd]

This is a very reasonable and sound analysis. Thanks for a great video. The most important thing is to start investing ASAP (or as young as possible!!!). Use time as your ally so you can use take advantage of it to compound growth in your portfolio. The bottom line is if you are young, have a long time horizon and are a long term investor, go with growth.

[@DividendGrowthInvesting]

Glad it was helpful! Time is your greatest asset!

[@Deadeye313]

I've been looking for a video like this for a couple of years now. Thank you! I currently invest in a Roth 457K that is 90/10 S&P/Bonds, the warren buffet portfolio, and also i put some side money into SCHD every month. My strategy was to take that full roth and, when I retire, dump it all into SCHD. But I had no hard numbers like this. Thanks for confirming my strategy.

[@DividendGrowthInvesting]

Glad it was helpful!!

[@hagank866]

Hey, I am a little confused on the dividend growth rate then. Doesn't the divdend growth rate play a part in this? Eventually, your yield on cost would be much greater than 2.78%, in this example atleast. Or am I completely screwing up how this growth rate thing works?

[@GuyIsFly2489]

Great video, Jake! The idea is so thought-provoking and you can dive down many rabbit holes to see what portfolio allocation gets you there faster (me raising my hand violently!). However, one thing to remember, it’s individual depending. What Jake does or what someone else does may not be the portfolio or method for you. What is important is that you pick a portfolio that meets your goals and ambitions which matches your time horizon so that your investments replace your income from your job!

[@DividendGrowthInvesting]

Absolutely! This is so spot on!! It can be so confusing, frustrating, and out right demotivating if you try and copy someone else. I think the best thing you can do is educate yourself on what is out there and get inspiration from many different viewpoints, and ultimately make the best decision for you and your family on your specific situation. Thank you for taking the time to comment this!! Always get excited to read your comments!

[@MikeDD86]

I have been thinking exactly about this topic! What would be the tax considerations of selling another type of investment to get into a dividend etf vs just buying dividend etf. Thank you for your work!!

[@DividendGrowthInvesting]

Thanks for watching!!

[@Earthshock09]

As always a great video Jake, I was thinking about dividend investing but went growth instead. Mainly because I am only 29 years old got still such a long horizon left and maybe in a couple years I don’t need dividends as a psychological factor and being excited about being invested rather “set and forget” is my way to go! The guy in the end on subbing always getting me love your investing memes ❤ keep it up!

[@DividendGrowthInvesting]

Thank you!!!

[@tejpatel3763]

Love the side by side comparison. One thing I would have liked is adjusting the amount in Roth IRA for each scenario for the annual limit we have in place. Annual limit of $12k into ROTH gives a significantly different return compare to an annual limit of $7k(which we have currently). All in all, I thank you for the comparison and I will definitely look at allocating my own portfolio differently going forward.

[@DividendGrowthInvesting]

very fair point. You could get to that $12k with an HSA and a Roth IRA as a single person. You could also consider your 401k/403b etc. accounts in this as well.

[@tylerzerdy7806]

@@DividendGrowthInvestingI believe there are also Roth 401k’s!

[@Deadeye313]

​@@tylerzerdy7806Yes. I have a Roth 457K. Got over 100K in there with 20 years to go. One other thing about it is that I'm actually allowed up to, I think, $23,000 or so per year in it.

[@mikewill1740]

Im trying to avoid taxes as much as possible. Right now its Roth and 401k. Goal is as much growth as possible. Until im able to flip the switch on dividen growth. But like you said earlier the better. Wish I got in this game in my early 20s.

[@DividendGrowthInvesting]

Check out this video on taxes. I think you will be surprised about what’s possible. How to pay ZERO taxes on JEPI or SCHD dividends kzbin.info/www/bejne/b5CviWCXrqatpZI

[@lukehamachek2887]

If you don’t mind me asking, what allocation do you have a VTI and VGT in your Roth? I am currently 100% FSKAX (same thing as VTI) but am considering going all in on something like SCHG or VUG

[@DividendGrowthInvesting]

40% VTI 40% VGT 10% VNQ 10% VXUS

[@dividendjourney]

I love the examples Jake! I would also say that past history as you mentioned is not a guarantee; I’ve got a hunch the growth side may not do as well over the next 30 years. Though, I could be wrong. But one thing I am sure of is divvy companies have historically been better overall returns example 50-70% total stock market returns are from dividends. Also, like mentioned it’s incredibly motivating to see the income growing. I’ll still take divvy growth indexes SCHD, DGRO, and my individual holdings:) Great video, and I always enjoy your videos. Good movie comparison too! 😅

[@DividendGrowthInvesting]

Thank you so much!!! Yeah that is the tricky thing about forecasting future returns and why I like to invest in both growth and dividend growth!

[@Thewealthyinvestor-cn3sg]

I do a mix of growth etfs and dividend growth stocks. This motivate me way more doing both.

[@DividendGrowthInvesting]

You can track the dividend growth in one and the pure portfolio growth in the other!

[@boranytom]

Thank you for sharing your knowledge.

[@DividendGrowthInvesting]

Thanks for watching!

[@noxiousnews]

I started with VTSAX in both my Roth and Taxable because that was all I really knew to do. I still put $100 a week in VTSAX on autobuy, but all my new buys are divy stocks since about 2 years ago. I don’t plan to sell my VTSAX and rebalance anytime soon. I’m about 4 years from retiring at 54. So, I don’t really have time to wait on growth in the taxable to live on. I can always use a combination of Turing off drip and doing a mini-4% draw on the mutual fund. I’ll also be using the rule of 55 to 4% my 401k until my Roth is available to me. I have 9 years before I can use the Roth, so I may shift into more growth there and rebalance later tax-free, but I’ll leave the divy stocks in there, I think.

[@DividendGrowthInvesting]

the best part about VTSAX is you have options! You can pivot or rebalance into something else if things in your life change in the future.

[@FloridaInvestor]

I am so glad I found this video. I was wondering if i should follow this method.

[@DividendGrowthInvesting]

Glad it was helpful!

[@kf434]

@dividendgrowthinvesting: love the in-depth analysis. For those of us that are closer to retirement ( within 5 yrs) , it would be very helpful if you could do a series of these videos with the same concept and spreadsheet, but use more higher yield funds vs S&P and Growth indexes vs 12 % funds like JEPI , SPYI and then vs the ultra high yield 15-20% funds like CLM, FEPI, GOF , SVOL

[@DividendGrowthInvesting]

In that case, I think going straight for a higher yield would make more sense vs trying to go growth then rebalance into dividend stocks. I’d do a combination of dividend growth and a higher yield. Have you seen my time horizon videos?

[@basicpt]

So you are saying that for someone with 20-25 years old you should be holding VGT and VTI and after 30years relocate that towards dividend ETFs? Aren't SCHD and DGRO good for growth + the dividend you get from them for compound interest. Capital appreciation is higher for Example 3 but isn't the compound snow ball of SCHD better for long term investments since the CAGR is higher? Thanks ( I am unsure on what scenario is the best for someone that is very young that wants to capitalise the maximum possible in safe investment options like these)

[@DividendGrowthInvesting]

Well mathematically it would make more sense to focus on #3 and then rebalance into dividends after. But we just don’t know what the market will do that’s why I suggest doing a combination of both growth and dividend growth.

[@LadyGaonouu]

Thanks!

[@DividendGrowthInvesting]

Thank you!!

[@BKTeamFortress2]

401k and HSA holds FXAIX, Roth (plus my wife's) hold SCHD/DGRO, time horizon of 20 years. Who knows what the end result will be, but it should be good enough.

[@DividendGrowthInvesting]

That is exactly what I'm talking about by having a balanced approach! I really like that!

[@MichaelM2K23]

I’m doing something similar with my 401K and Roth. Same time horizon. 👍

[@beat1riz]

Can you please make a video about inflation and how to overcome it?

[@evanspiteri3576]

Highly doubt VGT will continue that same trajectory its had. I say this because 50% of the fund is just Apple and Microsoft. QQQM is much more attractive in my eyes. Great video and good luck everyone!

[@DividendGrowthInvesting]

That is why I love investing into ETFs because you just cant predict what the market will do. SMH has gone up over 20% every year these past 15 years so I guess the impossible can happen. I think thats why its good to diversify.

[@AonBarri]

I do both. I have steady but lower monthly contributions in SCHD/DGRO/Realty income, and higher monthly contributions into QQQM/VOO/Total US stock market/Total International Stock Market in my Roth. I also have like a dozen stocks in my Roth and traditional that I plan to sell then rebalance in SCHD/DGRO. Then in my brokerage I have SCHG/AVUV/SOXQ, and a few other individual stocks and a tiny % in crypto. I’m playing all sides to improve my odds. Death and taxes are undefeated but I’m improving my odds of having a comfortable life after retirement by the decisions I make today.

[@baileysmith680]

Great video, thanks!

[@DividendGrowthInvesting]

Glad you liked it!

[@ctrent859]

Outstanding video. Thank you for investing your time and knowledge. Keep it up!

[@DividendGrowthInvesting]

Thanks, will do!

[@MrJosizzler]

Great, informative video. Thanks Jake!

[@DividendGrowthInvesting]

Glad you liked it!

[@Jayvazquez15]

I have growth ETFs in my taxable and Roth to rebalance later. VGT and SCHG!!!😊 Great video!!!

[@DividendGrowthInvesting]

Thank you!! Those are both great growth ETFs! You won’t have to worry about single stock risk with that strategy! Thanks for watching, Jay!

[@MannySimoneCards]

Aren't those covering the same companies and have a lot of overlap?

[@Jayvazquez15]

@@MannySimoneCards VGT in my Taxable and SCHG in my Roth, VGT it’s all Tech and SCHG it’s more diversified between different sectors not only tech.

[@MannySimoneCards]

@@Jayvazquez15 ok thanks so much! New investor trying to figure out a plan

[@Jayvazquez15]

@@MannySimoneCards nice and good luck on your investing journey!!!

[@northernmnlife8547]

Wouldn't your dividents be higher with your yield on cost going up every year in the schd dgro position over 30 years? Great video nice to see examples

[@DividendGrowthInvesting]

Yeah it would.

[@rodoflho]

@@DividendGrowthInvesting so you didnt put div growth into consideration? SCHD avg div growth is 10% yearly

[@Justchillin145]

@@rodoflhohe did it is in the column that says dividend CAGR.

[@myafrosheen]

Yeah the person who sells everything and then buys the dividend ETF is buying it at a price which is significantly higher than the person who was using a dividend growth strategy. What matters most at retirement is how much income they'll have based on the number of shares held through cheaper accumulation

[@richardroberts1464]

I'm just a little confused at the last part of your video. Why is changing the dividend yield in example 1 also changing/affecting the numbers in examples 2 and 3? Thanks!

[@mikespeiser7267]

Your portfolio has gone up a decent amount over the last dozen videos or so. You stopped reinvesting in to your portfolio, right? That can’t all just be growth, right? Either way, nice job! Keep it up and to the right brother!

[@DividendGrowthInvesting]

Hey Mike!! I haven’t added any money or reinvested any dividends since December 2022. A part of me wishes I could have reinvested the dividends but that’s life.

[@fenkellmoney8034]

Great video! Thanks!

[@R._L.]

2:09... 😐😑😐... What happened? Something's missing...

[@DividendGrowthInvesting]

@@R._L. I had to cut it out unfortunately. Someone falsely claimed the clip. Sad :(

[@AShaif]

Hi, one thought-provoking question: In a country where there's 15% tax and 15% tax on dividends for US market investements, would it be tax-efficient to have the balancing done in the final year? or to do a rebalance every single year by going *gradually* from, say SCHG @ 80% and SCHD @ 20%, to the opposite like 20/80? Why ? because I think the earlier you rebalance, the less taxation gets done on capital gains. Note: ETFs above are just an example, and yes, the market can go up and down, but if it goes up, the more tax efficient it is to do rebalancing to a certain combination closer to yield-focused depending on which year you are on. What do you think ?

[@georgedayoub2893]

Just do a mix of all and you hopefully be fine. I hope you do videos for international viewers, we pay 30% withholding tax on dividends. it makes sense for me to invest in growth at the moment, but I'm planning to swap it for dividends when I'm 50, I still have 25 years to go. living cost is cheaper where I live so I don't mind paying 30% tax on dividends. After paying taxes my assumptions that my dividends would make me around 180K inflation adjusted* 180K where I live is heaven on earth, at that time I don't think I will have a lot of personal expenses as much as I would like to spend the money on my grandchildren.

[@ChuckConnNYC]

Do this all in a Roth and good to convert after 30 years Roth long term - high growth and convert Individual investment long term - dividend from the go

[@ontherun5937]

Awesome video! Thanks for the deep dive and thanks for touching upon Roth vs traditional.

[@aldrinhguiste23]

Example three is attractive but I’d be 85 years old and would have to sit on my porch for 30 years. So I’ll probably go with a hybrid plan with several annual vacations and more dividend investing.

[@tonyrosel1906]

This is interesting but I am looking at a 5 year to retirement horizon. My portfolio is a rollover IRA (from recent in service withdrawals). I dont think 5 years is long enough to have everything in growth and I am focused on building a well thought out dividend portfolio before I retire.

[@DividendGrowthInvesting]

yeah especially with only 5 years!

[@alyangillett9683]

If i can only invest 4000 this year would you recommend putting it in a roth ira, a brokerage acc, or should i increase my 401k match at my job

[@DividendGrowthInvesting]

hard to say without knowing your goals. I like investing up to an employer match then focus on a Roth IRA and then a taxable account.

[@WilliamMontes]

Its so Hard to Decide. I can invest for 30 years What would everyone Reccommend? Growth in your ROTH IRA.(VGT, VTI, SPYG) Dividend in a taxable portfolio? (SCHD, DGRO)----------------- that way you have a mix of both. looking forward to your recommendation thank you

[@Ashwinmadhuz]

I think the lesson here is that taxes are unavoidable and it depends on what your income requirements are. I have a taxable that consists of SPYI, MAIN and REITs among other strong dividend stocks that have div growth that I’m DCA’ing into. But I also have half of the portfolio spread across VTI + DGRO + SCHD + QQQM. My Roth IRA literally has the same but no individual stocks. Just the above with SPYI/JEPQ/MO which I am DCA’ing into to grow into income that can fund the broader market ETFs.

[@DividendGrowthInvesting]

Yeah just part of life unfortunately. I’m a bigger fan of having only ETFs in a Roth IRA. Makes things easier.

[@Ashwinmadhuz]

@@DividendGrowthInvesting I definitely think the same. I had a few individual stocks in my Roth IRA that I sold out of recently and intend to solely keep the ETF combo I have plus $O and $VICI. I do think building out an income position can be good since I can grow it to a point where I get income to fund the ETFs especially once I hit my max contribution limit for the year.

[@MoneyandLifeTV]

I do combination of both, but trying to focus more on growth now .

[@DividendGrowthInvesting]

Thanks, Mike! Appreciate you stopping by. I remember watching your videos years ago back in 2018.

[@Pavel4182]

Struggling with this right now… trying to map out a strategy with a combination of taxable/roth and it’s painful. I’ve been investing in dividend growth and have gotten used to dividend payments that are increasing, it definitely boosts the morale and hopes that you’re actually going to see it shine one day and you’re not just throwing money into some void called “later”. Having dividends is nice but missing out on potential growth just hurts so much. Think I put myself into the analysis paralysis and can’t get out.

[@DividendGrowthInvesting]

Hey Pavel! You are definitely not alone! I can feel your frustration when reading this. Try and take a step back and focus on the basics and things that you can control. Focus on your savings rate (how much you invest each month). Focus on keeping it simple. I would suggest just starting with ETFs for now. Think of your investments as vehicles. You are picking your vehicle to get to your destination. If you don't quite know what your destination is, that is completely normal! Focus on what you can control and take the time to learn more each day and one day it will click! Don't give up!

[@zamin_ali]

You don't have to create a portfolio on Seeking Alpha to see the 4-year average dividend yield. All you have to do is bring up any stock in seeking alpha, select the dividends section, and then select the dividend yield subsection. The very first line item will be the 4-year average dividend yield.

[@DividendGrowthInvesting]

That works with individual stocks but not ETFs. Compare KO and SCHD. No idea why it does that.

[@zamin_ali]

@@DividendGrowthInvesting Good to know. I guess I never looked at a ETF 4-year average.

[@juicyfruit100x]

So good!! Thanks for taking the time for doing these educational videos. So helpful having so much knowledge in this day and age. This knowledge needs be a prerequisite in highschool, along with common car maintenance.

[@DividendGrowthInvesting]

Thank you!! Yeah financial literacy is so important!

[@bdbestxyzIII]

1. There is no way growth stock can beat sp500 by 5% over 30 year period. They can beat it for maybe 10 to 15 years. 2. SP500 should outpace Dividend ETF by 2-3% not just 0.25%. 3. Roth IRA is most powerful account but it's limited to just $7k/yr. 4. Use a calculator with DRIP on not just simple compound interest calculator.

[@etymology_]

@Jake can you do a vid comparing SPYG and SPMO?

[@cmurill]

Great video

[@DividendGrowthInvesting]

Thank you!!

[@seanleith6264]

Not fully through the video yet but wanted to ask what the negative values were in the Capital Appreciation column?

[@seanleith6264]

Have just realised it is the Dividend Yield, my bad!

[@DividendGrowthInvesting]

For example for SCHD the 11.5% is the total return (dividend + share price appreciation) since January 2015. I took 11.5% - 3.27% or the dividend. So I am taking the total return minus the dividend to generate a share price appreciation number. The "-" is a minus in this case.

[@DanABA]

Did you take into account how much higher the NAV of SCHD/DGRO could be in 30 years? You'll be purchasing fewer shares with the same amount of money in 30 years versus buying them year by year, assuming the cost of SCHD/DGRO increase as they have in the past.

[@hotfeva9843]

Im doing both buying growth and dividend and selling covered calls on all ✊🏿

[@DividendGrowthInvesting]

Great choice!!

[@TheDeathvice187]

how do covered calls work?

[@hotfeva9843]

@@TheDeathvice187 you have to own atleast 100 shares of the company you wanna sell covered call's on. When I do covered call's I do otm (out of the money) so it's least likely I will have to sell my shares.

[@pioneer7777777]

I would think you'd get a lot better transition if you did that rebalance over the course of like 12 years, do it from ages 50 to 62, sell like $120k a year or something, keep in the low brackets.

[@nvestnself7462]

Really, if you split the 12K down the middle, adding into a growth roth ira and a taxable individual brokerage account skewed towards dividend investing, even at 20 years you could still easily have 4.5million in appreciation opposed to just 6.5M all into growth. And you could treat your roth kind of like an emergency fund because of the no penalty with contribution withdrawals if you needed some money for a rainy day. Not a bad video. Just gave me the exact idea if where i want to go with my investment journey from here on out. 60/40 split, 60 towards growth and 40 towards dividend growth. Rest of my allocation would go towards gold/silver and real estate! THANKS FOR THE VIDEO!!!

[@nvestnself7462]

60/40 split so I can max out my roth per year

[@DragonTheButcher]

ngl rebalance in 30 years? I want to still be somewhat young when I have fun not old and out of energy not to knock old peopel soley talking about myself

[@DividendGrowthInvesting]

Just an example. You could adjust this for 20 years.

[@maltheri9833]

And of course you're thinking of this as a "I won't be rich until this peaks" which is assuming you'll never move up in the amount you make from your career or other assets outside of stock which means youre fully banking on your investments which is a scary idea considering this money is supposed to be seen as unattainable for a very long period of time and accumulate over time. If you're just counting down the days till you're rich and living on borderline poverty the entire time at a 9-5 then ya really didn't learn anything from these videos 🤣

[@Cay444-l9m]

2nd time watching this video. As always good info, and yes a mix of both is the best

[@DividendGrowthInvesting]

Glad you enjoyed it!

[@Ceez518]

This just tells me investing only in VGT you would make more profit . By adding the other ETF’s just lowers your percentage of the capital appreciation.

[@manueldelgado5336]

How would it change with REITs mixed in? Specially REITs from another country? For example, some in Mexico have a Dividend yield of 9% after tax, and capital appreciation of around 7-8%. Having a small part of those would greatly help dividends right?

[@DividendGrowthInvesting]

There are exceptions to everything. This video is just to help you understand the math behind it.

[@manueldelgado5336]

@@DividendGrowthInvesting awesome! Thank you so much, been really helpful

[@bgwinn]

Almost Heroes was probably Chris Farley's worst movie. But man, anything that guy did puts a smile on my face

[@DividendGrowthInvesting]

lol fair enough.

[@ghant.]

Jake i have a question my brother, if i invest in an ETF , lets say SCHD and i buy shares at $78 a share, and turbulence hit the economy and the share price decline to $60 a share, does SCHD keeps charging fee? And if yes would they charge me based on my original share price of $78 or the new amount which is $60 a share, thanks in advance

[@DividendGrowthInvesting]

It’s taken out of the NAV of the fund. The net asset value. It’s based on the current price. The price you see in your brokerage is the return with the fee already considered in the price.

[@ghant.]

@@DividendGrowthInvesting you are the best Jake 🙏🙏🙏

[@mik19111]

Very useful video!! 👍👍

[@DividendGrowthInvesting]

Glad it was helpful!

[@commonsense-og1gz]

the thing to keep in mind is that due to the contribution limit of the roth and traditional ira, one is going to need a way to boost the account from within. it seems that if you have one of these accounts, it may be best to invest heavily into dividend paying systems, so you have free cash flow to invest into growth. otherwise, it seems that the standard taxable account is better, just because there is no limit to contributions.

[@DividendGrowthInvesting]

Yes and no. Depends when you want to live off the income. Both have pros and cons. It’s important to look at your own goals to determine the pros and cons for your situation.

[@123lowp]

Robinhood is doing a 3% match to your IRA when you transfer your old 401k/IRA to them. They require a gold subscription, which is 75 dollars for a year. The deadline is April 30, 2024. I'm starting the transfer tomorrow. The match will count as taxable interest income for the year. More details are on Robinhood's site.

[@commonsense5555]

Instead of focusing all in on large caps and the last 20 years, why not mention small cap value given it's excellent performance over the last 100 years?

[@discountcodes]

Great video!

[@DividendGrowthInvesting]

Glad you enjoyed it

[@kurtneven6612]

Good strategie 👍✌️

[@crowderscustomizing]

I am 58 years old... wont need any funds until around 65 years old... which do you recommend?

[@DividendGrowthInvesting]

I would focus on maxing out tax advantaged accounts like a Roth IRA, HSA, 401k etc. I think focusing on a balance of dividend growth and a high dividend yield portfolio would make the most sense. You could have a portion in growth, but I personally would focus more on a higher starting yield and growing it in a tax advantaged account.

[@lucauau]

What about a fourth example investing in some high income assets with (for example) dividend yield 8-9%, dividend cagr 1-2%, price appreciation 0-0,5%?

[@DanABA]

Interesting to see how much less monthly income you'd have by converting growth portfoios to dividend portfolios versus keeping the growth portfolios in retirement and taking 4%. You should be getting almost $270,000 per month from that last portfolio if you just kept those growth ETF's.

[@DividendGrowthInvesting]

Yeah but you’d also want to consider diversifying it. I’d be a bit concerned having so much growth. Those type of portfolios can drop 30%+ in a single year. It’s kind of a boom or bust type of approach.

[@jwskog]

⁠​⁠@@DividendGrowthInvestingis there less volatility with the SCHD/DGRO portfolio? That’s my concern with staying SP500 too long. Even though i am 40, I’d like to preserve what I’ve accumulated thus far while still achieving some growth…this is an interesting approach. Bigger problem is that most of my funds are inside retirement accounts. I can’t access them earlier than 55!

[@MoRpHiNe_NPC]

Great as always

[@DividendGrowthInvesting]

Thank you!

[@nick-nj2gt]

You may have averaged the mag 7 for the last example.. SPY vs SCHD is more of a realistic comparison, you're comparing those with the HUGE bull market of mag7 that is going on right now...

[@gcs7817]

In the tax advantaged account focus on achieving the highest total return. When you retire you can rebalance toward income and yield to provide an income without having to invade the principle In your brokerage account…? Focus on growth and pay the tax bill upon rebalance

[@ROARRAWRable]

If you cannot auto DCA into dgro, what is the bext best to pair with schd. Dgrw or vig?

[@DividendGrowthInvesting]

Both good options. I’d probably go with Dgrw

[@clifford629]

VIG is a dividend grower, DGRW is a multi-factor growth ETF that looks at dividend paying stocks.

[@zachv3]

This is really interesting and not what I would have expected... thank you for the video! I love the Twain quote, reminds me of C.S. Lewis: “All that we call human history--money, poverty, ambition, war, prostitution, classes, empires, slavery--[is] the long terrible story of man trying to find something other than God which will make him happy.” ― C.S. Lewis, Mere Christianity Something you've said that I love is that you have to retire to something, not retire from something. I can't wait to retire to a lifetime of sacrificial service without having to pay attention to finances. Thank you for your work!

[@DividendGrowthInvesting]

Really great quote!!

[@MarioChapa-m7d]

Can i have vti @50%,schd@25% and dgro@25% instead of just schd/dgro?

[@DividendGrowthInvesting]

Sure. Just be aware that the dividend from VTI will be difficult to live off unless you have a lot invested

[@TheKillerzone24]

thank you so much for this informative video jake i email you regarding about this. it makes sense to balance and do both. keeping it simple as possible and diversifying into etfs are the key to success :)

[@DividendGrowthInvesting]

Yup!!! Thank you!!!

[@Action_Clips_CODM]

I just try to do a little bit of it all. Didvdends and some non dividend growth stocks too.

[@floridaman6138]

Ok, so what would you do starting way behind at 48 yrs old?

[@DividendGrowthInvesting]

I’d still consider a combination of both. I’d focus most of my energy on tax advantaged accounts - especially if I knew I would retire after the age of 59.5.

[@123lowp]

Practice swing/day trading in a brokerage account with fake money (paper money) for 1 year. I like to trade with 200k. I don't work a regular job anymore, but I will work if I want to. I'm 42.

[@sneakywan]

@@123lowp Don't listen to this risky "advice" and waste more of your time losing money or spinning your wheels breaking even... just get started on a Long Term portfolio with ETFs right away and keep pouring as much as you can into it.

[@swhdent]

I barely survived 2008. Whenever the repeat, or worse, of that happens again, we shall see how all of these “projections” play out.

[@DividendGrowthInvesting]

The market goes up and down. Best to not try and time it and stay the course

[@fallen0509]

read psychology of money by morgan housel

[@LeveragedFinance]

What you do on March 2022?

[@DividendGrowthInvesting]

Sold a rental property and put it in my portfolio.

[@kl6630]

Im going almost all in VT

[@DividendGrowthInvesting]

I actually kinda like VT. Its the true boglehead way to invest. The thing about VT is you likely wouldn't look to live off the dividend income from VT, but rather you would likely look to sell a percentage each year in retirement.

[@agolchehreh]

SCHG and SCHD is all u need

[@DividendGrowthInvesting]

I’d consider adding something to SCHD. You only get about 10% market participation. That’s why I like combining it with DGRO. Something to consider.

[@agolchehreh]

@@DividendGrowthInvesting I personally believe it is overkill to have DGRO and SCHD because SCHD is technically a dividend growth fund I think you need pure capital growth as well if you are not retired But to each their own

[@matthewkesky8150]

Great movie

[@DividendGrowthInvesting]

100%!!!

[@NolimitracingRC]

I need to do this in 5 years

[@DividendGrowthInvesting]

Check out my time horizon videos. You’d want to focus on a higher yield today but still have dividend growth in there.

[@alexandershultz9913]

That first edit was hilarious. :D

[@DividendGrowthInvesting]

lol :)

[@shaunmills805]

I am never going to unsee that clip with Lowes and MPW 😂

[@DividendGrowthInvesting]

Lololol

[@keepitraw1]

I pay 0% taxes for cap gains anyway

[@kf589]

Why ever buy dividend funds if having more assets is the goal?

[@Gunieapower33]

Being 38 sucks lol right in between

[@DividendGrowthInvesting]

lol I turn 38 this year...

[@DANNY-mf5pv]

So is vgt +vti+ spyg good start I’m looking to invest 200k would this be a good investment I want 3 fund portfolio

[@DividendGrowthInvesting]

That is how I invest for my son. I really like all 3 of those funds.

[@DANNY-mf5pv]

Thank you

[@yamitayak9090]

Awesome video 😎 Thank you!!

[@DividendGrowthInvesting]

Glad you liked it!

[@Steelersfootball45]

Is DGRO better then DGRW ?

[@DividendGrowthInvesting]

I like it better but they are pretty similar ish.

[@arranthorpe]

Excellent video and Growth ETFs are all I am investing in these days.

[@DividendGrowthInvesting]

Its the easiest way to get the best return over a long period of time. The best thing about ETFs is you don't have to lose sleep in bear markets and just focus on living your life!

[@muxi0121]

Buybacks > dividends till you need the income

[@DividendGrowthInvesting]

Definitely more tax efficient.

[@ShaneMarrLifts]

What was that intro 😅 funniest shit to capture minds like myself to stay for the clip

[@DividendGrowthInvesting]

lol

[@dcroxby]

In summary it makes absolutely no sense to focus on dividends, ever. It’s a mistake that will end up costing you millions of dollars. Literally.