Want to Retire with SCHD Dividends? Think Again.

Yes, that's right! It's time to sell all of your SCHD shares if you actually want to retire comfortably as an Average Joe Investor. Let me explain.
SCHD is the Schwab Dividend Equity ETF. It has a strong record for a dividend ETF of creating consistent dividend income with stellar dividend growth rates. But there's a HUGE PROBLEM for the Average Joe Investor. Let's talk about it.
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You can also Work with Joe Exclusively 1 ON 1!
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Want to increase your option selling knowledge and get started! JOIN THE PATREON COMMUNITY!
Need a GREAT Dividend Tracker for your portfolio? Here is what I use and it is EXCELLENT:
The Dividend Tracker: thedividendtra...
The Funds purchase call option contracts on the Underlying Securities generally having one-month to six-month terms and strike prices equal to the then-current price of the Underlying Securities at the time of the purchases to provide the Funds indirect exposure to the upside price returns of the Underlying Securities. As a buyer of call option contracts, each Fund pays a premium to the seller of the options contracts to obtain the right to participate in the price returns of the Underlying Security beyond the strike price of the purchased call option contract at expiration (or earlier, if the Fund closes the option contract prior to expiration).
Each Fund simultaneously sells put option contracts on its Underlying Security to help pay the premium of the purchased call option contracts on the Underlying Security. Each Fund sells put option contracts that also generally have one-month to six-month terms and strike prices equal to the then-current price of the Underlying Security at the time of the sales to provide the Fund exposure to the downside price returns of the Underlying Security. As a seller of a put option contract, each Fund receives a premium from the buyer of the option contract in exchange for the Fund’s obligation, if exercised, to purchase the Underlying Security at the strike price if the buyer exercises the option contract.
This communication/content is for informational purposes only and is not intended as personalized investment advice, tax, accounting or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement of any company, security, fund, or other securities or non-securities offering. This communication should not be relied upon for purposes of transacting in securities or other investment vehicles.
#schd #retirement #retirementplanning

[@AverageJoeInvestor]

*Happy Friday Everybody! I know this topic is controversial and many LOVE SCHD, but keep an open mind. Watch it all the way through, then definitely leave your $0.02 in the comments! I appreciate you!*

[@kevinmendoza4402]

@@AverageJoeInvestor Joe, it’s time to go all in on YieldMax ETF’s 🚀📈💎🙌

[@falseprogress]

The point of SCHD for many retirees *during retirement* is to take dividends as cash (not reinvesting them) so as to not sell the underlying asset. Comparisons to S&P 500 indexes lack context unless you're constantly putting effort into selling and re-buying at the right moment (a lot of work).

[@rahimkader8705]

Dividends from SCHD are generally taxed at the qualified dividend rate, which is often lower than ordinary income tax rates for many investors. Meanwhile, Nvidia remains a major market focus, driving a significant portion of the S&P 500's recent gains. Nvidia’s stock, up over 90% this year, climbed another 2.5% on Monday, pushing the Nasdaq 100 to a record high. I’m actively searching for companies to add to my $350K portfolio to enhance its performance. Open to suggestions!

[@SamuelUlrich-o4u]

I think the next big thing will be A.I. For enduring growth akin to META, it's vital to avoid impulsive decisions driven by short-term fluctuations. Prioritise patience and a long-term perspective most importantly consider financial advisory for informed buying and selling decisions.

[@AravindRia]

A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850K

[@RaphBeekers]

This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation

[@RaphBeekers]

This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation

[@PositiveChange-e7x]

This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation

[@edisonpereira2151]

OK, Joe, I'm confused. Which one of your videos should I listen to? The one where you made SCHD sound like the best thing since sliced bread or this one?

[@AverageJoeInvestor]

I can appreciate where you are coming from. A few points: 1. SCHD is STILL IS a good dividend ETF and if I had to choose a standard Dividend ETF to invest in, I would choose SCHD. 2. The main thesis in this video is SCHD is GREAT, BUT if the goal is to retire on dividend income from SCHD, you are unlikely to get to that milestone due to how much is required. 3. Owning the S&P 500 has shown to grow faster than SCHD over the past 13 years. Additionally SPY has SIGNIFICANT income opportunities if you are selling covered call Hopefully this adds some context. =) THANK YOU for watching and for leaving your $0.02 in the comments.

[@DivineLoveFM]

@@AverageJoeInvestor I would agree that to retire then something like VOO would be better. but as a dividend etf its def top 3. Great vid.

[@ChromeForDays]

This is the problem with many finance youtube channels. I like Joe's channel and watch his vids, but he's not the only one who bounces on certain things -- of course you have to understand your needs and how long you need to be in the growth phase. I have FXAIX+SCHD in my taxable acct at Fidelity, SCHD+QQQM+SPLG+VGT in my M1 Roth IRA, FXAIX+FSPSX+VSMAX in my Fidelity 401k (the only good options at the time with my employer) and I'm never selling SCHD. I do have some individual stocks that I believe will grow in the next 10-15 years, like AMZN and PLTR. I have a 15-ish year time horizon on retirement, could maybe do 17-20 if I really need to. Once I hit retirement I'll probably move some of the slow growers into JEPQ/JEPI, but I'll probably never sell out of SCHD unless I absolutely have to. Just diversify with your ETFs, based on your needs and plans. I like the "buy as low as possible, never sell unless you have to" approach.

[@TJ-Stackin]

Years 1999 to 2013 schd would significantly outperform the spx.

[@gerardmichael8523]

They all do this. It's Click bait. They're goal is views so they make money, not trying to help people. Open an account with Fidelity. They are great and will give you actual advice.

[@michaelconnell540]

On the lump sum of $100,000 invested in Oct of 2011, on SCHD your dividends are now paying out over 11% on your initial investment ($.98 payout today on the original purchase of around $8.50 per share) That's over $55,000 per year on the $500,000 in SCHD vs SPY gives you around a 5.7% yield ($7.01 payout on a $122.57 original purchase price) which gives you around $34,300 per year on the $602,000. Even if you then put the $602,000 into SCHD at the current 3.32% yield only gives you around $20,000 per year. Long term in SCHD is a much better payout to live on dividends in retirement rather than having to sell your stocks and end up with little to nothing to pass on to your children. And your "average joe investor" will not (or should not) be taking the risks involved with options. And shame on you for telling people they should "sell all your shares of SCHD", if they think they can retire well on it.

[@Riggsnic_co]

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.

[@JacquelinePerrira]

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.

[@Jamessmith-12]

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.

[@kevinmarten]

It's understandable to feel a bit uneasy in volatile markets, especially with all the frenzy and worry going on. The US Stock Market's longest bull run in history can definitely add to the uncertainty. However, there are opportunities out there if you know where to look. Working with an investment advisor to diversify your portfolio seems to have paid off well, netting you over $260k in profits last year. That's impressive!

[@JacquelinePerrira]

Please can you leave the info of your investment advisor here? I’m in dire need for one.

[@kevinmarten]

'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.

[@jeancarloferreira9770]

I think people in schd are in it for less risk during a market down turn. As well as they dividend growth rate. Other than that, your point makes total sense.

[@boonedawg1506]

@jeancarloferreira9770 it will still drop, but it is not as drastic as spx or schg.

[@clbdyc]

You're dividend income would be the same even if it goes down

[@billibarou]

This is exactly why I buy it. Less volatility, and it's not tech heavy. I agree with AJI though that's it's a tall order for most people to live off that income. Especially because the retirement income curve is typically reversed. Where you need more money at the start or the go-go years, and less at the end. So you would probably be better served to sell covered calls early to boost yield when you need it, and then shift your strategy later. The one thing this video doesn't address is SOR or sequence of returns risk. IMO you would be better off to get a high yielding portfolio especially at the start of retirement to pay your bills. There are several portfolios you can build that yield in the 8%+ and still get enough growth to beat inflation. My strategy will be to get 10.5% yield, and just enough growth to beat inflation if possible. That will allow me to sleep well at night, and not worry about running out of money.

[@马孔多-r4p]

@@billibarou selling covered calls is even more volatile. the best way to invest in spy is simply hold for a very long time. and holding spy, you can't do drip, voo is much better.

[@MMDX70]

Not comparing apple to apple. One could make the same case for SPY vs QQQ since 2011 and one will be wondering why own SPY over QQQ.

[@billybellomy9870]

SCHD has a BETA of .77 so as someone said it's a bad comparison. I'm sure those in their retirement years don't want to relive the SPY drawdown of 57% during the last major recession.

[@la5074]

Well said. I was just going to state the same fact.

[@truckertra4489]

Actually I do want to see that 57% spy correction

[@billybellomy9870]

@truckertra4489 Then I'm certain you're not retiree with a bunch of money invested in the market. It's ok to want opportunities to open up for you but people that use SCHD are in a different place.

[@truckertra4489]

@billybellomy9870 I got quite a large amount in the market but I am also not a retiree correct But i understand ur point

[@ndub4014]

I'm new to all this, but won't you eventually have to sell shares of S & P 500? The dividends from that wouldn't be enough it seems. Meanwhile the dividends from schd is exactly what is desired. Obviously it will take a lot of $$$ and time to build a substantial amount in SCHD. Seems like both gives best of both worlds, but I would hate to have to sell shares especially when the market is down. What am I misssing??

[@cmurill]

SCHD is a long term investment 20 plus years to live of dividends The CAGR of 11% is what’s going to increase your dividends and YOC

[@EdBarker-ge1sd]

I enjoy your videos, you are looking at it a different way, with a different strategy. You bring up a good point. I am considering doing this.

[@kortyEdna825]

I just switched up my Roth IRA to 50% SCHD, 25% SCHX, 25% SCHG, and my Roth 401k is 70% vanguard S&P 500 index, 20% vanguard growth index, and 10% vanguard international index. Seeking best possible ways to grow $350k into $1m+ before retirement, I'm 55.

[@Justinmeyer1000]

Those sound like great picks! consider financial advisory so you don’t keep switching it up, top 3 payers for the month were $OHI, $KMI, and $EDP... not bad for 350k

[@brucemichelle5689.]

You have a very valid point, I started investing on my own and for a long time, the market was really ripping me off. I decided to hire a CFA, even though I was skeptical at first, and I beat the market by more than 14.3%. I thought it was a fluke until it happened two years in a row, and so I’ve been sticking to investing via an advisor.

[@PatrickFitzgerald-cx6io]

I'm intrigued by this. I've searched for financial advisers online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?

[@brucemichelle5689.]

I've experimented with a few over the past years, but I've stuck with ‘’Aileen Gertrude Tippy” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.

[@PatrickFitzgerald-cx6io]

Wow, her track record looks really good from what I found online. I'll take a chance and see how it goes. Thanks for the info

[@walkhawaii]

Thanks!

[@nicksmith8141]

I've added in SCHD as I've crossed into my 40s with a plan to build along side dividend growth funds and stocks. Prior to that I was almost 100% growth focused. I specifically hold it since it's less volitile and my wife and I are on track for early retirement. It currently amount to 6% of my portfolio

[@marshalliize]

Same strategy for me.

[@pal8h]

Options could be a good income stream to go with dividends and other sources of income. Couple of things to note: 1) Options trading is not nearly as passive. Not only does it require time to sell the contacts on a daily/weekly basis, which you did briefly note, but there is also more time and effort from a bookkeeping perspective. 2) Options trading is higher risk and would recommend anyone considering this strategy to learn more about the process and all the various factors that affect premium values. 3) Option premiums are taxes as normal income, not at the preferred rate of dividends. Not a deal-breaker but something to consider. 4) Options are not without risk. Glad to see you only modeled fractions of the portfolio!

[@mikesurel5040]

The next time the market has a big drop covered calls on the s&p 500 will drop dramatically. SCHD will likely keep paying and growing its dividend. Most average joes are likely best served having a little of column A and a little of column B. The swings in this channel from don't worry about NAV erosion to a video who's thesis is entirely dependent on the growing of the underlying asset value may cause whiplash. My guess is anybody actually in retirement would at most use part of their portfolio for this and would have investments in other assets and likely a big cash buffer to ride out the inevitable market crash.

[@MispelledOnPurpose]

Great idea Joe. Thanks for the comparisons. I think I'll work on achieving the last one with options. It's a scary venture for me but my current income is about to go away so I must get serious while remaining cautious.

[@JasonMattern]

Mixing in a satire video, Joe. I like it. I kept waiting in the video for why you had such strong feelings and finally it got to the CC part of the video and it made sense. I love selling Options but owning SCHD isn’t about that. Apples to oranges, man.

[@8-Track_70s]

What about the 3 for 1 SCHD split. Wwill it provide better option trading? Maybe give it a few months. Keep in mind the huge difference in price per 100 shares.

[@Rick-l6o]

I agree cheaper share price adding more can always sell If needed.

[@billibarou]

No a split won't change the options market. The demand for options on SCHD will be so low it wouldn't be worth the premiums to write (sell).

[@Rick-l6o]

@@8-Track_70s I have Schg and got the split has well. I am adding because of cheaper share pricing. Take Vgt fund it is crazy price is over $500 a share. Schwab made a good move and love the 3 for 1 split.

[@ammart5240]

I will still go with SCHD for retirement, because the last thing I want to do when I am over 70 years old is to sell options for income. I don't even know if I will have the brainpower to sell options when I am over 70 years old.

[@jerrymolinaro]

62…3 fund portfolio…25%VUG, 25%VOO, 50% SCHD. What does SCHD do for me? Instant diversification.

[@AverageJoeInvestor]

THANK YOU for watching Jerry and for leaving your $0.02 in the comments.

[@earthling808]

Joe, I think you should make it more clear that you are advising the 'average joe' investor who is younger than 40. The closer you get to retirement the more SCHD makes better sense.

[@ChrisStevenscsdesign73]

Like for me. I'm 51 I need something that will move and grow quickly because I am definitely behind on my goal. Only. I do have over $100,000 now which is what most people consider the goal to achieve to get things really moving. One thing I did notice but I didn't see the whole video which he might cover. Is the fact that the market fluctuates and he's just using constant numbers that are on the spreadsheet are consistently the same all the time and that's not the way the market works. If he's using the average I guess that would be close, which I'm not sure if he was or not. I might have to rewatch the video. I think the whole point of that ETF is to gain growth without much or little downside risk from what I do know about the ETF itself

[@effigy98]

Look at 2022... If you backtest JEPIX, SPYI, VOO, and SCHD.... SCHD wins. That is the time I would get nervous retired. I want that steady income with the least amount of balance reduction so i can sleep at night and am willing to leave some money on the table for that security. SCHD wins to mitigate downturns. Not everyone has the emotional fortitude to trade options on SPY during that time and keep sane.

[@CE123ify]

I would argue that an option strategy is not for the average Joe, also I might be wrong but were your numbers based on all of the covered calls expiring without execution? I am not an options trader fyi so I might not understand fully

[@christianperalta3226]

What's your thoughts on FDVV etf, it's largest sector allocation is IT at 23.01%, follow by Industrials at 16%. I think that if you are bullish on tech and wants some dividends (2.76%) as well, it would not be a bad option. Also fdvv expense ratio is 0.15%. Would like to hear your thoughts. Thanks!

[@InspireMe819]

.15 ratio scares me. Im heavily invested in SCHD and FZROX

[@christianperalta3226]

​@@InspireMe819 looking at the total returns, fdvv has moved very similar to Schx, and has done better than Schd because of its biggest holdings are in tech. Again I know there are cheaper alternatives but none offer the strategy fdvv has.

[@CP-qg4ks]

FDVV total return is beating S&P 500 total return on YTD & 1 year and 3 year and 5 year timeframes I recently started buying FDVV The expense ratio is irrelevant if it’s beating the benchmark

[@pamelawalker9056]

@@CP-qg4ks I agree with the expense ratio as being low. JEPI and JEPQ expense ration is 0.35%. QQQI expense ratio is 0.65%. I was researching FDVV yesterday to ass to my SCHD and SPLG. I have 16 years to retirement and working hard to get this up to spend and selecting the right dividend stock.

[@btheinvestor8079]

own both spy and schd there you go problem solve best of both worlds dividend and growth

[@finiteloops8610]

This is an enormously helpful video, giving a good idea of the potential of weekly vs. daily calls. It's hard to believe how many negative comments have been left in the first few hours. Additionally, none of the negative folk seem to have done any of the hard work to get numbers to that might support their negative assertions. All I can say is thank you so much Joe for doing this illuminating work, and getting it out here for us to learn.

[@gavinw197]

The first rule of investing is past performance doesn’t equal future. I own a etf like schd to give me a methodological approach, i also use active and market cap passive.

[@NoParking121]

Joe, do yourself a favor and do a backtest on this strategy. Yields are enticing but my backtest calculations show selling 1dte and 7dte on SPY 20 deltas are both at a loss over last 5 year span.

[@AverageJoeInvestor]

From a TOTAL RETURN standpoint that may be true, but then again, how much income were you able to generate for yourself during this time? AND if you are selling on only a portion of your portfolio, the GROWTH aspect of your portfolio is growing quite a bit. THANK YOU for watching and for leaving your $0.02 in the comments.

[@DaptaHBah]

Everyone who talks about wheel strategy conveniently leaves out how screwed you can get with big market moves. You either can go way below your cost basis and that will lower income and pose a high risk of loss or on the upside you might get assigned and the cost to buy in will be much higher. Worst case quick move up and then a big one down

[@jackellis3798]

The one thing your analysis doesn't show is how many SPY shares you would lose over say 10 years when the SPY options were assigned and you bought them back the next day at the current value. It would be interesting to see the difference in value taking into account the assignments between using the at the money strike vs. the 20 delta strike price. Please think about running that scenario. The amazing thing you present is the amount of income the at the money daily strategy provides. But there is a cost when assignments occur. That is my point. Very good stuff and worth thinking about.

[@jackellis3798]

A lot of folks enamored with SCHD just can't see the benefit you are providing. SCHD is less volatile, but over many years your strategy is clearly superior. I have a couple of questions; for the daily options, for example, do you enter the contract on Thursday with a closing date of COB Friday, or do you enter the contract on Friday morning with a closing date of COB Friday? Or does it matter. 2nd, what are your assignment rules. If assigned do you immediately buy back the SPY that was assigned the next day, or do you roll the contract into the next day? Finally, could you do this strategy using the wheel strategy and start off by selling puts and then selling calls if assigned? If you could do a video using the wheel strategy that would be great. Love your content and never miss your videos.

[@e.m.-lw1dn]

You're calculations are not correct. $100K of SCHD dripped beats VOO dripped (based on the timeframe you showed) in total share value. Not only that you would have over $60K/yr income with SCHD vs a pathetic $7.5K income of VOO.

[@f.w.1318]

Neither income is survivable wage now, you can forget 20 years from now, unless your home was paid for and you plan to drive your car until you die, and the kids have left nest.

[@e.m.-lw1dn]

@@f.w.1318 no one said it was, the point is to show the error in the calculation. Thanks.

[@DefundTheFringes]

You can't spend dividends if you reinvest them, or course, so if you're already retired and need cash, DRIP isn't good. Also, I assume you're not claiming that just "$100k of SCHD" will yield "$60K/yr income with SCHD."

[@CoffeeBreakSomewhere]

​@@f.w.1318 60 thousand for me with my 50 thousand of SS with all my bills paid and I'll be living like a king

[@e.m.-lw1dn]

@@DefundTheFringes as mentioned, its based on the time frame in the video. And yes that's the claim. You turn off drip after the time frame. Do the math, I did, you didnt. Thanks.

[@g.a.7527]

I didn't hear you mention what percentage of that CC income is needed to purchase back appreciated shares that were called away. If selling ATM this will happen pretty often. Also, you talk about this being an either/or strategy, but it makes more sense to diversify and have multiple income streams, especially once you move from accumulation to distribution and are living off your portfolio.

[@bradmcmillen49]

In the “start with $1M” investment scenario- what if you are selling SPY options and the market tanks, SPY goes down 10-12% and you get assigned shares. What’s the strategy then? Take a 10-12% loss and sell shares so you can continue selling options?

[@bun-n-cheese1290]

I already have a pension coming for around 70K annually and adjusted for inflation. I have my whole 401K in the S&P 500. My goal with SCHD was to take away the burden and risk of owning 2 rental properties. No more fixing or keeping them up. Have about 400K combined in equity in them now. Plan is to sell in about 5 years. Put about 200K into SCHD and use that to replace a portion of the rental income with less risk

[@DK-pr9ny]

SCHD is safer if you are at or near retirement as it won’t go down as much as the S&P in a down market.

[@thetapheonix]

SPY and growth ETFs in general have a sequence of returns risk I don’t like. You cannot live off of growth stocks because of this. Eventually there will be a bear market at some point and you’ll need to sell more shares or just accept a lower standard of living. I don’t need to sell any shares of SCHD to generate income. Plus, I wouldn’t recommend retiring with only SCHD income, you need multiple streams of income. So it would only be 1 of several sources of income. I don’t care if the S&P 500 beats it. My plan is to invest in both and convert growth ETFs to dividend ETFs.

[@turnertruckandtractor]

SCHD may not be the best to get you to retirement but it is tops once in retirement. A big downturn or a decade of slow growth would make someone a less than average Joe investor.

[@KimberlyO.Kitchens]

I am awfully late in investing at 33 with just about $80,000 in savings as i have never invested in the stock market. I’m worried about missing out on compound interest and want to make smart choices for my future. If I invest aggressively, can I still retire with at least $1 million by age 65?

[@CharlesT.Foster]

Yes, you can. Investing $80,000 in the S&P 500 at an 8% annual return will grow to about $805k in 30 years. Financial advisors can achieve 10-15% returns, so do your research and consider consulting one.

[@JasonB.Chisolm]

I agree; financial advisors are underrated. A friend introduced me to one in 2021, and despite my skepticism, I gave it a try. Thanks to the advisor, I now earn enough in monthly dividends to quit my job and start a restaurant in New Jersey while still earning five figures in dividends.

[@juliasalley]

Pls how can i meet this advis0r? i want someone to help me invest an Inheritance, i don't want to lose it to inflation.

[@JasonB.Chisolm]

I'm cautious about giving specific recommendations since this is an online forum and everyone situation is unique, but I've worked with Stacy Lynn Staples for years and highly recommend her. Look her up to see if she meets your criteria.

[@JohnNgomba-k3v]

Wow!! her track record looks really good from what I found online.i just filled the form and scheduled for a call. Thanks to you.

[@km6731]

If you're in retirement, you need to withdraw the same amount to make it even, not just the dividend it pays you. If you took schd div and reinvest all but what spy would pay. Or cash out shares of spy to match schd dividend, the total may side to schd easily.

[@BTBLive]

Only problem I have with the SP500 (SPY) is how the top companies are so over valued. If the Mag 7 keeps it up the bottom 490 holdings hold less weight increasing risk.

[@DanABA]

Would have loved to see this analysis with the 4% rule used for SPY, which is the method that people who invest in SPY are using to withdraw. With the $1M lump sum investment example, at year 13, SCHD would give you almost $117,000 per year with just dividends. With the 4% rule of SPY, you would be getting almost $189,000 per year. Yet another great comparison would be to see if dividend growth/dollar cost averaging into SCHD for 10-15 years would give you are a higher annual income from dividends versus doing the same thing with the SPY and taking 4%.

[@wldcatfootbll]

Are we also just assuming you never get shares called away? If you lose 25-50% of your holding it throws this model off.

[@jasonluong3862]

Well, what is needed is a debate between these two camps: SP500 vs the SCHD. Have the KZbinrs from both sides debate live with viewers asking questions is sorely needed to clarify what is the better investment.

[@stevenscholl7383]

Perhaps you have addressed this elsewhere, but why don't you sell options on tech stocks such as Amazon or NVDA which often have very high premiums? Is is the volatility, or perhaps you feel that QQQ is just a more stable way to invest in the same stocks? But for the "average joe" it's usually easier to the $50,000 to invest in 100 shares of the QQQ.

[@thecollectiverisk]

Super early into the video comment that’s honestly unrelated but…are there any accumulation funds out there that also pay out PART of the dividends…I wouldn’t mind a lower starting yield if they are dividend growth focused and are also paying out some of the distributions as I’d immagine the dividend growth of the fund would be on the higher side?

[@rigo.garcia]

Thoughts on FDVV instead of SCHD?

[@xaldath4265]

Interesting perspective to share with a cherry-picked timeline 2 years into the Megacap tech bull run. Check a backtest between SCHD and SPX. Look at how many times SCHD is ahead. It's not nearly as one-sided of a story as this video portrays. Both funds are fantastic and having *some* of both may end up better than either one if balanced appropriately.

[@FlaminHotChips]

I put 5k in Schd and 5k in schg every year I’m doing good

[@MatheusHenrique-sk2od]

whats your yearly growth?

[@StephanieG.Augustus]

I have been a dividend focused investor for a long time. This does not mean I don't own growth stocks, I do. A well rounded portfolio should be a mixture of both categories. I invest in the market, but never put all my money in market.

[@pauline-o2q]

The strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off

[@KarenJ.Mancia]

I can only speak from my experience when I advise seeking professional advice. It looks like a smart bet if you don't know where to get an experienced one, but if you don't know anything about the market.

[@CharlesT.Foster]

I'm intrigued by this. I've searched for financial advisors online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation??

[@KarenJ.Mancia]

I have a female advisor named Stacy Lynn Staples. I recommend researching her. To be very honest, I'm glad I decided to let someone handle expanding my finances even though I almost didn't think I should.

[@Saviourtina-c4i]

I appreciate it. After searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.

[@jeremybrummel3254]

You say the average Joe investor can't do $500 a month, but you'd be surprised by how much you save by just renting a room instead of buying a two bedroom apartment, bicycling instead of owning and maintaining a car, and avoiding having pets and children.

[@AverageJoeInvestor]

I don't dispute that Jeremy. There are definitely ways people can create those opportunities. I am speaking to the Average Joe out there though. =) THANK YOU for watching and for leaving your $0.02 in the comments.

[@rickmccann4016]

You could live in a cave too, dont forget.

[@jeremybrummel3254]

@@rickmccann4016 I'm being serious, but you are being sarcastic. People too often seem to feel entitled to be able to afford to live comfortably in any area, but it's easy enough to live without certain expensive luxuries.

[@rickmccann4016]

@@jeremybrummel3254 I moved out of the country altogether and dont have to watch my spending really at all anymore and I know where you are coming from.

[@marksrink]

Huge fan of fdvv..2.85 yield and growth is great

[@TheAffirmationSpot]

Thank you for this video. I wholeheartedly agree. There are far superior dividend products out there today in terms of income. And, to your point, SPY beats it.

[@la5074]

Dude. You need to check yourself. SCHD has been a solid investment choice since the beginning. Sure spreadsheet and hindsight are perfect, however the stock market and more importantly PEOPLE who invest are not- they a messy.

[@johnclark8631]

And time frame matters. If you did these scenarios about 2 years ago SCHD looks much better. S&P 500 took off over the last year and that can change possibly a year from now. We don’t know. The big gainers in the S&P 500 can stagnate or drop and SCHD can catch up if that happens. Like someone said SCHD is a lot more stable for someone in retirement.

[@sergiogomezr]

Fair enough, but could you set an example for someone who doesn’t have the capital to own 100 shares of SPY to sell CC?

[@rd9102]

This video has some very interesting points. I personally own both SCHD and VFIAX. They exist to perform different things within my portfolio. The options stuff aside then the amount of income you need is the goal you should set for using SCHD (imho), so let's say $50k/yr (close to current Avg. American income) or $100k. SCHD pays a roughly 3.5% dividend and that makes the numbers easy to come up with, if you want $50k/yr of income from SCHD then you need ~$1.5 million and if you want $100k/yr then you need ~$3 million. It sounds like a lot but keep in mind that you not only get organic growth of the stocks for SCHD but you also get the dividend growth over time. This video uses past performance to try to extrapolate the outcome under different conditions. It's not cherry picking but in under real world conditions with a longer track record it's almost impossible to tell if/when value investing (mostly what you get with SCHD) comes into investor view and it outperforms the S&P500 (which is now largely tech dominated). While this video is not wrong...i think it is a stretch to say the non-options portion is rock solid, it tries to predict outcomes using assumptions for a very long time horizon. However it could be worse too over the next 20/30/40 years. No one knows. Either way, the information as presented here is good information and food for thought but it's just an idea and keep that in mind.

[@speedlever]

Using TipRanks, I plugged in $1,000,000 invested in SCHD at $27.75. Assuming the dividend is never capped, and using the past 10 years CAGR of dividend increase at 11% starting at 3.45%, annual stock price increase of 7.7%, and drip, in 7 years the dividend payout tops $150k. What’s the flaw in this analysis? And how likely is it to be accurate realizing no one has a crystal ball?

[@rd9102]

@@speedlever I think it's a good mental exercise but as you said no one has a crystal ball. Inflation will be a concern along the way and certainly over time will change the dynamics. I don't think there will ever be a dividend cap because that would directly go against the whole reason SCHD exists. One of the problems with video's like this is that it can only look at the history of SCHD (relatively short at just over 10 years) and during that time there has never been a recession. Not having a recession for so long because of the Fed and Government spending makes the S&P look a certain way that eventually will come back to bite in the real world. Furthermore the S&P500 is roughly concentrated in tech stocks with the MAG 7 now accounting for 30-35% of the entire index and that is NOT GOOD and WILL have consequences over time. I think this video is good food for thought but it misses a giant part of the economic cycle because it simply has not existed for the entirety of the history of SCHD's existence, seeing how they work over time with mean reversion for me personally SCHD should stand up very nicely to how hard the S&P 500 gets hit in any recession/depression. Furthermore you will get a return that is roughly 2x-3x the dividend you get from the S&P500. For my money the lower beta of SCHD helps me sleep at night as well as paying me to own the companies which is ultimately why i buy companies. I don't trade for speculation and i'm not interested in owning companies where i can only extract value by selling because they pay nothing to own them. At the end of the day as i said in my original post and as you said, no one has a crystal ball and no one can tell the future. For me that is one HUGE reason i want to get paid for the companies i own and am not as concerned about capital gains via stock price growth (which for many periods in history stalls for decades).

[@speedlever]

@@rd9102 I’m tempted to yolo it all into SCHD but am still into FXAIX too, but heavier into SCHD.

[@fuz4623]

I’m a big SCHD fan, but covered calls on SP 500 is food for thought. Thanks.

[@coocoocachooglin]

My option trading is replacing my W2 income. My growing dividend portfolio will replace my option trading income. I don't want to have to work, or trade in retirement.

[@belangp]

So, past performance is indicative of future returns?

[@camc8923]

So many more factors than just putting money in 1 fund and go. SCHD slower in growth than S&P, but when there is a down turn you are selling shares of S&P while never selling SCHD. Options is for the most part not an Average Joe way of life. when fully retired, if SCHD div is above your yearly need, you never ouch the principal and leave generational wealth, Maybe not so much with S&P approach Finally a better way to look at this is more in line with having both funds being balanced for the long run. Would have been nice to see how they preformed as a duo vs the 1 offs.

[@JunkSock]

Not to mention if there’s a down turn growth likely drops further down than dividends… rebalance ratchet with business cycles

[@frozenyetimug]

Downturns are the best time to be selling options, especially calls. You're right that options are not an average joe thing to do, but neither is having the ability to retire before 60/65. I'd rather put a little work into options selling and have the ability to retire by 40-50. Selling options is not passive but working 40 hours a week (what im doing now) is not very passive. Lol.

[@SummitMan165]

@@frozenyetimug or you find the option income ETF that does the job from 0.35%-1% MER …

[@billybellomy9870]

@camc8923 covered calls are not all they are cracked up to be. I lost a ton of money putting a lid on my upside on spy in 2023.

[@billybellomy9870]

@@frozenyetimug and what if the market suddenly reverses to the upside, shooting above your strike and locking you into a sale price?

[@JanisRay-k8i]

People buy schd as a hedge agaisnt a down market!

[@piethermanus8777]

You are totally missing the point how did SC HD do during the downturn from 2022 to 2023 versus spy. It’s all about volatility and ETA rebalancing.

[@AverageJoeInvestor]

@@piethermanus8777 volatility = Option Premium. Additionally, in my examples, we are leveraging only 25-50% with options. Plenty of income and no need to touch SPY shares that are fluctuating with the market. Low volatility and low income = No bueno. THANK YOU for watching and for leaving your $0.02 in the comments. 😎👍

[@justinshearer8180]

Schd lost 5% spy lost 20% QQQ lost 30% 😂

[@Tvirus12]

I thought this was for the average joe investor, Who has 1 million dollars to do covered calls on SPY on the daily?

[@AverageJoeInvestor]

Touché, while some investors can get there, many Average Joe investors are exploring ways to retire on less. I did a follow-up video where I looked at a $300K example and I will be doing future videos as case studies at different levels BELOW $1 Million. Here is the link to the follow-up video JUST IN CASE you were interested: kzbin.info/www/bejne/aZOzd2WQfMaJaNE || THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻

[@robertquinn7341]

Mr. Joe How come you don't sell very conservative calls on your retirement account? Thanks

[@clarkminer8650]

I love how this channel started as a dividend investing channel and has come to the dark side of options

[@RichardAkin-qj6xt]

I totally agree SPY is far superior over SCHD for total return and option trading.

[@tomsettles6873]

Didn't you release an "Epic QQQ covered call" video yesterday? It's been deleted. I'm in agreement with you about SCHD. Unless you can invest at least $100k (probably more like $250k) lump sum and wait 7+ years to cashflow the dividends, there are better ways to get income. The advantage of SCHD is that you don't need to touch it at all and it will grow the dividend 6 - 12% every year that you're living on the income. One filter that would improve the price return of SCHD would be to ban any stock above 20 P/E ratio. A lot of the stocks it holds are overvalued and I believe that's why it lags the S&P.

[@e.m.-lw1dn]

Thanks very much for the video. Its so badly done that I am getting inspired to start my own youtube channel to call out videos like this which are completely non sensical.

[@thumperjr100]

This channel has helped me immensely with learning how to generate extra income in retirement. Living my best life in my mid 50s. Learning the basics with options has been a game changer. Just diversify and use a portion, I use 20%, to generate extra income.

[@RL.777]

Great video !!

[@maximusdecimusmeridius5438]

VTI is the Simple path to wealth

[@AverageJoeInvestor]

THANK YOU for watching and for leaving your $0.02 in the comments.

[@falseprogress]

Wise investors should study the Permian shale's decline (America's last big fracking play). When it peaks (before 2030?) it will catch millions of geology-deniers off guard and could trigger a depression (not just recession) for the same reasons the 2008 conventional crude oil shock derailed financial schemes. U.S. fracking bailed out the global oil supply but it's a short term fix masking permanent oil declines. Sprawling "renewables" are built with fossil fuels and can't replace their scale, plus electricity is only 20% of total energy use.

[@strokdude931]

Why? Diversification and motivation. Dividends can motivate people to invest more and we can use past performance to make predictions…but they are just predictions

[@shanegreen1477]

Not everyone wants to sell options thats not a passive retirement strategy its an active strategy. This title is misleading at best and only even relevant to those wanting to use an options strategy!

[@thumperjr100]

Are you kidding me, this content is Gold. I've learned so much from this channel. Now making so much more money selling options thanks to Joe. It doesn't take much effort at all for how much extra income you can generate.

[@shanegreen1477]

@thumperjr100 I sell options as well however that has absolutely no bearing on my comment about this video. Again it's very misleading as this is focused solely on selling options and many in retirement want a passive investing strategy. Selling options is not a passive investing strategy it's a active investing strategy. The whole reason he gives for not investing in SCHD is around options not about the ETF itself!

[@davidwebber6956]

Why doesn't someone offer this,?

[@wzk921109]

Covered call ETF in bear market is going to be a disaster. Stay in SCHD would be a better choice.

[@joshuareuss2472]

You assume the same growth rate curve for the S&P. Good luck.

[@slammer6789]

Excellent premise. Good idea leaving with the teaser.

[@squaremilepvd]

Would be interesting to see SCHD v JEPI now that there's more time with JEPI to look at.

[@bunkeyscow]

dividend calculator is a great website to use! schd vs jepi = schd is the winner.. schd vs jepq = jepq is the winner.

[@Xairos84]

Appreciate the work, but the average person isn't employing options with their portfolio.

[@philipmitchell8108]

But when your covered calls get called away you just murdered with taxes, cutting your portfolio value in a massive way. Not a good plan in retirement imho

[@AverageJoeInvestor]

IF you are doing it in a brokerage account then YES very important consideration. THANK YOU for watching and for leaving your $0.02 in the comments.

[@boonedawg1506]

Not to mention, SCHD price also triples to quadruples over 10 years. It pays dividends and grows in value. In 10 years, SCHD should be $80 again. Buy now at $26.

[@AverageJoeInvestor]

THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻

[@chezaraeyothers5164]

Lol, I wish I could buy SCHD for $26

[@marksrink]

When ???

[@marksrink]

DIVO

[@stevedavis3663]

​. You can buy it for about $26. SCHD split 3 for 1 yesterday.

[@PermacultureHomestead]

SCHD is too slow..... i sold all mine 2 years ago for higher yield monthly payers, its paid off

[@e.m.-lw1dn]

if you don't tell us what you supposedly bought, it never happened.

[@davidwebber6956]

Dividends are tax free here . Capital gains start at 28% .

[@marcr2204]

not for us we are better off with options

[@AverageJoeInvestor]

THANK YOU for watching and for leaving your $0.02 in the comments.

[@vincentv975]

comparison is often the thief of joy!

[@Matteo-xm6xo]

Ill just buy the stocks no expense ratio and no blackrock trash

[@crazywaffleking]

SCHD is absolutely amazing if you inherit 10 million, it is absolute crap under any other circumstance.

[@chipnorris2504]

Please review QDPL

[@multi-dimensionalinvestor9204]

These videos are all overly simplistic. The truth is as you get closer to retirement you need three different buckets of money: the tax deferred, the taxable and tax free. Because each bucket gets different tax treatment each one will need to be filled with different kinds of investments such as dividend stocks under dividend tax rates, growth stocks that will be treated under capital gains, municipal bonds that will be tax free and whatever you want in your Roth accounts. Like others have said, there is no calculation on RISK of SPY crashing - how is that factored in? Run the simulation from 2005 thru 2015 and tell me how the numbers come out.

[@jeffford2424]

It is funny how Average Joe uses info from a certain website for grade analyses but is to cheap to pay to unlock all the necessary info from the site. Hmmm!!!

[@AverageJoeInvestor]

@@jeffford2424 very funny indeed. I don’t pay for things I don’t need. 😉Seeking alpha is great for dividend information, but I don’t need more than the DGR and yield info from them. 😀 THANK YOU for watching and for leaving your $0.02 in the comments! 👍😎

[@international_dividend]

These comparisons are not apples to apples - and you can make the same video comparing SNP with Nvidia. Why would you want SNP? Or compare with the Van Eck Semiconductor ETF? Those have killed the SNP over the last ten years. So, why invest in SNP when you could have more investing elsewhere? Time to make a 'sell your snp video'? Where do you stop when you start making comparison videos (based on past performance)?

[@masoncnc]

Next thing you know, Joe will sell his QYLD

[@WattsonorSomething]

..... So since 500 a month isn't reasonable. How tf you gonna claim 100,000 in a lump sum is reasonable. Outa touch and a waste of time is what this was

[@Mike_Affholder]

What is the covered call etfs that actually hold the underlying and doesn't use synthetics? Is that spyi? Or ispy? Do you have any videos on which cc ETFs are safe from a depleting nav?

[@mxg8475]

I personally think spyi is the best with a 12% yield and no nav erosion

[@Mike_Affholder]

@@mxg8475 that's what I was thinking to from everything I've researched.

[@rickmccann4016]

Can you please repeat that?

[@ciaragail5865]

thanks for the video Joe.... does make sense to sell SCHD and go all in on SPY....

[@hamogear6735]

So many contradictory in investment how about people who wants to not work and just have an income stream from investing shit man like loosing weight so many contradictory research

[@j4sho748]

I can live off 18, thow wow

[@freebrowsergamer]

Clickbait title...

[@AverageJoeInvestor]

*In the video I talk about why you should sell your SCHD shares. Help me understand how this is clickbait? THANKS! =)*

[@freebird0147]

Dumbass. Did you watch the video?

[@stevenlopez4203]

So why wasn't the title "Why I'M selling SCHD" Besides the title sounds like you are giving financial advice, and of course you don't do that. Right?

[@AverageJoeInvestor]

@@stevenlopez4203 the video is directed to people who currently own SCHD that think they are going to one day, through recurring deposits, actually live on SCHD dividends one day. Then I go on in the video to dismantle that plan through historical data. Thank you for watching and for leaving your $0.02 in the comments.

[@la5074]

I think I’m done watching your videos. I’ve been trading options way before you even knew,talked, or even introduced them in your videos.