What SCHD will Do For Your IRA | SCHD ETF

[@Stan-Elfrink]

In my taxable account I went into dividend investing route. In my Roth I did the buy and hold route with an S&P 500 etf and total market etf along with some Berkshire B stock and SCHD.

[@Grace.milburn]

I’m so glad I didn’t really make any big mistakes when I started my investment journey last year. So far I’ve just been sticking small amounts of money into companies I’m sure will continue to exist for the next five years and if the stocks do well, I hold on. If not, I reinvest the bad ones into the good ones so I can get higher gains. I gained about $9.5k from putting in $4k into NVIDIA earlier this year so that was pretty nice.

[@ThomasChai05]

Through closely monitoring the performance of my portfolio, I have witnessed a remarkable growth of $485k in just the past two quarters. This experience has shed light on why experienced traders are able to generate substantial returns even in lesser-known markets. It is safe to say that this bold decision has been one of the most impactful choices I have made recently

[@mikegarvey17]

@@ThomasChai05 Is it possible to get in contact with someone like that?

[@ThomasChai05]

CAMILLE ALICIA GARCIA maintains an online presence. Just make a simple search for her name online.

[@Madison-Huff]

Thanks for this tip. I just Googled her name and her website came up right away. It looks interesting so far.

[@JoeC5050]

6:18 How capital gains tax is 30%?. SCHD/VYM dividends are qualified dividends. With current rates they are taxed at 0%, 15% or 20% only.

[@RafetMert-qs3kw]

The wisest thought that is in everyone's minds today is to invest in different income flows that do not depend on the government, especially with the current economic crisis around the worldRetirement doesn't come with a specific requirement, people need to understand that having a right retirement plan is ideal and can help build a financial fortitude. Also, having a financial counsellor that will guide you through every process would be good, not just any expert but a very good one!

[@RafetMert-qs3kw]

I consult with a New York-based advisor, Monica Mary Strigle. Sh is well renowned among my colleagues at work as a fixed income strategist and market analyst with an unorthodox approach to investing. Her AUM is ranging from 500B - 600B with over 1m clients.

[@castoner]

I like having SCHD in my portfolio for diversification. I have less than 20% in my Roth IRA and in my traditional IRA I invest the rest of my money in VTI and VUG.

[@Jpsantos94]

A couple things: What I don't like about just growth investing is it's hard to lock in those gains, especially over 30-40 years in a Roth IRA. At least with SCHD you are getting way more money back each quarter to buy more shares at a lower price right after the ex-dividend date, where as VOO can go up or down for years and you don't earn much at all. Not to mention, you don't have to then sell shares to receive a pay out, which would be a horrible idea in a down market and cost you so much more since you need a 2 times higher gain to offset a crash. Also, how can you be investing for decades, make a video specifically against SCHD, and give out the wrong information? SCHD is not taxed at your income rate, it is 100% qualified dividends, so the MOST you could be taxed is 20% if you make $518k/year or more (if you're single). The average American will pay either 0% (if your taxable income is below $47k in 2024) or 15% (if your taxable income is between $47k-518k). Next time you make a video to hundreds of thousands of investors, at least get the basics correct. You're influencing people against SCHD with the wrong information.

[@Alumnikiid]

Indeed everyone forgets about the years markets went side ways. Example the lost decade. 1999-2009. We have been soiled by quantitive easing and low interest rates for the past 10 years

[@eldersprig]

@@Alumnikiid recency bias

[@EverythingMoney]

You are also paying more in fees and don't forget those taxes...thanks for the comment - GC

[@Lycan3303]

savage

[@Jpsantos94]

Not trying to be mean but C'mon.. if you're arguing against SCHD due to taxes at least get the numbers correct.@@Lycan3303

[@jimfioritto4134]

Schd is for growing income, not focused on appreciation. It’s for income investors that want a little bit of appreciation. And you need to pair it with something like JEPI. So you can have high income and keep up with inflations. The double taxation argument is dumb.

[@EverythingMoney]

Okay...thanks for the note - GC

[@ebeaula]

This idea of total return being the central thesis to buying VOO is a powerful argument. However, lay investors have a greater risk of making emotional decisions in market downturns. Many coworkers in 2020 sold out of their VOO positions when the market was crashing from COVID only to buy back in at fractional shares of their previously whole shares. On the flip side, the dividend investors did not sell but BOUGHT MORE. Additionally, SCHD is a qualified dividend so for most people it will be 15% not 30% taxed. Not here to say VOO is a bad investment nor that VOO is not the gold standard. However, you guys need to give SCHD and other dividend stocks their flowers. Personal finance should also be about comfort and confidence.

[@brianlester4494]

I am heavy in Tech….SCHD gives my portfolio the diversity it needs. It’s one and done.

[@CraigTriciaBailey]

Thank you for the video. In general, I don't disagree. But ...having retired with enough savings, my goal now is NOT total return but dividend growers (with modest capital growth) to generate increasing income. Year after year dividend growers boost my income. I'm happy with "set and forget" and the stability of companies that have a culture of allocating some of the profits to dividend increases each and every year.

[@richhands5269]

My three favorite channels: Everything Money, Stock Brotha, & How Money Works. Make my week complete! 🔥 🔥 🔥

[@EverythingMoney]

Appreciate that -GC

[@touchofgrace3217]

The S&P 500 has its place to be sure but I am just now starting to invest and the S&P appears to be about to crap itself. I will do dividend stocks to support established companies through the recession but I will wait to buy the big cap when prices are at least fair value if not on discount.

[@lucaswhite5704]

I’ve got a couple of good ETFs in my portfolio and I still got other share holdings doing incredible numbers. I’m up 47% YTD! I’m also well positioned with good blue chip companies and I have stop losses in place.

[@RoyKent536]

Amazing well done! Which companies have performed best for you?

[@lucaswhite5704]

Thanks and all the best on your investing journey. Personally with insights from my advisor I prefer to invest in large cap companies which have economic moats, large cash flows and strong balance sheets. Some of which are AAPL, MSCI, IUKD, VHYL, SCHD, NVDA and Barclays…

[@RoyKent536]

Geez, strong performance in 2023. Congrats! Kick down those Wall Street doors

[@anthonytiller2007]

I’d say your IA is doing a great job protecting your portfolio. More still impressive as you’re making fortunes in these turbulent times!

[@lucaswhite5704]

I’d choose expertise any day because finding the right balance between investing and living is very important to me.

[@jackdguida]

I agree with everything you said except for the taxes. Qualified dividends are taxed at your long term capital gains rates which are 0, 15 and 20%. Not your regular income tax rates.

[@EverythingMoney]

Thanks for sharing - GC

[@Winston0Boogie]

@JackDGuida exactly! You're the first person to mention this. When people say it's terrible with taxes. If you own property you get rental income. That rental income is taxed at income bracket. Dividends are cashflow also which get taxed at capital gains. If you end up retiring or getting less than about 43k in income you pay no taxes.

[@JoeFromSomewhere2303]

I dont understand this idea of "double taxation". Companies are taxed on theur profits. If they use their profits to buy back shares or oay dividends they are still taxed on their profits. Whether you make a personal profit by earning a dividend or selling the stock you pay a tax. Both scenarios same taxes. The only difference is that in dividend investing you pay your taxes slowly over time instead of in a huge chunk when yoyre at or near retirement. You dont have to sell down your principal so you can have peace of mind in retirement. Dividend investing doesnt make sense for Moe and Paul because theyre rich. Tax wise it makes a lot of sense for low and middle imcome class earners. I dont get why this show tries to crap on dividend investing but does so with next to zero research on the topic.

[@brandonsavoie5588]

Am i wrong but if you dont pull the dividends and reinvest the dividends back into the account you dont get taxed unless you pull the dividends? Just getting started on investing 24M

[@abcd108923]

I am adding SCHD throughout in 2023, as that seems to be fairly priced (P/E 13 or 14) due to banking sector hit. VOO/QQQ is way overpriced now thanks to AI bubble. Added some growth ETF when they were cheap in 2022, but in 2023, they are too pricey to buy.

[@eh7599]

100% correct!

[@JC-gw4jl]

exactly. If SCHD existed in 2000 tech bubble, it would've done a lot better than SPY. Some tech stocks didn't recover for 15 years, like MSFT.

[@RedKnuckles-w2x]

In your contribution years, VTI, in your retirement years stability might be warranted. This guy is all over the place.

[@multi-dimensionalinvestor9204]

Here is what is missing from Mo's view. Sure you can keep growing your portfolio until you are 60 but then what do you do? How do you cash out? If you've grown your portfolio to $5 million, do you just take it all out and spend it? This money needs to be invested in something that generates income, that's why older people buy SCHD and dividend stocks. People need the income to live off of and continue to possibly grow. There is a "growth" part of a portfolio strategy then there is an "income" part of the strategy. It's find to tell young people to focus on growth but it's not ok to keep hammering that one size fits all strategy for everyone. Mo will change his tune when he hits 60 and needs to figure out what to do with all that cash, keeping it in "growth" is a loser proposition especially if the market crashes right as you are about to cash out, it happens every decade. And it's ironic that Gabe keeps hammering that the market is overvalued now. Of course, everyone should have a diversified portfolio of real estate, bonds, and stocks (growth and income), not just stocks. Mo & Gabe are stubborn mules but they'll eventually get it in about 20 years.

[@touchofgrace3217]

I plan on investing in growth until I near retirement and transition into dividend income rather than the traditional bonds.

[@swright5690]

Everyone wants to be gangsta until it's time to do gangsta shit

[@CutriProductions]

Index funds when you’re 21-55 and still in your earning years. Dividend income using SCHD when you’re in retirement years…. this video “assumes” everyone is young….. don’t forget the retired folks….. there’s a reason why SCHD is popular, and it’s NOT for growth, leave that to the index funds says Warren Buffet.

[@davidmartin5154]

30% capital gains?? The capital gains tax rate is not applicable to dividend income. And same problem as your last video. Total return may not be the best approach for every situation. You can read my comment on your other video. But I will simply state here: For someone who is retired, the cushion provided by the additional dividend income from SCHD may significantly reduce the probability of needing to sell your equity position.

[@RakeTable]

The Issue: In the SCHD vs SPX compounding comparison. The calculation is based on spending the Dividend. Most investors take the dividend and reinvest it back in to dividend paying stocks. That difference in calculation can add as much as 27% increase in SCHD Value in a 20 year horizon and a 19.5% increase in the SPX calculation. Thus, making a long range calculation look much different.

[@philb007]

I'm in retirement. Investment Goal: 50% SCHD, 40% VOO & 10% QQQM . Cash varies 5% - 10%. More of the SCHD sits in the Roth IRA and Pre-tax IRA. I can easily manage accounts now, later on these will all be on automatic pilot.

[@dredez74]

I like VTI. Isn’t that as good as VOO or SPY?

[@Asstronauts93]

Most of the people investing in schd have a qualified dividend tax rate of 0%

[@philb007]

Adding to what @astronauts93 said, I'd add retirees who are needing a growing source of dividends can consider SCHD. SCHD ETF should be part of a stock/etf mix of investments. Retirees can be paying higher tax brackets. The ugly truth about RMD's!

[@rowddyone3570]

Schd and schg for me and my husband

[@TortoiseInvesting]

I hold SCHD in my IRA and SCHG in my Roth IRA. It's my core position in my portfolio, and I have satellite positions around it, SCHD has had a rough year, but I've not let it deter me or sell out due to it, I have it but also focus on high quality companies at great prices. I love your alls channel, theres literally something to learn for every level of investor from these videos.

[@EverythingMoney]

Great stuff...thanks for the feedback - GC

[@Jpsantos94]

Doesn't it make more sense to switch those to pay less taxes later on?

[@Nickbasso4]

Schg is great I have it in my regular brokerage and then I have Schd in my individual and in my Roth

[@rjlane3475]

what is the PE ratio of the top 10 stocks in SCHD? I think it's relevant because the top 10 stocks in SCHD make up 40% of the fund. SCHD is advertised as having a PE ratio of ~13 but I'm not sure it behaves that way when it's so top heavy. Thoughts?

[@FrugalNation]

I agree wholeheartedly what you've showcased here and in your other SCHD video. I have a question: What would be the fastest way you think to invest, so to replace my current W2 income completely but relatively safely when it comes to capital retention against inflation? Build a growth/value based portfolio and sell everything for an "SCHD" type investment when I reach $2M- Or Invest in a dividend based portfolio so to capture cheaper stock prices vs divided yields-

[@paull4135]

An allocation to dividend etfs is good for younger people too, in my opinion, simply because if you plan on living off dividends you’ll have to sell off your stocks at a later date to use to purchase dividend stocks/etfs. You would then have to pay taxes on the gains.. so i hear your point but does that not negate your stance a bit?

[@SupplyDemandTradingStock]

Expense ratio very low, SCHD price has been trending down, but look for buyers to step in at the monthly buyers level at $64.

[@youtubeaccount7342]

Both, whatever one I think is trading cheaper at the time

[@ricksolis1571]

I’m 55 and retired. I love SCHD and VYM. I hold them in my ira. I withdraw the dividends every year (substantially equal periodic payments). Sell covered calls a year out 7-10% above current price for an additional 3-4% return. Value of the shares doubles about every 10 years (even with me spending the dividends). The 2022 performance of schd vs the S &P is way easier on my mind. There’s more than one path up the mountain. I think these old boring dividend stocks will hold up better in a 2000 or 2008 type market than tech.

[@EverythingMoney]

Interesting strategy , thanks for sharing , now remember companies do take their dividends away when things are bad , so that may affect your returns , on an episode like 2000 or 2008 .AP

[@BrianStJohn-kb1ol]

I invest in SCHD because growth stocks are historically rich compared with value stocks Paul ALWAYS says in videos that the market is 70% overpriced. Then says buy it in the next lol I’d much rather buy an etf with a PE closer to 13 with established businesses that arent overhyped even if I do underperform for awhile 🤷🏻‍♂️🤷🏻‍♂️ SCHD is down 8% for the year and has a PE of 13 vs the S&Ps historically high PE of 21 with lagged interest rates still coming our way lol

[@BrianStJohn-kb1ol]

The methodology of SCHD should be discussed in another video preferably

[@thethrill2877]

Just curious how many stock Buffet owns that pays Dividends. Fro a value point SCHD looks like a great value now PE is at 13. Vs SPY 24.5

[@EverythingMoney]

Yes but both companies don't have the same amount of holdings .AP

[@thethrill2877]

@@EverythingMoney it’s an ETF with 102 great companies . Bottom line SCHD has at $69 is a better value than SPY . With a great Dividend something that Buffet loves in his stock .

[@Lycan3303]

I just hold SPHD and VOO in my ROTH ...stress free retirement account

[@EverythingMoney]

Good stuff - GC

[@ranbandz7566]

Could you guys do an analysis on FICO. Thank you guys love your channel

[@EverythingMoney]

Sure thing - GC

[@christopherc6055]

Most of us investors would have 5 or 6 shares of voo or spy at the rate it is now I don’t see myself retiring with the price of 455 a share I’d rather have dividend stocks at-least its a guaranteed rate of return

[@saiyanman]

Sorry if this is a stupid question but is it still a good idea to invest in VOO in your late 40s?

[@ActiveDutyRealtor]

What about SCHG? For Roth IRA account?

[@pregan66]

A very, very larger thing you guys missed is something called volatility. When comparing VOO and SCHD over say the last 10 years, VOO worst year performance is -18.19% compared to SCHD's -7.47%. I think there are TONS of people who will take the 11.77% CAGR over VOOs 12.84% CAGR. I mean you don't have to sweat out those 20% down years for crying out loud.

[@JC-gw4jl]

When u guys are responding, who's -GC and -AP?

[@extremecarpetcleaning-wvwi86]

In retirement you can make 80,000 a year in dividends and pay 0 in taxes. If you are married of course but most people won't make 80,000 a year in retirement. Most people don't make that working.

[@masoncnc]

These guys are ignoring facts to start sh1t

[@extremecarpetcleaning-wvwi86]

Not to mention that qualified dividends are taxed at the 15 percent tax rate. But I do think voo in kicking its butt. But I like not selling anything to get income. I own both ETFS.

[@extremecarpetcleaning-wvwi86]

​@@masoncncI think its because in their tax bracket they are screwed but not everyone makes a million dollars a year. But I get why they don't like it. They are at the 35 percent tax rate.

[@Jpsantos94]

100% agree. I just commented about this. They are giving out the completely wrong tax information about SCHD.

[@extremecarpetcleaning-wvwi86]

@@Jpsantos94 it's hard for people to understand that most people are not rich and just making it. They grew up rich and probably think everyone makes over 200,000 a year. I grew up poor and think 100,000 and your rich. 😂🤣

[@SHORT-FRIDAYS]

ESPN BET debut Tuesday November 14th at 3 pm Eastern time; Disnney run up to $92 levels on Wednesday, the 15th

[@EverythingMoney]

Cool - GC

[@petervigna3579]

Splg is the best sp500 index imo

[@Beltanerlol]

You are not considering dividend growth nor DRIP at all…

[@nadruik9890]

Question Mo, these ETFs have only been around since the low interest QE period. What would be the future of these 2 ETFs in a period of high interest rates like Powell is attempting to achieve? Everyone has been trying to compare this time period to the 70s for a while now, so what happens in a lost decade scenario, I'm not sure if/when companies will ever get back to the revenue they got from the pandemic boom with all the money being thrown out. Even with the current continued stimi from all the Biden plans we still cant come close.

[@thesimpleinvestorIL]

age - 34, for now going to pick SCHD, for good feeling and motiviation. i wiil knownly paying X% for that :)

[@gimusk5667]

Dividends for life!

[@eh7599]

SCHD

[@paulrahman9170]

Great video, very informative. I actually have SCHD in my IRA and VTSAX for my 401k. VTSAX has also outperformed SCHD

[@EverythingMoney]

Thanks for the info! -GC

[@michaelhawksworth5507]

Dividends are like earring interest and if you are poor like me I need income as I do now own business like you. If you own a business you earn income and take some of it to pay yourself. If no dividends are paid must we sell a percentage of the stock to get cash? and the owners are subject to volatile market stock prices that we all now can be volatile even when the company earnings are growing and dividends are growing. Getting some income from Dividends is a good Income,e option and better inflation hedge than interest. Roth IRA is the best vehicle for getting Dividends. I disagree with you if income is needed. If no Income is needed like you then I understand your argument.

[@EverythingMoney]

Great stuff...thanks for sharing - GC

[@matthewdavis5588]

Can you do a similar one on a total index like VTI? Love the vids, guys!

[@EverythingMoney]

Thanks for the suggestion - GC

[@Nicebitoftucka]

Voo and VTI is pretty similar

[@TJunChuan]

Mo, Paul, Everything Money, just a small feedback on your video, I notice some of your recent videos have out of sync voice and video, this video is also a bit of out of sync.

[@EverythingMoney]

Thanks for the feedback - GC

[@mrandrewwong1712]

Disagree. If you are based overseas you are taxed differently. And you may have different objectives. For some, it might be to receive a regular dividend income which VOO doesn't provide as much and as frequently

[@JR03321]

I buy the fidelity fxiax only on my roth.

[@EverythingMoney]

Cool....thanks for follwoing us - GC

[@chashdeveloper]

in australia is pretty lucrative as we can get the tax credit on dividends

[@HaoweiZhang-rz1sg]

I will be very neutral about SCHD in IRA. It is futile to get SCHD in tax defered account unless you have retired. If you are young, it is best to get broad market in IRA. I highly doubt SCHD can beat the market in the long term. Those mature companies hand over the money to the shareholders so there is less room for them to grow faster in the future. I would use broad market as a backbone. Use small amount of money (aound 10 percent) to SCHD for value and dividend tilting. But I would use this in taxalble account. In the future, if I retired, I can simply convert half of broad market into schd in IRA without paying any taxes.

[@shawnoneil2119]

I like both

[@EverythingMoney]

Nice one - GC

[@alejandromartinez-e8l]

S&PY all the way!

[@EverythingMoney]

Thanks for leaving a comment .AP

[@torchy187]

SPY is beating SCHD by over 23% this year.....

[@travistarr9433]

VTI til I die

[@JohnSmith-gz5pm]

YES! It is one of the best ETF’s out there. Tried and true LONG TERM performance, low cost ETF. Add in the dividends and it’s smooth sailing! 😎

[@torchy187]

“Vast majority of the time VOO outperforms SCHD”

[@Alumnikiid]

Agreed, plus with double the divided of VOO. You have more money to reinvest every quarter. Specially when markets have been sideways. Like the past 2 years.

[@JohnSmith-gz5pm]

@@torchy187 From 2011 (when SCHD launched) to 2023, SCHD performance was 11.77% with a dividend of 3.85% 😁. VOO performance during that time was 12.84% with a 1.62% dividend. When you take SCHD’s comparable performance during that time (a difference of 1.07%) and you add in its dividend of 3.85% (with SCHD being 2.23% higher than VOO), it comes out ahead of VOO. Having both of these EXCELLENT ETF’s in your portfolio would do wonders for wealth building. You have the power of the market along with the comparable performance of the best dividend stocks and a higher dividend yield.

[@EverythingMoney]

Ok...thanks for the note - GC

[@brittneynichole420]

VTI has been outperfroming both VOO AND SCHD

[@dancingdiamondsjewellersltd]

I got a charles schwab brokerage account also have the charles schwab stock for a while 🖊📃🇺🇸🔋💎

[@EverythingMoney]

Nice one - GC

[@AJohnson0325]

I’m doing mostly VIG currently. The performance of schd hasn’t been that great lately and I like the core holdings of VIG better. You can’t expect the future to be exactly like the past. I still have a bunch of schd. I’m just not selling or adding to it.

[@EverythingMoney]

Great stuff...thanks for following us - GC

[@torchy187]

The clear facts show S&P 500 beating SCHD. Thank you for showing this video.

[@EverythingMoney]

Glad you liked it! -GC

[@torchy187]

Love this video and agree that I’d rather have higher total returns vs dividends.

[@EverythingMoney]

Absolutely - GC

[@makingmoneywithmj7752]

In Australia we have a system in place to stop the double taxation. It's called franking credits. You can get a portfolio that's 100% franked & not pay any taxes on it.

[@EverythingMoney]

That's very nice .AP

[@torchy187]

SCHD can help you trail the S&P 500 by over 50% since SCHDs inception 😂

[@Alumnikiid]

SCHD is for income not growth.

[@torchy187]

@@Alumnikiid you get both with SPY. Many of SCHDs holdings are also in SPY. SPY also pays dividends but I don’t use them for income yet, I reinvest them.

[@EverythingMoney]

Cool...thnaks for sharing - GC

[@Nicebitoftucka]

​@@Alumnikiidso why wouldn't you want to buy something that grows more and you can just sell it when you need the income? I invest in SCHD but i have way more QQQM and VOO because it doesn't make sense to me to make less money overall

[@NateBro]

Is that with dividends reinvested?

[@AverageGamervods]

Voo is clearly better….. which one you gonna invest in? Xd

[@EverythingMoney]

Nice one - GC

[@Nickbasso4]

I agree dividend culture is foolish. You should analyze a company and invest in the companies that you like, and if they happen to pay a dividend then that is awesome. But do not chase dividends because if you do you will lose money by investing in bad companies just because they pay a high dividend.

[@EverythingMoney]

Well said .AP

[@zentravel1515]

Buffett, Dalio, Lynch and numerous other investing wizards advocate doing what others are not. Me looking around and seeing everyone buying SCHD hand over fist. I think I'll do otherwise.

[@EverythingMoney]

Good mindset - GC

[@bluesea1110]

VYM 30% my portfolio bro. Only 400 million outstanding shares not too late to the games 🛫🛫🍺🍺. VOO for the wealthy not for regular people like you and me 🛬🛬😭😭🛬🛬🛫🛫☕️🎶🍺🍺

[@EverythingMoney]

Okay... - GC

[@RafetMert-qs3kw]

The wisest thought that is in everyone's minds today is to invest in different income flows that do not depend on the government, especially with the current economic crisis around the worldRetirement doesn't come with a specific requirement, people need to understand that having a right retirement plan is ideal and can help build a financial fortitude. Also, having a financial counsellor that will guide you through every process would be good, not just any expert but a very good one!

[@resipsaloquitur1775]

SCHD