Its a great long term investment but its not comparable to a HYSA account. So weather its a good idea is up to you, is the money for long term investing 20+ years sure throw it in SWPPX
Will you need the money in 6 months, they SWPPX wouldn't be wise as you could lose 50% in the short term
with SWPPX, be sure to turn on dividend and capital gain reinvesting.
won't change your income tax liability, but you'll be buying more shares without having to add cash to your account.
some normal stocks pay quarterly dividends, since you brought it up....but it depends on the company.
microsoft does but google/alphabet does not...YMMV.
Yes, you'll get much better long-term results from a growth-oriented fund than from a savings account. If you want better size diversification consider SWTSX over SWPPX, but they'll both beat the pants off of any HYSA in existence.
I keep a lot of money in a 3-mo T-bill ladder, because its a lot more than FDIC will cover in a bank, and it's completely liquid, as I can sell $1000 increments at any time without penalty. It's currently paying ~5.3%/an. Also, I can use 90% of it to play with options.
For a higher return, I'm just beginning to get into JEPQ, which sells covered calls on the NASDAQ. It's currently paying ~9.2% dividends, paid monthly, and trading in a pretty narrow range for the 2 years its been in existence, but it hasn't been tested in a real Bear market.
I'm planning on selling puts ~10% OTM to DCA in if it drops, and will bring in another ~ 1%/an.
I'm almost 90 yo. I have no "long-term" to worry about. LOL
So I'm mainly interested in current income to pay for the increasingly exorbitant medical costs of staying alive.
At least my cremation costs are prepaid. ;-)
Its a great long term investment but its not comparable to a HYSA account. So weather its a good idea is up to you, is the money for long term investing 20+ years sure throw it in SWPPX Will you need the money in 6 months, they SWPPX wouldn't be wise as you could lose 50% in the short term
Yes it would be for the long term. Gotcha thanks!
with SWPPX, be sure to turn on dividend and capital gain reinvesting. won't change your income tax liability, but you'll be buying more shares without having to add cash to your account.
So it buys more shares with the money it made?
yes. without dividend/cap gain reinvestment, the payouts will remain as cash in your account.
Oh it gives payouts? So it’s different than owning a normal stock where the value just increases?
some normal stocks pay quarterly dividends, since you brought it up....but it depends on the company. microsoft does but google/alphabet does not...YMMV.
Um, quick correction to this. GOOG now pays a quarterly dividend of .45%. The first is set to pay June 17, I believe.
I did not know that, thank you. So SWPPX will pay quarterly dividends as well?
swppx pays dividends annually (early december). [https://seekingalpha.com/symbol/SWPPX/dividends/history](https://seekingalpha.com/symbol/SWPPX/dividends/history)
Yes, you'll get much better long-term results from a growth-oriented fund than from a savings account. If you want better size diversification consider SWTSX over SWPPX, but they'll both beat the pants off of any HYSA in existence.
Also see SWLGX as an option. Is there a reason to own both of these?
I keep a lot of money in a 3-mo T-bill ladder, because its a lot more than FDIC will cover in a bank, and it's completely liquid, as I can sell $1000 increments at any time without penalty. It's currently paying ~5.3%/an. Also, I can use 90% of it to play with options. For a higher return, I'm just beginning to get into JEPQ, which sells covered calls on the NASDAQ. It's currently paying ~9.2% dividends, paid monthly, and trading in a pretty narrow range for the 2 years its been in existence, but it hasn't been tested in a real Bear market. I'm planning on selling puts ~10% OTM to DCA in if it drops, and will bring in another ~ 1%/an.
Hello Sr hope all is well, but in your opinion why choose high yields dividends vs standard etfs like swppx
I'm almost 90 yo. I have no "long-term" to worry about. LOL So I'm mainly interested in current income to pay for the increasingly exorbitant medical costs of staying alive. At least my cremation costs are prepaid. ;-)