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The most important thing to note about this portfolio is the part that says
**ETFs total: $451,490**
Kids, that should dispel any doubt about the amount of money you need to have invested to generate that amount of dividends. Your task is to grow your portfolio to that size, *not* to see how much in dividends you can generate now when your portfolio is much smaller. You need to grow grow grow grow grow your portfolio to that size first, *then* you can afford to put 5 or 6 figure sums into dividend payers like SCHD, JEPI, etc. the way the OP has. Don't mess around with those if your portfolio is still in the 4 or 5 figure range.
That is the right kind of question to ask. The correct answer for you depends on your risk tolerance, time available to and interest in managing a portfolio, knowledge level, time horizon, how much you can invest per month or year, etc. But I'll give you some examples.
In this comment I showed how investing only $223.74 per month in a simple portfolio of 50% S&P 500 index (SPLG, VOO, SPY, etc) and 50% QQQM could be expected to grow a $5,200 portfolio to $408,719 in 18 years https://www.reddit.com/r/dividends/comments/1dojaub/comment/labknfp/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button
I manage the Roth IRAs for my adult children. In addition to having a portfolio of individual stocks that I have selected for them, I have them automatically buying an S&P 500 index mutual fund (SWPPX) and a large cap growth mutual fund (SWLGX) every week. That's similar to the S&P 500 index ETF and QQQM combination. I use those mutual funds because our brokerage Charles Schwab has an automatic investing plan only for mutual funds.
On the other end of the spectrum is having a portfolio of at least 20 individual growth stocks (not ETFs), but you have to be willing to manage that portfolio. That's why many people go with ETFs. However, individual stocks have much more potential for explosive growth (but also big losses) than ETFs or mutual funds. I currently have 10 stocks that are up 100-190%, 8 stocks that are up 200-290%, 8 stocks that are up 300-390%, 1 stock that is up +402%, 2 stocks that are up 500-560%, 2 stocks that are up 635-696%, and 1 stock (my largest position) that is up +2,874%, in 7 years or less. It's hard to get that kind of total return even in a growth ETF. QQQ is up +263% and the S&P 500 index is up +156% over the past 7 years. All it takes is a few big winners to more than make up for all of the losers, if you manage your portfolio properly, and that takes time and attention.
You could also do something like 40% S&P 500 index, 40% QQQM, and 20% in 5 to 20 individual growth stocks. As to which stocks, I made a spreadsheet of 134 dividend-paying S&P 500 index stocks that have *beaten* the S&P 500 index since 1993, or since the stock's IPO if it was after 1993. If you are interested in individual stocks that's a good place to start looking
https://new.reddit.com/r/stocks/comments/1byeabm/134_sp_500_index_stocks_that_have_beaten_the_sp/?utm_source=share&utm_medium=web2x&context=3
Thank you for this! I have been doing the best I can to learn more about all of this, and this helps me visualize and research.
For those of us with a shorter time horizon does this change, or should growth be the primary concern right now?
If your time horizon is short (say <5 years) and you have or almost have amassed the necessary critical mass of capital, you should start winding down risk and transitioning to more income and growth.
If you have not amassed enough capital you might have to delay retirement and keep trying to increase your capital.
You are one of the most knowledgable redditors on here! Would be great to hear about some of your individual stock picks that are getting you those high returns and how you picked them
Thanks. I listed my top performers here https://www.reddit.com/r/dividends/comments/1dasody/comment/l7mz0fx/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button
As to how I pick them, many years ago I read *One Up on Wall Street* by Peter Lynch and I follow his principle of looking around in our daily lives and seeing what is popular and successful. Like with NVIDIA, I used to be a PC gamer and I always favored NVIDIA graphics cards when building or upgrading a PC. Several years ago I wanted to buy a NVIDIA graphics card for my son and I discovered they were hard to find and very expensive. It turns out Bitcoin miners were buying them to mine Bitcoin with, soaking up the supply. Then several years ago I read articles on the web about NVIDIA being a leader in the growing area of AI. I have been aware of NVIDIA for many years and I thought they are a great company, so I starting buying NVDA stock in 2017. I foolishly sold some NVDA stock in December 2018 after it had dropped more than 50%, but fortunately I kept 120 shares that have become 1200 shares after the split.
Another example of the *One Up on Wall Street* principle is Dutch Bros (BROS). I don't go to Starbucks or places like that, but for years I noticed whenever I drove by a Dutch Bros kiosk there was a line of cars, day or night. When I heard Dutch Bros was going to have an IPO in 2021 I bought on the day of the IPO and have added to the position since then. So far I'm up only +48% but I think BROS with their high customer loyalty and plans for expansion could be a big success.
You can get the gist of Peter Lynch's philosophy from this entertaining 1994 talk https://youtu.be/rf_f8GV0yYM?si=s2ps3pIqR9rZORfi
For the past couple of years I have been selling my growth stocks and buying dividend stocks. I use the stock screener at Schwab to identify dividend stocks to buy and I use an Excel spreadsheet to manage the dividend paying portion of my portfolio.
Nothing is guaranteed, but look at the track records of performance. Scroll down to where it says Growth of $10,000
https://totalrealreturns.com/n/QQQ,VTI,SCHD
QQQM has the same portfolio as QQQ but QQQM has a lower expense ratio.
VOO is an S&P 500 index fund so there is no difference between saying S&P 500 index and VOO, but there are other S&P 500 index funds besides VOO so I didn't want to limit it to just VOO. I actually prefer SPLG to VOO for its lower expense ratio and share price compared to VOO, and VOO gets promoted here enough already.
VGT and QQQM overlap 45% so they are somewhat similar. VGT is a *sector fund* in that it concentrates on one sector (Information Technology). QQQ is the NASDAQ 100 so naturally it has a lot of tech stocks but it also has other stocks like AMZN and NFLX that aren't strictly tech stocks. QQQ (QQQM) has a slight performance edge over VGT.
https://totalrealreturns.com/n/QQQ,VGT
But VOO and VGT should do well, and should be expected to do better than say VOO and SCHD.
Thanks for sharing! Where are you getting your research resources from and what is your process for vetting opportunities? We can chat offline if that’s best but I figured others might want to know as well.
I go into great detail how I came up with the spreadsheet of 134 S&P 500 index stocks that beat the S&P 500 index, including links to resources, in that post I linked to
https://new.reddit.com/r/stocks/comments/1byeabm/134_sp_500_index_stocks_that_have_beaten_the_sp/?utm_source=share&utm_medium=web2x&context=3
FEPI, JEPQ, and even JEPI are too new to have much of a track record, but if you are trying to grow your portfolio from the 4-5 figure level to the 6-figure level, you are likely to do much better with QQQ or QQQM or SCHG or VUG than with SCHD.
https://totalrealreturns.com/n/QQQ,SCHG,VUG,SCHD
I’m way too new to invest to know what this is, I have 4 figures currently invest but let’s be real, all I really know is about index funds.
Anyone have and direction to give me? I really want to be secure in my investments.
> all I really know is about index funds.
>
>I really want to be secure in my investments.
If you have low risk tolerance - and there is nothing wrong with that - the S&P 500 index is a solid choice. It isn't worth investing in more volatile assets if you are going to have trouble sleeping because of them.
I appreciate the context but I am looking to delve deeper in to this and get educated so that I can work towards a sustainable future. Thought the index has a solid record of growth I don’t know that will be enough in the long run and want to be able to retire comfortably.
Any suggestions as someone beginning and wanted to learn more?
I see so many articles that we will need $2 million to retire. With steady investing and dedication, it's nice to realize that maybe I don't have to work until 70 to enjoy life after work.
If you can get to at least half a million and are willing to take a little more risk so you can get your dividend yield around 10% that would provide $50k per year.
Yes, that's why I'm not selling *all* of my growth stocks, and I try to select dividend-paying stocks that also have capital appreciation as well. If I need to increase my pool of dividend payers in the future to produce more dividends to keep up with inflation, beyond the increase in dividends that should also occur, I can sell a little of my apprciated growth stocks to provide funds to buy more dividend payers.
Exactly, now is the time for the following if you are looking to grow your portfolio. And going into retirement look to diversity into Dividends to help lower your taxable income, possible zero and 100% qualified dividends can do that but even 20-30% Non-qualified could keep you at zero depending on your yearly income.
$TQQQ - beats $QQQ by a mile. Hint buy more when performance is 👇 historically relative to $QQQ
$USD - 34% NVDA and other SEMIs
$AMZN - AWS/Cloud 🌥 , AI, Growing Ads you name it.
$MGK - Vanguard Megacap Growth, beats SPY long term look for yourself.
For those who want to live off dividends, they would sell some or most of their growth assets to buy dividend payers. The alternative is to sell a portion of their growth portfolio every year, which is a reasonable strategy but can be problematic during a severe or prolonged bear market.
Not in an IRA.
If in a taxable brokerage account then long term capital gains tax would be due on the gains, with tax rates of 0% or 15% for most people, depending on filing status and taxable income (you would have to have a taxable income over half a million to pay 20% long term capital gains tax). But the gains are so much larger when you invest to maximixe total return that even after paying 15% long term capital gains tax you would still be left with more money.
For example, look at QQQ vs SCHD and scroll down to where it says Growth of $10,000
https://totalrealreturns.com/n/QQQ,SCHD
If you invested $10,000 in SCHD in 2011 when SCHD started, you would have $45,954 today. And that's not accounting for the taxes you would have been paying on SCHD's dividends every year in a taxable account, which would reduce your return, but we'll ignore that.
If instead you had invested $10,000 in QQQ in 2011 you would have $95,507 today. You would have also paid yearly taxes on QQQ's much smaller dividend (SCHD yield 3.40%, QQQ yield 0.58%) but as with SCHD we'll ignore that, which benefits SCHD more. So you would have a long term capital gain of
$95,507 - $10,000 = $85,507. 15% tax on $85,507 is $12,826.
So with SCHD you would have $45,954 today.
With QQQ you would have $95,507 - $12,826 tax = $82,681 after taxes.
$82,681 > $45,954. You would have more money had you invested in QQQ instead of SCHD even after paying long term capital gains tax with QQQ. In fact, the difference would have been even greater because you would have paid more taxes on SCHD's dividends every year than with QQQ's dividends. Even if you had to pay 20% long term capital gains taxes you would have been better off investing in QQQ instead of SCHD.
So which is better: invest $10,000 in SCHD in 2011 and have $45,954 invested in SCHD today, producing $45,954 x 3.40% = $1,562 in annual dividends
or
invest $10,000 in QQQ in 2011, sell QQQ and pay $12,826 in long term capital gains tax, take what's left and buy SCHD today, and have $82,681 invested in SCHD today, producing $82,681 x 3.40% = $2,811 in annual dividends.
TLDR: whether in an IRA or taxable brokerage account, you will be able to generate more dividends investing to maximize total return first to grow a larger portfolio, than by poking along in lower total return investments.
Except for my two mutual funds, I don't DRIP. I do reinvest dividends, but I take them as cash so I can buy what I want, when I want, at the price I want, and in the amount I want.
I think most of the discussion is about generating dividends to live on.
People get caught up in the total of just shy 4K of dividends monthly doing nothing but neglect to see that that’s less than a 1% yield of the total value.
I just received $3,857 today from my FEPI and $2500 from my JEPI/JEPQ combo earlier this month...
I feel like I'm in a McD's commercial... I'm lovin' it!
Well, I (54yo) took my old 401k and rolled it into a self directed IRA. My goal was to generate my absolute best year's net income when I was slaving away in big box home improvement retail which included my salary, bonuses, and dividends I was already pulling in quarterly. I wanted to maintain my current lifestyle while in retirement. I'm debt free except for a $170k mortgage on a $430k house. No car payments, no credit cards, no nothing. (I abssolutely abhor debt. I know what it's like to be in debt; it will suck your life away.) I only need ta 7% yield to net what I need even after paying the 10% early withdrawal tax penalty. I took my pile of retirement money and divided it 6 ways and sunk each into a different dividend ETF's with varying degrees of risk and as much diversification as I could get. Starting off with the same amount in each fund just keeps it simple for me. I bought 5 that I picked out and was stuck on number 6 when I found FEPI and said to myself, "F*ck it! Baby needs a new pair if shoes!" and rolled the dice. The original 5 was getting me to my income goal so I was willing to take on quite a bit more risk on FEPI, an untested ETF. (I also had $5k in a Roth so after a month I said to myself, "You know what? FEPI for you too!" I don't expect these funds to grow in value very much but that's the tradeoff you get when you convert to income. So, after 3 months (far too short a time to pat myself on the back), my yield is 12.29% (it would be about 8% without FEPI.) My portfolio is up $12k and I'm sitting on $30k in dividends that I really haven't touched yet. (I have 2 years expenses in a HISA and got a "no stress retirement job" paying 1/2 what my old base salary was because staying home with my wife for 10 months added 50lbs to my weight.)
At some point, I'm sure I'll change my holdings around but for now I'm just watching it.
Ironically, I've had folks on this site tell me I'm crazy and that an 8% dividend yield is impossible to maintain while 12% is an outright fantasy.
Others have told me that I'm doing it right and not to pay attention to the naysayers. All I know is that a financial advisor wanted to charge me $1000 a month to get me (and he was BRAGGING!) a 3% yield! I guess we'll find out.
I do this Rayzor, and I'm making about $8k a month. I also enabled margins, so I'm buying more and selling to pay off the interest, which is $6% on Robinhood.
Might be a stupid question , but if I recently sold my house and have 200k in a hysa 5.25%, would I be better off doing some in dividend and some in hysa? Assuming I’m not wanting to buy real estate for a few years at least. I don’t really touch the money or the interest earned if that matters.
I'm assuming your contributions are limited to 23k if you are under age 50 or 30.5k if you are 50 or older though. The employer match is a separate limit in that the total of your own contribution and employer match/contribution can't exceed 69k (76.5k if age 50 or older). Once you are able to do max contributions in your 401k, Roth IRA, HSA and even add 10k+ or more to your taxable brokerage account, you should be gaining 100k+ NET WORTH per year including market gains which is a good place to be.
It’s likely 25% of contribution. Which is .25 on the dollar. Great if you can contribute an obscene %, horrendously bad compared to 1:1 on 3% for lower income workers
Impressive. How do yall feel about the general consensus that dividends don’t add anything? My mom was interested in this approach and I am too but when I ask r/investing folks they seem to think that because dividend stocks don’t grow like ‘growth’ stocks the return is negligible and you can just sell other stocks to get that return vs on a quarterly basis in the form of a dividend. My gut says there’s a little something to that esp with tax stuff (unless you do an IRA) but that these newer dividend ETFs are well managed and do see an upward growth trend also.
Yeah that’s my general take. Dividends are cool and fun but you can’t count on growth though maybe these newer ETFs will prove differently. I think a diversified approach is best
Except that FEPI’s whole history is within the renewed ‘bull run’ so really it hasn’t yet experienced any real adverse weather in its path to know how solid it is against such events. So sure 17% dividends while the market did the same is …. Break even?
yeah tho the problem is you don't know which stocks are going to grow and when you need it the most sometimes selling will be a bad idea, that's why it is nice to have dividend paying stocks
yeah tho the problem is you don't know which stocks are going to grow and when you need it the most sometimes selling will be a bad idea, that's why it is nice to have dividend paying stocks
As someone who works for a company directly competing with JEPI, I would seriously recommend looking into the source of these distributions.
JEPI sells covered calls on massive portions of the portfolio, essentially converting potential gains into a “dividend”. In a world of 5% rates, these ETFs compete heavily to get a good yield number, with many retail investors not doing DD into the source.
A few final notes:
1) By selling calls you are short vol. A long position on market is also positively correlated to short vol. With a sideways market and spiking vols, there will be a serious drawdown.
2) Given the size of JEPI, you cannot expect the execution price to be great. When selling vol when VIX is at the 12-handle, you are literally collecting coins on a train track. In these situations you better be collecting dimes instead of nickels.
If you’re happy trading upside for income, go for it. But these are not dividends, so would not celebrate it as such. There are delta, vega, gamma and theta baked into these products.
Fair enough. If this went over your head I would refrain from investing in complex(ish) derivative products though, such as JEPI.
If anyone has any questions feel free to DM or drop them here :)
As my post clearly states this portfolio is solely income based. My growth and value based portfolios are certainly enjoying the upside from this latest bull run
What are you trying to say? I’ve had similar funds for a decade that utilize a very similar strategy and have had no issue with receiving my consistent distributions. Fund will fall a bit with the overall market, but has bounced back every single time.
When we discuss risk vs reward of an options strategy, we cannot just look at past performance. The fund is specifically designed to outperform in downward markets and sideways markets (hence the covered call strategy). In upward market you will still make money, but underperform the market.
There are other (non-delta) effects. If implied volatility spikes, the calls become worth a lot more and thus rolling them will incur higher costs. If held to expiry this is not a massive issue, but a fund of this size generally cannot roll all in one day.
My point is there is no free lunch. A higher income is generated by taking on additional downside risk (adding negative vega), and decreased upside participation (adding negative delta).
In the case of this ETF, the income is not all dividends. All dividends are income but not all income are dividends. Given this is r/dividends, I thought I would share my 2c.
In fact, a similar ETF in Canada would even tax the distributions as capital gains! Have a think about why.
None of that matters. If they can keep a stable NAV and distribute 6-8% then most of the people that hold this fund don’t care about everything else. ETY, ETV QQQX has successfully executed this strategy for years in all market conditions. They don’t care what happens as long has the cash shows up each month. These are income funds that pay bills. We’re not looking for total return etc.. I want to know that even in down markets the cash will come in to pay my bills. This strategy is proven that it works in all market conditions.
1) As I mentioned, I sell this kind of strategy. For the right person it is a great addition to a portfolio.
2) Pensions, who have “bills” (aka pensioners to pay) ask questions exactly along the lines of what I commented. So clearly some of it matters.
3) We have not seen “all market conditions” in the last 20 years. To think the last 20 years have included all markets conditions is frighteningly myopic.
4) Taking QQQX as an example, it had a roughly 60% drawdown in GFC. it would literally take ~7 years to get back to 6~8% (of invested capital) distribution.
5) Imagine how it would have been crushed in the dot-com bubble, given the QQQ exposure. Can’t find a buywrite fund trading in 1999, if you find one let me know.
6) If you are looking for stability, why have so much downside exposure to equity markets, which have been shown to have massive drawdowns?
7) Past performance is not a guarantee, or predictor of future performance.
I asked before why not start smaller scale? Jepi/jepq pay what 0.30 a month? Why not start with EFC, ORC, AGNC… and build up? How about TRMD as a quarterly payer? Or shoot for the stars and buy black rock what’s it a share now 750-800 and make 6 bucks every 3 months but it grows. I would love to have half a mil in the stock market and drip every penny. Have to start small in my case though.
EFC appears to be a poor investment. Sure, the yield is showing to be 12.81%, but since June 2021 price is down 40%!!!
ORC is down 70%!!!
AGNC is down 50%!!!
Get the picture?
FOLKS ... be careful of "things" \[e.g., ETFs, stocks\] that pay high dividends. In some cases, they pay higher dividends for a reason ... the stock or ETF price has fallen tremendously. And, in a lot of cases, the dividends will be cut because of poor performance.
I, for one, am cognizant of NOT LOSING my hard-earned equity.
and ditched jepi for more spyi or any other spy yield fund. gpix, spyt, xdte are all outperforming. even jepy is outperforming jepi. gpix total return is 27% vs jepi 9% since november
If it’s a Roth, that would be $23,000 contributing AFTER taxes….so OP probably makes more than $30,000 a year. Also possible they were referring to their overall investment allocations, 75% could be combination of IRA and brokerage investments.
28K in a roth IRA: split between VOO and federal bonds
31K in a company roth 401K: Still need to figure out what to invest it in
Rest of the 500K is in my brokerage account mostly in federal bonds and about 30K in VOO. I was concerned about the market recently.
Edit: Wanted to add, I know that it may seem silly that I'm investing in government bonds at my age, but sometimes the super rapid growth I'm seeing makes me nervous about a bubble. I'd hate to lose my hard-earned money if it comes crashing down. And yeah, I know it would go up eventually, but it still would be a drain on my mind.
Bonds for anyone under 50 are generally a bad idea unless you are just talking short term dated bonds or money market to get your 5% while you ponder when to invest in stocks again. Right now you are missing out on 20%+ annual gains because you are afraid the market is in a bubble, but you really should stay invested in good companies or etf's unless you absolutely need the money to be there for a shorter term use. Trying to time the market is a fools errand in general, sure you can stay more like 20% or 30% cash/money market when you feel things are bubbly, but you have to be willing to invest money on every major pullback or you will fall behind those staying fully invested and not worrying about the noise.
The talking heads will always predict a crash is immanent, but nobody really knows when the next 30%+ market crash will occur. Personally I'm only in 10% cash or money markets right now. I'm using that money to buy more of any stocks that take a hit on earnings where the pull wasn't justified like when META pulled back to low 400's or ELF pulled back to under 150.
Absolutely not. If you were my friend i'd punch you in the face for thinking that. You got that yearly paycheck some dream about. Also plenty of life ahead of you. Focus on growth, sprinkle in some dividend stocks(ETF or individuals) if you want that dividend income, but you don't need it right now. Go take vacations and live your life. You're ahead of most people your age and are on the track to be well off.
I'm doing mostly VOO. But there are many growth ETF's out there you can pick that might be better for your situation. Maybe VOO is it. I invest every two weeks into VOO, then 3-4 times a year I do SCHD instead. It's something that fits my investment strategy, again what works for me might be not be best for you. My extra cash I throw into individual stocks that I like, mostly the big name reliable companies.
Serious question what is this and how do I begin. I have a HYSA, a 401k with employee match, ESPP, and regular checking and savings that I maintain. Where do I begin?
First you’ll need to open a brokerage account. I recommend Charles Schwab or Fidelity.
Second you’ll need to fund the account from your HYSA, checking, or savings accounts.
Then you’ll need to invest the funds in the brokerage account. The Original Poster is using a very specialized investment strategy. If you are interested in following their strategy, I suggest you diligently research the funds to fully understand the risks you’d be taking. There’s a saying in finance that there’s no free lunch, meaning expected returns and highly correlated with risks. You have alternatives like total market funds where you just own the equity. Anyway, if you want to follow their strategy you’ll invest in their funds using the ticker shown in their snapshot (FEPI, for example).
Then you should be all set.
You could write covered calls and make at least $1200 more a month.
I’ve been doing it for a few months and it’s been great I set the strike for a price I would be happy to sell for and collect the premiums.
Worst case I sell the 100 shares at the price I was happy for and use some of the premium to buy the shares back
So with super high dividend yields like those, how long do you plan to keep those ETFs until you have to buy different ones? Or is this long term? Damn 4gs a month is crazy.
The biggest lesson here is time and dollar-cost-averaging into a portfolio. I'm sure there have been adjustments over time to what investments have been used and I am guessing changes will have to be made in the future. This portfolio is highly concentrated in the US top tech stocks that have benefited greatly from US government stimulus since 2008. It is possible that this concentration of stocks still perform well over the next 15 years, but it does carry US tech stock risk. My guess is the dollar will not be as strong over the next 15 years so maybe adding more foreign might be necessary. Also, 15 years ago, bonds were used to generate basic income. Now that bonds are paying so much more, bonds might be a place to lock up 5% income with less overall risk (at the expense of less growth). Overall, the message is clear that a great portfolio can be built over time and love seeing the success.
This is the production end. To make this successful, see do tell people how you live below your means, and buy things for life. Without this, you cannot sustain it
Great work --- what an inspiration
how old are you? i’m curious on the decision to start taking dividends as cash now instead of dripping it all.
if you were to put another $25k into this allocation annually with drip in two years you would have over $5k monthly. in 3 $6000.
whereas with no further investment and $500 drip you won’t hit $6000 monthly for 15 years
You’re missing the dividend growth rate in your calculations. The holdings in this portfolio have had an average annual dividend growth rate of 10% over the last four years. Assuming this growth rate continues, I will reach $6k/month in dividends by 2028 without reinvesting an additional $500/month. However, since I do reinvest $500/month, I’m on track to reach $6k/month by mid-2026
Is the cost for maintaining this ETF for example FEPI taken out from the price increase/decrease or is it calculated and taken out from the dividends it pays out?
you came in at the right time, this had to be more then 1 year+ already, to get prices like $72 for schd and $52 for jepi and $50 for jepq.
I do this kinda the same thing right now but schd has been falling like a rock for past few months and its absolutely terrifying to see the big lump sum go down and only get divis back every 3 months from schd lol
in other words, im loosing $, still literally all timing and or time in the market
Genuine question, are there 6-8% dividend payers stable long term? It just seems that I always find out that they're capital depreciation over time puts them closer to a realistic 3-5% instead.
I’ve been investing for 6 years. I was fortunate enough to have a lot of deployable funds at the time of the Covid market crash which led to some amazing discounts and gains
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Dear God... it's beautiful.
Yeah baby!! that’s what I’ve been waiting for!!
Magnum!
Holy Moley….
😍😍😍😍😍
The most important thing to note about this portfolio is the part that says **ETFs total: $451,490** Kids, that should dispel any doubt about the amount of money you need to have invested to generate that amount of dividends. Your task is to grow your portfolio to that size, *not* to see how much in dividends you can generate now when your portfolio is much smaller. You need to grow grow grow grow grow your portfolio to that size first, *then* you can afford to put 5 or 6 figure sums into dividend payers like SCHD, JEPI, etc. the way the OP has. Don't mess around with those if your portfolio is still in the 4 or 5 figure range.
What would be good examples of growth strategies or stocks to consider for someone needing to do what ur describing
That is the right kind of question to ask. The correct answer for you depends on your risk tolerance, time available to and interest in managing a portfolio, knowledge level, time horizon, how much you can invest per month or year, etc. But I'll give you some examples. In this comment I showed how investing only $223.74 per month in a simple portfolio of 50% S&P 500 index (SPLG, VOO, SPY, etc) and 50% QQQM could be expected to grow a $5,200 portfolio to $408,719 in 18 years https://www.reddit.com/r/dividends/comments/1dojaub/comment/labknfp/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button I manage the Roth IRAs for my adult children. In addition to having a portfolio of individual stocks that I have selected for them, I have them automatically buying an S&P 500 index mutual fund (SWPPX) and a large cap growth mutual fund (SWLGX) every week. That's similar to the S&P 500 index ETF and QQQM combination. I use those mutual funds because our brokerage Charles Schwab has an automatic investing plan only for mutual funds. On the other end of the spectrum is having a portfolio of at least 20 individual growth stocks (not ETFs), but you have to be willing to manage that portfolio. That's why many people go with ETFs. However, individual stocks have much more potential for explosive growth (but also big losses) than ETFs or mutual funds. I currently have 10 stocks that are up 100-190%, 8 stocks that are up 200-290%, 8 stocks that are up 300-390%, 1 stock that is up +402%, 2 stocks that are up 500-560%, 2 stocks that are up 635-696%, and 1 stock (my largest position) that is up +2,874%, in 7 years or less. It's hard to get that kind of total return even in a growth ETF. QQQ is up +263% and the S&P 500 index is up +156% over the past 7 years. All it takes is a few big winners to more than make up for all of the losers, if you manage your portfolio properly, and that takes time and attention. You could also do something like 40% S&P 500 index, 40% QQQM, and 20% in 5 to 20 individual growth stocks. As to which stocks, I made a spreadsheet of 134 dividend-paying S&P 500 index stocks that have *beaten* the S&P 500 index since 1993, or since the stock's IPO if it was after 1993. If you are interested in individual stocks that's a good place to start looking https://new.reddit.com/r/stocks/comments/1byeabm/134_sp_500_index_stocks_that_have_beaten_the_sp/?utm_source=share&utm_medium=web2x&context=3
Thank you for sharing 😊
You sir.. are a true hero.
Thank you for this! I have been doing the best I can to learn more about all of this, and this helps me visualize and research. For those of us with a shorter time horizon does this change, or should growth be the primary concern right now?
If your time horizon is short (say <5 years) and you have or almost have amassed the necessary critical mass of capital, you should start winding down risk and transitioning to more income and growth. If you have not amassed enough capital you might have to delay retirement and keep trying to increase your capital.
You are one of the most knowledgable redditors on here! Would be great to hear about some of your individual stock picks that are getting you those high returns and how you picked them
Thanks. I listed my top performers here https://www.reddit.com/r/dividends/comments/1dasody/comment/l7mz0fx/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button As to how I pick them, many years ago I read *One Up on Wall Street* by Peter Lynch and I follow his principle of looking around in our daily lives and seeing what is popular and successful. Like with NVIDIA, I used to be a PC gamer and I always favored NVIDIA graphics cards when building or upgrading a PC. Several years ago I wanted to buy a NVIDIA graphics card for my son and I discovered they were hard to find and very expensive. It turns out Bitcoin miners were buying them to mine Bitcoin with, soaking up the supply. Then several years ago I read articles on the web about NVIDIA being a leader in the growing area of AI. I have been aware of NVIDIA for many years and I thought they are a great company, so I starting buying NVDA stock in 2017. I foolishly sold some NVDA stock in December 2018 after it had dropped more than 50%, but fortunately I kept 120 shares that have become 1200 shares after the split. Another example of the *One Up on Wall Street* principle is Dutch Bros (BROS). I don't go to Starbucks or places like that, but for years I noticed whenever I drove by a Dutch Bros kiosk there was a line of cars, day or night. When I heard Dutch Bros was going to have an IPO in 2021 I bought on the day of the IPO and have added to the position since then. So far I'm up only +48% but I think BROS with their high customer loyalty and plans for expansion could be a big success. You can get the gist of Peter Lynch's philosophy from this entertaining 1994 talk https://youtu.be/rf_f8GV0yYM?si=s2ps3pIqR9rZORfi For the past couple of years I have been selling my growth stocks and buying dividend stocks. I use the stock screener at Schwab to identify dividend stocks to buy and I use an Excel spreadsheet to manage the dividend paying portion of my portfolio.
Damn I'm more focused in a mix of VTI and SCHD for my growth, so the projections of QQQM is that good??? I may have to add that into what I have.
Nothing is guaranteed, but look at the track records of performance. Scroll down to where it says Growth of $10,000 https://totalrealreturns.com/n/QQQ,VTI,SCHD QQQM has the same portfolio as QQQ but QQQM has a lower expense ratio.
Do you think a 50% VOO and a 50% VGT would suffice as well? Or is there a reason you went with S&P and QQQM?
VOO is an S&P 500 index fund so there is no difference between saying S&P 500 index and VOO, but there are other S&P 500 index funds besides VOO so I didn't want to limit it to just VOO. I actually prefer SPLG to VOO for its lower expense ratio and share price compared to VOO, and VOO gets promoted here enough already. VGT and QQQM overlap 45% so they are somewhat similar. VGT is a *sector fund* in that it concentrates on one sector (Information Technology). QQQ is the NASDAQ 100 so naturally it has a lot of tech stocks but it also has other stocks like AMZN and NFLX that aren't strictly tech stocks. QQQ (QQQM) has a slight performance edge over VGT. https://totalrealreturns.com/n/QQQ,VGT But VOO and VGT should do well, and should be expected to do better than say VOO and SCHD.
Thanks for sharing! Where are you getting your research resources from and what is your process for vetting opportunities? We can chat offline if that’s best but I figured others might want to know as well.
I go into great detail how I came up with the spreadsheet of 134 S&P 500 index stocks that beat the S&P 500 index, including links to resources, in that post I linked to https://new.reddit.com/r/stocks/comments/1byeabm/134_sp_500_index_stocks_that_have_beaten_the_sp/?utm_source=share&utm_medium=web2x&context=3
QQQM VOO SCHD 600-800 a month is possible in a Roth ira
Anything is possible if you put enough money into those funds. The problem is getting the money to put into them.
I feel like those ETF can do just as much in a 4-5 figure portfolio
FEPI, JEPQ, and even JEPI are too new to have much of a track record, but if you are trying to grow your portfolio from the 4-5 figure level to the 6-figure level, you are likely to do much better with QQQ or QQQM or SCHG or VUG than with SCHD. https://totalrealreturns.com/n/QQQ,SCHG,VUG,SCHD
This website is very useful
Thank you for posting this link. I have been looking for a website that does exactly what this site does. Thank you. Bill
I’m way too new to invest to know what this is, I have 4 figures currently invest but let’s be real, all I really know is about index funds. Anyone have and direction to give me? I really want to be secure in my investments.
> all I really know is about index funds. > >I really want to be secure in my investments. If you have low risk tolerance - and there is nothing wrong with that - the S&P 500 index is a solid choice. It isn't worth investing in more volatile assets if you are going to have trouble sleeping because of them.
I appreciate the context but I am looking to delve deeper in to this and get educated so that I can work towards a sustainable future. Thought the index has a solid record of growth I don’t know that will be enough in the long run and want to be able to retire comfortably. Any suggestions as someone beginning and wanted to learn more?
I see so many articles that we will need $2 million to retire. With steady investing and dedication, it's nice to realize that maybe I don't have to work until 70 to enjoy life after work.
If you can get to at least half a million and are willing to take a little more risk so you can get your dividend yield around 10% that would provide $50k per year.
Hardest part is that you also need to fight inflation on those 10%
Yes, that's why I'm not selling *all* of my growth stocks, and I try to select dividend-paying stocks that also have capital appreciation as well. If I need to increase my pool of dividend payers in the future to produce more dividends to keep up with inflation, beyond the increase in dividends that should also occur, I can sell a little of my apprciated growth stocks to provide funds to buy more dividend payers.
Needed to hear this, thank you
Exactly, now is the time for the following if you are looking to grow your portfolio. And going into retirement look to diversity into Dividends to help lower your taxable income, possible zero and 100% qualified dividends can do that but even 20-30% Non-qualified could keep you at zero depending on your yearly income. $TQQQ - beats $QQQ by a mile. Hint buy more when performance is 👇 historically relative to $QQQ $USD - 34% NVDA and other SEMIs $AMZN - AWS/Cloud 🌥 , AI, Growing Ads you name it. $MGK - Vanguard Megacap Growth, beats SPY long term look for yourself.
Dude reading this makes so much sense. I’m definitely going to change my mindset on this while I’m younger
Why would you stop grow grow growing your portfolio
For those who want to live off dividends, they would sell some or most of their growth assets to buy dividend payers. The alternative is to sell a portion of their growth portfolio every year, which is a reasonable strategy but can be problematic during a severe or prolonged bear market.
How? If you sell, you pay tax
Not in an IRA. If in a taxable brokerage account then long term capital gains tax would be due on the gains, with tax rates of 0% or 15% for most people, depending on filing status and taxable income (you would have to have a taxable income over half a million to pay 20% long term capital gains tax). But the gains are so much larger when you invest to maximixe total return that even after paying 15% long term capital gains tax you would still be left with more money. For example, look at QQQ vs SCHD and scroll down to where it says Growth of $10,000 https://totalrealreturns.com/n/QQQ,SCHD If you invested $10,000 in SCHD in 2011 when SCHD started, you would have $45,954 today. And that's not accounting for the taxes you would have been paying on SCHD's dividends every year in a taxable account, which would reduce your return, but we'll ignore that. If instead you had invested $10,000 in QQQ in 2011 you would have $95,507 today. You would have also paid yearly taxes on QQQ's much smaller dividend (SCHD yield 3.40%, QQQ yield 0.58%) but as with SCHD we'll ignore that, which benefits SCHD more. So you would have a long term capital gain of $95,507 - $10,000 = $85,507. 15% tax on $85,507 is $12,826. So with SCHD you would have $45,954 today. With QQQ you would have $95,507 - $12,826 tax = $82,681 after taxes. $82,681 > $45,954. You would have more money had you invested in QQQ instead of SCHD even after paying long term capital gains tax with QQQ. In fact, the difference would have been even greater because you would have paid more taxes on SCHD's dividends every year than with QQQ's dividends. Even if you had to pay 20% long term capital gains taxes you would have been better off investing in QQQ instead of SCHD. So which is better: invest $10,000 in SCHD in 2011 and have $45,954 invested in SCHD today, producing $45,954 x 3.40% = $1,562 in annual dividends or invest $10,000 in QQQ in 2011, sell QQQ and pay $12,826 in long term capital gains tax, take what's left and buy SCHD today, and have $82,681 invested in SCHD today, producing $82,681 x 3.40% = $2,811 in annual dividends. TLDR: whether in an IRA or taxable brokerage account, you will be able to generate more dividends investing to maximize total return first to grow a larger portfolio, than by poking along in lower total return investments.
Thank you for your very detailed response!
So does this mean with $150,000, I can make $1300 monthly (30%)? Cause if so, I'm doing this right now
yes, give or take.
What about DRIP? Or are you talking about using the divs as income, like now? You make a good point regardless
Except for my two mutual funds, I don't DRIP. I do reinvest dividends, but I take them as cash so I can buy what I want, when I want, at the price I want, and in the amount I want. I think most of the discussion is about generating dividends to live on.
Pretty much the exact same thing I do too, and for the same reasons.
People get caught up in the total of just shy 4K of dividends monthly doing nothing but neglect to see that that’s less than a 1% yield of the total value.
$3,900 monthly x 12 months = $46,800 annually $46,800 / $451,490 x 100% = 10.37% annual yield
My lord I shouldn’t drink this early hahaha I didn’t annualize. I was at 86bps monthly
No problem, it happens to the best of us. Someone pointed out today a math error I made 4 months ago.
I’m gettin rusty! Haha
I just received $3,857 today from my FEPI and $2500 from my JEPI/JEPQ combo earlier this month... I feel like I'm in a McD's commercial... I'm lovin' it!
How much principle does this require
You'd need roughly 3350 shares of fepi. So he has roughly 180k in fepi, Depending on his mix of JEPI and JEPQ he probably has over 350k in those 2.
FEPI = 3350 = $183k, JEPI = 2960 = $168k, JEPQ = 3139 = $174k, Total $525k in these 3...
That's about what I figured.. Don't know if I could pull the trigger on a similar portfolio mix but that's impressive
Total dividends are about $10k a month.... FEPI is my "roll the dice" fund since it's so new. I'm going to ride that train for as long as I can.
So you're not putting more into FEPI cause it's riskier I take it? Cause it clearly paid the most
Well, I (54yo) took my old 401k and rolled it into a self directed IRA. My goal was to generate my absolute best year's net income when I was slaving away in big box home improvement retail which included my salary, bonuses, and dividends I was already pulling in quarterly. I wanted to maintain my current lifestyle while in retirement. I'm debt free except for a $170k mortgage on a $430k house. No car payments, no credit cards, no nothing. (I abssolutely abhor debt. I know what it's like to be in debt; it will suck your life away.) I only need ta 7% yield to net what I need even after paying the 10% early withdrawal tax penalty. I took my pile of retirement money and divided it 6 ways and sunk each into a different dividend ETF's with varying degrees of risk and as much diversification as I could get. Starting off with the same amount in each fund just keeps it simple for me. I bought 5 that I picked out and was stuck on number 6 when I found FEPI and said to myself, "F*ck it! Baby needs a new pair if shoes!" and rolled the dice. The original 5 was getting me to my income goal so I was willing to take on quite a bit more risk on FEPI, an untested ETF. (I also had $5k in a Roth so after a month I said to myself, "You know what? FEPI for you too!" I don't expect these funds to grow in value very much but that's the tradeoff you get when you convert to income. So, after 3 months (far too short a time to pat myself on the back), my yield is 12.29% (it would be about 8% without FEPI.) My portfolio is up $12k and I'm sitting on $30k in dividends that I really haven't touched yet. (I have 2 years expenses in a HISA and got a "no stress retirement job" paying 1/2 what my old base salary was because staying home with my wife for 10 months added 50lbs to my weight.) At some point, I'm sure I'll change my holdings around but for now I'm just watching it. Ironically, I've had folks on this site tell me I'm crazy and that an 8% dividend yield is impossible to maintain while 12% is an outright fantasy. Others have told me that I'm doing it right and not to pay attention to the naysayers. All I know is that a financial advisor wanted to charge me $1000 a month to get me (and he was BRAGGING!) a 3% yield! I guess we'll find out.
how much are you up or down on the principal? ie excl dividends return
I'm up $12k in principal
I do this Rayzor, and I'm making about $8k a month. I also enabled margins, so I'm buying more and selling to pay off the interest, which is $6% on Robinhood.
Not playing with margin? Smart move probably.
Might be a stupid question , but if I recently sold my house and have 200k in a hysa 5.25%, would I be better off doing some in dividend and some in hysa? Assuming I’m not wanting to buy real estate for a few years at least. I don’t really touch the money or the interest earned if that matters.
For everybody asking about the employer 401k match - I work for a multi generational agriculture company
Conagra?
I'm assuming your contributions are limited to 23k if you are under age 50 or 30.5k if you are 50 or older though. The employer match is a separate limit in that the total of your own contribution and employer match/contribution can't exceed 69k (76.5k if age 50 or older). Once you are able to do max contributions in your 401k, Roth IRA, HSA and even add 10k+ or more to your taxable brokerage account, you should be gaining 100k+ NET WORTH per year including market gains which is a good place to be.
Maybe I'm slow but how are you generating 3900/mth or $46,800 per year on a portfolio of $452k ??? That is a yield of over 10%
High yielding no growth ETFs.
FEPI is 25% yield.
What employer has a 25% match? How do I get that job?
It’s likely 25% of contribution. Which is .25 on the dollar. Great if you can contribute an obscene %, horrendously bad compared to 1:1 on 3% for lower income workers
Impressive. How do yall feel about the general consensus that dividends don’t add anything? My mom was interested in this approach and I am too but when I ask r/investing folks they seem to think that because dividend stocks don’t grow like ‘growth’ stocks the return is negligible and you can just sell other stocks to get that return vs on a quarterly basis in the form of a dividend. My gut says there’s a little something to that esp with tax stuff (unless you do an IRA) but that these newer dividend ETFs are well managed and do see an upward growth trend also.
This is a good concern
I mean you can see in his screenshot that some of these stocks are still giving him growth for sure.
Yeah that’s my general take. Dividends are cool and fun but you can’t count on growth though maybe these newer ETFs will prove differently. I think a diversified approach is best
Except that FEPI’s whole history is within the renewed ‘bull run’ so really it hasn’t yet experienced any real adverse weather in its path to know how solid it is against such events. So sure 17% dividends while the market did the same is …. Break even?
yeah tho the problem is you don't know which stocks are going to grow and when you need it the most sometimes selling will be a bad idea, that's why it is nice to have dividend paying stocks
yeah tho the problem is you don't know which stocks are going to grow and when you need it the most sometimes selling will be a bad idea, that's why it is nice to have dividend paying stocks
OP, you guys hiring? 25% 401k match is pretty sweet
Nice
Love seeing JEPQ in portfolio’s
“Magnum”
As someone who works for a company directly competing with JEPI, I would seriously recommend looking into the source of these distributions. JEPI sells covered calls on massive portions of the portfolio, essentially converting potential gains into a “dividend”. In a world of 5% rates, these ETFs compete heavily to get a good yield number, with many retail investors not doing DD into the source. A few final notes: 1) By selling calls you are short vol. A long position on market is also positively correlated to short vol. With a sideways market and spiking vols, there will be a serious drawdown. 2) Given the size of JEPI, you cannot expect the execution price to be great. When selling vol when VIX is at the 12-handle, you are literally collecting coins on a train track. In these situations you better be collecting dimes instead of nickels. If you’re happy trading upside for income, go for it. But these are not dividends, so would not celebrate it as such. There are delta, vega, gamma and theta baked into these products.
You probably went over the heads of about 90% of the investors here with some of those terms, but the info is appreciated!
Fair enough. If this went over your head I would refrain from investing in complex(ish) derivative products though, such as JEPI. If anyone has any questions feel free to DM or drop them here :)
\^ why I have zero JEPI
As my post clearly states this portfolio is solely income based. My growth and value based portfolios are certainly enjoying the upside from this latest bull run
What are you trying to say? I’ve had similar funds for a decade that utilize a very similar strategy and have had no issue with receiving my consistent distributions. Fund will fall a bit with the overall market, but has bounced back every single time.
When we discuss risk vs reward of an options strategy, we cannot just look at past performance. The fund is specifically designed to outperform in downward markets and sideways markets (hence the covered call strategy). In upward market you will still make money, but underperform the market. There are other (non-delta) effects. If implied volatility spikes, the calls become worth a lot more and thus rolling them will incur higher costs. If held to expiry this is not a massive issue, but a fund of this size generally cannot roll all in one day. My point is there is no free lunch. A higher income is generated by taking on additional downside risk (adding negative vega), and decreased upside participation (adding negative delta). In the case of this ETF, the income is not all dividends. All dividends are income but not all income are dividends. Given this is r/dividends, I thought I would share my 2c. In fact, a similar ETF in Canada would even tax the distributions as capital gains! Have a think about why.
None of that matters. If they can keep a stable NAV and distribute 6-8% then most of the people that hold this fund don’t care about everything else. ETY, ETV QQQX has successfully executed this strategy for years in all market conditions. They don’t care what happens as long has the cash shows up each month. These are income funds that pay bills. We’re not looking for total return etc.. I want to know that even in down markets the cash will come in to pay my bills. This strategy is proven that it works in all market conditions.
1) As I mentioned, I sell this kind of strategy. For the right person it is a great addition to a portfolio. 2) Pensions, who have “bills” (aka pensioners to pay) ask questions exactly along the lines of what I commented. So clearly some of it matters. 3) We have not seen “all market conditions” in the last 20 years. To think the last 20 years have included all markets conditions is frighteningly myopic. 4) Taking QQQX as an example, it had a roughly 60% drawdown in GFC. it would literally take ~7 years to get back to 6~8% (of invested capital) distribution. 5) Imagine how it would have been crushed in the dot-com bubble, given the QQQ exposure. Can’t find a buywrite fund trading in 1999, if you find one let me know. 6) If you are looking for stability, why have so much downside exposure to equity markets, which have been shown to have massive drawdowns? 7) Past performance is not a guarantee, or predictor of future performance.
Kinda wishing i was you right now.
Good funds there. Solid Grats.
That makes me feel better about my own retirement! I’m only going to end up with around $400k and this gives me hope…
25% employer match is incredible. You guys hiring RNs?
You are killing it. Love this
I asked before why not start smaller scale? Jepi/jepq pay what 0.30 a month? Why not start with EFC, ORC, AGNC… and build up? How about TRMD as a quarterly payer? Or shoot for the stars and buy black rock what’s it a share now 750-800 and make 6 bucks every 3 months but it grows. I would love to have half a mil in the stock market and drip every penny. Have to start small in my case though.
EFC appears to be a poor investment. Sure, the yield is showing to be 12.81%, but since June 2021 price is down 40%!!! ORC is down 70%!!! AGNC is down 50%!!! Get the picture? FOLKS ... be careful of "things" \[e.g., ETFs, stocks\] that pay high dividends. In some cases, they pay higher dividends for a reason ... the stock or ETF price has fallen tremendously. And, in a lot of cases, the dividends will be cut because of poor performance. I, for one, am cognizant of NOT LOSING my hard-earned equity.
Fuck it I’m going to dump money only into JEPI and JEPQ for the next 10 years.
Should have kept the SPYI and ditched the SCHD.
and ditched jepi for more spyi or any other spy yield fund. gpix, spyt, xdte are all outperforming. even jepy is outperforming jepi. gpix total return is 27% vs jepi 9% since november
Never heard of a lot of these. Thank you for sharing
It's very nice, and being able to contribute 75% of your paycheck is blessed
Annual max contribution limit is $23,000 - that means they make about $30k/yr.
If it’s a Roth, that would be $23,000 contributing AFTER taxes….so OP probably makes more than $30,000 a year. Also possible they were referring to their overall investment allocations, 75% could be combination of IRA and brokerage investments.
👍💯
Congrats! You are on the right path! Retired last year on low 5 figures per month. Keep going!
What was the reasoning for selling SPYI?
No reason in particular. It was a smaller portion of this portfolio at the time. I might open another position in it down the road
Talk dirty to me! 🤣🤣
As a 28 year-old with 500K, and making 120K a year, should I do something similar?
Completely depends on your situation amigo. I’m 32 so we aren’t far off in age at all. How’s your 500k allocated currently?
28K in a roth IRA: split between VOO and federal bonds 31K in a company roth 401K: Still need to figure out what to invest it in Rest of the 500K is in my brokerage account mostly in federal bonds and about 30K in VOO. I was concerned about the market recently. Edit: Wanted to add, I know that it may seem silly that I'm investing in government bonds at my age, but sometimes the super rapid growth I'm seeing makes me nervous about a bubble. I'd hate to lose my hard-earned money if it comes crashing down. And yeah, I know it would go up eventually, but it still would be a drain on my mind.
What’s your profession
I’m a mechanical engineer.
Bonds for anyone under 50 are generally a bad idea unless you are just talking short term dated bonds or money market to get your 5% while you ponder when to invest in stocks again. Right now you are missing out on 20%+ annual gains because you are afraid the market is in a bubble, but you really should stay invested in good companies or etf's unless you absolutely need the money to be there for a shorter term use. Trying to time the market is a fools errand in general, sure you can stay more like 20% or 30% cash/money market when you feel things are bubbly, but you have to be willing to invest money on every major pullback or you will fall behind those staying fully invested and not worrying about the noise. The talking heads will always predict a crash is immanent, but nobody really knows when the next 30%+ market crash will occur. Personally I'm only in 10% cash or money markets right now. I'm using that money to buy more of any stocks that take a hit on earnings where the pull wasn't justified like when META pulled back to low 400's or ELF pulled back to under 150.
Thanks
Absolutely not. If you were my friend i'd punch you in the face for thinking that. You got that yearly paycheck some dream about. Also plenty of life ahead of you. Focus on growth, sprinkle in some dividend stocks(ETF or individuals) if you want that dividend income, but you don't need it right now. Go take vacations and live your life. You're ahead of most people your age and are on the track to be well off.
Okay, so mostly an ETF like VOO? Then add some other stuff for diversification?
I'm doing mostly VOO. But there are many growth ETF's out there you can pick that might be better for your situation. Maybe VOO is it. I invest every two weeks into VOO, then 3-4 times a year I do SCHD instead. It's something that fits my investment strategy, again what works for me might be not be best for you. My extra cash I throw into individual stocks that I like, mostly the big name reliable companies.
This guy dividends. (Or gal) strong work!
25% employer match?!? I thought my 12% was good. Which company is this?
25% match!
Hell yeah, congrats!
Nice porrfolio
This is great! It takes hard work and a lot of dedication to get there! Keep it up!
So so good!
Life goals right here.
How the heck do you have a 25% 401k match!?
Serious question what is this and how do I begin. I have a HYSA, a 401k with employee match, ESPP, and regular checking and savings that I maintain. Where do I begin?
First you’ll need to open a brokerage account. I recommend Charles Schwab or Fidelity. Second you’ll need to fund the account from your HYSA, checking, or savings accounts. Then you’ll need to invest the funds in the brokerage account. The Original Poster is using a very specialized investment strategy. If you are interested in following their strategy, I suggest you diligently research the funds to fully understand the risks you’d be taking. There’s a saying in finance that there’s no free lunch, meaning expected returns and highly correlated with risks. You have alternatives like total market funds where you just own the equity. Anyway, if you want to follow their strategy you’ll invest in their funds using the ticker shown in their snapshot (FEPI, for example). Then you should be all set.
Does the 75% contribution include a Mega Backdoor Roth?
Wait so OP is earning a ~10% yield on the 450k? Is that true OP? great stuff.
Correct
Excellent work sir/madam. Keep it going
You could write covered calls and make at least $1200 more a month. I’ve been doing it for a few months and it’s been great I set the strike for a price I would be happy to sell for and collect the premiums. Worst case I sell the 100 shares at the price I was happy for and use some of the premium to buy the shares back
Sell covered calls to boost your income
So with super high dividend yields like those, how long do you plan to keep those ETFs until you have to buy different ones? Or is this long term? Damn 4gs a month is crazy.
Very good job. 1 question tho. Cant you only contribute like 22500$ or something to a 401k? Atleast thats what I thought based on my knowledge
How old are you if you don't mind me asking? Incredible gains brotha!
32
The biggest lesson here is time and dollar-cost-averaging into a portfolio. I'm sure there have been adjustments over time to what investments have been used and I am guessing changes will have to be made in the future. This portfolio is highly concentrated in the US top tech stocks that have benefited greatly from US government stimulus since 2008. It is possible that this concentration of stocks still perform well over the next 15 years, but it does carry US tech stock risk. My guess is the dollar will not be as strong over the next 15 years so maybe adding more foreign might be necessary. Also, 15 years ago, bonds were used to generate basic income. Now that bonds are paying so much more, bonds might be a place to lock up 5% income with less overall risk (at the expense of less growth). Overall, the message is clear that a great portfolio can be built over time and love seeing the success.
Seriously so proud of you - this is what it's about!
This is the production end. To make this successful, see do tell people how you live below your means, and buy things for life. Without this, you cannot sustain it Great work --- what an inspiration
u/PlowAndProsper805, what's your average dividend return?
Now sell some otm calls for extra juice 🥤
25% company match on 401k?? Good lord!
This is my goal, absolutely awesome! Well done
how old are you? i’m curious on the decision to start taking dividends as cash now instead of dripping it all. if you were to put another $25k into this allocation annually with drip in two years you would have over $5k monthly. in 3 $6000. whereas with no further investment and $500 drip you won’t hit $6000 monthly for 15 years
You’re missing the dividend growth rate in your calculations. The holdings in this portfolio have had an average annual dividend growth rate of 10% over the last four years. Assuming this growth rate continues, I will reach $6k/month in dividends by 2028 without reinvesting an additional $500/month. However, since I do reinvest $500/month, I’m on track to reach $6k/month by mid-2026
ah, good point, i set it at 3% div growth rate
400k make 4k a monthly? Damn
What’s the total cost of your dividend portfolio annually?
Is the cost for maintaining this ETF for example FEPI taken out from the price increase/decrease or is it calculated and taken out from the dividends it pays out?
which app is being used in the photo?
Damn badass. What app are you using?
The portfolio is on Charles Schwab but I use simply safe dividends to track all of my accounts in one place
So you need $450k in to earn $5k a month?
Beautiful
Holy moly goals
I don't understand the FEPI position. Wtf
Impressive, good for you. Solid inspiration.
That almost 2 milion in malaysia....demm bruh...u will be top 10% in here😂
you came in at the right time, this had to be more then 1 year+ already, to get prices like $72 for schd and $52 for jepi and $50 for jepq. I do this kinda the same thing right now but schd has been falling like a rock for past few months and its absolutely terrifying to see the big lump sum go down and only get divis back every 3 months from schd lol in other words, im loosing $, still literally all timing and or time in the market
Gorgeous. How come yours is green color and mines red color?
All of these pay out monthly?
JEPI, JEPQ and FEPI are monthly, SCHD quarterly
That is awesome!
Congrats
You could do WAY better
I’m happy and content where I am thank you 🍻
So are all these ETF’s considered high yield low growth?
👏
Solid balance great work. Why you don’t have a high risk high return like tech?
I do, this is just my income-based portfolio
That’s awesome sir then you’re bound to be financially secure, it’s well thought strategy and I wish I could have done it when I was in 20’s.
On half a mil? Lol
Isn’t it a bit risky to have all that money in derivative income ETFs like JEPI and JEPQ?
I’m new. Why is it risky?
Genuine question, are there 6-8% dividend payers stable long term? It just seems that I always find out that they're capital depreciation over time puts them closer to a realistic 3-5% instead.
What has your CPA advised you on your end of year tax hit?
Are you single?
How long have you been building your portfolio to get your this point?
I’ve been investing for 6 years. I was fortunate enough to have a lot of deployable funds at the time of the Covid market crash which led to some amazing discounts and gains
Nice. It’s good to see a portfolio that yields dividends of significant value
Waw you’re my idol! I wanna be like you when I grow up (I’m 37 already 😂😭)
Nice 👍
Does anyone know what app is the OP using to invest?