Good day for a video like this when the market is red. ▸ Try Seeking Alpha Premium: seekingalpha.me/dividendgrowthinvesting ▸ Try M1 Finance: dgitofi.com/TryM1 ▸ Book 1:1 time with me to talk about your portfolio: dgitofi.com/TalkWithJake Article: dgitofi.com/SCHDVsTheSP500ItsNotOnlyAboutTotalReturn
I’m continually amazed by SCHD owners who complain when it does not outperform the S&P 500. That isn’t its purpose! If you don’t want it to pursue the goals and strategy it is designed for, why did you buy it in the first place?
Because for years many rabid SCHD fans said that SCHD was just as good as the SPY, but it paid better dividends. This is all well documented. These statements made it sound like only idiots would buy SPY instead of SCHD. That is exactly why people compare the two funds now.
Lets not forget that this large cap growth out-performance is relatively new and solely because of the tech boom. Historically large cap value has destroyed large cap growth and small cap value has outperformed everything else. We should look at actual historical returns rather than the last 10-15 years. Growth is usually based on speculation which is usually wrong while value is based on company fundamentals and cash flow hence the dividend.
@@Sanloong7 They market as a whole tends to move down together but value tends to have less steep lows and overall you’d still be better off buying value over the last 100 years since timing the market is pretty much always a bad plan.
@@michaelswami For small cap, AVUV is the best in my opinion. Make sure any small cap value fund you buy screens for profit and also is actually small cap since a lot of them are primarily mid cap / small cap blends.
Instability can easily be diluted away. Just pack in some utility stocks with your growth stocks and problem solved. (SCHD has CAGR of 13.22% with 13.58% Stdev. 50/50 XLK/XLU has CAGR of 15.92% with 13.12% Stdev). So, yes, it is only about total return.
Nice review. There’s a new article on SA about CGDV vs FDVV that was interesting. If you could review that. Maybe your opinion on both of those etfs too.
Nobody can tell anyone that total return is all that matters, that's like saying that Real estate is better than the stock market. People have different investment goals, tolerances and some people have no desire to deplete their portfolios by stressing whether they're going to outlive their portfolio using the 4% rule
A well done financial video that is very much needed for people who nearing or who in retirement and a forewarn to those who are far from retirement age.
What about yield on cost? You used to talk a lot about this but if younger generations skip schd until later, their YOC would be pretty bad right? Could you clarify this?
YOC is great if you plan to never sell your position. If you want to buy growth and then rebalance in the future, that could also work just fine. You want to consider taxes for both options. I personally do a combination of both meaning buy SCHD/DGRO now in my taxable account to live off of now and also buy growth in my Roth IRA.
Great video per usual! I do a 3 fund portfolio. SCHD, DGRO, QQQM! All are 1/3 each. The plan is to move qqqm gains into dividends in 15- 20 years (currently 30). 401k is compounding nicely with FXAIX. Plan on a similar approach with qqqm down the road when eligible
FDVV is overweight in technology 28.80%, financials at 6.75% with a 5yr dividend growth rate of 2.89%. I think if you want some exposure to tech sector, fdvv, dgro, or dgrw would be good options.
yeah DGRO and DGRW are great in my opinion if you plan to never sell your shares and live off the income. DGRW is great because you get exposure to companies that start paying a dividend from day one. With other ETFs you have to wait for 5 or 10 years before they are included.
Not if you don't want to sell your shares. SPLG is just the SP500 like SPY or VOO. The SP500 is great but not to live off the dividend. You could invest in SPLG and rebalance into SCHD/DGRO later though.
I’m turning 50 in about a month. I’m setting up my taxable right now so when I retire in 5 years the retirement accounts money go into it. My taxable account has Schd, DGRO, Voo, and qqqm. I also have and will add qualified dividend paying stocks. I currently own Pfe,Ko, Pebo, bac, bmy, v and exc to name some. I will add to all my positions overtime and into retirement and just live off dividends. I also have some municipal bonds and cds. I’m trying to cover all the bases and limit volatility but staying in the game for the upside.
I'm running a similar portfolio on my HSA. Right now, I have an even split between SCHD, DGRO, VOO, QQQM, VIG, and VUG. I plan to rebalance every now and again.
As someone in my mid 20s, I can handle more risk than later on. My ira portfolio consists of 60% VTI, 25% QQQM, 10% SCHD , 5% SMH. As far as SMH, I will be using and gains on this fund for other future big risk big reward investing. Still thinking of cutting down VTI to maybe 55% or even 50% to make room for a bit more growth and dividend investing
Dumb question but what would “near retirement” age be? 60 and within 5 yrs? 55 and within 10 years? I know every situation is different but just curious. Thank you
@@DividendGrowthInvesting it used to be universal to believe the Earth is flat too. I have looked into the research and I believe it’s lazy because financial advisors don’t do their own research and just point to the research that is out there. It’s dumb because people are cashing in shares of stocks to fund their lifestyle. It works until there is a prolonged downturn (1965-1981 or 2000-2013). I don’t think people truly understand it and get really frightened during downturns (rightfully so imo).
@@DividendGrowthInvesting I have, and compared them with my own assumptions. Risky, very risky, in my opinion. Ben Felix then confirmed my thoughts - he did a great video on it, explaining where it came from and how uncertain it is to provide stress-free retirement.
I have a core/satellite portfolio...by coincidence. I want to be primarily diversified via index funds. 32% VTI+VOO, 24% AVUV, 24% SCHD, and 20% VXUS is the core ratio. Then I have a significant amount in O and about the same spread across 25 holdings as a fun M1 account. Including AVUV, O, the 25, and my rental, the core index is only about half, but the portfolio is quite diversified and I'm more than content with the allocations and plan.
@DividendGrowthInvesting, you said the article is not click bait, yet the title of the article is unduly, falsely binary: SCHD v. SPY. This frames the article’s content for his audience to spectate some kind of sports match. Reality says that many people can benefit from an asset allocation that blends both SCHD-esqe and SPY-esqe (e.g. I’m in favor, for my own portfolio, of a reasonable blend of SCHD and VT).
I'm not a Boglehead, but I invested like one for 20 years. Standard 3-fund portfolio with an additional 5-10% I held in something more growth oriented. I also held much less in bonds than they normally recommend. It's worked out really well with very little brainpower, just buy buy buy. I retired early and wanted to adjust my allocation to more of a 60/40 and I just couldn't get excited about having that much in bonds. After a couple months of research, I'm moving what I can (everything except my wife's 401k) into a pure dividend portfolio in the rest of our retirement accounts. We can still snowball in those accounts for probably 10 years while we're drawing down the 401k which is pretty much the same allocation it's always been due to fund restrictions. The dividend portfolio is gonna be fun to watch snowball over that time, though.
It is really nice seeing your portfolio grow or go down but still see the dividend income grow. That is what ultimately got me into focusing more on a dividend growth strategy vs the traditional 4% or 60/40 portfolio. Thank you for watching!
I dont understand anyone under the age of 55 holding SCHD. If you invest in the S&P and a growth fund exclusively you accelerate your growth and if you need to draw income then you shift into SCHD. Ive yet to hear a good argument as to why you would diversify your portfolio with SCHD as it just slows down your growth, much like bonds.
I just reach this understanding yesterday 😂😂 Use *GROWTH* TO "gain WEALTH"... Pivot to SCHD when it's time to live off the DIVIDENDS. I'm probably gonna put 50% of my portfolio in SCHD for the guaranteed return... And leave the other 50% in Growth. I'll also keep 3 YEARS Expenses in CASH in case the market is DOWN for multiple years
Yield on cost, and taxes from selling. With SCHD, you will pay taxes along the way as you receive the dividends, with VOO then transferring to SCHD you will pay one huge amount of tax when selling, which you will need to plan for, and some do not want that hassle.
SCHG is a great growth ETF but you wouldn't ideally want to plan on living off the income. SCHG is great for growth with a long term time horizon with the intention of rebalancing out of it into something else in the future.
I've looked for years for a better alternative.. I have yet to find one. There are a few that come close like VYM, but SCHD is still in the pole position... at least for those looking for a good balance of income and growth at a favorable tax rate.
Totally agree, at this time of my life, minimizing the casino aspect of investing makes my life more enjoyable. Consistent returns makes planning easier and vacations less stressful. Also, investing can have a fun side. I know of an investment club where folks get together, pick stocks with side money and laugh/ cry about their returns😊
lol sounds like a fun club. I really enjoy the simple side of it, but still enjoy the thrill of picking single stocks.. all while limiting my downside risk.
Hey Jake another great video 😊SCHD isn’t about high returns!!! Perfect for someone with a longer time horizon!(20 years +) I took your recommendation on SCHG instead of individual growth satellites and would like to have a growth etf that’s not so much tech heavy running simotanously with SCHG like a small cap growth like VB what do you think? I would like smaller company exposure do you have any recommendations for small cap growth etf’s without too much overlap with SCHG
Hey! Well if you specifically want small cap exposure, I like VB. I personally would try and limit how much exposure you have in it. I think something like 5% and then having other growth ETFs at 5-10% as satellite positions is a great option.
When you say allocate 5% to the small cap growth and about 10% to the large cap growth…. if I’m dollar cost averaging every month does that mean the amount that I’m investing (monthly) just take 5%of it and put it into small cap growth right?then take 10% into large cap growth right I know it’s a dumb question but I’m trying to learn lol!👍🤙
@@DividendGrowthInvesting gotcha ! super helpful! I think I’ll go with ISCG ishares small cap growth etf for small cap growth exposure !!! In combo with schg large cap growth! Thanks again Jake keep winning 🥇
The S&P has been a better investment than SCHD over all time periods, and that is INCLUDING any sequence of return risk and an assuming the same 4% withdrawal rate for each portfolio. The scaled tips even more toward the S&P when you consider the effects of potentially over 100% more tax drag during accumulation and the effects of forced income that may not be needed (but still taxed) during retirement. Please look at the historical data folks. And know you’re placing a losing bet from an odds perspective and are attempting to mitigate risk that has so far been nonexistent.
@@DividendGrowthInvestingI care about many factors, including total return and especially generational wealth. And because I care about those factors, I had to be honest about what the data was clearly telling me. My family will have more generational wealth and I will hit my FI income milestones sooner because I abandoned funds like SCHD and pursued a more balanced, higher quality factor, more growth-focused approach. Good luck!
Not to clown on Jake, specifically, but most youtubers talk entirely too slowly. Thankfully, youtube permits up to 2x playback speed which can be great sometimes. Premium youtube subscribers also get the ability to 'press and hold' on videos while they are playing that shifts them into 2x playback mode on-the-fly. I use it ALL THE TIME. @DividendGrowthInvesting I *do* like your videos, Jake! Honest. :)
Good day for a video like this when the market is red.
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Article: dgitofi.com/SCHDVsTheSP500ItsNotOnlyAboutTotalReturn
Thanks. I do have SA Premium and will get with you before November for you feedback on portfolio. Be Well🙏
@@rayfieldlewis8780 sounds good! thanks for watching!
I’m continually amazed by SCHD owners who complain when it does not outperform the S&P 500. That isn’t its purpose! If you don’t want it to pursue the goals and strategy it is designed for, why did you buy it in the first place?
exactly! It performs well for what it is designed to do.
Because they just listened to someone on UA-cam 😂
This
Because for years many rabid SCHD fans said that SCHD was just as good as the SPY, but it paid better dividends. This is all well documented. These statements made it sound like only idiots would buy SPY instead of SCHD. That is exactly why people compare the two funds now.
SCHD: You do you boo ❤
Hey Jake. Great video. The blueprint to my Simple Path to Wealth is SCHD and VTI.
great way to get exposure to the overall market!
Lets not forget that this large cap growth out-performance is relatively new and solely because of the tech boom. Historically large cap value has destroyed large cap growth and small cap value has outperformed everything else. We should look at actual historical returns rather than the last 10-15 years. Growth is usually based on speculation which is usually wrong while value is based on company fundamentals and cash flow hence the dividend.
Yes!!
@@commonsense5555 I am in the Large Cap Value and Small Cap Value camp. I have some value stocks, SCHD and a small cap value etf not from Vanguard.
When value is down, buy value (SCHD). When growth is down, buy growth (SCHG). It's that easy.
@@Sanloong7 They market as a whole tends to move down together but value tends to have less steep lows and overall you’d still be better off buying value over the last 100 years since timing the market is pretty much always a bad plan.
@@michaelswami For small cap, AVUV is the best in my opinion. Make sure any small cap value fund you buy screens for profit and also is actually small cap since a lot of them are primarily mid cap / small cap blends.
Hey Jake, been a follower for years. Always look forward to your input and KISS (keep it simple stupid!) approach. Appreciate you much 👏🙏🏾
Really glad to hear! Thank you so much for following for so long! I really appreciate it!
Great article, and great video. My biggest holding is SCHD and it is for exact same reason mentioned in the article, income and stability.
@@ammart5240 great ETF if that’s your goal!
Instability can easily be diluted away. Just pack in some utility stocks with your growth stocks and problem solved. (SCHD has CAGR of 13.22% with 13.58% Stdev. 50/50 XLK/XLU has CAGR of 15.92% with 13.12% Stdev). So, yes, it is only about total return.
Nice review. There’s a new article on SA about CGDV vs FDVV that was interesting. If you could review that. Maybe your opinion on both of those etfs too.
This was a QUALITY upload
☀️😎☀️
Love this! Great video Jake!
Thank you! Appreciate it!
Nobody can tell anyone that total return is all that matters, that's like saying that Real estate is better than the stock market. People have different investment goals, tolerances and some people have no desire to deplete their portfolios by stressing whether they're going to outlive their portfolio using the 4% rule
Well said!
A well done financial video that is very much needed for people who nearing or who in retirement and a forewarn to those who are far from retirement age.
Thank you! Thanks for watching!
Thank you!!! This was great!
Thanks for watching!!
What about yield on cost? You used to talk a lot about this but if younger generations skip schd until later, their YOC would be pretty bad right? Could you clarify this?
YOC is great if you plan to never sell your position. If you want to buy growth and then rebalance in the future, that could also work just fine. You want to consider taxes for both options. I personally do a combination of both meaning buy SCHD/DGRO now in my taxable account to live off of now and also buy growth in my Roth IRA.
@@DividendGrowthInvesting awesome, thank you Jake. Been a minute since we talked.
@@fabiGBOtown i know! I was wondering where you were!
@@DividendGrowthInvestingyes Growth type stocks and funds are ideally suitable in a tax free account
Great video per usual! I do a 3 fund portfolio. SCHD, DGRO, QQQM! All are 1/3 each. The plan is to move qqqm gains into dividends in 15- 20 years (currently 30). 401k is compounding nicely with FXAIX. Plan on a similar approach with qqqm down the road when eligible
Great strategy!!! You get my stamp of approval :) 🙌🙌🙌🙌
Doesn't qqqm and dgro have a lot of over lap? Or not enough to be a concern. New investor here
Awesome video keep them coming
More to come!
FDVV is overweight in technology 28.80%, financials at 6.75% with a 5yr dividend growth rate of 2.89%. I think if you want some exposure to tech sector, fdvv, dgro, or dgrw would be good options.
yeah DGRO and DGRW are great in my opinion if you plan to never sell your shares and live off the income. DGRW is great because you get exposure to companies that start paying a dividend from day one. With other ETFs you have to wait for 5 or 10 years before they are included.
How about SCHD / SPLG combo ? Is that better than SCHD / DGRO ? thanks
Not if you don't want to sell your shares. SPLG is just the SP500 like SPY or VOO. The SP500 is great but not to live off the dividend. You could invest in SPLG and rebalance into SCHD/DGRO later though.
@@DividendGrowthInvesting thanks 🎉
@23:17 FXAIX = Fidelity 500 Index
Yup! Has a low expense ratio.
Great video! Thank you
Glad you liked it!
I’m turning 50 in about a month. I’m setting up my taxable right now so when I retire in 5 years the retirement accounts money go into it. My taxable account has Schd, DGRO, Voo, and qqqm. I also have and will add qualified dividend paying stocks. I currently own Pfe,Ko, Pebo, bac, bmy, v and exc to name some. I will add to all my positions overtime and into retirement and just live off dividends. I also have some municipal bonds and cds. I’m trying to cover all the bases and limit volatility but staying in the game for the upside.
5 years will go by so fast! Try and limit the percentage you hold in each stock if you want to make it a less stressful retirement.
I'm running a similar portfolio on my HSA. Right now, I have an even split between SCHD, DGRO, VOO, QQQM, VIG, and VUG. I plan to rebalance every now and again.
Can you do a video about SPDG ETF? It seem interesting for a dividend etf, and no one talks about it.
I would love to hear your opinion on it
As someone in my mid 20s, I can handle more risk than later on. My ira portfolio consists of 60% VTI, 25% QQQM, 10% SCHD , 5% SMH. As far as SMH, I will be using and gains on this fund for other future big risk big reward investing. Still thinking of cutting down VTI to maybe 55% or even 50% to make room for a bit more growth and dividend investing
Thanks for sharing an interesting article, Jake.
Thanks for watching!!
great video
Thanks!
Dumb question but what would “near retirement” age be? 60 and within 5 yrs? 55 and within 10 years? I know every situation is different but just curious. Thank you
100% relative to the person. I think
“Near retirement” is yours to define. My wife will retire on her 50th.
4% rule = a lazy, dumb way to establish a withdrawal strategy
It’s pretty universal. Have you looked into the research behind it?
@@DividendGrowthInvesting it used to be universal to believe the Earth is flat too. I have looked into the research and I believe it’s lazy because financial advisors don’t do their own research and just point to the research that is out there. It’s dumb because people are cashing in shares of stocks to fund their lifestyle. It works until there is a prolonged downturn (1965-1981 or 2000-2013). I don’t think people truly understand it and get really frightened during downturns (rightfully so imo).
@@DividendGrowthInvesting I have, and compared them with my own assumptions. Risky, very risky, in my opinion. Ben Felix then confirmed my thoughts - he did a great video on it, explaining where it came from and how uncertain it is to provide stress-free retirement.
I have a core/satellite portfolio...by coincidence.
I want to be primarily diversified via index funds.
32% VTI+VOO, 24% AVUV, 24% SCHD, and 20% VXUS is the core ratio. Then I have a significant amount in O and about the same spread across 25 holdings as a fun M1 account. Including AVUV, O, the 25, and my rental, the core index is only about half, but the portfolio is quite diversified and I'm more than content with the allocations and plan.
@@xaldath4265 🙌🙌🙌 nice!! Now it’s all about stating out of debt, spend less than you make, and look for new ways to make money!! Keep pushing!
Can you cover XYLG & QYLG please, they both lowered their expense ratios to 0.35% like JEPI & JEPQ.
Great video. I wish you had a Twitter
I do actually! I just started posting a bit.. I am very new to twitter/x: x.com/DGItoFI
@DividendGrowthInvesting, you said the article is not click bait, yet the title of the article is unduly, falsely binary: SCHD v. SPY. This frames the article’s content for his audience to spectate some kind of sports match. Reality says that many people can benefit from an asset allocation that blends both SCHD-esqe and SPY-esqe (e.g. I’m in favor, for my own portfolio, of a reasonable blend of SCHD and VT).
Yes and no. I think on the scale this is no where near other videos/articles out there.
I'm not a Boglehead, but I invested like one for 20 years. Standard 3-fund portfolio with an additional 5-10% I held in something more growth oriented. I also held much less in bonds than they normally recommend. It's worked out really well with very little brainpower, just buy buy buy. I retired early and wanted to adjust my allocation to more of a 60/40 and I just couldn't get excited about having that much in bonds. After a couple months of research, I'm moving what I can (everything except my wife's 401k) into a pure dividend portfolio in the rest of our retirement accounts. We can still snowball in those accounts for probably 10 years while we're drawing down the 401k which is pretty much the same allocation it's always been due to fund restrictions. The dividend portfolio is gonna be fun to watch snowball over that time, though.
It is really nice seeing your portfolio grow or go down but still see the dividend income grow. That is what ultimately got me into focusing more on a dividend growth strategy vs the traditional 4% or 60/40 portfolio. Thank you for watching!
BRILLIANT STRATEGY
QQQM + SCHD for me
Good combo
Don't forget that the so-called, boggleheads have VYM that compares well with SCHD.
I got 100k in SCHD but only 10 percent of my portfolio so when this etf gets to 6 percent ai will get more shares.
They are both completely different, people keep comparing them like they are suppose to be the same.
Good point. People make the argument if it underperforms the sp500 then why do it. The issue is that statement is not considering any other factors..
@@DividendGrowthInvesting exactly, personally I prefer reliable dividends so I'm more towards schd.
Schd is value, fxaix is growth. Large caps. 😊
Exactly!
It's a PHDs life goal to make others feel like idiots 😂 so don't feel bad Jake
lolol yeah that is a big reason why I didn't pursue academia!
I dont understand anyone under the age of 55 holding SCHD. If you invest in the S&P and a growth fund exclusively you accelerate your growth and if you need to draw income then you shift into SCHD.
Ive yet to hear a good argument as to why you would diversify your portfolio with SCHD as it just slows down your growth, much like bonds.
I just reach this understanding yesterday 😂😂
Use *GROWTH* TO "gain WEALTH"...
Pivot to SCHD when it's time to live off the DIVIDENDS.
I'm probably gonna put 50% of my portfolio in SCHD for the guaranteed return...
And leave the other 50% in Growth.
I'll also keep 3 YEARS Expenses in CASH in case the market is DOWN for multiple years
I'm also gonna be moving OVERSEAS ...
because i seriously doubt my million dollar portfolio will be WORTH what I'm hoping
Isn't it for the dividends?
Yield on cost, and taxes from selling. With SCHD, you will pay taxes along the way as you receive the dividends, with VOO then transferring to SCHD you will pay one huge amount of tax when selling, which you will need to plan for, and some do not want that hassle.
Almost 1,000 shares finally of SCHD. Love it 💕
Nice!!!!
I always plan to reinvest 5 to 10 percent of my dividend portfolio just to ensure I can stay ahead of inflation and take advantage of bear markets.
thats a good strategy if you are able to do it!
15:50 go with your instinct @DividendGrowthInvesting, you said conflagration exactly right on the first go
lol yeah. Appreciate you watching!!!
My largest holding is BST, followed by SCHD.
Thats a good amount of income! I bet you are enjoying those dividend checks!
@@DividendGrowthInvesting I use it to buy more SCHD.
SCHG has also been on my watchlist but it won’t beat my SCHD/DGRO combo 😎
SCHG is a great growth ETF but you wouldn't ideally want to plan on living off the income. SCHG is great for growth with a long term time horizon with the intention of rebalancing out of it into something else in the future.
schd is king
I've looked for years for a better alternative.. I have yet to find one. There are a few that come close like VYM, but SCHD is still in the pole position... at least for those looking for a good balance of income and growth at a favorable tax rate.
@@DividendGrowthInvesting A good balance: SCHD/DGRO
Totally agree, at this time of my life, minimizing the casino aspect of investing makes my life more enjoyable. Consistent returns makes planning easier and vacations less stressful. Also, investing can have a fun side. I know of an investment club where folks get together, pick stocks with side money and laugh/ cry about their returns😊
lol sounds like a fun club. I really enjoy the simple side of it, but still enjoy the thrill of picking single stocks.. all while limiting my downside risk.
It’s insane how many grammatical errors are in that article. Proofread for the love of God.
lol I probably couldn't do better myself. Writing was never my strength. Thanks for watching!
Better grammatical errors than analytical ones. People are not perfect, you gotta give slack. Pick the right battles, stick to what truly matters.
CONFLAGRATION
lol 😂
Con- fluh-GRA -tion
lolol
@@DividendGrowthInvesting didn’t go to Stanford, but I did stay at a Holiday Inn Express last night. Where I’m from, it stands for “big ole fire.”
@@michaelswami lol :D IHG has the best card rewards for holiday inn!
Hey Jake another great video 😊SCHD isn’t about high returns!!! Perfect for someone with a longer time horizon!(20 years +)
I took your recommendation on SCHG instead of individual growth satellites and would like to have a growth etf that’s not so much tech heavy running simotanously with SCHG like a small cap growth like VB what do you think?
I would like smaller company exposure do you have any recommendations for small cap growth etf’s without too much overlap with SCHG
Hey! Well if you specifically want small cap exposure, I like VB. I personally would try and limit how much exposure you have in it. I think something like 5% and then having other growth ETFs at 5-10% as satellite positions is a great option.
When you say allocate 5% to the small cap growth and about 10% to the large cap growth….
if I’m dollar cost averaging every month does that mean the amount that I’m investing (monthly) just take 5%of it and put it into small cap growth right?then take 10% into large cap growth right
I know it’s a dumb question but I’m trying to learn lol!👍🤙
@@brentchackel8649 When I say that I am just saying that is your target weighting that you will dollar cost average into over time
@@DividendGrowthInvesting gotcha !
super helpful! I think I’ll go with ISCG ishares small cap growth etf for small cap growth exposure !!! In combo with schg large cap growth! Thanks again Jake keep winning 🥇
The S&P has been a better investment than SCHD over all time periods, and that is INCLUDING any sequence of return risk and an assuming the same 4% withdrawal rate for each portfolio.
The scaled tips even more toward the S&P when you consider the effects of potentially over 100% more tax drag during accumulation and the effects of forced income that may not be needed (but still taxed) during retirement.
Please look at the historical data folks. And know you’re placing a losing bet from an odds perspective and are attempting to mitigate risk that has so far been nonexistent.
If all you care about are total returns not considering emotions or generational wealth, I think just sticking with the SP500 is a fine way to go.
@@DividendGrowthInvestingI care about many factors, including total return and especially generational wealth. And because I care about those factors, I had to be honest about what the data was clearly telling me.
My family will have more generational wealth and I will hit my FI income milestones sooner because I abandoned funds like SCHD and pursued a more balanced, higher quality factor, more growth-focused approach.
Good luck!
There is no 4% withdrawal rate is SCHD. Do not invest in it. You don’t understand it at all.
QQQ
can you stop reading word for word? I like your YT, just little slow sometimes.
@@mrton9482 it’s for those that passively listen and don’t just watch
Not to clown on Jake, specifically, but most youtubers talk entirely too slowly. Thankfully, youtube permits up to 2x playback speed which can be great sometimes. Premium youtube subscribers also get the ability to 'press and hold' on videos while they are playing that shifts them into 2x playback mode on-the-fly. I use it ALL THE TIME. @DividendGrowthInvesting I *do* like your videos, Jake! Honest. :)
Great video! Thank you
Glad you liked it!