Great video again Professor G. Makes so much sense,so wish you were making these 20 yrs ago. I would have been retired by now listening to your advice.
Impressive video coverage the market trends hint at lower prices, but this could also open doors for smart investments. Despite a possible short-term slump, remember the market's long-term potential. Downturns can be entry points for portfolio expansion. Success lies in informed decisions and strategic planning. Thanks to Shea Ardolf’s insights, daily trade signals, and my dedication to learning, I've been increasing my daily earnings. Kudos to the journey ahead!
Working with her has been a game-changer for my financial well-being. Her ability to simplify complex financial concepts and provide tailored solutions is commendable. Eugenia ’s passion for her work shines through, making the financial planning process not only effective but also enjoyable.
I'm so impressed knowing how much people talk good about her expertise. Over the years, l've been a part of numerous trading programs, sifting through a barrage of information. Yet, nothing has come close to the sheer clarity, depth, and precision of Eugenia ’s insights. It's akin to finding a diamond in a coal mine.
Investing has proven to be an incredibly beneficial decision. My cryptocurrency profits continue to play a substantial role in growing my overall wealth, reducing my reliance on my salary, I read about Eugenia Eiland on the web. That was how I connected
I've invested primarily in dividends for a very long time. This is not to say that I do not own growth stocks-I do. A well-rounded portfolio has to include elements from both areas. Maintaining a sizable cash cushion is one technique to reduce the stress associated with stock market trading. Although I invest in the market, I never use all of my funds there.
Instead of reinvesting in the same stock, I occasionally utilize my dividends to purchase additional income and growth stocks for diversification. But to each their own ways. What matters is that you're investing in the first place, which is a positive thing.
Based on personal experience working with an investment advisor, I currently have $1m in a well-diversified portfolio that has experienced exponential growth. It's not only about having money to invest in stocks, but you also need to be knowledgeable, persistent, and have strong hands to back it up.
Based on personal experience working with an investment advisor, I currently have $1m in a well-diversified portfolio that has experienced exponential growth. It's not only about having money to invest in stocks, but you also need to be knowledgeable, persistent, and have strong hands to back it up.
Thank you for saving me backward and forward hours of researching the markets, I just copied and pasted Stacy Lynn Staples on my browser, and her site appeared top search, no nonsense at all. She looks impeccable.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@Donnafrank-k6e However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments.
I didn't start out as a dividend investor, fortunately my 401K was in growth mostly and even though I had a modest salary for most of my life I just kept my mitts off of the retirement account. Now I rolled it into an IRA and bought dividend income stocks. I wasn't able to compound dividends over the course of decades, I just got here by market growth. Now I'm making $62K per year on $600K
If one is in their 40s and just started investing (have 401k from work). Should they just focus on growth etf since it will be too late for them to see real benefits with dividends?
I wouldn't say early 40's is 'too late' for anything related to investing. If you have at least 20 years left to put money into the market then I think growth is a nice way to lean. I would still have a balance of the two. I think value/dividends is good to have at any age in any market (with at least a portion of the portfolio).
I feel investors should focus on under-the-radar stocks, considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises plummeting stocks that were once revered. I don't know where to go here out of devastation.
Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.If you're new to investing or don't have much time, it's best to get advice from an expert.
The issue is people have the "I want to do it myself mentality" but not equipped enough for a crash, hence get burnt. Ideally, advisors are reps for investing jobs, and at first-hand encounter, my portfolio has yielded over 300% since 2020 just after the pandemic to date.
Svetlana Sarkisian Chowdhury a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
Growth stocks are wonderful in a bull market however, a great dividend portfolio will perform in a down market because you are receiving income being able to buy stocks on sale. When you have a growth portfolio, you just sit there, earning nothing when the market is down. I have made a lot of money using dividends to buy and cheap in a down market or in corrections, and if I only had growth would not be able to do that
I am new a recent subscriber, I like how your videos literally are simplified and I watched almost all your videos and had the question about the dividend and couldn't find a video on it on your channel and you just nailed it. I appreciate your content!
I have schd, vti, schg and vym. My largest holding is schd 91 shares vti 13 shares, vym 3 shares and schg 2 shares. I dca into each every week. Good information Professor G. Set it and forget it
Great stuff Prof G.... Not many UA-camrs speak to Taxable/Brokerage accounts which is sad...... Thank you for your enlightenment. I have my 3-fund ETF's churning in the Roth & Traditional IRA's and my Brokerage/Taxable has SCHD & DGRO and several individuals to produce an annual dividend that we could in fact live on but at this time - we do not need it - but will be looking to do so in five+ years. Thanks again for your quality presentations and information. Always excellent. Please be well.....
I have been a dividend focused investor for a long time. This does not mean I don't own growth stocks, I do. A well rounded portfolio should be a mixture of both categories. One way to minimize the anxiety out of stock market investing, is to make sure you keep a large cash cushion. I invest in the market, but never put all my money in market.
I think investors should always put their cash to work, especially In 2024, we'll start to see more market diversification. I'm hoping to invest about $350k of my savings in stocks against next year. Hope to make millions in 2024
Since risk is at an all-time high right now, perhaps you should be a little more patient and return when it has decreased. Alternatively, you can consult a trained financial expert for strategy.
Yes true, I have been in touch with a brokerage Advisor. With an initial starting reserve of $80k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.
My CFA ’Celia Kathleen Martel’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
So say I were to be at a point where I wanted to retire off dividends with a brokerage account, are you saying that if my wife and I sold $94,050 of our hypothetical position in VOO filing jointly, we would encounter a 0% tax rate for that amount for the year? Or is the percentage based on income level (i.e. we make 250k, therefore would be taxed at 15%)? So really using the former question, if I wanted to maximize the 0% tax rate and sold $94,050 of VOO and bought the same amount of SCHD for lets say 10 years in a brokerage account, would all of that money be able to be transferred at a 0% tax rate? Thanks for your time! Love you channel, you are inspiring to me and give so much valuable knowledge
You are excellent !! I wish I would have found you many years ago. I 'm near retirement age now and still working full time and trying to figure out how to live off my dividends and Social Security when I become eligible and be stressed free.
I feel like a previous comment of mine in regard to the Roth sparked this video. If so I’m very happy you shared this breakdown with the tax implications of a traditional brokerage. Great video. The people need to know!
Your dividend calculation is wrong for SCHD since you did not take into account the dividend growth rate. SCHD may currently be yielding 3.52% but the shares originally purchased 10 yrs ago would have a significantly higher yield on cost and thereby increasing the yield you are getting at the future value.
I am doing really well with TSLY, MSTY, QQQY, IWMY, AIPI, PDI, JEPQ, FEPI, NVDY YMAX and ULTY. This give me six figures each year and most have some capitol appreciation. I may sell some of my TSLA off and start investing in grandpa funds like SCHD and VYM. TSLA has a lot of room to run so hesitant to start the sell off.
Wish I had done that and put it on automatic. Instead I watched talking faces in cnbc and tried trading all over the place. To say my results have been terrible versus your strategy is an understatement.
Nice work! The other thing not talked about with capital gains is the STATE taxes. Yes, Fed taxes are in a nice situation, but I live in Oregon and have to pay 8.75% on all of the capital gains. Not sure why this is never mentioned...
I never started investing until a couple years ago. That is because I didn’t know where to go to start and people made it feel like investing was a bad thing to do.
Hi is there an easy way to keeping it very simple for a slow learner...I didn't know whether to sell some Microsoft,nyvidia and put money into dividend stocks..Thank you....EASY DOES IT.....FOR ME
I’m happy with a core of SCHD and JEPQ as a source of dividends and SPLG and QQQM for a so called cornerstone and growth. The dividend funds allow me to create more income, within my IRAs and that allows me to effectively by more shares a year than the 8K limit would allow, including growth funds.
You also have to include your state tax that you have to pay on dividends and capital gains. Your dividends are taxed as ordinary income if they are not qualified dividends. If they are qualified dividends they fall under the capital gains rate as you mentioned. Only way to get dividends 100% tax free that I know of not using a Roth is to use municipal bond funds. Those dividends don’t get taxed by state or federal income. However muni bonds have a horrible return compared to s&p500 and value funds.
The huge disadvantage of solely using a growth or foundational ETF and then converting the max amount that will still incur zero taxes is that VOO or QQQM are subject to greater downside risk than SCHD. So if VOO or QQQM suffer a major downturn like in 2022, you would have to sell more shares to have the same level of income or deal with bringing in the difference between what you are accustomed to v what you’re getting in a bear market. So that means living with less money coming in or selling more shares
@@NolanGouveia everything you stated is true Sk for those who want to be FIRE , they should also have an emergency savings fund of X amount to tide them over should a prolonged bear market strike the markets. That way, the ETF won’t be invaded as much to survive a prolonged downturn
@@mikeyis009 you need to watch this video . This person wants to retire early and live off of his investments. That requires selling or going back to work or living with less coming in from sale of stock
Watch more videos in Prof g video list. One he recommends having 2-3 years of living expenses in a hysa or short term TBills easily accessible. That way you have cash to live and pay bills if the markets down for couple years. Never sell in bear market if you don’t need to.
Love your videos. I've learned so much. However, I have not found another way to invest. I need to retire in 5 years. I have no savings. I have a short time line. Dividends are king. I don't want to sell off my hard work
Nolan, what about the dividend growth that SCHD had over the past 10 years? It is 6.3%. That would make the yield on cost of SCHD after 10 years roughly 6.32% resulting in yielding the same dollar amount as your growth fund! If you take it further another 10 years, having invested in SCHD will put you further ahead from an income perspective that either other fund and switching at that time. My point is that dividend investing makes loads of sense if you are able to buy and hold > 10 years for the yield on cost to increase and compound over time. Thanks again for another great video!
Since I'm Canadian, I can't invest in SCHD. There is no Canadian equivalent I can buy in my TFSA (Tax Free Savings Account; our version of Roth IRA). The best dividend ETF is nowhere near SCHD... With this in mind, I decided to invest in a BTC ETF instead (FBTC; fidelity bitcoin etf). So my asset allocation is: 45% VFV (hold VOO), 35% XQQ (Holds QQQ), and 20% FBTC. I do believe in bitcoin in the long run and I'm hoping to replicate the returns with the growth. When it's all said and done, I will cash out and move into dividends :) Goodluck to all of us!
I’ve always had my SCHD in my Roth IRA, to have the tax free growth. So are you saying for early retirement , it might be better to have my SCHD in my brokerage vs my growth stocks in brokerage?
Thanks for the videos. Quick question. If we initially reinvest dividends, how do we then change it once we are closer to retirement so that we can have cash flow from the dividends?
Good video, you just simply forgot to mention and tell the viewers not all dividends are taxed as capital gains. For a dividend to be taxed as capital gains it must be a “qualified dividend” … otherwise all dividends are taxed as ordinary income.
Thank you Professor G, you are very interesting to listen to. I came from Russia and have been living in the USA for a year and a half, 2 weeks ago I started investing in ETFs (voo, schd, qqqm), stocks ( apple, amazon, google, microsoft, nvidia) on the fidelity platform and in crypto (btc, eth) on the coinbase platform. I save separately for the purchase of real estate and keep my free money on amex hysa, I make purchases only with credit cards for maximum cashback. Please tell me where else can I invest my money? And in what proportions should the portfolio be? Can you give me some more advice? Thank you very much!
If you have 20 to 30 years before retirement, it makes sense to invest heavily in QQQM. The negative years wouldn't be a concern since I wouldn't need to access the money during that time. In fact, I might even consider investing additional funds to take advantage of the lower prices. After thirty years, I would wait for a bull market to transfer the money. On average, bear markets last 9.6 months, while bull markets last 3.8 years. So, if I were to retire during a bear market, I would likely only need to wait less than a year before moving all the money into something like JEPQ and/or annuities. What are your thoughts on this?
So what if you take your initial qqq shares, sell $60k in shares per year, purchase schd with them until you're completely out of qqq shares, then retire? Only adds an additional 5 years or so and you get the growth and tax free benefits. Even if you sold your stocks from qqq and took a 15% tax hit and then invested in schd, you'd still be above the straight schd investment for the 10 years.
Questions: Is the capital gains income counted in the income limits? Not just ordinary income? Also, it's been my understanding that those income ranges are for adjusted taxable income. So we should add the 12,000 standard deduction to that number.
Hi Professor G! Thank you for another helpful video! I have a question. When we talk about total return for the ETF, does that include dividend return as well? Or is it just solely on the stock/market price increase? Please kindly advise. Thank you so much!☺️
Currently in my roth im invested in schg, schd, and spy at ~1/3 each. But now I have taken half of my schg and put it into schd since the market is likely going to fall for awhile, then once it becomes a bull market again I'll probably convert all of my schd to schg instead.
Thanks for the video. Great stuff as always. Professor G, maybe you could make similar video about taxes etc for your non-US subscribers who also invest in US ETF via brokers accounts. Many thanks!🤝
I believe you can take out more than the statutory limit for 0% long-term capital gains tax because you would apply the standard deduction to it. I could be wrong though.
Subscribed! I would love to invest in ETFs by starting with SCHD, BUT I'm not American. Any idea how i can go about this as a foreigner and my TAX implications?
All of this is on point. Key learning is there isn't a one size fits all solution that will work for everyone. Highly recommend consulting with a financial planner that will deep dive into your specific situation and circumstances to develop the most tax efficient retirement spending strategy. As a lifetime aggressive saver, I'm looking forward to giving myself a huge raise in personal disposable income and taking charitable contributions to new lifetime high levels in retirement. While I can't eliminate taxes, I can intelligently manage which type of investments are spent first in retirement to minimize taxes.
I have watched the video a couple times but am still confused. I probably need to dissect the content a little more closely maybe. I have invested about $400,000 equally in SCHD, VOO and QQQM. My household income is $72K/year. I was hoping to replace my salary with an investment income in 5 -10 years. I assume you are sort of implying that if our dividends from SCHD fall short that we will have to sell our VOO or QQQM shares to make up for that gap. Could you please confirm this? I may need to adjust my investment strategy based on your answer. Thank you sir.
If u put schd in a Roth ira, would we avoid paying taxes on dividends? Or what’s the. Best way , to invest without paying taxes at 60 yrs old , strategy
What do you think of the combo VIG & SCHD. Drip on and 7k this year between the 2 of them in my Son and Daughter Roth and 2 grandkids 200 each a month. In other words both of the kids their 30 are Roth maxed out each year in the grandkids early 200 a month all of them in VIG and SCHD
Great video as always! Buying Splg - (you showed me this 1 last year) still have 100 Voo. Schg- you again- have 100 Vug also Schd and Ftec. Bought this past dip heavy. Keeping money on the side lines also , maybe a bigger dip coming, until rate cuts.
So is this a good strategy in a ROTH IRA, invest in a growth ETF, as it grows, lock in the gains by selling and then buy a dividend ETF? Rinse and repeat? Did I get that right Professor G?
I’m confused… isn’t that undeniable that you should just sell the aggressive growth stocks to buy the dividends later? So what if it went down in 2022? Average bear markets 1-1.5 years… if we pull back hard it’s still more than SCHD could have grown and it’ll bounce back anyway to blow past its previous high. It seems worth waiting a year if it means double the dividends. And taxes, long term capital gains aren’t that bad later vs today, there was math on the dividends but for the tax on the 250k long term capital gains he said biiig :-/ numbers would be good, so assume 20%. I just really don’t see the benefit other than the feeling of seeing dividends hit now, meanwhile losing so much future potential growth. Am I missing something?
I am slightly confused I understand your reasoning for the taxable account But for my Roth since it isn’t taxable your example shows it would be more beneficial to go 100% QQQM then change to SCHD. It has always been my understanding to do mainly dividend, bond, and REITS in Roth Accounts
Sell enough on good years to max out your 0% or low% tax bracket, and reinvest the rest (maybe in SCHD). This allows you to "wash" the gains away with minimal taxes. Called tax gain harvesting, the analogue to tax loss harvesting.
@@kathymccarthy5264 That's a good question. I have no good answer. Some advisors have channels on youtube and talk about things like this. Be very careful.
Being in the 12% US federal tax bracket the taxable brokerage account I inherited from my brother's estate in 2020 my qualified dividends are taxed at 0% for both state and federal income tax. Long-term capital gains taxed at 0% Federal ordinary income state of Georgia current rate 5.39%. I use tax lost harvesting to reduce the state income tax I owe on long-term capital gains. I'll be 49 years old in October at the age of 62 the state of Georgia starts exempting a certain amount of income for retirees and increases it at the age of 65.
Great video again Professor G.
Makes so much sense,so wish you were making these 20 yrs ago.
I would have been retired by now listening to your advice.
I appreciate the kind feedback! Thank you so much
@@NolanGouveia
Agree! Same situation here.
Do you know if you own QQQ do they issue K1's?@@NolanGouveia
Impressive video coverage the market trends hint at lower prices, but this could also open doors for smart investments. Despite a possible short-term slump, remember the market's long-term potential. Downturns can be entry points for portfolio expansion. Success lies in informed decisions and strategic planning. Thanks to Shea Ardolf’s insights, daily trade signals, and my dedication to learning, I've been increasing my daily earnings. Kudos to the journey ahead!
Eugenia Eiland program is widely available online..
Working with her has been a game-changer for my financial well-being. Her ability to simplify complex financial concepts and provide tailored solutions is commendable. Eugenia ’s passion for her work shines through, making the financial planning process not only effective but also enjoyable.
I'm so impressed knowing how much people talk good about her expertise. Over the years, l've been a part of numerous trading programs, sifting through a barrage of information. Yet, nothing has come close to the sheer clarity, depth, and precision of Eugenia ’s insights. It's akin to finding a diamond in a coal mine.
Investing has proven to be an incredibly beneficial decision. My cryptocurrency profits continue to play a substantial role in growing my overall wealth, reducing my reliance on my salary, I read about Eugenia Eiland on the web. That was how I connected
You can make a lot of money from the market regardless of whether it strengthens or crashes. The key is to be well positioned.
I've invested primarily in dividends for a very long time. This is not to say that I do not own growth stocks-I do. A well-rounded portfolio has to include elements from both areas. Maintaining a sizable cash cushion is one technique to reduce the stress associated with stock market trading. Although I invest in the market, I never use all of my funds there.
Instead of reinvesting in the same stock, I occasionally utilize my dividends to purchase additional income and growth stocks for diversification. But to each their own ways. What matters is that you're investing in the first place, which is a positive thing.
Based on personal experience working with an investment advisor, I currently have $1m in a well-diversified portfolio that has experienced exponential growth. It's not only about having money to invest in stocks, but you also need to be knowledgeable, persistent, and have strong hands to back it up.
Based on personal experience working with an investment advisor, I currently have $1m in a well-diversified portfolio that has experienced exponential growth. It's not only about having money to invest in stocks, but you also need to be knowledgeable, persistent, and have strong hands to back it up.
Her name is Stacy Lynn Staples can't divulge much. Most likely, the internet should have her basic info, you can research if you like.
Thank you for saving me backward and forward hours of researching the markets, I just copied and pasted Stacy Lynn Staples on my browser, and her site appeared top search, no nonsense at all. She looks impeccable.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@Donnafrank-k6e However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments.
@@Pelham04 Oh please I’d love that. Thanks!.
@@Donnafrank-k6e Clementina Abate Russo is her name.
Lookup with her name on the webpage.
Investing is definitely a journey, and having a flexible plan can make all the difference. Thanks for the insightful video.
Agreed!
I didn't start out as a dividend investor, fortunately my 401K was in growth mostly and even though I had a modest salary for most of my life I just kept my mitts off of the retirement account. Now I rolled it into an IRA and bought dividend income stocks. I wasn't able to compound dividends over the course of decades, I just got here by market growth. Now I'm making $62K per year on $600K
how do you do it??? I put in a fair amount over a year ago but I am barely breaking even
If one is in their 40s and just started investing (have 401k from work). Should they just focus on growth etf since it will be too late for them to see real benefits with dividends?
I wouldn't say early 40's is 'too late' for anything related to investing. If you have at least 20 years left to put money into the market then I think growth is a nice way to lean. I would still have a balance of the two. I think value/dividends is good to have at any age in any market (with at least a portion of the portfolio).
I'm 50 years old and planning on retiring in 10 years. Following your guidance %100 and seeing amazing results, thank you!
Great work!
I feel investors should focus on under-the-radar stocks, considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises plummeting stocks that were once revered. I don't know where to go here out of devastation.
Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.If you're new to investing or don't have much time, it's best to get advice from an expert.
The issue is people have the "I want to do it myself mentality" but not equipped enough for a crash, hence get burnt. Ideally, advisors are reps for investing jobs, and at first-hand encounter, my portfolio has yielded over 300% since 2020 just after the pandemic to date.
Glad to have stumbled on this comment, Please who is the consultant that assist you and if you don't mind, how do I get in touch with them?
Svetlana Sarkisian Chowdhury a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
this might be the best video on UA-cam right now, thanks professor!
Thankyou so much!
OMG this video is GOLD. I've always wondered about this and now it's clear. THANK YOU!!
Thank you so much for the kind feedback! I’m glad you found value in the vid!
Do u rebalance these portfolio on annual basis
Growth stocks are wonderful in a bull market however, a great dividend portfolio will perform in a down market because you are receiving income being able to buy stocks on sale. When you have a growth portfolio, you just sit there, earning nothing when the market is down. I have made a lot of money using dividends to buy and cheap in a down market or in corrections, and if I only had growth would not be able to do that
I am new a recent subscriber, I like how your videos literally are simplified and I watched almost all your videos and had the question about the dividend and couldn't find a video on it on your channel and you just nailed it. I appreciate your content!
Thankyou for the kind feedback!
I have schd, vti, schg and vym. My largest holding is schd 91 shares vti 13 shares, vym 3 shares and schg 2 shares. I dca into each every week. Good information Professor G. Set it and forget it
Dchg Dchd ?! Been through the run of a few of these ! No 100% sure thing$ !!!
Im going 100% in my 401k on s&p 500 etf. In my roth im going heavy on SCHD and FTEC.
Probably your best video
Thanks for your explanations mate
I appreciate that! Thanks for watching!
Best investment video I've seen so far.
Thankyou!
Great stuff Prof G.... Not many UA-camrs speak to Taxable/Brokerage accounts which is sad...... Thank you for your enlightenment. I have my 3-fund ETF's churning in the Roth & Traditional IRA's and my Brokerage/Taxable has SCHD & DGRO and several individuals to produce an annual dividend that we could in fact live on but at this time - we do not need it - but will be looking to do so in five+ years. Thanks again for your quality presentations and information. Always excellent. Please be well.....
Thankyou for sharing and for the kind feedback!
I have been a dividend focused investor for a long time. This does not mean I don't own growth stocks, I do. A well rounded portfolio should be a mixture of both categories. One way to minimize the anxiety out of stock market investing, is to make sure you keep a large cash cushion. I invest in the market, but never put all my money in market.
I think investors should always put their cash to work, especially In 2024, we'll start to see more market diversification. I'm hoping to invest about $350k of my savings in stocks against next year. Hope to make millions in 2024
Since risk is at an all-time high right now, perhaps you should be a little more patient and return when it has decreased. Alternatively, you can consult a trained financial expert for strategy.
Yes true, I have been in touch with a brokerage Advisor. With an initial starting reserve of $80k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.
I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?
My CFA ’Celia Kathleen Martel’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
I searched for her full name online, found her page, and sent an email to schedule a meeting. Hopefully, she responds soon. Thank you
So say I were to be at a point where I wanted to retire off dividends with a brokerage account, are you saying that if my wife and I sold $94,050 of our hypothetical position in VOO filing jointly, we would encounter a 0% tax rate for that amount for the year? Or is the percentage based on income level (i.e. we make 250k, therefore would be taxed at 15%)?
So really using the former question, if I wanted to maximize the 0% tax rate and sold $94,050 of VOO and bought the same amount of SCHD for lets say 10 years in a brokerage account, would all of that money be able to be transferred at a 0% tax rate?
Thanks for your time! Love you channel, you are inspiring to me and give so much valuable knowledge
You are excellent !! I wish I would have found you many years ago. I 'm near retirement age now and still working full time and trying to figure out how to live off my dividends and Social Security when I become eligible and be stressed free.
I feel like a previous comment of mine in regard to the Roth sparked this video. If so I’m very happy you shared this breakdown with the tax implications of a traditional brokerage. Great video. The people need to know!
Thanks Ryan I appreciate the assist!
Your dividend calculation is wrong for SCHD since you did not take into account the dividend growth rate. SCHD may currently be yielding 3.52% but the shares originally purchased 10 yrs ago would have a significantly higher yield on cost and thereby increasing the yield you are getting at the future value.
This is what I’m doing. Thank you
I’ve been working on this similar strategy but with VGT then sell and put into SCHD!
Great video!!!
Awesome work my friend!
I am doing really well with TSLY, MSTY, QQQY, IWMY, AIPI, PDI, JEPQ, FEPI, NVDY YMAX and ULTY. This give me six figures each year and most have some capitol appreciation. I may sell some of my TSLA off and start investing in grandpa funds like SCHD and VYM. TSLA has a lot of room to run so hesitant to start the sell off.
Reinvesting dividends and its snowball compound effect is crazy!!
Hi, im just starting but that s my plan.
I don’t notice it. Because I get clobbered on taxes so much lol.
keep pumping out those financial informational videos Professor G!!!!
Nothing like a good professor G video for my morning commute !! 🎉
347 VTI shares today! 🙌🏻 150 VYM. Only 2 ETFs I own
VTI and VYM have 521 overlapping holdings. VTI is better in a 1 ETF portfolio due to its volume of holdings.
@@DoxRap true, VYM is more for the high div yield, higher div payment
@@WalletInvestUSA you're still crushing it though. Keep up the good work 💪.
VOO and DGRO. That’s it for me. Every time I invest I do 50/50.
Which broker do you use?
Wish I had done that and put it on automatic. Instead I watched talking faces in cnbc and tried trading all over the place. To say my results have been terrible versus your strategy is an understatement.
@@michaelt2974 I had to learn the hard way to brother. We all do.
@@boetvanolphen the one everyone hates. Robinhood.
I do 3
QQQ, SCHD, VOO
lotssss of detail in this one. I definitely appreciate the hard work here professor
I appreciate that!
Nice work! The other thing not talked about with capital gains is the STATE taxes. Yes, Fed taxes are in a nice situation, but I live in Oregon and have to pay 8.75% on all of the capital gains. Not sure why this is never mentioned...
WOW, really!!! Thanks for the info
Thanks Professor, sharing your knowledge and skills with us is much appreciated 👍
Happy to help where I can!
I never started investing until a couple years ago. That is because I didn’t know where to go to start and people made it feel like investing was a bad thing to do.
Keep it simple; stay on course!
IPPON! Good morning from
Texas!! Thank you
Good morning my friend!
I am 100% BIL etf now.
In future i will be 34% SPYI/ 33% BIL and 33% AGG for passive income. With these 3 one has everything
Currently SPYI is down and goo time to buy.
@@jimdixon6688 it can go down further in a recession
Hi is there an easy way to keeping it very simple for a slow learner...I didn't know whether to sell some Microsoft,nyvidia and put money into dividend stocks..Thank you....EASY DOES IT.....FOR ME
Thanks prof - this video is golden! Needed this.
Happy to hear it!
Great video ! What does one do if already retired and wants to use dividend investing (risky accepted) ?
I’m happy with a core of SCHD and JEPQ as a source of dividends and SPLG and QQQM for a so called cornerstone and growth. The dividend funds allow me to create more income, within my IRAs and that allows me to effectively by more shares a year than the 8K limit would allow, including growth funds.
That was a GREAT video...thank you for adding in tax information as well. Love your videos.
Thankyou so much for the kind words Tracy!
Hi Nolan, im 47 and i want to do just that. I started a year ago.
You also have to include your state tax that you have to pay on dividends and capital gains. Your dividends are taxed as ordinary income if they are not qualified dividends. If they are qualified dividends they fall under the capital gains rate as you mentioned. Only way to get dividends 100% tax free that I know of not using a Roth is to use municipal bond funds. Those dividends don’t get taxed by state or federal income. However muni bonds have a horrible return compared to s&p500 and value funds.
I’ve been working on my bridge/brokerage.. I’ve been impressed with the tax savings
Good job, great vídeo. Cheers from Switzerland. Here we pay " only" 4% for dividend profits. Not much 😊😊. By the way I love your galo de Barcelos.
Only 4%! That’s amazing! And Thankyou 🐓🇵🇹
The huge disadvantage of solely using a growth or foundational ETF and then converting the max amount that will still incur zero taxes is that VOO or QQQM are subject to greater downside risk than SCHD. So if VOO or QQQM suffer a major downturn like in 2022, you would have to sell more shares to have the same level of income or deal with bringing in the difference between what you are accustomed to v what you’re getting in a bear market. So that means living with less money coming in or selling more shares
Very much agree here!
@@NolanGouveia everything you stated is true
Sk for those who want to be FIRE , they should also have an emergency savings fund of X amount to tide them over should a prolonged bear market strike the markets. That way, the ETF won’t be invaded as much to survive a prolonged downturn
Never sell when values are down. You need to watch more videos on this channel. Never!
@@mikeyis009 you need to watch this video . This person wants to retire early and live off of his investments. That requires selling or going back to work or living with less coming in from sale of stock
Watch more videos in Prof g video list. One he recommends having 2-3 years of living expenses in a hysa or short term TBills easily accessible. That way you have cash to live and pay bills if the markets down for couple years. Never sell in bear market if you don’t need to.
Love your videos. I've learned so much. However, I have not found another way to invest. I need to retire in 5 years. I have no savings. I have a short time line. Dividends are king. I don't want to sell off my hard work
Nolan, what about the dividend growth that SCHD had over the past 10 years? It is 6.3%. That would make the yield on cost of SCHD after 10 years roughly 6.32% resulting in yielding the same dollar amount as your growth fund! If you take it further another 10 years, having invested in SCHD will put you further ahead from an income perspective that either other fund and switching at that time. My point is that dividend investing makes loads of sense if you are able to buy and hold > 10 years for the yield on cost to increase and compound over time. Thanks again for another great video!
Very true!
Hello Professor, Please make a video in case you rebalance your portfolio
That's a good video topic, ill have to double check this info with my accountant but thumbs up 👍
Since I'm Canadian, I can't invest in SCHD. There is no Canadian equivalent I can buy in my TFSA (Tax Free Savings Account; our version of Roth IRA). The best dividend ETF is nowhere near SCHD... With this in mind, I decided to invest in a BTC ETF instead (FBTC; fidelity bitcoin etf). So my asset allocation is: 45% VFV (hold VOO), 35% XQQ (Holds QQQ), and 20% FBTC. I do believe in bitcoin in the long run and I'm hoping to replicate the returns with the growth. When it's all said and done, I will cash out and move into dividends :) Goodluck to all of us!
Yes you can invest in SCHD in your tfsa but There is a 15% With holding tax with the dividends. Or you can invest in SCHD in your RRSP tax free.
@@iammario9123 15% withholding isn’t worth it in TFSA :( still looking for the next best thing!
One of, if not the best video (amongst the many) you’ve put out (esp tax stuff)!
Thx Prof G. 😊
Legendary 🍻
I appreciate the kind feedback my friend, you’re awesome!
I'll have to bookmark this one, thanks so much!
I’ve always had my SCHD in my Roth IRA, to have the tax free growth. So are you saying for early retirement , it might be better to have my SCHD in my brokerage vs my growth stocks in brokerage?
Thanks for the videos. Quick question. If we initially reinvest dividends, how do we then change it once we are closer to retirement so that we can have cash flow from the dividends?
You’d just “unclick” the “reinvest dividend toggle”
Dividends in brokerage is the smartest hack if you're under 30 and want to retire 10-15 years earlier. I only do VOO in 401k.
Good video, you just simply forgot to mention and tell the viewers not all dividends are taxed as capital gains. For a dividend to be taxed as capital gains it must be a “qualified dividend” … otherwise all dividends are taxed as ordinary income.
Thank you Professor G, you are very interesting to listen to. I came from Russia and have been living in the USA for a year and a half, 2 weeks ago I started investing in ETFs (voo, schd, qqqm), stocks ( apple, amazon, google, microsoft, nvidia) on the fidelity platform and in crypto (btc, eth) on the coinbase platform. I save separately for the purchase of real estate and keep my free money on amex hysa, I make purchases only with credit cards for maximum cashback. Please tell me where else can I invest my money? And in what proportions should the portfolio be? Can you give me some more advice? Thank you very much!
If you have 20 to 30 years before retirement, it makes sense to invest heavily in QQQM. The negative years wouldn't be a concern since I wouldn't need to access the money during that time. In fact, I might even consider investing additional funds to take advantage of the lower prices. After thirty years, I would wait for a bull market to transfer the money. On average, bear markets last 9.6 months, while bull markets last 3.8 years. So, if I were to retire during a bear market, I would likely only need to wait less than a year before moving all the money into something like JEPQ and/or annuities. What are your thoughts on this?
So what if you take your initial qqq shares, sell $60k in shares per year, purchase schd with them until you're completely out of qqq shares, then retire? Only adds an additional 5 years or so and you get the growth and tax free benefits.
Even if you sold your stocks from qqq and took a 15% tax hit and then invested in schd, you'd still be above the straight schd investment for the 10 years.
Questions: Is the capital gains income counted in the income limits? Not just ordinary income?
Also, it's been my understanding that those income ranges are for adjusted taxable income. So we should add the 12,000 standard deduction to that number.
Another great video, Professor G! So it's a good idea to max-out a roth IRA yearly with a dividend ETF like SCHD?
I’d say so ya!
@@NolanGouveia Thanks for the feedback!
Great methods. Thanks
Hi Professor G! Thank you for another helpful video! I have a question. When we talk about total return for the ETF, does that include dividend return as well? Or is it just solely on the stock/market price increase? Please kindly advise. Thank you so much!☺️
Yes total return includes the dividend!
@@NolanGouveiathanks for confirming! Always wondering about this when I’m looking at the performance for the ETFs. ☺️
Currently in my roth im invested in schg, schd, and spy at ~1/3 each. But now I have taken half of my schg and put it into schd since the market is likely going to fall for awhile, then once it becomes a bull market again I'll probably convert all of my schd to schg instead.
Thanks for the video. Great stuff as always. Professor G, maybe you could make similar video about taxes etc for your non-US subscribers who also invest in US ETF via brokers accounts. Many thanks!🤝
I believe you can take out more than the statutory limit for 0% long-term capital gains tax because you would apply the standard deduction to it. I could be wrong though.
Subscribed! I would love to invest in ETFs by starting with SCHD, BUT I'm not American. Any idea how i can go about this as a foreigner and my TAX implications?
All of this is on point. Key learning is there isn't a one size fits all solution that will work for everyone. Highly recommend consulting with a financial planner that will deep dive into your specific situation and circumstances to develop the most tax efficient retirement spending strategy. As a lifetime aggressive saver, I'm looking forward to giving myself a huge raise in personal disposable income and taking charitable contributions to new lifetime high levels in retirement. While I can't eliminate taxes, I can intelligently manage which type of investments are spent first in retirement to minimize taxes.
📈🙏 Thankyou sir!
My largest dividend stock is eic @ 15.40 with a dividend at .20 per share
Investing 7 dollars a day in splg, schd, schg. Keep it simple.
7 dollars for each Etf or 7 dollars split across 3 Etfs?
7 dollars for each ETF.
@@hectorgomez9510 Damn, investing 147 dollars every week. You must be well off. XD
I have watched the video a couple times but am still confused. I probably need to dissect the content a little more closely maybe. I have invested about $400,000 equally in SCHD, VOO and QQQM. My household income is $72K/year. I was hoping to replace my salary with an investment income in 5 -10 years. I assume you are sort of implying that if our dividends from SCHD fall short that we will have to sell our VOO or QQQM shares to make up for that gap. Could you please confirm this? I may need to adjust my investment strategy based on your answer. Thank you sir.
If u put schd in a Roth ira, would we avoid paying taxes on dividends? Or what’s the. Best way , to invest without paying taxes at 60 yrs old , strategy
What do you think of the combo VIG & SCHD. Drip on and 7k this year between the 2 of them in my Son and Daughter Roth and 2 grandkids 200 each a month. In other words both of the kids their 30 are Roth maxed out each year in the grandkids early 200 a month all of them in VIG and SCHD
Great video since I am living this now.
Awesome!
I hold SCHD - DGRO - QQQM - VTI and FSELX.. $$$
Great!
Great video as always!
Buying Splg - (you showed me this 1 last year) still have 100 Voo.
Schg- you again- have 100 Vug also
Schd and Ftec.
Bought this past dip heavy.
Keeping money on the side lines also , maybe a bigger dip coming, until rate cuts.
Great moves!!
Today I learned that 13 is almost 20.
Great video, too.
🤣
So is this a good strategy in a ROTH IRA, invest in a growth ETF, as it grows, lock in the gains by selling and then buy a dividend ETF? Rinse and repeat? Did I get that right Professor G?
Could you create a video on Leveraged ETFs?
Love your content!
I see you finally gave FDVV some props hehehe🎉🎉🎉
I’m confused… isn’t that undeniable that you should just sell the aggressive growth stocks to buy the dividends later? So what if it went down in 2022? Average bear markets 1-1.5 years… if we pull back hard it’s still more than SCHD could have grown and it’ll bounce back anyway to blow past its previous high. It seems worth waiting a year if it means double the dividends. And taxes, long term capital gains aren’t that bad later vs today, there was math on the dividends but for the tax on the 250k long term capital gains he said biiig :-/ numbers would be good, so assume 20%. I just really don’t see the benefit other than the feeling of seeing dividends hit now, meanwhile losing so much future potential growth. Am I missing something?
Stocks and ETF 's. are on sale now!
Bought more VOO and SMH
wow very interesting video i didnt know all this thank you for sharing 👍
I appreciate the feedback!
How about applying the Buy Borrow Die strategy instead of selling my stocks ?
I am slightly confused
I understand your reasoning for the taxable account
But for my Roth since it isn’t taxable your example shows it would be more beneficial to go 100% QQQM then change to SCHD. It has always been my understanding to do mainly dividend, bond, and REITS in Roth Accounts
There are many tax advantages to a ROTH yes, this strategy was for those who want to use the income before age 59.5
I’m 17 and going to invest a couple thousand in some months should I make two accounts? A Roth IRA for dividends and a normal brokerage acc for growth
For a single person that’s says only needs around 40k a year how much would you need in a brokerage account? Thanks for the video!
Sell enough on good years to max out your 0% or low% tax bracket, and reinvest the rest (maybe in SCHD). This allows you to "wash" the gains away with minimal taxes. Called tax gain harvesting, the analogue to tax loss harvesting.
This is an incredible strategy that does not get talked about enough.
@@Sylvan_dB how can I find a good financial advisor who knows these things?
@@kathymccarthy5264 That's a good question. I have no good answer. Some advisors have channels on youtube and talk about things like this. Be very careful.
Hi Prof G. Great content. The chart you had with the tax range is that on the IRS website.
That chart was on nerdwallet but the info is on the irs website yes
What if the majority of people live paycheck to paycheck. I only have 100.00 to invest MONTHLY. I need to know what is the best way to invest.
Ftec love yay!
Being in the 12% US federal tax bracket the taxable brokerage account I inherited from my brother's estate in 2020 my qualified dividends are taxed at 0% for both state and federal income tax. Long-term capital gains taxed at 0% Federal ordinary income state of Georgia current rate 5.39%. I use tax lost harvesting to reduce the state income tax I owe on long-term capital gains. I'll be 49 years old in October at the age of 62 the state of Georgia starts exempting a certain amount of income for retirees and increases it at the age of 65.
So much great info! Thanks for sharing!
How about the "Buy Borrow Die " strategy 🤔 We never have to sell Assets.
Very informative video. What's your take on selling covered call with a low delta?
Thanks! As long as you understand it, that’s a good strategy to explore
Me seeing this as I just deposited to buy Rolls Royce and Greggs lol.
My ISA (tax adv), is just 3 fund and 5% MSTR.
More very solid content.
You can take social security when you retire
Prof G. Can you tell me the name of the calculator that you are using please