At 55 I stopped Bonds and replaced with SCHD. I regret not dividend investing in my 20s and wasted 30 years on bonds as well as international!!! Jack Boggle 3 fund portfolio is old school. SCHD for life!!
Bonds are still great, but only shorter duration. There are some pretty good ETFs like XB and XCCC that have like 7-12% yields and they are somewhat short maturity. But you have to research the ETF to see if it's right for you.
I split $40K between SCHG & SCHD on Monday, 25g-15d. I know I'll drive myself mad looking at it day to day, but I'm fairly new and you can't blame me right? I think I'll enjoy it as a hobby. I had $40K just sitting all year last year in a saving account and made $10 interest. I don't know anybody that's into investing and my parents didn't know shit except CDs. I got just as much cash invested as I do sitting around so I'm not stressing losing $500 today. Also got $2,000 in savings coming in every month. Not bad for loser that makes $5 an hour more than a McDonald's worker. (wink)
When you own ETFs that own a huge basket of some of the best companies in the world, you can sit tight in large downturns. I just look at all of the people who sold at the bottom in 2009. I love to add to my positions on corrections, even if its just a small amount of add-on purchases.
I like SCHD, but even as a recent retiree I don't like SCHD to the exclusion of all else. My favorite pairing is with SCHG (Schwab Growth). At least right now, those two funds have no overlap. Other growth-y funds such as QQQ typically have some overlap with SCHD but as long as it is small, any good growth fund is a nice complement to SCHD. I also sprinkle in some covered call funds to spice the combined yield, but I would keep the percentage to those relatively small and be prepared for that portion to seriously underperform down to almost nothing after a few years. By then hopefully the growth of the rest should make up for it.
Yes, trying to avoid overlap is always an issue. I wold say that even if two funds don't have the same stocks, if they are both stock funds, they are all going down during a market downturn. So even though they don't overlap, it doesn't mean you are diversified.
@@valuestockinvesting I wasn't talking about diversification. I was talking about capitalizing opportunity. Where is the most predictable opportunity? Stocks. Stocks do go down and stocks do go up. Mostly up. 🎉 If it makes you feel better, add a bit of gold and silver, maybe some real estate (I did), and if you believe in modern portfolio theory and the efficient market hypothesis maybe you add some bonds. No bonds for me - I'm happy with a couple of years worth of expenses in cash and t-bills alongside my stocks, as the dividends now pay my expenses. I wish I had figured this out 34 years ago when I started, but the last 22 years have worked out a lot better than the first 10. P.S. be sure to check out the correlation between assets in all market conditions. Turns out stocks like in SCHD are often inversely correlated to stocks like in SCHG. Whoa, whodda thunkit!
I needed something to balance my portfolio of single tech stocks which I own for more than 5 yrs - SCHD w/o tech stocks was and still is a perfect match. 🎉
Great video. The comment on the dividend yield vs treasury yields definitely struck a chord with me. SCHD is not perfect, but it checks a lot of boxes for me. I believe value stocks will do very well and SCHD is a compelling value right now.
I don't give individualized advice on here but the way I manage portfolios for all of my clients that are older is that I have a large amount of Treasuries and CDs. They pay fairly well, so there is no need to take huge amounts of risk for a few extra percentage points. It all depends on your situation. Many accounts I manage are retired cops who have pensions, so they can take on much more risk. If you are just getting SS, it's a different story.
It's a valid point. Sometimes an ETF wrapper makes you hold throughout corrections because you can be sure that buying more is somewhat safe. With individuals names, it isn't so cut and dry.
I sold all of my VOO for VGT! Now I hold 500 shares of VGT and 16k of SCHD that's all I need!
At 55 I stopped Bonds and replaced with SCHD. I regret not dividend investing in my 20s and wasted 30 years on bonds as well as international!!! Jack Boggle 3 fund portfolio is old school. SCHD for life!!
Bonds are still great, but only shorter duration. There are some pretty good ETFs like XB and XCCC that have like 7-12% yields and they are somewhat short maturity. But you have to research the ETF to see if it's right for you.
I replaced bonds with Schd in my account as well. Seeing much better returns
I split $40K between SCHG & SCHD on Monday, 25g-15d. I know I'll drive myself mad looking at it day to day, but I'm fairly new and you can't blame me right? I think I'll enjoy it as a hobby. I had $40K just sitting all year last year in a saving account and made $10 interest. I don't know anybody that's into investing and my parents didn't know shit except CDs. I got just as much cash invested as I do sitting around so I'm not stressing losing $500 today. Also got $2,000 in savings coming in every month. Not bad for loser that makes $5 an hour more than a McDonald's worker. (wink)
When you own ETFs that own a huge basket of some of the best companies in the world, you can sit tight in large downturns. I just look at all of the people who sold at the bottom in 2009. I love to add to my positions on corrections, even if its just a small amount of add-on purchases.
@ thanks for the response. I really appreciate it an hour before the market opens today..
I like SCHD, but even as a recent retiree I don't like SCHD to the exclusion of all else. My favorite pairing is with SCHG (Schwab Growth). At least right now, those two funds have no overlap. Other growth-y funds such as QQQ typically have some overlap with SCHD but as long as it is small, any good growth fund is a nice complement to SCHD.
I also sprinkle in some covered call funds to spice the combined yield, but I would keep the percentage to those relatively small and be prepared for that portion to seriously underperform down to almost nothing after a few years. By then hopefully the growth of the rest should make up for it.
Yes, trying to avoid overlap is always an issue. I wold say that even if two funds don't have the same stocks, if they are both stock funds, they are all going down during a market downturn. So even though they don't overlap, it doesn't mean you are diversified.
@@valuestockinvesting I wasn't talking about diversification. I was talking about capitalizing opportunity. Where is the most predictable opportunity? Stocks. Stocks do go down and stocks do go up. Mostly up. 🎉
If it makes you feel better, add a bit of gold and silver, maybe some real estate (I did), and if you believe in modern portfolio theory and the efficient market hypothesis maybe you add some bonds. No bonds for me - I'm happy with a couple of years worth of expenses in cash and t-bills alongside my stocks, as the dividends now pay my expenses. I wish I had figured this out 34 years ago when I started, but the last 22 years have worked out a lot better than the first 10.
P.S. be sure to check out the correlation between assets in all market conditions. Turns out stocks like in SCHD are often inversely correlated to stocks like in SCHG. Whoa, whodda thunkit!
I needed something to balance my portfolio of single tech stocks which I own for more than 5 yrs - SCHD w/o tech stocks was and still is a perfect match. 🎉
Yeah, it's a great ETF. You just can't get shaken out. Stay forever.
Love the videos, Chris! Thanks for posting it.
Thanks for watching. Always appreciated!
Great video. The comment on the dividend yield vs treasury yields definitely struck a chord with me. SCHD is not perfect, but it checks a lot of boxes for me. I believe value stocks will do very well and SCHD is a compelling value right now.
Yeah, it's not perfect, but holding something like this for an extremely long time should work out fine.
Subscribed! Great Video! Me love some SCHD!
I appreciate the subscribe.
Would you not suggest SCHD for someone retiring in less than 10 years?
I don't give individualized advice on here but the way I manage portfolios for all of my clients that are older is that I have a large amount of Treasuries and CDs. They pay fairly well, so there is no need to take huge amounts of risk for a few extra percentage points. It all depends on your situation. Many accounts I manage are retired cops who have pensions, so they can take on much more risk. If you are just getting SS, it's a different story.
Excellent video!
Thank you!
thanks for the video!
Thanks for watching!
This man has the right frown lines for a stock investor.
I sold SCHD and created my own basket with Fidelity. I didn’t want all of the exposure to financials.
It's a valid point. Sometimes an ETF wrapper makes you hold throughout corrections because you can be sure that buying more is somewhat safe. With individuals names, it isn't so cut and dry.
this guy likes his fast graphs and so do I...wonder how I ever invested without it
Haha. I agree. I couldn't invest without it.