I look forward to watching these every Sunday with coffee. I am in SORT of the same boat as you. No pension, retirement 6-7 years away but WAYYY less than you to start with. Keep it rolling!
I appreciate you taking the time to watch the videos every Sunday and for leaving comments. It really is why I'm here. I love this stuff. We are all at different levels as far as portfolio values, goals, ages, etc, but, there is only one way for us to move if we continue to grow! Up and to the right (:
Great move there & thanks for watching. My opinion hasn't changed on QQQM. It is my favorite multi-sector long-term growth ETF. I like it slightly more than SCHG (although I think they are both great, SCHG has been awesome lately).
Thanks Jeff! I really enjoy your analysis. I have 10 more years before I'm either semi-retired or fully retired. I really like both your three fund and your two fun portfolios.
Hey Chris. That is what I love about investing in general. There is no right or wrong way to do it. Well, lets be honest, there are a lot of wrong ways to do it lol, but no such thing as a one size fits all. We are all different and it makes this fun. Thank you for being a channel member! I appreciate you support of the channel.
Good job…explained well. Makes sense to have more JEPQ if the income is needed…I don’t plan to access my Roth funds for decades (hopefully) so I’ll stick to QQQM then maybe swap JEPQ…I look forward to your videos each Sunday morning!
Absolutely Druski. You nailed it. QQQM is by far and away the best option for you in your situation. Even if the market crashes and QQQM goes down a lot more than JEPQ temporarily, QQQM will win over the long haul because the market 'should' go up over the long haul. The ceiling caps of covered calls will hurt JEPQ more than the floor protection of the sure income helps. Just as far as total returns. JEPQ is great for a cash-flow and wealth preservation hybrid.
@ I don’t want to miss any of your information, they are precious knowledge, I wish I knew sooner. I too like the other members here in this community, waiting for your advice on Sunday.., Thanks again for your efforts and time.
Hey Rick. I appreciate the kind words. I try my best to cover the heavy hitters that help every day people, like me, find a simple path to financial freedom in a world full of people looking to take a slice of your money.
thanks Jeff - excellent analysis. I am moving toward semi-retiring from writing my own covered calls. I will refrain from the gory details, but will leave most to the pros at JEPQ moving forward.
That's awesome Kent. I know some people that do very well writing their own covered calls for cash-flow. I've always been a buy & hold kind of guy instead. But JEPQ gives that nice addition of premium income without me having to do anything (: I think it does it well, and at a reasonable cost (only 0.20% more than QQQM).
Hi Jeff, love your channel. First thing I do every Sunday morning is watch your latest video. I’m 73 and have about $1.1M in the market with 75% in SCHD, 15% in SPLG, 5% in QQQM and about 5% split between TSLA and IBIT. I am in the process of selling an investment property and will invest the proceeds (of roughly $700K after taxes and closing costs) in the market. I was originally going to do the same allocation that I currently have but I’m getting a bit nervous about having such a large percentage of my portfolio in one ETF (SCHD). At the same time, it is the best overall that I can find in terms of low expense, high yield, high growth, etc. However, as I look for an additional dividend ETF, I’m torn between over allocating into SCHD or diversify by buying an inferior ETF. If I were to buy an additional ETF, what would be your second choice to SCHD? Or…should I just stay with SCHD and not worry about the allocation?
Thank you for the kind words. I think it's awesome that you tune in every Sunday. I appreciate the support. I would stick with the same allocations in your case. I believe SCHD is primed for a solid run because value (and thus, SCHD) has underperformed the market by a lot lately. But in the first 11 years, SCHD actually outperformed VOO over that stretch on total returns (many don't realize this because of recency bias). SCHD has the best yield and dividend growth combo of all dividend ETFs I track. I think you'll really like my video a week from today! It breaks down the top dividend growth ETFs by yield and dividend growth rate. It will show you how SCHD compares to DGRO, VIG, and VYM over many years. Some of this depends on your cash flow needs as well. If $1.8M produces the right amount of income to pay the bills then I would stick with your mix. If you make more than enough dividends and you don't 'need' the cash flow, I would add to your SPLG or QQQM before I would pick up another dividend ETF. If someone MADE me get another dividend ETF, I would pick DGRO (: But as you'll see next weekend, I think SCHD is better.
I’m going to do the same thing. I have $2.1M in rental properties and I’m going to sell them, no more 1031, and just pay the taxes on it. I’ll reinvest it all in VOO, VTI, QQQM & VGT.
@@r.strawhut1487 I am also thinking of selling an investment property, but isn’t it true that the owner has to wait for certain time, like 2 out of 5 years so that the capital gains would be qualified for $250,000 tax free ? I am similar to your situation, and like to learn from this community.
Great video, Jeff! All I knew about JEPQ was how covered calls funded it and its CAGR isn't close to SCHD (for longterm investing). I didn't realize it had Nasdaq exposure. I had planned on rolling into JEPQ once in retirement for income, but I like the strategy you're employing for nearing retirement!
Hey Nick. JEPQ is a pretty nice hybrid fund for growth exposure and cash-flow. So far it has paced VOO very nicely in up and down markets. I think SCHD is awesome for blue-chip, dividend growing companies with the best floor protection for the portfolio. JEPQ is right in the middle, good for retirees, or those close to retirement, for cash-flow and strong growth (Nasdaq-100 growth underlying index). QQQM is superior for investors with 10+ years to invest that want to ride the index and dollar cost average in for many years. This stuff is a lot of fun to learn about. Thanks for being here in the community and for your extra level of support as a member.
@@JeffTeeples Thanks for the breakdown and making me smarter in my investing journey! I'm going to look harder at rolling into JEPQ in the near future. My timeline is very similar to yours, so I'll keep a closer eye on your portfolio updates ;)
Great video, I’ve got at least 20 years until retirement and sold my JEPQ position a few months ago and put it into SMH but I really enjoyed its performance and monthly payments. My growth portfolio is 50% QGRW, 25% SMH and 25% FBTC, the growth portion is 33% of the total portfolio
Thanks for watching and for sharing your situation. I think you made the right move in dropping JEPQ. If you have 20 years remaining *and* you don't need cash-flow right now to pay the bills, JEPQ probably isn't the best fit for your portfolio. Keep building that machine.
Separate from my Empower Traditional 401k, JEPQ is one of my main focuses for contribution in 2025 to my dividend income focused Schwab account. Pairing with SCHD/SPYI/DIVO Thanks for the video and happy holidays.
Love all of those. Thanks for watching and for dropping a comment. QQQM really has been amazing for a long, long time. I don't think there is anything fluky about it.
Thank you for watching and for the kind words. The graphs from this video were in Seeking Alpha. It is my favorite investing site by far and away. I use it for most analysis, my screeners to pick stocks and ETFs, and my portfolio aggregation. I have a link in the description to every video if you want to try out Seeking Alpha premium for a week for free. If you like what you see, you'll save money (and support the channel) by signing up for a year. If you like it, but want to roll with the free version moving forward, you can take that path too. Either way, I think you'll you'll like Seeking Alpha. It is one of the only sites I promote on the channel (not a sponsor, just like it).
ThanX Jeff.... Happy New Year..... I have been looking at this same situation as I have VGT, QQQM and SMH for my "growth" but now my spouse is likely retiring soon so more $$ would be nice down the road.... Had wondered about adding to my JEPQ but currently it is my 2nd largest holding 13% behind SCHD 19% and did not truly know where to draw the line in percentages of holdings....?? Also, love JEPQ (I used to also hold JEPI but no longer do so) but have you seen GPIX and / or GPIQ which are newer competitors...??? Was curious about your thoughts... Thanks for all the hard work you do. Wishing you and your family nothing but good health, peace, prosperity for 2025 (and beyond).... Be well....
Hey Lance. First of all, same wishes right back at you and your family. I appreciate your amazing level of support in 2024. It has been a fun ride so far! I have been watching GPIX and GPIQ in their short history. They have done VERY well! Slight better than JEPI and JEPQ, respectively. I will continue to eye these ones for potential fits for my Roth IRA if they continue to outperform the JEPs. With JEPQ vs VGT or QQQM (or other core growth positions), it really comes down to your needs. I think QQQM is 'the best' holding for most people in general. Especially for buy and hold investors with many years left. However, if your situation, it 'might' make sense to pair down QQQM a little in favor of JEPQ. This will just raise the floor and drop the ceiling of your returns. I do it because a crash would hurt my retirement window more at this point than a bull run would help it. And I should be clear, my wife and I will have ZERO income by default when she retires. So JEPQ and SCHD will literally pay the bills 100%. No SS for 20+ years, no pension ever, etc. So I strongly prefer the dividend income method to the 4% rule. A crash KILLS people on the 4% rule soooo much more than it hurts dividend + a small reinvestment. Especially if it happens early in the projected timeline. I don't care about maximizing my final net worth figure someday (because QQQM will 'very likely' win at that over the years in most scenarios). Edit: Usually I ignore typos, but this post was brutal lol
Jeff what is the best performing ETF of the last like 10 years? My understanding is it has been SMH? If that is the case could you maybe explain why you don't have at least a small allocation very curious to know your thoughts about it. Is the expense ratio too high? too risky? Don't think that sector will perform well long term? I am thinking about buying a little inside of my roth ira. Desperate to know what you think you are waaaaaaaay further along than I am. You know much much more than me (although I am trying to learn).
Hey Oldrin. I think you're right in that SMH has been the best performer in the past 10 years. Here is a list I get from a screener pulling all ETFs with at least 10 years of performance history. This is the total returns: SMH: 906.54% SOXX: 675.76% PSI: 611.43% VGT: 559.60% IYW: 556.63% XSD: 555.85% ARKW: 546.89% FTEC: 545.06% XLK: 536.89% IGM: 534.28% My favorite growth ETF, as a tech bull, is VGT. I like that is pulls in the small, mid, and large cap technology sector as a whole. Unlike XLK that only pulls the largest companies. VGT is basically the VTI of tech. SMH has been amazing, but it only pulls 25 semi-conductor companies. They are likely critical to 'tech' and 'advancement' in the next decade or two. But if it is a new tech that comes out, boom, they are worthless (by comparison). I'm not smart enough to know the specific technologies of the future, but I am smart enough to buy the entire basket. Past performance can be a scary indicator when it comes to a single company or a single sub-sector. VGT 'gets me' SMH within it, and so much more on the tech front.
Hey Matt. I have been watching that one a bit as a tech bull in general (and really, a 'future-proof' bull). I don't have a strong opinion about it yet, but it has outperformed my favorite tech ETF, VGT, pretty comfortably in the past 1 - 3 - 5 year timeframes on total returns. Pretty impressive so far. 1Y: QTUM 53.75% VGT 31.48% 3Y: QTUM 52.35% VGT 39.42% 5Y: QTUM 195.59% VGT 169.35% Much like SMH, which has also outperformed VGT, I like it keep my tech exposure broad with VGT. I feel like VGT (and FTEC, same thing) is the 'VTI' of tech. small-mid-large cap stuff thrown in. But QTUM is definitely worth watching!
Thank you for watching and for the question. I think SCHD is perfect for a taxable account. That is where I hold most of mine. The retirement accounts don't benefit from the 'long-term capital gains tax' from the qualified dividends. I like VGT and VOO in the retirement accounts (maximum total returns and less dividends to lose the qualified stats).
Hey Jay. Thanks for watching and for the question. Here is my priority list to rebalance. 1) With new money, buy SCHD if it is below its target allocation, or VGT if it is more beat up. This is the best way to NOT have to rebalance officially 2) If things get out of balance, even with the new money buying the right one, make changes to a tax protected account if possible to avoid taxable events 3) If you're working from a taxable brokerage account only, be sure to first sell losses of the one that is overweight, and second make sure to sell stuff you've held for at least 1 year if you only see unrealized gains. You probably only have to rebalance once a year realistically. Some think monthly, some think quarterly, I honestly don't know what I think. I tend to be as 'real-time' as possible with my target allocation investing. However, I have gotten out of balance in the past 2 years because VGT insists on visiting the moon!
I appreciate you consistently taking the time to watch the videos and for dropping comments. Discord has been on my mind, but at the same time, I spend a lot of time in these comments. I would love the community and the back and forth potential, but not sure if the time will be there. I'm the type that doesn't like to do something unless I have the time and resources to do it right. Full disclosure, I netted $11,000 in 2024 in total before taxes. This includes seeking alpha, memberships and ad revenue. I'm not complaining and I love taking the time to answer these questions, but I do have a 4 and 2 year old as well that take a lot of time (:
Always great content! Thank you! I am a fan of VGT and have in my portfolio. I am thinking of selling it though. I already have a large position in VUG It may be overkill. Not sure. If I do, I want to do it before the end of the year. Any thoughts?
Thanks for watching and for the comment. I don't think there is anything wrong with selling a position you no longer need in the portfolio long-term. As long as we are not trying to 'time the market' by selling VGT high with the plans of buying it back later, I think any time works. Plus, as a bonus, VGT has had a major run up lately, so it isn't all too bad to sell now (:
@@JeffTeeplesHappy New Years. Again thank you always for your great content. Yes I would not buy it back. I want 35% of my portfolio in growth. By selling VGT It would allow me to do this! 10% vug 10% schg 10% qqqm 5% vb. I would think this would give me further diversification within my growth category versus just leaving VGT as a addition to VUG being VGT is a single sector ETF.
Do you have an opinion on QDTE? Is it too aggressive on the income aspect even though the total return is similar despite some loss of net asset value?
I've been watching QDTE some since people have mentioned it. It is too new to have a strong opinion on, but I do not like the 95 basis points of an expense ratio over the long haul. The yield is wildly high, lol. It will be interesting to see how this one performs moving forward.
Thanks for watching and I totally agree. It's a slick hybrid ETF for a nice mix of growth holdings with the added security of cash-flow sprinkled in. It has been so close to VOO since inception on the ups and the downs. I can't wait to watch this play out moving forward. Love having it in my Roth where it doesn't hurt the tax situation with those non-qualified dividends.
Hey Keith. I like to go growth heavy in our HSA. Similar logic to how I invest in our Roth IRAs. I want the most long-term growth possible because the money (most of it in the case of HSA) will never be taxed. In our case, the options are very limited through my wife's company. We put 100% of it into VUG. It doesn't offer SCHG, QQQM, VGT, or any of my other favorite growth ETFs. But VUG actually did well this year by comparison *shrug
Hey Jeff, sorry I'm late to class. I had a doctors appt., then i had to feed the hogs, my car broke down, my dog ate my paper, my daughter called and needed a ride from LA to NY and my watch stopped. Now that I'm here, raising my hand, being 5 years from retirement, can i wait until a year before retirement to begin acquiring JEPQ? Or is it beneficial to start a cash flow etf earlier and build up a % years in advance? I feel like maintaining the course projection is crucial now and then just before actual retirement, allocate a % of portfolio to guarantee a dollar amount needed upon retirement. Am i thinking wrong about this? Happy New Year! Peace and Love.
Hey Roy. Heck of a time getting to this one, haha. I appreciate you being here! You're not wrong at all. When people transition from ' wealth accumulation' to 'wealth preservation', the 'transition' can be anywhere from 0 to 10 years (generally speaking). I have a video coming out soon that will detail my 2025 plans and beyond. Besides changing QQQM to JEPQ in my Roth IRA, I am not making any other core portfolio changes. I'm a hopeful 5 to 7 years away from the finish line. I'll likely stay in accumulation (SCHD + VOO + VGT with a little JEPQ instead of QQQM for a slight floor raise) until close to the end. This is a personal decision based on risk tolerance and goals. I 'could' go 100% SCHD, money market, and a splash of VOO right now to give up likely returns but make it to the finish line at a more predictable rate. It would change it from 3 to 10 years to something like 6 to 8 years (making these up, but basically saying get there for sure, but take a little longer). There is no right or wrong way to look at it. I'll probably go to heavy SCHD + JEPQ mode when I'm 1 to 2 years away. This way a HUGE downturn doesn't wipe out my VGT and friends when I'm so close, but at the same time, I won't give up soooooo much return potential BEFORE I'm 'that close'.
ROFL, I think I remember recording something like that in the past. I'm still not ready to dive into SMH because of the same reasons. I LOVE tech and frankly I think semi-conductors are future proof to a certain degree, but it is still too niche for me. And I still fully acknowledge that SMH has been a monster!
@@JeffTeeples Awesome thank you for your reply and thoughts! I hope you and your family have a wonderful new year! Thank you for all your interesting videos!
Hey Daman. I keep my JEPQ in my Roth IRA (now, before it was in taxable because I needed the money to pay bills when I quit my job). We plan on using my Roth when we are in the process of converting my wife's 401k to a Roth after she retires in hopefully 5 to 7 years.
What do you think of my portfolio being 40% VOO, QQQM 40% and JEPQ 20% or do you think I should use SCHD 20% instead of 20% of JEPQ? Please give me your advice. Adding roughly $175 to each of these per month and using drip where I can. Thanks
I think you have an awesome portfolio there. SCHD is more value based, so it would give you more difference than VOO and QQQM (JEPQ uses same index as QQQM, and roughly matches the returns of VOO). If it is in a taxable account, I would recommend SCHD for at least part of the 20%. If it's in a retirement account then JEPQ is great.
Great explanation of JepQ vs. qqq. Like to get your opinion if I could. At what age do you consider it too late to open a Roth and begin contributing first vs. funding a brokerage acct? Edit- I’m thinking I may be in 24% bracket now this filing year if the Trump tax credits don’t get renewed. Not sure if it’s better to just keep funding my brokerage and wait around 11 years until retirement then open a Roth and begin conversions. Or just let sit in a traditional Ira. Expect to be in lower bracket once retired.
Hey Kevin. Thanks for watching and great question! I think the answer is usually a balance between a taxable account and Roth contributions as we get closer to retirement. One thing I will say is that taxable accounts are overrated compared to Roth IRAs in terms of having access to the money. We do not have to wait until we are 60 to pull out Roth IRA money tax and penalty free. This makes me personally lean toward Roth contributions in these situations. If you've had a Roth open and funded for at least 5 years, you have full access to all of your contributions (even the ones from two years ago). Now Roth conversions do make a separate window, but it is still only 5 years. I converted $100k this year from traditional to a Roth. So in 5 years from now, I'll have access to $100k tax and penalty free (at 47 years old). Then I'll do $100k next year to start a separate window. Once I hit the 5 years, the snowball of access will begin. Of course, it's nice to have a taxable account to pay the taxes in the year of the conversion, and to have more money if you need more than the contribution amounts. But I would say, in general, focus on a Roth IRA unless cash-flow is very strapped. I think people get the idea of 59 1/2 in their heads when it doesn't work that way for Roth IRAs (if done right, it's best to meet with a tax professional of course to make sure everything is good, but it is honestly pretty easy 'in general' to figure out).
Hey Clark. I've seen that one around. It's fairly new, and way too concentrated for my preferences. But in a market like the last couple years it has looked pretty darn good. A bit dangerous for the reversion to the mean though (we've seen the different names for the 'Mag 7' over many decades, and we see how it rotates out as well).
Another year in the book! Thanks for watching SCHD Stan. Looking forward to making videos in 2025 and beyond. More of a Roth conversion strategy with SCHD, VGT, JEPQ, and VOO in the mix as always. Also, started using snowball analytics for the HODL Factory. I will be getting more into the details of my individual stock performance moving forward (:
Thanks for watching and for the comment. I've been keeping tabs on QQA since its inception this summer. Seems to be JEPQ like what what it does with a slightly lower expense ratio. It's very early, but so far we have total returns since inception of (7/17/2024): JEPQ: 10.27% QQA: 8.90% I'll keep watching this one!
i'm in the under 10 year camp as well. that said, i dont plan on being dead (knock on wood), just not physically working. so why not just stay in it the better long term index? It not like "retirement" means your investments stop working. i get you will need income, but if you stay diversified you should able to ride out a down sector. no? FYI i know nothing about retirement so could be missing something lol.
Thank you for watching and for the comment! You're not missing anything here, you nailed it. QQQM is much better for 'long-term' total returns in 'most' markets. It doesn't cap its ceiling with covered calls. If you have 10+ years left of investing, there is nearly zero situations in which you would want JEPQ over QQQM (as long as you never panic sell). I personally am helping my growth floor in case we hit a snag in the next 3 to 7 years. We REALLY want to retire (: Don't need to max returns, but being super heavy and VGT makes me prefer JEPQ to QQQM in my situation. In a crashed market, we will have cash-flow to invest back into the mix.
@@JeffTeeples got it. so you feel it too? and sooner rather then later. thankfully i have already built a safety net post GFC (at the cost of some big gains) so for me i want it all on the table. best of luck on your families early retirement JEBT. No doubt you guys will make it happen!
I look forward to watching these every Sunday with coffee. I am in SORT of the same boat as you. No pension, retirement 6-7 years away but WAYYY less than you to start with. Keep it rolling!
I appreciate you taking the time to watch the videos every Sunday and for leaving comments. It really is why I'm here. I love this stuff. We are all at different levels as far as portfolio values, goals, ages, etc, but, there is only one way for us to move if we continue to grow! Up and to the right (:
QQQM every month! Been an awesome year. Thanks for all the help Jeff!
Great move there & thanks for watching. My opinion hasn't changed on QQQM. It is my favorite multi-sector long-term growth ETF. I like it slightly more than SCHG (although I think they are both great, SCHG has been awesome lately).
Thanks Jeff! I really enjoy your analysis. I have 10 more years before I'm either semi-retired or fully retired. I really like both your three fund and your two fun portfolios.
Hey Chris. That is what I love about investing in general. There is no right or wrong way to do it. Well, lets be honest, there are a lot of wrong ways to do it lol, but no such thing as a one size fits all. We are all different and it makes this fun. Thank you for being a channel member! I appreciate you support of the channel.
Good job…explained well. Makes sense to have more JEPQ if the income is needed…I don’t plan to access my Roth funds for decades (hopefully) so I’ll stick to QQQM then maybe swap JEPQ…I look forward to your videos each Sunday morning!
Same. 20+ years of time for me and then plan to move over to income etfs
Absolutely Druski. You nailed it. QQQM is by far and away the best option for you in your situation. Even if the market crashes and QQQM goes down a lot more than JEPQ temporarily, QQQM will win over the long haul because the market 'should' go up over the long haul. The ceiling caps of covered calls will hurt JEPQ more than the floor protection of the sure income helps. Just as far as total returns.
JEPQ is great for a cash-flow and wealth preservation hybrid.
I watch your video religiously….
Thank you Brianna! I appreciate you taking the time to watch and learn this stuff (:
@ I don’t want to miss any of your information, they are precious knowledge, I wish I knew sooner. I too like the other members here in this community, waiting for your advice on Sunday.., Thanks again for your efforts and time.
I really like the topics you cover and also how well you communicate the data.
Hey Rick. I appreciate the kind words. I try my best to cover the heavy hitters that help every day people, like me, find a simple path to financial freedom in a world full of people looking to take a slice of your money.
thanks Jeff - excellent analysis. I am moving toward semi-retiring from writing my own covered calls. I will refrain from the gory details, but will leave most to the pros at JEPQ moving forward.
That's awesome Kent. I know some people that do very well writing their own covered calls for cash-flow. I've always been a buy & hold kind of guy instead. But JEPQ gives that nice addition of premium income without me having to do anything (: I think it does it well, and at a reasonable cost (only 0.20% more than QQQM).
Hi Jeff, love your channel. First thing I do every Sunday morning is watch your latest video. I’m 73 and have about $1.1M in the market with 75% in SCHD, 15% in SPLG, 5% in QQQM and about 5% split between TSLA and IBIT. I am in the process of selling an investment property and will invest the proceeds (of roughly $700K after taxes and closing costs) in the market. I was originally going to do the same allocation that I currently have but I’m getting a bit nervous about having such a large percentage of my portfolio in one ETF (SCHD). At the same time, it is the best overall that I can find in terms of low expense, high yield, high growth, etc. However, as I look for an additional dividend ETF, I’m torn between over allocating into SCHD or diversify by buying an inferior ETF. If I were to buy an additional ETF, what would be your second choice to SCHD? Or…should I just stay with SCHD and not worry about the allocation?
Thank you for the kind words. I think it's awesome that you tune in every Sunday. I appreciate the support.
I would stick with the same allocations in your case. I believe SCHD is primed for a solid run because value (and thus, SCHD) has underperformed the market by a lot lately. But in the first 11 years, SCHD actually outperformed VOO over that stretch on total returns (many don't realize this because of recency bias).
SCHD has the best yield and dividend growth combo of all dividend ETFs I track. I think you'll really like my video a week from today! It breaks down the top dividend growth ETFs by yield and dividend growth rate. It will show you how SCHD compares to DGRO, VIG, and VYM over many years.
Some of this depends on your cash flow needs as well. If $1.8M produces the right amount of income to pay the bills then I would stick with your mix. If you make more than enough dividends and you don't 'need' the cash flow, I would add to your SPLG or QQQM before I would pick up another dividend ETF.
If someone MADE me get another dividend ETF, I would pick DGRO (: But as you'll see next weekend, I think SCHD is better.
I’m going to do the same thing. I have $2.1M in rental properties and I’m going to sell them, no more 1031, and just pay the taxes on it. I’ll reinvest it all in VOO, VTI, QQQM & VGT.
Great info. I currently have positions in JEPQ & XLK
@@r.strawhut1487 I am also thinking of selling an investment property, but isn’t it true that the owner has to wait for certain time, like 2 out of 5 years so that the capital gains would be qualified for $250,000 tax free ? I am similar to your situation, and like to learn from this community.
Great video, Jeff! All I knew about JEPQ was how covered calls funded it and its CAGR isn't close to SCHD (for longterm investing). I didn't realize it had Nasdaq exposure. I had planned on rolling into JEPQ once in retirement for income, but I like the strategy you're employing for nearing retirement!
Hey Nick. JEPQ is a pretty nice hybrid fund for growth exposure and cash-flow. So far it has paced VOO very nicely in up and down markets.
I think SCHD is awesome for blue-chip, dividend growing companies with the best floor protection for the portfolio.
JEPQ is right in the middle, good for retirees, or those close to retirement, for cash-flow and strong growth (Nasdaq-100 growth underlying index).
QQQM is superior for investors with 10+ years to invest that want to ride the index and dollar cost average in for many years.
This stuff is a lot of fun to learn about. Thanks for being here in the community and for your extra level of support as a member.
@@JeffTeeples Thanks for the breakdown and making me smarter in my investing journey! I'm going to look harder at rolling into JEPQ in the near future. My timeline is very similar to yours, so I'll keep a closer eye on your portfolio updates ;)
Another great video!!!
Thanks Stephen. I appreciate you taking the time to watch the video and for leaving the positive feedback!
Great video, I’ve got at least 20 years until retirement and sold my JEPQ position a few months ago and put it into SMH but I really enjoyed its performance and monthly payments. My growth portfolio is 50% QGRW, 25% SMH and 25% FBTC, the growth portion is 33% of the total portfolio
Thanks for watching and for sharing your situation. I think you made the right move in dropping JEPQ. If you have 20 years remaining *and* you don't need cash-flow right now to pay the bills, JEPQ probably isn't the best fit for your portfolio. Keep building that machine.
keep pumping out those financial informational videos Jeff!!!!
Will do. Thank you for the support Kevin!
Thanks!
Thank you Brianna. You have made my channel a better place in 2024. Thank you for your generosity!
Great video!
Thanks for taking the time to watch and comment Oldrin.
Separate from my Empower Traditional 401k, JEPQ is one of my main focuses for contribution in 2025 to my dividend income focused Schwab account. Pairing with SCHD/SPYI/DIVO Thanks for the video and happy holidays.
Happy holidays Leonard. Thanks for watching and for the comment. You have a cash flowing machine built there!
Great video about JEPQ’s floor.
Thanks Shawn. I appreciate you taking the time to watch the video and for leaving feedback. JEPQ is great for the right situation.
QQQM is a beast. I’m heavily invested in it along with VOO, VGT, SCHD & DGRO.
Love all of those. Thanks for watching and for dropping a comment. QQQM really has been amazing for a long, long time. I don't think there is anything fluky about it.
Hey Jeff what program is that chart graph? I’d like to try it. Happy new year!
Thank you for watching and for the kind words. The graphs from this video were in Seeking Alpha. It is my favorite investing site by far and away. I use it for most analysis, my screeners to pick stocks and ETFs, and my portfolio aggregation.
I have a link in the description to every video if you want to try out Seeking Alpha premium for a week for free. If you like what you see, you'll save money (and support the channel) by signing up for a year. If you like it, but want to roll with the free version moving forward, you can take that path too. Either way, I think you'll you'll like Seeking Alpha. It is one of the only sites I promote on the channel (not a sponsor, just like it).
ThanX Jeff.... Happy New Year..... I have been looking at this same situation as I have VGT, QQQM and SMH for my "growth" but now my spouse is likely retiring soon so more $$ would be nice down the road.... Had wondered about adding to my JEPQ but currently it is my 2nd largest holding 13% behind SCHD 19% and did not truly know where to draw the line in percentages of holdings....?? Also, love JEPQ (I used to also hold JEPI but no longer do so) but have you seen GPIX and / or GPIQ which are newer competitors...??? Was curious about your thoughts... Thanks for all the hard work you do. Wishing you and your family nothing but good health, peace, prosperity for 2025 (and beyond).... Be well....
Hey Lance. First of all, same wishes right back at you and your family. I appreciate your amazing level of support in 2024. It has been a fun ride so far!
I have been watching GPIX and GPIQ in their short history. They have done VERY well! Slight better than JEPI and JEPQ, respectively. I will continue to eye these ones for potential fits for my Roth IRA if they continue to outperform the JEPs.
With JEPQ vs VGT or QQQM (or other core growth positions), it really comes down to your needs. I think QQQM is 'the best' holding for most people in general. Especially for buy and hold investors with many years left. However, if your situation, it 'might' make sense to pair down QQQM a little in favor of JEPQ. This will just raise the floor and drop the ceiling of your returns. I do it because a crash would hurt my retirement window more at this point than a bull run would help it.
And I should be clear, my wife and I will have ZERO income by default when she retires. So JEPQ and SCHD will literally pay the bills 100%. No SS for 20+ years, no pension ever, etc. So I strongly prefer the dividend income method to the 4% rule. A crash KILLS people on the 4% rule soooo much more than it hurts dividend + a small reinvestment. Especially if it happens early in the projected timeline. I don't care about maximizing my final net worth figure someday (because QQQM will 'very likely' win at that over the years in most scenarios).
Edit: Usually I ignore typos, but this post was brutal lol
Jeff what is the best performing ETF of the last like 10 years? My understanding is it has been SMH? If that is the case could you maybe explain why you don't have at least a small allocation very curious to know your thoughts about it. Is the expense ratio too high? too risky? Don't think that sector will perform well long term? I am thinking about buying a little inside of my roth ira. Desperate to know what you think you are waaaaaaaay further along than I am. You know much much more than me (although I am trying to learn).
Hey Oldrin. I think you're right in that SMH has been the best performer in the past 10 years. Here is a list I get from a screener pulling all ETFs with at least 10 years of performance history. This is the total returns:
SMH: 906.54%
SOXX: 675.76%
PSI: 611.43%
VGT: 559.60%
IYW: 556.63%
XSD: 555.85%
ARKW: 546.89%
FTEC: 545.06%
XLK: 536.89%
IGM: 534.28%
My favorite growth ETF, as a tech bull, is VGT. I like that is pulls in the small, mid, and large cap technology sector as a whole. Unlike XLK that only pulls the largest companies. VGT is basically the VTI of tech.
SMH has been amazing, but it only pulls 25 semi-conductor companies. They are likely critical to 'tech' and 'advancement' in the next decade or two. But if it is a new tech that comes out, boom, they are worthless (by comparison). I'm not smart enough to know the specific technologies of the future, but I am smart enough to buy the entire basket.
Past performance can be a scary indicator when it comes to a single company or a single sub-sector. VGT 'gets me' SMH within it, and so much more on the tech front.
Off topic but what are some thoughts on the ETF QTUM (seeing that it’s the flavor of the month)
Hey Matt. I have been watching that one a bit as a tech bull in general (and really, a 'future-proof' bull). I don't have a strong opinion about it yet, but it has outperformed my favorite tech ETF, VGT, pretty comfortably in the past 1 - 3 - 5 year timeframes on total returns. Pretty impressive so far.
1Y: QTUM 53.75% VGT 31.48%
3Y: QTUM 52.35% VGT 39.42%
5Y: QTUM 195.59% VGT 169.35%
Much like SMH, which has also outperformed VGT, I like it keep my tech exposure broad with VGT. I feel like VGT (and FTEC, same thing) is the 'VTI' of tech. small-mid-large cap stuff thrown in. But QTUM is definitely worth watching!
New subscriber here
Thank you for watching and subscribing. I appreciate it! Welcome to the community!
Thank you🙏 will be ok to put SCHD in my BROKERAGE ACCOUNT?
Thank you for watching and for the question. I think SCHD is perfect for a taxable account. That is where I hold most of mine. The retirement accounts don't benefit from the 'long-term capital gains tax' from the qualified dividends. I like VGT and VOO in the retirement accounts (maximum total returns and less dividends to lose the qualified stats).
What is the easiest way to rebalance a 2 fund portfolio of vgt and schd?
Hey Jay. Thanks for watching and for the question. Here is my priority list to rebalance.
1) With new money, buy SCHD if it is below its target allocation, or VGT if it is more beat up. This is the best way to NOT have to rebalance officially
2) If things get out of balance, even with the new money buying the right one, make changes to a tax protected account if possible to avoid taxable events
3) If you're working from a taxable brokerage account only, be sure to first sell losses of the one that is overweight, and second make sure to sell stuff you've held for at least 1 year if you only see unrealized gains.
You probably only have to rebalance once a year realistically. Some think monthly, some think quarterly, I honestly don't know what I think. I tend to be as 'real-time' as possible with my target allocation investing. However, I have gotten out of balance in the past 2 years because VGT insists on visiting the moon!
Thank you, learning a lot from your videos any future plans for a discord channel 🤔
I appreciate you consistently taking the time to watch the videos and for dropping comments. Discord has been on my mind, but at the same time, I spend a lot of time in these comments. I would love the community and the back and forth potential, but not sure if the time will be there. I'm the type that doesn't like to do something unless I have the time and resources to do it right.
Full disclosure, I netted $11,000 in 2024 in total before taxes. This includes seeking alpha, memberships and ad revenue. I'm not complaining and I love taking the time to answer these questions, but I do have a 4 and 2 year old as well that take a lot of time (:
Always great content! Thank you! I am a fan of VGT and have in my portfolio. I am thinking of selling it though. I already have a large position in VUG It may be overkill. Not sure. If I do, I want to do it before the end of the year. Any thoughts?
Thanks for watching and for the comment. I don't think there is anything wrong with selling a position you no longer need in the portfolio long-term. As long as we are not trying to 'time the market' by selling VGT high with the plans of buying it back later, I think any time works. Plus, as a bonus, VGT has had a major run up lately, so it isn't all too bad to sell now (:
@@JeffTeeplesHappy New Years. Again thank you always for your great content. Yes I would not buy it back. I want 35% of my portfolio in growth. By selling VGT It would allow me to do this! 10% vug 10% schg 10% qqqm 5% vb. I would think this would give me further diversification within my growth category versus just leaving VGT as a addition to VUG being VGT is a single sector ETF.
Do you have an opinion on QDTE? Is it too aggressive on the income aspect even though the total return is similar despite some loss of net asset value?
I've been watching QDTE some since people have mentioned it. It is too new to have a strong opinion on, but I do not like the 95 basis points of an expense ratio over the long haul. The yield is wildly high, lol. It will be interesting to see how this one performs moving forward.
Jepq is very talented. It matches S&P at the same time provides all important income for retirees. Hopefully more people buy it & make it HUGE.
Thanks for watching and I totally agree. It's a slick hybrid ETF for a nice mix of growth holdings with the added security of cash-flow sprinkled in.
It has been so close to VOO since inception on the ups and the downs. I can't wait to watch this play out moving forward. Love having it in my Roth where it doesn't hurt the tax situation with those non-qualified dividends.
Hey Jeff, how would you invest an HSA?
Hey Keith. I like to go growth heavy in our HSA. Similar logic to how I invest in our Roth IRAs. I want the most long-term growth possible because the money (most of it in the case of HSA) will never be taxed.
In our case, the options are very limited through my wife's company. We put 100% of it into VUG. It doesn't offer SCHG, QQQM, VGT, or any of my other favorite growth ETFs. But VUG actually did well this year by comparison *shrug
@JeffTeeples thanks my guy. Keep up the good work.
Hey Jeff, sorry I'm late to class. I had a doctors appt., then i had to feed the hogs, my car broke down, my dog ate my paper, my daughter called and needed a ride from LA to NY and my watch stopped.
Now that I'm here, raising my hand, being 5 years from retirement, can i wait until a year before retirement to begin acquiring JEPQ? Or is it beneficial to start a cash flow etf earlier and build up a % years in advance?
I feel like maintaining the course projection is crucial now and then just before actual retirement, allocate a % of portfolio to guarantee a dollar amount needed upon retirement. Am i thinking wrong about this?
Happy New Year! Peace and Love.
Hey Roy. Heck of a time getting to this one, haha. I appreciate you being here!
You're not wrong at all. When people transition from ' wealth accumulation' to 'wealth preservation', the 'transition' can be anywhere from 0 to 10 years (generally speaking). I have a video coming out soon that will detail my 2025 plans and beyond. Besides changing QQQM to JEPQ in my Roth IRA, I am not making any other core portfolio changes. I'm a hopeful 5 to 7 years away from the finish line. I'll likely stay in accumulation (SCHD + VOO + VGT with a little JEPQ instead of QQQM for a slight floor raise) until close to the end.
This is a personal decision based on risk tolerance and goals. I 'could' go 100% SCHD, money market, and a splash of VOO right now to give up likely returns but make it to the finish line at a more predictable rate. It would change it from 3 to 10 years to something like 6 to 8 years (making these up, but basically saying get there for sure, but take a little longer). There is no right or wrong way to look at it. I'll probably go to heavy SCHD + JEPQ mode when I'm 1 to 2 years away. This way a HUGE downturn doesn't wipe out my VGT and friends when I'm so close, but at the same time, I won't give up soooooo much return potential BEFORE I'm 'that close'.
I wonder if you will channel your inner mad scientist bad boy (18:22 ) and buy a few shares of SMH! hahah
ROFL, I think I remember recording something like that in the past. I'm still not ready to dive into SMH because of the same reasons. I LOVE tech and frankly I think semi-conductors are future proof to a certain degree, but it is still too niche for me. And I still fully acknowledge that SMH has been a monster!
@@JeffTeeples Awesome thank you for your reply and thoughts! I hope you and your family have a wonderful new year! Thank you for all your interesting videos!
Do you have JEPQ in your brokerage or Roth account.
Hey Daman. I keep my JEPQ in my Roth IRA (now, before it was in taxable because I needed the money to pay bills when I quit my job).
We plan on using my Roth when we are in the process of converting my wife's 401k to a Roth after she retires in hopefully 5 to 7 years.
What do you think of my portfolio being 40% VOO, QQQM 40% and JEPQ 20% or do you think I should use SCHD 20% instead of 20% of JEPQ?
Please give me your advice. Adding roughly $175 to each of these per month and using drip where I can.
Thanks
I think you have an awesome portfolio there. SCHD is more value based, so it would give you more difference than VOO and QQQM (JEPQ uses same index as QQQM, and roughly matches the returns of VOO). If it is in a taxable account, I would recommend SCHD for at least part of the 20%. If it's in a retirement account then JEPQ is great.
@@JeffTeeplesThank you. It’s in TFSA so I will buy JEPQ. Appreciated.
Love your channel and content. Happy New Year!!
Great explanation of JepQ vs. qqq. Like to get your opinion if I could. At what age do you consider it too late to open a Roth and begin contributing first vs. funding a brokerage acct? Edit- I’m thinking I may be in 24% bracket now this filing year if the Trump tax credits don’t get renewed. Not sure if it’s better to just keep funding my brokerage and wait around 11 years until retirement then open a Roth and begin conversions. Or just let sit in a traditional Ira. Expect to be in lower bracket once retired.
Hey Kevin. Thanks for watching and great question!
I think the answer is usually a balance between a taxable account and Roth contributions as we get closer to retirement.
One thing I will say is that taxable accounts are overrated compared to Roth IRAs in terms of having access to the money. We do not have to wait until we are 60 to pull out Roth IRA money tax and penalty free. This makes me personally lean toward Roth contributions in these situations.
If you've had a Roth open and funded for at least 5 years, you have full access to all of your contributions (even the ones from two years ago). Now Roth conversions do make a separate window, but it is still only 5 years. I converted $100k this year from traditional to a Roth. So in 5 years from now, I'll have access to $100k tax and penalty free (at 47 years old). Then I'll do $100k next year to start a separate window. Once I hit the 5 years, the snowball of access will begin.
Of course, it's nice to have a taxable account to pay the taxes in the year of the conversion, and to have more money if you need more than the contribution amounts.
But I would say, in general, focus on a Roth IRA unless cash-flow is very strapped. I think people get the idea of 59 1/2 in their heads when it doesn't work that way for Roth IRAs (if done right, it's best to meet with a tax professional of course to make sure everything is good, but it is honestly pretty easy 'in general' to figure out).
I can't believe gold beat the SP500 this year whoa.
Hey Oldrin. That may be the case, but gold is a pretty bad 'long-term' investment, in general (:
Add an allocation to MAGS
Hey Clark. I've seen that one around. It's fairly new, and way too concentrated for my preferences. But in a market like the last couple years it has looked pretty darn good. A bit dangerous for the reversion to the mean though (we've seen the different names for the 'Mag 7' over many decades, and we see how it rotates out as well).
What time is it? It’s Teeples Time!
Another year in the book! Thanks for watching SCHD Stan. Looking forward to making videos in 2025 and beyond. More of a Roth conversion strategy with SCHD, VGT, JEPQ, and VOO in the mix as always. Also, started using snowball analytics for the HODL Factory. I will be getting more into the details of my individual stock performance moving forward (:
Need to also include QQA.
Thanks for watching and for the comment. I've been keeping tabs on QQA since its inception this summer. Seems to be JEPQ like what what it does with a slightly lower expense ratio.
It's very early, but so far we have total returns since inception of (7/17/2024):
JEPQ: 10.27%
QQA: 8.90%
I'll keep watching this one!
have a question but do not understand how to get it to you other than post it on your video and I am not interested in that
Hey Jeff. You can email me at teeplesj@gmail.com. Thanks!
First
Confirmed! You get the first crown this time! (:
vym / qqqm..... 50/50/ nothin else nothin more
Very solid mix. I like that you have a quality growth and a quality value/dividend ETF. Stay the course with that thing and accumulate that wealth.
i'm in the under 10 year camp as well. that said, i dont plan on being dead (knock on wood), just not physically working. so why not just stay in it the better long term index? It not like "retirement" means your investments stop working. i get you will need income, but if you stay diversified you should able to ride out a down sector. no? FYI i know nothing about retirement so could be missing something lol.
Thank you for watching and for the comment! You're not missing anything here, you nailed it. QQQM is much better for 'long-term' total returns in 'most' markets. It doesn't cap its ceiling with covered calls. If you have 10+ years left of investing, there is nearly zero situations in which you would want JEPQ over QQQM (as long as you never panic sell).
I personally am helping my growth floor in case we hit a snag in the next 3 to 7 years. We REALLY want to retire (: Don't need to max returns, but being super heavy and VGT makes me prefer JEPQ to QQQM in my situation. In a crashed market, we will have cash-flow to invest back into the mix.
@@JeffTeeples got it. so you feel it too? and sooner rather then later. thankfully i have already built a safety net post GFC (at the cost of some big gains) so for me i want it all on the table. best of luck on your families early retirement JEBT. No doubt you guys will make it happen!