There’s literally no dark side to dividend investing. It’s literally the best thing that’s ever been created to be financially independent other than a stressful rat race 9-5 job!!!
There is no negative to dividend investing. Warren Buffett said it best,..” The average American investor should have one fund, a balanced fund that holds dividend paying stocks and Bonds, and they should hold on to that fund forever…That type of fund will lose the least during a bear market and catch the turnaround on a bull market much faster than any other form of investing and it’s also stress free”.
My son turned 18 a month ago, how about a video breaking down how to start him investing and what he should be looking to invest in. Great videos, keep up the good work! Thanks
At just 100.00 a month it should be close to a million at 65 years old. Imagine if he starts making good money and starts 300 a month. He will be rich in retirement.
My daughter turns 18 next month, how about a video breaking down how to start her investing and what she should be looking to invest in. Is VOO a good ETF to start with? Would $2000 be enough to start her on this path?
if you use Robinhood or webull you can do 7 and change m-f to simulate 5/day. Fidelity only allows me weekly. Some services only do monthly. Spreading it out as much as you can is the best.
He buys every market day, for 35$ a week. Since only 5 days are market days, he buys about 7 dollars a day, but slightly more each day adjusting for holidays
@seolwoopark2608 that wasn't their question lol. They were asking if he deposits 5/day into the investment account or a lump sum. To answer the question, he adds a lump sum to the investment account. He doesn't like having daily transactions from his bank to the investment account.
You don't have to reinvest the high dividend into the same stock. To offset the damage of the dividend trap, diversify into high quality growth stocks with the money you're getting from your dividend. Even a small amount into some medium or small cap stocks.
Maybe. Schd has more stability. But theres withdraw strategies that help you deal with market volatility. The main issue with schd is understanding if your setuo can handle inflation for an extended period of time. It doesn't go up fast enough to track. So it being part of your portfolio is fine. Being your only part of the portfolio might be. Id really look at withdraw strategies.
But if your income is not coming from your job then you do need the payouts especially in a down market due to selling at a loss or selling shares at a lower cost basis due to down market
Bob, I would be curious to hear your opinion on investing in small cap and international. I've noticed a lot of these funds are large cap heavy, which is definitely doing way better right now but hasn't always been the case.
Hello Bob, Would you be able to do a small section going over the tax implications of withdrawing Dividends out of the portfolio instead of DRIP? What would be the realistic amount taken out say from a normal Brokerage account or normal 401(k) instead of Roth IRA. Would love to hear you go over that. Appreciate the content and knowledge you have been providing. Cheers
Would love to see what accounts and what platforms to invest for your kids. My son is 13 months and would love to start now and set up a noce portfolio for him.
A bird in the hand is worth Two in the bush. Svol pays you NOW. Voo is a greater fool situation... you need to find a greater fool who then needs to find a greater fool to pay a higher price... With svol you will likely get your money back in several years.. then anything else you get after that us profit... With non of low yield funds when do you sell? When do you ACTUALY MAKE CASH FLOW. What if voo dips big? You still sell off shares? It not a trap... it is buying funds with yield...
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.
@@AverageJoeDividends See, that's where you are wrong Mr not The Average Joe Investor. Capital gains have no taxes if you don't understand how taxes work. 🤪
Mr. Bob! Thanks as always for a fantastic, educational video! Have you ever taken a look at -or- considered BKLC in place of VOO? BKLC is a baby compared to VOO in terms of AUM and popularity, but zero basis points expense ratio is awesome! Take care, my friend! 🤙
Just put all your money into TQQQ for maximum return. Perhaps too risky?? You're not looking at risk-adjusted return. JEPI and SCHD have low betas; of course, it will underperform in a raging bill market.
I often wondered this exact comparison, and felt this was the case , but the UA-cam channels love those Dividends ETFs . I mixed in both . Great video , thanks 👨🏻👍🏼
Seems everyone's stuck in the dividend trap these days, and these ridiculous high yield funds are cashing in on it hard. Dividend payments are not income. They are pulling your money out of the investment and giving it back to you (this is even visible in the NAV on the exdiv date). You can do this yourself quite easily by selling shares, taking as much or as little of it for your income as you've calculated to be safe, rather than paying some accountant somewhere to do that calculation for you. And there is no such thing as a dividend snowball. It's just an investment snowball. Some investment snowballs grow faster than others, and dividends are one of the smaller snowballs.
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There’s literally no dark side to dividend investing. It’s literally the best thing that’s ever been created to be financially independent other than a stressful rat race 9-5 job!!!
In a down market and you are retired and have to sell your positions for income you are screwed. It matters what stage of life you are in
There is no negative to dividend investing. Warren Buffett said it best,..” The average American investor should have one fund, a balanced fund that holds dividend paying stocks and Bonds, and they should hold on to that fund forever…That type of fund will lose the least during a bear market and catch the turnaround on a bull market much faster than any other form of investing and it’s also stress free”.
My son turned 18 a month ago, how about a video breaking down how to start him investing and what he should be looking to invest in. Great videos, keep up the good work! Thanks
Same here buddy.. sure love to see a video on that
Voo... qqqm
At just 100.00 a month it should be close to a million at 65 years old. Imagine if he starts making good money and starts 300 a month. He will be rich in retirement.
Sp500. buy every week or month. Buy .75 unit on green close of your timeframe. Buy 1.25 on red close.
And have him open a Roth as soon as he has earned income.
If you are retired in a sideways or down market the dividends from ETFS like JEPI can be a lifesaver
One thing not mentioned is schd tends to perform better in bear markets.
Yup
Not to mention, it also has share growth. It's not ONLY paying dividends, but the share price is also increasing.
Thanks Big Bob!!
My daughter turns 18 next month, how about a video breaking down how to start her investing and what she should be looking to invest in. Is VOO a good ETF to start with? Would $2000 be enough to start her on this path?
If she has earned income, have her open a Roth. She has until April 2025 to put in $7k for 2024.
YMAX ETF is beating all other dividend investments whether your young or old 👶🏻👴🏻
I'm into VOO and SCHD and was surprised when I set them up side by side. I've got several dividend stocks that I'm going to run through this test
Thanks for this video!
You’re welcome
When you're buying $5/day are you literally adding $5/day or are you adding like $110/month at one time?
if you use Robinhood or webull you can do 7 and change m-f to simulate 5/day. Fidelity only allows me weekly. Some services only do monthly. Spreading it out as much as you can is the best.
He buys every market day, for 35$ a week. Since only 5 days are market days, he buys about 7 dollars a day, but slightly more each day adjusting for holidays
@@seolwoopark2608 thank you
@seolwoopark2608 that wasn't their question lol. They were asking if he deposits 5/day into the investment account or a lump sum. To answer the question, he adds a lump sum to the investment account. He doesn't like having daily transactions from his bank to the investment account.
@@seolwoopark2608 thanks
You don't have to reinvest the high dividend into the same stock. To offset the damage of the dividend trap, diversify into high quality growth stocks with the money you're getting from your dividend. Even a small amount into some medium or small cap stocks.
Do you think it's a good idea to invest in VOO in my Roth IRA then sell and buy SCHD just before retirement? Is this a good strategy?
Maybe. Schd has more stability. But theres withdraw strategies that help you deal with market volatility.
The main issue with schd is understanding if your setuo can handle inflation for an extended period of time. It doesn't go up fast enough to track. So it being part of your portfolio is fine. Being your only part of the portfolio might be.
Id really look at withdraw strategies.
great video!!
@@rish9422 thank you much!
Dividends over the long haul are irrelevant to returns if reinvested and generally lag the market over long periods.
But if your income is not coming from your job then you do need the payouts especially in a down market due to selling at a loss or selling shares at a lower cost basis due to down market
Yes... Very good point
Great info 👍 thank you,❤
What are your thoughts on dollar cost averaging 40$ a day into QQC?
I physically remove all the dividends from those income funds…then you can really see how much is left over.
Great idea!
Yes! This type of content is worthy 💎
My understanding is dividends have tax concessions and a dividend etf performs better during a bear market. Would that be true?
Bob, I would be curious to hear your opinion on investing in small cap and international. I've noticed a lot of these funds are large cap heavy, which is definitely doing way better right now but hasn't always been the case.
My eyes widened and jaw dropped at the expense ratio😳
Hello Bob,
Would you be able to do a small section going over the tax implications of withdrawing Dividends out of the portfolio instead of DRIP? What would be the realistic amount taken out say from a normal Brokerage account or normal 401(k) instead of Roth IRA. Would love to hear you go over that.
Appreciate the content and knowledge you have been providing.
Cheers
One question what if you own 10,000 shares off each VOO and SVOL just for income. What would be the best etf?
Hey Bob! Love the content as always! How about a head to head shoot out between high yield ETFs like NVDY or MSTY, vs VOO?
Would love to see what accounts and what platforms to invest for your kids. My son is 13 months and would love to start now and set up a noce portfolio for him.
Opps, you're wrong. Drip SCHD beats VOO in total return and dividends. Do the work on a spreadsheet and you will see. Seeking Alpha has code bugs.
What percentages do you get? I backtested this as well with Portfolio Visualizer and SCHD lags VOO on 1, 3, 5, 10 year total return.
@@BobSharpe can you share your results.
@@BobSharpe doing a video sharing your backrest results will go a long way.
@@e.m.-lw1dn yes indeed
@@BobSharpe thats great. I'm sure a lot of people will really appreciate it and will help a lot of people make a truly informed decision.
Glad I'm buying voo, schd, some others I guess.
Just joined up on your Patreon
A bird in the hand is worth Two in the bush. Svol pays you NOW. Voo is a greater fool situation... you need to find a greater fool who then needs to find a greater fool to pay a higher price...
With svol you will likely get your money back in several years.. then anything else you get after that us profit...
With non of low yield funds when do you sell? When do you ACTUALY MAKE CASH FLOW.
What if voo dips big? You still sell off shares?
It not a trap... it is buying funds with yield...
How would reinvesting the monthly income from SVOL into VOO affect the outcome? Would that be advantageous?
XDTE is out performing VOO
Investing in stocks is planting a tree for your future; with patience, it will bear fruit
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.
main pays monthly
Now you should do a new challenges
Buy SCHD and VOO 5 USD a day. Come back 1 year.
Yeah they are TAXED
So are wages and capital gains...
@@AverageJoeDividends See, that's where you are wrong Mr not The Average Joe Investor. Capital gains have no taxes if you don't understand how taxes work. 🤪
Mr. Bob! Thanks as always for a fantastic, educational video! Have you ever taken a look at -or- considered BKLC in place of VOO? BKLC is a baby compared to VOO in terms of AUM and popularity, but zero basis points expense ratio is awesome! Take care, my friend! 🤙
Just put all your money into TQQQ for maximum return. Perhaps too risky??
You're not looking at risk-adjusted return. JEPI and SCHD have low betas; of course, it will underperform in a raging bill market.
SCHD with JEPQ
JEPQ ❤
👍
I often wondered this exact comparison, and felt this was the case , but the UA-cam channels love those Dividends ETFs .
I mixed in both .
Great video , thanks 👨🏻👍🏼
Seems everyone's stuck in the dividend trap these days, and these ridiculous high yield funds are cashing in on it hard. Dividend payments are not income. They are pulling your money out of the investment and giving it back to you (this is even visible in the NAV on the exdiv date). You can do this yourself quite easily by selling shares, taking as much or as little of it for your income as you've calculated to be safe, rather than paying some accountant somewhere to do that calculation for you. And there is no such thing as a dividend snowball. It's just an investment snowball. Some investment snowballs grow faster than others, and dividends are one of the smaller snowballs.
So you went all in on NVDA and bitcoin right?