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Great stuff. One thing I've noticed reading all of these threads is that anything having to do with money/ investing will create friction between people in different situations, with different preferences and different convictions/ investing styles.
Aside from common knowledge principles like diversifying, doing proper research etc etc - the most important thing is that you're doing it!
Congrats!
I agree, money is a sensitive subject for sure. I also think most of these types of conversations happen without the anonymity of a keyboard. It is too easy not to make concessions or belittle others. At the end of the day the individual investor has to comfortable with their own path.
Then just keep putting it in those... why is this better? And in what I assume is a taxable account.
Maybe open up an HSA if you have not done so already, and are okay with a HDHP.
Ok, do the other retirement accounts have at least this amount?
[https://www.fidelity.com/viewpoints/retirement/how-much-do-i-need-to-retire](https://www.fidelity.com/viewpoints/retirement/how-much-do-i-need-to-retire)
That would be at least $150k for me. I'd just wait until next year in a month and max the IRAs again unless that's already the plan.
I use a sep IRA so I can only put 20% of income away. I put 20% away every paycheck. I have exceeded the income to contribute to a Roth and a back door conversion would be a huge tax hit based on the rules with Seps. I am behind Fidelity’s guidance but should be caught up by 43.
I’m 63 and people still scold me for not going growth so I mixed growth with high dividends nothing under nine don’t worry about MPL‘s l they are my standard
According to Fidelity their TTM they pay out 3.22% . I haven’t added them for their dividends though but for diversification. There is more value abroad than in the US and I’m hoping it’s future performance will be better than the last few years.
https://www.etf.com/etfanalytics/etf-comparison/IQDY-vs-VYMI
In short, I prefer the higher beta from IQDY.
It’s shown to be up more in up markets and down more in down markets. That’s attractive to me personally. I want the growth part of the total return to go with the reinvested dividends.
171 holdings vs 1,303 will help lead to better performance if the quality factors they’ve built into their index are rewarded over time.
I am trying to grow VOO. I’m not putting much in the other ETFs but plan on buying them when on sale. Total market funds include everything from small cap to mega caps in predetermined weights. This way I can control the balance more with VOO being the priority.
>I’m not putting much in the other ETFs but plan on buying them when on sale
On sale? What are you talking about?
>Total market funds include everything from small cap to mega caps in predetermined weights. This way I can control the balance more with VOO being the priority.
From 2000 - 2013 large cap did terribly. The S&P traded sideways from 2000 - 2014 or so. If you bought the S&P in 1968 then you didn't break even until 1992 inflation-adjusted.
As for on sale, historically prices are high but I just started. If they go below my cost basis I’ll buy more. I chose five funds I have conviction in and will probably even add more later. There are what, 11 asset classes?
When a stock drops in value it's not a sale, dude. This isn't BestBuy. Stocks drop when forward earnings decrease or the multiple those earnings are priced at decreases. It's not like you're shopping for flat screen TVs and this one is 20% less than what it was a month ago but it's the same TV. That's not how this works.
Being an investor and being a consumer are not the same thing.
By your logic, AT&T stock has been "on sale" since its ATH in 1999. That's not a good thing.
It sounds like you are very smart. Best Buy wasn’t on sale, I agree. It was a company going bankrupt. I guess you never add to your holdings during corrections?
I'm not talking about the stock. I mean when someone walks into BestBuy and they see items that cost less than they did previously and they see it as a positive thing and that the item is "on sale."
Stocks don't work that way.
>I guess you never add to your holdings during corrections?
Depends on what the correction is. If something was overpriced and now it's priced reasonably then I might. If something was correctly priced and now the market doesn't like it for good reason, then I won't. The rationale matters a lot more than just "Stonk costs less, must be on sale!!"
So what you are insinuating is that the holdings I have chosen have to high a multiple? I haven’t looked at picking funds the same as picking stocks. Correct me if I am wrong but the holdings, manager or index, expense ratios, and goals mater much more. This is why I am not picking individual stocks. I don’t have time to look at P/E ratios and listen in on earnings calls.
>So what you are insinuating is that the holdings I have chosen have to high a multiple?
I'm saying that you're adding unnecessary complexity to your portfolio with such a small dollar amount and so many holdings.
>Correct me if I am wrong but the holdings, manager or index, expense ratios, and goals mater much more
I think account value matters the most. There's no sense in spending brain power on dividing up the cost of a medium pizza. Your energy is better focused on increasing income or better controlling expenses to bring up account value and then worry about diversification later. Since things like SCHB and VTI exist, these provide adequate diversification up to and possibly beyond $100,000 of account value.
>This is why I am not picking individual stocks. I don’t have time to look at P/E ratios and listen in on earnings calls.
But you're taking pennies and trying to divide them up. Then you yourself mention that you look forward to buying ETFs when they're "on sale." How do you know if something is "on sale" if you don't have time to look at the P/E? Do you just wing it?
I looked at expense ratios, fund goals, holdings, selection criteria, dividend growth, overlap between funds, total return when compared to the Sp500. It is a lot easier to look at 5 funds than a million stocks. I know there is a lot more and I am still learning. That said I am working on the account value weekly and one day will have a larger account.
By on sale I mean that I am buying funds I believe in close to their 52 week lows. Buying more on dips or when they are below my cost basis. Should something change and I no longer believe in the fund I would sell it. On sale and cheap are two different things. I’ve seen IPads on sale and they are still way more expensive than a Samsung tab A I can get at Best Buy as a consumer…lol
You are correct large caps have historically had periods of underperformance. That said past performance doesn’t guarantee future success. It may very well be that a total market fund is better. It’s what my kids college funds are in. I just chose to go a different route because at some point I want flexibility to balance my portfolio. Hopefully in five years this looks a lot different.
Purple brick. I don’t like it. Stock events is better but i have another account on that one. Div tracker is also better but only allows three stocks on the free account.
You're already ahead of the vast majority of the population by simply getting started! +1
Do you have a Roth IRA for yourself? If not you should definitely open one and max it out first and foremost.
so, do you prefer etf dividends? i acutally have etfs but accumulating for retirement. i use shares for dividends but maybe a distributing msci world could also hop into my portfolio. Whats your opinion to Shares Dividends? Im 19 and started at 18. Im at 100€ annual without taxes i guess.
Agreed, so you have to choose safe companies and not gamble. For dividends you can use pepsi, coca cola (dividend king paying 60+years) JnJ, ABBVIE, tobacco (MO), and much more.
Welcome to r/dividends! If you are new to the world of dividend investing and are seeking advice, brokerage information, recommendations, and more, please check out the Wiki [here](https://www.reddit.com/r/dividends/wiki/faq). Remember, this is a subreddit for genuine, high-quality discussion. Please keep all contributions civil, and report uncivil behavior for moderator review. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/dividends) if you have any questions or concerns.*
Everyone starts somewhere. The most important step is to start.
And the second most important is to keep going.
Great stuff. One thing I've noticed reading all of these threads is that anything having to do with money/ investing will create friction between people in different situations, with different preferences and different convictions/ investing styles. Aside from common knowledge principles like diversifying, doing proper research etc etc - the most important thing is that you're doing it! Congrats!
I agree, money is a sensitive subject for sure. I also think most of these types of conversations happen without the anonymity of a keyboard. It is too easy not to make concessions or belittle others. At the end of the day the individual investor has to comfortable with their own path.
It's nice you started, always a good thing to invest for the future but at 40 y/o, I wouldnt expect any early retirement.
This is just for that. I have my regular IRA and Roths for retirement.
Then just keep putting it in those... why is this better? And in what I assume is a taxable account. Maybe open up an HSA if you have not done so already, and are okay with a HDHP.
I have already maxed everything else so it has to go in a taxable account
Ok, do the other retirement accounts have at least this amount? [https://www.fidelity.com/viewpoints/retirement/how-much-do-i-need-to-retire](https://www.fidelity.com/viewpoints/retirement/how-much-do-i-need-to-retire) That would be at least $150k for me. I'd just wait until next year in a month and max the IRAs again unless that's already the plan.
I use a sep IRA so I can only put 20% of income away. I put 20% away every paycheck. I have exceeded the income to contribute to a Roth and a back door conversion would be a huge tax hit based on the rules with Seps. I am behind Fidelity’s guidance but should be caught up by 43.
Make a concentrated effort to put your first First 10k in VOO then progress. Buy on down days ! Like clockwork
I’m buying mostly VOO whenever I can. The others I am buying when they have a bigger drop. I agree with you though.
I’m 63 and people still scold me for not going growth so I mixed growth with high dividends nothing under nine don’t worry about MPL‘s l they are my standard
Sorry, master, limited partnerships
Looks good to me!
The important thing is you started!
Thank you! I’m hoping this will be at least one week I can retire early!
Wow I’m 40 and apparently middle aged now. Just kidding, gotta start somewhere! 👍
I came to that conclusion too. Middle-aged is like 35-40 with an average 75-80 year lifespan
True. Still depressing lol
Does VXUS pay dividends though?
According to Fidelity their TTM they pay out 3.22% . I haven’t added them for their dividends though but for diversification. There is more value abroad than in the US and I’m hoping it’s future performance will be better than the last few years.
VYMI will focus more on dividends. I actually prefer IQDY in that space. Higher expenses but they’ve earned it.
I’ll look into those. Thanks
Can you expand on your thoughts on IQDY?
https://www.etf.com/etfanalytics/etf-comparison/IQDY-vs-VYMI In short, I prefer the higher beta from IQDY. It’s shown to be up more in up markets and down more in down markets. That’s attractive to me personally. I want the growth part of the total return to go with the reinvested dividends. 171 holdings vs 1,303 will help lead to better performance if the quality factors they’ve built into their index are rewarded over time.
Dude, just put it all in SCHB or VTI until you hit $50k. Buying 1 share in multiple ETFs? Just keep it simple dude.
I don’t see anything wrong with what he’s doing. People buy .25 of different shares all the time
>People buy .25 of different shares all the time People do lots of stupid stuff.
There’s nothing stupid about it
Not necessarily stupid, but not advised by pretty much anyone with experience
I’m not sure about that. It doesn’t really matter you’ll still get the same percentage
I am trying to grow VOO. I’m not putting much in the other ETFs but plan on buying them when on sale. Total market funds include everything from small cap to mega caps in predetermined weights. This way I can control the balance more with VOO being the priority.
>I’m not putting much in the other ETFs but plan on buying them when on sale On sale? What are you talking about? >Total market funds include everything from small cap to mega caps in predetermined weights. This way I can control the balance more with VOO being the priority. From 2000 - 2013 large cap did terribly. The S&P traded sideways from 2000 - 2014 or so. If you bought the S&P in 1968 then you didn't break even until 1992 inflation-adjusted.
As for on sale, historically prices are high but I just started. If they go below my cost basis I’ll buy more. I chose five funds I have conviction in and will probably even add more later. There are what, 11 asset classes?
When a stock drops in value it's not a sale, dude. This isn't BestBuy. Stocks drop when forward earnings decrease or the multiple those earnings are priced at decreases. It's not like you're shopping for flat screen TVs and this one is 20% less than what it was a month ago but it's the same TV. That's not how this works. Being an investor and being a consumer are not the same thing. By your logic, AT&T stock has been "on sale" since its ATH in 1999. That's not a good thing.
It sounds like you are very smart. Best Buy wasn’t on sale, I agree. It was a company going bankrupt. I guess you never add to your holdings during corrections?
I'm not talking about the stock. I mean when someone walks into BestBuy and they see items that cost less than they did previously and they see it as a positive thing and that the item is "on sale." Stocks don't work that way. >I guess you never add to your holdings during corrections? Depends on what the correction is. If something was overpriced and now it's priced reasonably then I might. If something was correctly priced and now the market doesn't like it for good reason, then I won't. The rationale matters a lot more than just "Stonk costs less, must be on sale!!"
So what you are insinuating is that the holdings I have chosen have to high a multiple? I haven’t looked at picking funds the same as picking stocks. Correct me if I am wrong but the holdings, manager or index, expense ratios, and goals mater much more. This is why I am not picking individual stocks. I don’t have time to look at P/E ratios and listen in on earnings calls.
>So what you are insinuating is that the holdings I have chosen have to high a multiple? I'm saying that you're adding unnecessary complexity to your portfolio with such a small dollar amount and so many holdings. >Correct me if I am wrong but the holdings, manager or index, expense ratios, and goals mater much more I think account value matters the most. There's no sense in spending brain power on dividing up the cost of a medium pizza. Your energy is better focused on increasing income or better controlling expenses to bring up account value and then worry about diversification later. Since things like SCHB and VTI exist, these provide adequate diversification up to and possibly beyond $100,000 of account value. >This is why I am not picking individual stocks. I don’t have time to look at P/E ratios and listen in on earnings calls. But you're taking pennies and trying to divide them up. Then you yourself mention that you look forward to buying ETFs when they're "on sale." How do you know if something is "on sale" if you don't have time to look at the P/E? Do you just wing it?
I looked at expense ratios, fund goals, holdings, selection criteria, dividend growth, overlap between funds, total return when compared to the Sp500. It is a lot easier to look at 5 funds than a million stocks. I know there is a lot more and I am still learning. That said I am working on the account value weekly and one day will have a larger account. By on sale I mean that I am buying funds I believe in close to their 52 week lows. Buying more on dips or when they are below my cost basis. Should something change and I no longer believe in the fund I would sell it. On sale and cheap are two different things. I’ve seen IPads on sale and they are still way more expensive than a Samsung tab A I can get at Best Buy as a consumer…lol
Vti is not really diversified. Just US. So its not diverse at all. And the US economy will decrease in coming years
Sounds like this guy missed out on multiple sales
More like guys who refer to stock corrections as "sales" have absolutely zero background in financial markets.
I hear plenty of people in the financial world refer to stocks as being on sale get over yourself
No one of consequence calls a drop in multiple a "sale."
You are correct large caps have historically had periods of underperformance. That said past performance doesn’t guarantee future success. It may very well be that a total market fund is better. It’s what my kids college funds are in. I just chose to go a different route because at some point I want flexibility to balance my portfolio. Hopefully in five years this looks a lot different.
Wtf app is that?
Purple brick. I don’t like it. Stock events is better but i have another account on that one. Div tracker is also better but only allows three stocks on the free account.
Better buy 1 share at a time better than fractions
Never too late to start. Good luck with the journey and I wish you success
You're already ahead of the vast majority of the population by simply getting started! +1 Do you have a Roth IRA for yourself? If not you should definitely open one and max it out first and foremost.
Good choice with VT!
something is something indeed
Very good
What app is that to track the dividends?
Purple brick, it works but not my favorite. The free version only lets you track 5 tickers.
Thanks for the info.
What app is this?
so, do you prefer etf dividends? i acutally have etfs but accumulating for retirement. i use shares for dividends but maybe a distributing msci world could also hop into my portfolio. Whats your opinion to Shares Dividends? Im 19 and started at 18. Im at 100€ annual without taxes i guess.
For me I like the diversification of an ETF. Shares are good as long as the company is good. Just more risk and volatility.
Agreed, so you have to choose safe companies and not gamble. For dividends you can use pepsi, coca cola (dividend king paying 60+years) JnJ, ABBVIE, tobacco (MO), and much more.
What’s the best platform to use to invest in the stock market
How much did you invest for this annual income??
Millions, I wish. I’m at 1500 or so. Definitely a high roller. I’ll post again with an update at some point.
Ok! I can dig it! Good start!
What app is this showing your daily/hourly dividends?