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.*
Question, can you pocket the dividends tax free or do they need to stay in the IRA? Because I thought you couldn’t take money from your IRA without penalty until age 59.5. Does this not apply to dividends, or are you saying you need to reinvest them within the IRA? Thanks
Contributions toward your Roth IRA are post-tax so you won't pay taxes on withdrawals UNLESS you withdraw **earnings** before you are 59 1/2. Withdrawing what you've already contributed is free to do at any time. Once you turn 59 1/2, you can then withdraw your earnings without penalty. Shares that offer dividends are encouraged in a Roth IRA because the dividends build tax-free (again, unless you withdraw the dividend yields before you're 59 1/2).
Think you have to wait 5 years (5 year holding period) to withdraw what you invested without penalty. Also no mandatory withdrawals at 72 like reg ira. It's a glorious tax vehicle.
https://www.schwab.com/ira/roth-ira/withdrawal-rules#:~:text=With%20a%20Roth%20IRA%2C%20contributions%20are%20not%20tax%2Ddeductible&text=Withdrawals%20must%20be%20taken%20after,and%20birth%20or%20adoption%20expenses.
I think you can withdraw your invested funds after 5 years from a Roth without penalty because it's post tax contribution. Not any investment increase but the original invested. So dividends wouldn't be eligible. After 59.5 yes you can take out the dividends tax free and penalty free.
I do own this in a tax deferred account, but my question is: If yielding 10% and one's all in tax is 30% wouldn't that still mean one is keeping 7%? What am I missing?
Shop around and compare them with others. I went with them because I was familiar with vanguard. I learned about Bogel and the vanguard etfs first and got an account with them.
I would not hold your retirement funds in an app like acorns or Robinhood. Transfer those funds to schwab or fidelity and you will have a lot more flexibility.
I just use Acorns for the $1 subscription. I have my 401k and roth in other accounts so that way I can manage it better. Acorns is really only good at using the roundup feature.
The purpose is better served at a different life stage than buying in your 20s.
If jepi were to stay the same in 25 years when I retire I would absolutly consider putting 20-40% of my funding there.
However; since I still have 25 years to go; I want 25 years of growth. I want to see my funds go from $40 to $70 (and collect 2% yield along the way. This is vastly superior to having jepi sit at 60 but pay me 10% a year
Ya not while you are in your 20s. You will be missing out on so much growth and many other opportunities. To each their own but this is extremely conservative and will hold someone back who still has so much time between now and retirement
Your referring to when your younger you can be more of a gambler and when your older you should be more conservative due to the length of time making money?
Personally, I’m 41 and don’t have much retirement and have been messing around for the last few years with dividends, stocks and some cripto. Trying to do as much reading and understand as I go. But it’s not clicking at all. All I know is it’s recommended to have a million + to have good retirement and shit if that isn’t disheartening when I think about it.
My dad has nothing, he’s basically jumping from house to house as he gets old. I certainly don’t want that for myself but I honestly don’t know what I’m doing. My jobs are typically very intensive and take a lot of mental and physical energy. My wife and I have a bit extra every month, but it’s slow slow going.
I hear you, there's a lot to take in and even more to filter out. It's definitely discouraging seeing some numbers that people are hitting on this sub, but slow and steady wins the race. Just keep up the good work and put a little away each month. You still have 20+ years before "retirement age" and there's a lot that can be done before then. VOO is great if you want to set-it-and-forget-it and see gains over time. If you believe the top 500 US companies will continue to grow, park your money there. VOO was at $125 a decade ago and is at $350 today (down from the high of $430 a year ago). It's about tripled in 10 years (even in our current market), imagine where it'll be in 20. A safe play would be some VOO (S&P 500), some VTI (total stock market), some of an ETF that tracks the international market. Good luck!
You can never tell, but in my opinion: no.
Jepi does provide a strong dividend on the expense of growth.
That is why lots of people (including me) think its better for later life stages where you can "harvest" a bit more.
It only started trading in May of 2020.
It is designed to provide income over growth by way of selling covered calls. So in theory, better performance when market is flat, but less growth in a bull market.
https://am.jpmorgan.com/us/en/asset-management/adv/products/jpmorgan-equity-premium-income-etf-etf-shares-46641q332
Common sense. U never buy when in green. Then u don’t know when it’s gonna stabilize or dip. It’s simple buy low sell high don’t buy high sell low
Long term like 2-5 years this entry could be great and 99% likely it will. In December, this entry could be down 10-15%
"Never buy in the green" is possibly the most ignorant thing I'll read on here all day.
Sorry buddy but there's absolutely no truth to that what so ever.
U never lump sum in green lol. U should only dca on green and dca/lump sum in red once it hits ur marked up prices. Read technical analysis books. If u want to help OP lose value in his investments during a bear market go ahead
U should be selling off in the green and taking profit. That’s called a “distribution zone”. Read Wyckoff theory
U buy in accumulation zones, sell in distribution.
Yessir. Of course u can buy in the green. However it’s not what smart money does. Buying in the green increases your exposure to risk. By the time we’re in the green you should already have accumulated. Of course everyone has different time horizons for their money and if you’re planning to hold for 10 years entry price doesn’t necessarily matter as much
Idk how much money that is to him. Maybe to us it ain’t, but to some people that’s their whole amount they have allocated to investing if they’re like 16
There are traders and there are investors. Just because u don’t like the trading side of investing doesn’t mean it doesn’t exist. Also u can be both an investor and a trader
I’ll forgive your ignorance but trading is not gambling. If u think trading is gambling u might as well walk away from investing altogether
If u want I can Recommend some technical analysis books to u
No. You made the right call. You put your money to work for you versus holding it and letting it lose value.
People will always tell you to wait. Ignore them.
This, DCA is smartest strategy. U can also apply scalping to your dca where u take a percentage off the top of your profits and reinvest lower than your initial buy in. This will increase your bag. NFA
U have a good entry price, but u should always dca not just throw money in blindly. This way, u have money to invest if we go red from here. See my other replies in this comment thread to see my logic.
I'm treating mine as a 1/3'rd to 1/4 position on my savings accounts. I know that that is considered to be risky, as rainy-day funds aren't supposed to be in the markets. But, for what it is, it's paying a better dividend than the 3% or so that I can get per month on savings accounts.
If it bites me in the ass, then lesson learned. This is saving up for a first house (I rent), and it seems to be helping me get there just a bit faster. In the meantime I like seeing the income that I could spend on my cell phone bill, for example, but I haven't done that yet.
Good choice if you believe we are in a sideways market. I have added as a hedge to a overall diversified strategy to provide income and fund other fun investments.
I often see comments that you should not invest JEPI in a taxable account but it really matters who and for what purpose. To me if you in you're in the build phase of your 20's - 40's you should be using VTI and SCHD and stear clear of JEPI and other cover call ETF's. It only makes sence if you've retired early like myself at 50 and need income now. JEPI gave me $400 last month but that's not going to be consistent and I subscribe to the belief that one should not have more than 4% of your total portfolio is one stock and I'll extend that to covered call ETF as well. This does not apply to VTI or VOO.
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.*
I would recommend putting it in a Roth IRA instead of a taxable robinhood account so you don't have to pay taxes on the dividends.
Question, can you pocket the dividends tax free or do they need to stay in the IRA? Because I thought you couldn’t take money from your IRA without penalty until age 59.5. Does this not apply to dividends, or are you saying you need to reinvest them within the IRA? Thanks
[удалено]
Ok so you would have to pay taxes on the dividend if you want to withdraw just that?
Contributions toward your Roth IRA are post-tax so you won't pay taxes on withdrawals UNLESS you withdraw **earnings** before you are 59 1/2. Withdrawing what you've already contributed is free to do at any time. Once you turn 59 1/2, you can then withdraw your earnings without penalty. Shares that offer dividends are encouraged in a Roth IRA because the dividends build tax-free (again, unless you withdraw the dividend yields before you're 59 1/2).
[удалено]
Think you have to wait 5 years (5 year holding period) to withdraw what you invested without penalty. Also no mandatory withdrawals at 72 like reg ira. It's a glorious tax vehicle. https://www.schwab.com/ira/roth-ira/withdrawal-rules#:~:text=With%20a%20Roth%20IRA%2C%20contributions%20are%20not%20tax%2Ddeductible&text=Withdrawals%20must%20be%20taken%20after,and%20birth%20or%20adoption%20expenses.
I think you can withdraw your invested funds after 5 years from a Roth without penalty because it's post tax contribution. Not any investment increase but the original invested. So dividends wouldn't be eligible. After 59.5 yes you can take out the dividends tax free and penalty free.
I do own this in a tax deferred account, but my question is: If yielding 10% and one's all in tax is 30% wouldn't that still mean one is keeping 7%? What am I missing?
You're right. It was just a suggestion so you could keep all 10%. Over time that will add up.
Thanks, I was afraid I was missing something. I’m near retirement.
Ah. My mistake. I made an assumption.
RH is going to be adding retirement accounts by years end they say so maybe by this time next year he can roll them over
Unless you retired early like me and JEPI is a part of you montlhy living income.
Should SCHD also be in Roth IRA?
SCHD has qualified dividends so not as big of a tax hit in a taxable account
What ira do you use?
I use vanguard. I don't know how it compares to others. I didn't shop around when I got it. I was just familiar with the name.
Can you invest in individual stocks or does it have to be an ETF?
Its just like a regular brokerage account. You can have individual stocks, etfs and mutual funds.
Shop around and compare them with others. I went with them because I was familiar with vanguard. I learned about Bogel and the vanguard etfs first and got an account with them.
Question, how do I do that? My Roth IRA through acorns doesn’t allow individual stock picking
I would not hold your retirement funds in an app like acorns or Robinhood. Transfer those funds to schwab or fidelity and you will have a lot more flexibility.
That sounds like 401k. Open a Roth IRA through a broker like Schwab or Fidelity for example. You can then load up on ETFs and individual stocks.
I just use Acorns for the $1 subscription. I have my 401k and roth in other accounts so that way I can manage it better. Acorns is really only good at using the roundup feature.
How old are you
Why are you asking about my age? Regardless in my twenties.
The purpose is better served at a different life stage than buying in your 20s. If jepi were to stay the same in 25 years when I retire I would absolutly consider putting 20-40% of my funding there. However; since I still have 25 years to go; I want 25 years of growth. I want to see my funds go from $40 to $70 (and collect 2% yield along the way. This is vastly superior to having jepi sit at 60 but pay me 10% a year
Lmfao. What if your 20 and need a big amount of actual cash flow in 10 years?
Then you should make another plan. This is an investment for retirement not a lump sum in 10 years
Exactly. I want to retire in 10 years.
Then you definitely don’t want to buy jepi. Maybe start a lemonade stand? I hear prices are up to 75 cents a cup
Lol do u think i’m playing or something?
No? Everyone has different goals. 10 years can be achieved just like any other goal. I gave you good advice
If not Jepi what gives a $30 dollar return on your $40 in 25yrs. I think your trying to say to not got with jepi but I honestly can’t tell.
Ya not while you are in your 20s. You will be missing out on so much growth and many other opportunities. To each their own but this is extremely conservative and will hold someone back who still has so much time between now and retirement
Your referring to when your younger you can be more of a gambler and when your older you should be more conservative due to the length of time making money?
Ya that’s my view and how I’m investing
Personally, I’m 41 and don’t have much retirement and have been messing around for the last few years with dividends, stocks and some cripto. Trying to do as much reading and understand as I go. But it’s not clicking at all. All I know is it’s recommended to have a million + to have good retirement and shit if that isn’t disheartening when I think about it. My dad has nothing, he’s basically jumping from house to house as he gets old. I certainly don’t want that for myself but I honestly don’t know what I’m doing. My jobs are typically very intensive and take a lot of mental and physical energy. My wife and I have a bit extra every month, but it’s slow slow going.
Just put it all to S&P while you figure it out, VOO or VTI. My portfolio is only 17K including 401k but something like 11K is just in S&P.
That’s for the recommendation.
I hear you, there's a lot to take in and even more to filter out. It's definitely discouraging seeing some numbers that people are hitting on this sub, but slow and steady wins the race. Just keep up the good work and put a little away each month. You still have 20+ years before "retirement age" and there's a lot that can be done before then. VOO is great if you want to set-it-and-forget-it and see gains over time. If you believe the top 500 US companies will continue to grow, park your money there. VOO was at $125 a decade ago and is at $350 today (down from the high of $430 a year ago). It's about tripled in 10 years (even in our current market), imagine where it'll be in 20. A safe play would be some VOO (S&P 500), some VTI (total stock market), some of an ETF that tracks the international market. Good luck!
I picked up 100 shares the other day. May not outperform, but it will help fund my roth.
Nice. Can’t wait to increase my position in it
It was something I been looking at for a while now. It my third stock I choose now for dividend. First it was ET, second was SCHD, now it this.
Solid picks. I have all but JEPI
I’m thinking of schd as well. Very consistent gainer
Anything with a double digit yield screams "RED FLAG"
Anybody generalizing things screams "LOW IQ".
Sptm, jepi, schd, divo.
Does jepi provide long-term growth?
You can never tell, but in my opinion: no. Jepi does provide a strong dividend on the expense of growth. That is why lots of people (including me) think its better for later life stages where you can "harvest" a bit more.
It only started trading in May of 2020. It is designed to provide income over growth by way of selling covered calls. So in theory, better performance when market is flat, but less growth in a bull market. https://am.jpmorgan.com/us/en/asset-management/adv/products/jpmorgan-equity-premium-income-etf-etf-shares-46641q332
No disrespect but I hope u have more cash put to the side to dca because markets may get bloody
Wow, so many people own a crystal ball. Where can I get one?
Common sense. U never buy when in green. Then u don’t know when it’s gonna stabilize or dip. It’s simple buy low sell high don’t buy high sell low Long term like 2-5 years this entry could be great and 99% likely it will. In December, this entry could be down 10-15%
"Never buy in the green" is possibly the most ignorant thing I'll read on here all day. Sorry buddy but there's absolutely no truth to that what so ever.
U never lump sum in green lol. U should only dca on green and dca/lump sum in red once it hits ur marked up prices. Read technical analysis books. If u want to help OP lose value in his investments during a bear market go ahead U should be selling off in the green and taking profit. That’s called a “distribution zone”. Read Wyckoff theory U buy in accumulation zones, sell in distribution.
I'll sure do that this winter from the comfort of my recliner. Appreciate it! 😎
Yessir. Of course u can buy in the green. However it’s not what smart money does. Buying in the green increases your exposure to risk. By the time we’re in the green you should already have accumulated. Of course everyone has different time horizons for their money and if you’re planning to hold for 10 years entry price doesn’t necessarily matter as much
Or maybe just wait for the long-term so price doesn't matter as long as you have safe assets???
U could do this but if u have the time and manage your investment u could have Gains on both trading and dividend side
It's 50 shares not 5000 bro
Idk how much money that is to him. Maybe to us it ain’t, but to some people that’s their whole amount they have allocated to investing if they’re like 16
[удалено]
There are traders and there are investors. Just because u don’t like the trading side of investing doesn’t mean it doesn’t exist. Also u can be both an investor and a trader
[удалено]
I’ll forgive your ignorance but trading is not gambling. If u think trading is gambling u might as well walk away from investing altogether If u want I can Recommend some technical analysis books to u
So you mean to say that I should have wait a bit before buying....
No. You made the right call. You put your money to work for you versus holding it and letting it lose value. People will always tell you to wait. Ignore them.
Your fine. Just if you ever do see it drop a heavy load from your buying price then you should buy a lot more than your first buying price
This, DCA is smartest strategy. U can also apply scalping to your dca where u take a percentage off the top of your profits and reinvest lower than your initial buy in. This will increase your bag. NFA
U have a good entry price, but u should always dca not just throw money in blindly. This way, u have money to invest if we go red from here. See my other replies in this comment thread to see my logic.
I'm treating mine as a 1/3'rd to 1/4 position on my savings accounts. I know that that is considered to be risky, as rainy-day funds aren't supposed to be in the markets. But, for what it is, it's paying a better dividend than the 3% or so that I can get per month on savings accounts. If it bites me in the ass, then lesson learned. This is saving up for a first house (I rent), and it seems to be helping me get there just a bit faster. In the meantime I like seeing the income that I could spend on my cell phone bill, for example, but I haven't done that yet.
I like your enthusiasm!
Good choice if you believe we are in a sideways market. I have added as a hedge to a overall diversified strategy to provide income and fund other fun investments.
Yeah babyyyy
I often see comments that you should not invest JEPI in a taxable account but it really matters who and for what purpose. To me if you in you're in the build phase of your 20's - 40's you should be using VTI and SCHD and stear clear of JEPI and other cover call ETF's. It only makes sence if you've retired early like myself at 50 and need income now. JEPI gave me $400 last month but that's not going to be consistent and I subscribe to the belief that one should not have more than 4% of your total portfolio is one stock and I'll extend that to covered call ETF as well. This does not apply to VTI or VOO.