Dividends are dope. Personally, I sometimes use my dividends to buy other dividend and growth stocks for diversification instead of reinvesting in the same stock. To each their own methods though. The good thing is that you’re investing in the first place and that’s what’s important. Salute for the content!
What are the best strategies to protect my portfolio? I've heard that a downturn will devastate the financial market, so I'm concerned about my $200k stock portfolio.
There are strategies that could be put in place for solid gains regardless of economy situation, but such execution is usually carried out by an investment specialist.
I've been in touch with a financial analyst ever since I started investing. Knowing today's culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
I appreciate it. After searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.
Dividend stocks can definitely be a great way to generate income in retirement. The idea is that you invest in companies that regularly pay dividends, and then you use those dividends as a steady income stream. If you pick the right stocks, they can provide a relatively stable and predictable income, which is perfect for retirees.
Thanks for your video I just retired at 67 and will take my SS at 70. My plan is to use 3 buckets Bucket1 - Cash (money market funds) to cover my spending for the 3 years before SS starts. I also have a part time retirement job to reduce the amount I need in bucket1 Bucket2 - Enough divident funds to have a dividend income to supplement my SS to handle my spending. Bucket3 - The remainder in Growth Funds for long term growth. I will adjust my buckets every quarter. Examples Up Market If the growth funds increase more than the dividend funds I may move some money from growth to dividend. Down Market If the dividend funds drop less than the growth funds I many move some money from dividend to growth. But I will keep enough dividend funds so I have enough to supplement my SS to handle my spending. Also remember at some point our SS will drop when one of us dies. So I will need forecast what our spending will be and how much dividend income will be needed.
Excellent video! One of the best explanations of the strategy I have seen. Have been building income stream since 2012 and now my wife and I can live off dividends without selling any stock. We do have some cash invested in CD’s and MMA’s for unexpected expenses.
The shear amount of dividend obsession on Twitter is wild!!! Troy did an excellent job of walking through the logic and fundamentals of dividend investing and why it can make sense for people to incorporate into their retirement strategy. Wonderful video and examples!
I am doing dividends stocks and will continue to do it in retirement. But a lot of it , will be in Roth. So not only will it be nice to receive dividends payouts. It will be completely tax free , when I withdraw it.
Thanks Brad! We sometimes do 'Comments Answered' videos so we may be able to address it then! Otherwise, we'll add it to our topic idea list. Thanks for watching!
(2) of the dividend aristocrats yoy listed habe cut their dividend (AT&T amd WBA), amd 3M probably will duribg their health care spin off. But dividend growth stocks are great still! Great video!
I’m 32 and investing for the first time in my life. I have started contributing to my 401K and opened a Roth IRA with automatic contributions, but my question is, does asset allocation really matter at first, or perhaps am I just overthinking as a beginner?
Right, I once downplayed the role of advisors until suffering 40% portfolio loss amid covid-outbreak. At once, I consulted a license professional and my portfolio got revamped thankfully. As of today, I'm just about 10% shy of $1m after 100s of thousands invested.
So the question would be why not invest for growth, and then, when you retire, take money out of your growth, part of your portfolio and buy dividend, paying stocks are ETFs It would seem that you would come out where your head doing it this way, rather than dollar cost averaging into dividend paying stocks are ETFs Troy could you comment on that because I would guess that would be the question most people would ask Great presentation by the way thank you
Or just invest in growth companies and take exactly how much income you want/need. Then you're in control. You don't end up with an excess that affects other areas, like IRMA, etc. The value of the fund goes up more than a dividend fund, too.
You can do whatever you want. You need to choose good businesses that will grow over the long term. I like dividend paying stocks (Microsoft, Visa, Starbucks, Trow, Abbvie, Blackrock, Target, McDonalds etc). One great thing is I never have to sell, but I always have the ability to do so. Plus I receive money when the company is down. Investing in Amazon, Google and Tesla is fun when they're up 75-200%. Not so fun when they're down 50%. If you are going to go growth you need to have iron hands, and need to time your sells well or you will be the average investor (1-2% per year). Dividend investing on the other hand is simpler. You invest, they give you a dividend, you invest more. One day you turn off the drip and collect the dividends. Easy peezy.
Growth is less certain than dividends. Many growth companies are priced for growth - they are trading at 25-30 times earnings, implying growth of 10-15% over the next 10 years. Many of them, however, turn out to be duds, and eventually the market catches on and their price drops dramatically. This is especially likely to happen if the overall market goes down.
Hey @missouri6014, @normswan5806, @joespath2303, @vinyl1Earthlink! Thanks for watching and for the discussion - it would be too much to go through in the comments section, but we often do 'comments answered' videos, so hopefully we'll be able to make one for this video soon and address some of the things you're talking about in an upcoming video!
You really did a great job in explaining. I own 3,000 shares of Abr aka Arbor Realty. It accounts for less than 3 percent of our portfolio. The Div is 13.4 percent. What’s your opinion of investing in this high payer?
Dividend investing has made me millions now I am retired at 61 enjoying almost over 200K in dividends every year. Don't go for those high-yielding stocks, go for aristocratic stocks that will continue raising their dividend. Stocks like PM, PG, J&J, Abbvie, and stocks like QCOM, Apple, MSFT will continue a great growth story while paying you a growing dividend.
Thank you for your kind comment. We cannot provide specific investment advice without learning more about your current, overall situation. Feel free to contact our office to speak with one of our advisors. If we are a good fit, we would be happy to provide our assistance.
thank you for this great video! a question please: is the percentages rate of return shows on the stocks have included the dividend rate or dividend rate is additional for added to the returned rate??
Total rate of return includes the dividend into it. For an example. If the sp500 has a 11.5% rate of return and a 1.5% dividend. Its actually a 10% capital gains return and the 1.5% dividend together.
This video is missing the mark on a few points. If you have a 1M portfolio and withdraw at 4%, that means that you are depending on the stock market to go up by 6.5% per year while withdrawing 4% - leaving 2% to continue to grow the portfolio. LIkewise if you have a 1M portfolio with AMLP which yields 7.5%, you can withdraw the same 4% but keep 3.5% invested to keep growing the portfolio. There is risk in both approaches. The only "risk free" approach is to buy treasury bonds which are safe until our government goes bankrupt due to unconstrained spend.
Great video. I am an experienced investor who has been in the market for a long time. I don't need help from financial professionals, but if I did, I would seriously consider you for seeking advice. Thank you.
Dividend/Dividend Growth will allow me to retire and live 100% off dividends and defer SS until later and never touch my principal. I do not understand why more CFPs don't suggest this and instead always talk about the 4% rule or the bond + stock method.
You guys need to talk to regular people, how many people actually have a million dollars when they retire. I am 63 and planning to retire next year. I don’t owe anyone anything, and I have some money in CD’s and want to invest about $50000 , what would you recommend to get me the most money for supplemental cash.
ETF. SCHD is good one. 3.5% yield roughly, and grows about 10% every year. Very safe with really good growth and don't have to worry about indivivual companies
Thank you for commenting. We cannot provide specific investment advice without learning more about your current, overall situation. Feel free to contact our office to speak with one of our advisors. If we are a good fit, we would be happy to provide our assistance. click2retire.com/schedule
To achieve a secure retirement, aiming to save at least 15% of your income in a 401(k) is advisable. Online tools can assist in calculating the best savings strategy for you, considering factors like age and income. Consistently saving this percentage can help build your retirement fund effectively, thanks to the benefits of compound interest.
Not so. As I found out when interest rates went up the face value fell substantially just like any bond. True, the interest rate on the TIPS went up but it hasn’t come close to making up the loss of principal.
Dividends are dope. Personally, I sometimes use my dividends to buy other dividend and growth stocks for diversification instead of reinvesting in the same stock. To each their own methods though. The good thing is that you’re investing in the first place and that’s what’s important. Salute for the content!
What are the best strategies to protect my portfolio? I've heard that a downturn will devastate the financial market, so I'm concerned about my $200k stock portfolio.
There are strategies that could be put in place for solid gains regardless of economy situation, but such execution is usually carried out by an investment specialist.
I've been in touch with a financial analyst ever since I started investing. Knowing today's culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders
Mind if I ask you to recommend this particular coach you using their service? Seems you've figured it all out.
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
I appreciate it. After searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.
Dividend stocks can definitely be a great way to generate income in retirement. The idea is that you invest in companies that regularly pay dividends, and then you use those dividends as a steady income stream. If you pick the right stocks, they can provide a relatively stable and predictable income, which is perfect for retirees.
Thanks for your video
I just retired at 67 and will take my SS at 70.
My plan is to use 3 buckets
Bucket1 - Cash (money market funds) to cover my spending for the 3 years before SS starts.
I also have a part time retirement job to reduce the amount I need in bucket1
Bucket2 - Enough divident funds to have a dividend income to supplement my SS to handle my spending.
Bucket3 - The remainder in Growth Funds for long term growth.
I will adjust my buckets every quarter.
Examples
Up Market
If the growth funds increase more than the dividend funds I may move some money from growth to dividend.
Down Market
If the dividend funds drop less than the growth funds I many move some money from dividend to growth.
But I will keep enough dividend funds so I have enough to supplement my SS to handle my spending.
Also remember at some point our SS will drop when one of us dies.
So I will need forecast what our spending will be and how much dividend income will be needed.
Dividend growth investing is the best! Plus as you said, you can’t go wrong investing in index fund ETFs
Excellent video! One of the best explanations of the strategy I have seen. Have been building income stream since 2012 and now my wife and I can live off dividends without selling any stock. We do have some cash invested in CD’s and MMA’s for unexpected expenses.
Great! Share your story so they can do the same!
The shear amount of dividend obsession on Twitter is wild!!!
Troy did an excellent job of walking through the logic and fundamentals of dividend investing and why it can make sense for people to incorporate into their retirement strategy. Wonderful video and examples!
Thanks so much, @bluecollarbudgets!
Great video, excellent explained for those under 50yrs old, for the long term investors. Thank you for sharing.
Thanks for the kind words, @8Lynch47! We're glad you enjoyed it.
I am doing dividends stocks and will continue to do it in retirement. But a lot of it , will be in Roth. So not only will it be nice to receive dividends payouts. It will be completely tax free , when I withdraw it.
Thank you for this. Clear and easy to understand
No problem, Wendy! We're glad that it helped! Thanks for watching.
thank you for a clear explanation of how dividend growth investing works..
You're welcome, @johnyjsl9219! Thanks for watching.
This is the type of video this channel needed. Can you cover how a portfolio could maximize yield on cost with this strategy?
Thanks Brad! We sometimes do 'Comments Answered' videos so we may be able to address it then! Otherwise, we'll add it to our topic idea list. Thanks for watching!
Thank you so much. Your explanation is great, and nicely. Thanks for teaching us
Thanks for the compliment @skysyc1922, we're happy it helped!
Thank you for this excellent video about dividend investing! Greetings from Cascais/Portugal.
Wow!! Im learning a lot from this video!! Thank you!
Thank you! This is the best video I have seen on this subject.
Thanks Luke! We're glad it helped! Thanks for watching.
(2) of the dividend aristocrats yoy listed habe cut their dividend (AT&T amd WBA), amd 3M probably will duribg their health care spin off.
But dividend growth stocks are great still! Great video!
Hi Joe, thanks for watching and for the update! We're glad you enjoyed the video.
I’m 32 and investing for the first time in my life. I have started contributing to my 401K and opened a Roth IRA with automatic contributions, but my question is, does asset allocation really matter at first, or perhaps am I just overthinking as a beginner?
There’s a lot to decide on, although most times as a beginner, it is better to delegate your day-to-day investing to a financial advisor
Right, I once downplayed the role of advisors until suffering 40% portfolio loss amid covid-outbreak. At once, I consulted a license professional and my portfolio got revamped thankfully. As of today, I'm just about 10% shy of $1m after 100s of thousands invested.
So the question would be why not invest for growth, and then, when you retire, take money out of your growth, part of your portfolio and buy dividend, paying stocks are ETFs
It would seem that you would come out where your head doing it this way, rather than dollar cost averaging into dividend paying stocks are ETFs
Troy could you comment on that because I would guess that would be the question most people would ask
Great presentation by the way thank you
Or just invest in growth companies and take exactly how much income you want/need. Then you're in control. You don't end up with an excess that affects other areas, like IRMA, etc. The value of the fund goes up more than a dividend fund, too.
Perfectly well said
Troy if you’re out there reading this, please give us your input. I certainly respect what you have to say.
You can do whatever you want. You need to choose good businesses that will grow over the long term. I like dividend paying stocks (Microsoft, Visa, Starbucks, Trow, Abbvie, Blackrock, Target, McDonalds etc).
One great thing is I never have to sell, but I always have the ability to do so. Plus I receive money when the company is down.
Investing in Amazon, Google and Tesla is fun when they're up 75-200%. Not so fun when they're down 50%.
If you are going to go growth you need to have iron hands, and need to time your sells well or you will be the average investor (1-2% per year).
Dividend investing on the other hand is simpler. You invest, they give you a dividend, you invest more. One day you turn off the drip and collect the dividends. Easy peezy.
Growth is less certain than dividends. Many growth companies are priced for growth - they are trading at 25-30 times earnings, implying growth of 10-15% over the next 10 years. Many of them, however, turn out to be duds, and eventually the market catches on and their price drops dramatically. This is especially likely to happen if the overall market goes down.
Hey @missouri6014, @normswan5806, @joespath2303, @vinyl1Earthlink! Thanks for watching and for the discussion - it would be too much to go through in the comments section, but we often do 'comments answered' videos, so hopefully we'll be able to make one for this video soon and address some of the things you're talking about in an upcoming video!
You really did a great job in explaining. I own 3,000 shares of Abr aka Arbor Realty. It accounts for less than 3 percent of our portfolio. The Div is 13.4 percent. What’s your opinion of investing in this high payer?
Dividend investing has made me millions now I am retired at 61 enjoying almost over 200K in dividends every year. Don't go for those high-yielding stocks, go for aristocratic stocks that will continue raising their dividend. Stocks like PM, PG, J&J, Abbvie, and stocks like QCOM, Apple, MSFT will continue a great growth story while paying you a growing dividend.
Excellent infirmation!
SCHD, VOO, VGT 40/30/30
Thanks for watching!
I would add in Qqqm and spread a little into Msft Goog and Amzn
That’s a great portfolio…if I had $5 million to work with!
This was very informative. I plan to stay in VOO into retirement and it pays a nice dividend along with impressive returns.
That would be for around 70% of portfolio and the rest in NVDA, AMZN, MSFT
Thanks for weighing in, Patty! Glad it helped.
Great Video From start to finish. If you have $30,000 starting cash to invest how would you allocate it in different sectors?
Thank you for your kind comment. We cannot provide specific investment advice without learning more about your current, overall situation. Feel free to contact our office to speak with one of our advisors. If we are a good fit, we would be happy to provide our assistance.
More financial advisors should promote this rather than total dolars
I do understand dividends paying out or reinvest. How do, say, SP500 Index fund pay out , or reinvest to increase shares.
Thank you.
thank you for this great video! a question please: is the percentages rate of return shows on the stocks have included the dividend rate or dividend rate is additional for added to the returned rate??
Would you please answer the question??
Total rate of return includes the dividend into it. For an example. If the sp500 has a 11.5% rate of return and a 1.5% dividend. Its actually a 10% capital gains return and the 1.5% dividend together.
Thank you so much.
I was wondering about taxes. If you reinvest the dividends is the dividend tax deferred?
Great video, but the bright blue light on the back is killing my eyes 😅
This video is missing the mark on a few points. If you have a 1M portfolio and withdraw at 4%, that means that you are depending on the stock market to go up by 6.5% per year while withdrawing 4% - leaving 2% to continue to grow the portfolio. LIkewise if you have a 1M portfolio with AMLP which yields 7.5%, you can withdraw the same 4% but keep 3.5% invested to keep growing the portfolio.
There is risk in both approaches. The only "risk free" approach is to buy treasury bonds which are safe until our government goes bankrupt due to unconstrained spend.
Hi, great video. Can you make a video to help people retire early like at 50 years old from dividends. The pros and cons . Thanks in advance.
Hi @alexanderviltrez3979, thanks for watching! We'll definitely add it to the topic list.
Great video. I am an experienced investor who has been in the market for a long time. I don't need help from financial professionals, but if I did, I would seriously consider you for seeking advice. Thank you.
Me too! It's a great video.
Sharma...based on your comment I'll watch vid
Why not just buy VYM? 30 year returns of 9.9% with a 2.9% dividend ?
Dividend/Dividend Growth will allow me to retire and live 100% off dividends and defer SS until later and never touch my principal. I do not understand why more CFPs don't suggest this and instead always talk about the 4% rule or the bond + stock method.
Can you elaborate?
You guys need to talk to regular people, how many people actually have a million dollars when they retire. I am 63 and planning to retire next year. I don’t owe anyone anything, and I have some money in CD’s and want to invest about $50000 , what would you recommend to get me the most money for supplemental cash.
ETF. SCHD is good one. 3.5% yield roughly, and grows about 10% every year. Very safe with really good growth and don't have to worry about indivivual companies
Thank you for commenting. We cannot provide specific investment advice without learning more about your current, overall situation. Feel free to contact our office to speak with one of our advisors. If we are a good fit, we would be happy to provide our assistance. click2retire.com/schedule
To achieve a secure retirement, aiming to save at least 15% of your income in a 401(k) is advisable. Online tools can assist in calculating the best savings strategy for you, considering factors like age and income. Consistently saving this percentage can help build your retirement fund effectively, thanks to the benefits of compound interest.
Why not just do treasuries, TIPS with no downside risks if you are closer to or in retirement
Not so. As I found out when interest rates went up the face value fell substantially just like any bond. True, the interest rate on the TIPS went up but it hasn’t come close to making up the loss of principal.
Etfs all the way
👍
Thanks @user00165!
Get yourself a tie. What do you think this is, casual friday? And you're John fetterman. How can I take you seriously? Just kidding...... Good video
Lol Thanks @FLOODOFSINS..
T has cut its dividend.
Hi Michael! Thanks for the update and for watching!