I have about 18 years to go but have 15 thousand already invested in the Roth, trying to get about 18 a year in dividends before retirement, the 401k is on auto pilot just in a target date fund but I'm planning to move it into the Roth because it's also a Roth 401k that's the plan anyway

Nice! Plenty of time to stack that dividend income

I'm 42, have about $20k in my Roth, not currently invested, just in cash, trying to figure out the best way to go.

I have a 40-45000 thousand dollar stock account that usually pays around 3000 dollars in dividends a year- DRIP allows the dividends to be reinvested. I have a few retirement accounts that can be combined (roll over) that total around 10000 dollars. I do contribute to my employment retirement account. I'm 45 and hope to retire in 15-20 years.

I’m 44 so I’m hoping to retire in 20 years or so. I have both 401k with employer matching, and IRA My plan is to invest as much as I can into dividends paying stocks, bc I love stock picking (but I also have VYM, JEPI & SCHD )

Bob that's so awesome, hearing how much you're bringing in with dividends is truly motivating. Thank you so much!

Danggg what is your portfolio value

@@vincentchuvc much higher last January unfortunately 😀 average yield at 3.9%

78k 🎉uff i be retired in mexico

@@Bob-ut holy sht nice work what did you do to get to a 2 million dollar portfolio?

Hahaha O is a great addition as well

How come?

Depending of your time horizon, if you’re in your 20s that’s not a great strategy at all, but if you’re in your 50s-60s it’s great

why is your 20's bad for this strategy? @@gioclinaz

I think it's too soon to tell whether or not that's true. Since JEPI's inception, they've actually done a pretty solid job of increasing their annual payout. That could change with time though, and only time will tell

@@rynewilliams That is very true! Its very hard to compare when its so new.

@@brandtc.7991 Totally!

Swap JEPI with JEPQ

It sure does!

Thank YOU Gman! Your JEPI position is very impressive

You’re the man!

That makes sense! Also, great pickups with all of those individual stocks

You said it best man!

Thank you my dude!

Solid...I actually haven't done any research on JEPQ but it seems to be another popular ETF

Thank you for watching! I'm glad the video helped

Thanks Judy! I appreciate you watching and commenting

Haha man I'm so glad to hear that. I'll have to think of some others like it to do

Thanks Paul - I'm interested to see what JEPI looks like after being around for some more time.

Thank you man!

Thank you so much!

Thank you my friend!

It's a good way to go. I feel like I have a really good balance between ETFs and individual stocks. Those weekly contributions into SCHD really pack a punch

Thank you so much!

Thank you my friend!

Wow that's very cool! Did they share this video link or something??

@@rynewilliams Yes, some of the group members were asking about recommendations for dividend investing (the group focuses on trading SPY options), and the mod recommended and shared the link to your page.

@@talonkarrde2578 oh wow, that’s super cool! Was this on Discord or something?

Nice! That’s so cool you’ll be able to retire in 15 months

That’s incredible! Congrats

Congratulations!!!

That's awesome!

Congratulations!!!

Nice!

I'm with you there. I really have fun picking stocks. My main portfolio is pretty much all individual stocks, and then I have a Roth IRA with ETFs

Nice!

Derrick that really means a lot, thank you so much! And hats off to you for getting started with your portfolio so young. Keep it up my friend, and thanks for all of the support!

Nice!

Absolutely man! Do you have large allocations of both of these?

@@rynewilliams A couple thousand each yea...and growing!

That's awesome! It really seems to be a solid combo

Thank you my friend! I didn't mention that in this video, but I recently put out a more in depth video on JEPI where I cover the tax implications

I like mpw

Question, would it be a good idea to have SCHD in your Roth IRA? I would just let the dividends reinvest back in until I'm ready to retire- that is if that's allowed. Thanks, I'm a newby learning!

@@ebells33 yea that’s not a bad idea. I have SCHD in my Roth IRA too

Thanks much, I appreciate your response.

Nice!

Schx 😊

Thanks my dude! This one took me a while to put together haha

@@rynewilliams contrasting colors. Nice gradient. Well done. Hope it gets a good CTR!

Thanks for sharing all of that J - it does seem to be a great combo!

Thank you! The spreadsheet shown in this video is just one I made for the sake of demonstration in the video. My portfolio tracking spreadsheet can show your portfolio’s annual dividend yield and stuff though

Love it!

Though in terms of growth, in the examples above the VOO scenario's "growth" was way below the SCHD route. Am I mistaken?

So wouldn't SCHD make more sense for both growth and distribution aspects?

That's an awesome move Lance! You'll be rolling in the dividends

Hey Danny, here's a really good article that explains it in much greater detail than I ever could. Hope this helps: www.investopedia.com/terms/c/calloption.asp

Thanks

Nice! And to answer your question, in this example, we'd be adding $100 every single week in addition to the initial $10k investment

Nice!

Sounds like you have some solid diversification

Would you mind explain why you mean by “incredibly tax inefficient” and “large tax drag if held in a taxable account”? What type of account would you recommend putting it in? I’ve been trading stocks for 8months now so it’s all pretty new to me and I want to start a dividend portfolio

@@MichaelSmith-fj3sz sure thing. The dividend for Jepi consists of two parts, the qualified dividend that is paid from the underlying stock holdings, and the covered call premiums. These premiums are what make up the majority of the dividend for Jepi. Qualified dividends are generally taxed at long term capital gains rates (0, 15, 20%) while the premium is taxed at short term capital gains which is whatever your tax bracket is. By holding Jepi in a taxable account, you would owe short term capital gains of every dividend that is paid to you, therefor dragging down your real after tax return fairly significantly if you are in a moderate to high tax bracket. Holding in a tax efficient account like a roth or tradtional IRA would minimize the tax drag, but then has other considerations.

@@emericaunited1 ok makes sense. So say I have JEPI in a Roth account. It makes dividends and I have it set to reinvest dividends back into the stock. Then say after awhile maybe 30 years down the road I turn off dividend reinvestment. Will the dividends then get put into my brokerage account and will I be able to withdraw the dividends into my bank account?

@@MichaelSmith-fj3szYes, if you are at least 59.5 yrs old you will be able to withdraw (without penalty) those dividends from your Roth into whatever bank account you have linked to your brokerage.

I think that's a great plan. Use the income from JEPI to buy other things...nice

Not a bad way to go. The risk with JEPI is that it pays a variable dividend, so the cash-flow will fluctuate on a monthly basis

When it comes to SCHD, I think you'd be alright putting your eggs in that basket for the exact reason you mentioned.

Yea I wouldn't go 100% JEPI either

If you do, I would keep a small allocation of JEPI. It's not a bad ETF, and seems to be the top one out of all the covered call ETFs, but its long term performance still has yet to be tested

Have all of JEPI in the Roth side of my 401k. 5 or less years to retirement!

Your concern is understandable! And regarding your question, with that amount of money, I personally would opt for the majority of that going to SCHD if it was the JEPI/SCHD split. Having said that, with that amount of money, I would maybe throw in something like VOO or VTI

I'm in the same boat as you are. I went 75% SCHD in Pre-Tax and 25% JEPI in the Roth side of my 401k.

There are different opinions on this, I'm sure, but I think it's okay to be investing as long as you can still effectively pay down your debt. Getting rid of your debt is so important, but so is investing, so if you can effectively do both at the same time, I don't see an issue with that

It’s hard for me to say which one you should focus on, but sounds like you’re doing great

@@rynewilliams yeah I think it’s come along well! Got like 40+ shares in Eni, ford, 13 in Pfizer, 8 in Kroger, 3 or so in VYM, 4 in Jepi, 13 in AT&T and I think 9 in DOC so I’ve got a pretty decent mix of varied stocks in different industries and thinking for now I think my plan is to get Jepi and Schd when I start buying it to get those to 40 like I did ford and Eni

Hahaha I'm glad someone appreciated that 😂

I get you. I'm glad you're coming into a strategy that works better for you

I would say the latter. No matter how many Roth IRA’s you have, your contribution limits will still be the same.

@@rynewilliams If you don’t mind me asking do you have your dividend account in a brokerage account?

That sounds like a solid approach man!

Thank you! It's a ralph lauren shirt that I thrifted a few years ago

That's what it's all about

Thank you my friend! And I'm honestly not familiar with either ORI or CME

I love ORI. I started buying in 2020 and have around 710 shares. The special year Dividend is so much fun.

@@pg3wg Hey Paul, you are right, the special dividend is fun! I had 10 shares in September and was happy to get $10.00. Currently have 37 shares. I try to pick up 1 a week. 710 shares is awesome!!!!!! Buys a lot of beef jerky lol. Thanks for your view on ORI :) Take care

Haha I get you. I bet that number will be much larger in 13 years though. I'm thinking about selling JEPI in my taxable and rebuying it in the Roth

@@rynewilliams I have 22.5 shares in taxable and 4 only in Roth. Might get it to 25 in taxable and then only add to IRA. I've considered selling stuff in my taxable account, just so I could max out the Roth IRA lol.

Is there a particular reason you hold it in both accounts?

@@rynewilliams I actually bought JEPI in a taxable account like the month after JEPI was introduced. Added a little over time. In December I started a Roth and have been buying mostly in that for tax benefits. I actually haven't added any money to my taxable account since December. Just used dividends to buy more. Been trying to add as much as I can until I hit the Roth IRA limit and then switch back to investing in the taxable account

Ahh that makes sense!

I think if your ultimate goal is to purchase more SCHD, it’d make more sense to cut out the middle man (JEPI) and just directly buy more SCHD

JEPI pays a variable dividend that’s determined by the success of their options strategy. It seems this month wasn’t as successful as previous months. I’m not personally concerned about it at this point

@@rynewilliams ok

They’re both taxed as ordinary dividends!

I've got a video in mind for VHYL - seems like the UK SCHD equivalent

@@rynewilliams VHYL looks similar to VYM I guess

I personally use both Charles Schwab and M1 Finance. I don't know if either of those are offered in the Philippines though

I personally use Charles Schwab and M1 Finance

Nice!

ETFs are just fine my friend!

I haven't covered it yet...but truth be told I haven't done much research on it

@@rynewilliams I actually like that you said that. You were honest in that you didn't know anything about it and won't mislead us so thank you. This is the first video of yours I've seen and I wasn't sure I'd subscribe since it's difficult to find trustworthy opinions on sensitive subjects like this. But I'll subscribe.

Most brokerages here in the US don’t have any fees. Robinhood, Charles Schwab, Fidelity, M1 Finance - these are all commission free

My Roth IRA is just a collection of ETFs and my taxable is individual stocks. I also have JEPI in my taxable, but I'm thinking about selling it and moving those funds into the Roth

Haha thanks man 😂🙌

Thanks for sharing that!

At the end of the day income is income. If you want to continue working and just keep these in a roth IRA to finally get it tax free when you retire great. But if you come into a lump sum of money and can invest it into dividends to live off of before retirement why not? There is the psychological tax of having to go to work everyday or the tax your going to pay on ordinary income whether you earn it on a paycheck from work or through dividends with the freedom to do what the hell you want to do whenever you want to do it. I choose the latter option any day of the week.

Well said my friend

There’s a fund call VHYL that looks like a potential substitute for something like SCHD

I can’t imagine JEPI to exist into perpetuity. If the world ever reaches more historically normal and real interest rates, the increased risk of JEPI would be impossible to rationalize. If it suffered fund outflows due to a higher risk free rate they wouldn’t have the capital to sustain. I see a potential myriad of other issues with this thing as well, such as counterparty and transparency. I think these are for very old people and very old people only. Someone in their 20’s has no business buying these things, yet they are constantly pushed by kids on KZfaq who have never read a single book on financial theory or capital allocation. A business is an instrument of compounding wealth creation where even if the management team is sub par, the model only needs to be viable. Atleast to determine we will see a return OF our money. It is impossible to determine this is the case with JEPI. The fact remains JEPI is a financially engineered product where the return must be manufactured by human or machine every month. Humans have an incredible capacity to screw something up, given enough time.

@@ThePhukst1k Well put! Social media is a dangerous even tho most influencer due state this is not financial advise but most people want to chase the dividend yield lol. In some ways Jepi is okay. What makes it okay imo is the fact they sell covered calls otm. So in a way its a win/win. But again this would be suited to a roth for tax advantages.

You could do that for sure

Not a bad move. I know a handful of people who invest in those two and take that approach

That's a tough question. I'm honestly not sure what 2060 retirement fund ETF is, so it's hard for me to say what's better

Sounds like a target date fund that assumes the person is going to retire in 2060. Target date funds are not aggressive enough in my opinion. I moved my money out of one years ago.

That could work too!

Bro If you have 300k or more invest into divdens so by the time you hit 60 your money should at least double with reinvested dividens then you can live off 600k with around 50k a year. If you have less than 300k I suggest you invest into tech growth stock like tesla, apple, msft, google, amazon, nvidia buy on a dip. by the time you hit 60 those tech stocks should triple or or quadtriple then put into dividens.

Man if you could invest $1000 into these you'd be rolling in the dividends in no time

@@rynewilliams haha if only😂 I also noticed JEPIs dividend is down around 1.2%

If you’re in the US, you can buy them using any brokerage like Charles Schwab, Fidelity, Robinhood, M1 Finance, etc.

I'd feel pretty secure with SCHD, but JEPI comes with more risk. There is always the risk that the yield goes down over time due to the options strategy not being as effective. Also, the dividends from JEPI are taxed as ordinary income, so that's another negative as well. If you're investing in a Roth IRA though, you can avoid the tax issues

@@rynewilliams thank you so much for the added info! Let’s just say I had a pretty rough 2020-present in the market.. feels like I’m going through a cruel rookie hazing initiation that won’t end!😝 Since stumbling on your channel tho, it’s helped assure me going the slow/steady route is the best. Thanks again for the content!

@@brianmunroe7034 Brian I’m so glad to hear that my friend. You’ll find your groove, just keep at it, and keep learning. The journey to retirement through investing is a long one, but offers many learnings experiences along the way. I’ve had my fair share of them myself, and am bound to have plenty more haha

I'm honestly not very well versed in Canadian stocks. You guys can't buy SCHD or JEPI?

I am canadian , i do buy schd in my rrsp since i still got 25 years or so before retierement. ( no withholding 15% taxes on dividend in rrsp , so if for a long run do not use it in a tfsa).As for jepi , not sure if i will buy some since for right now i prefer to buy more share of what i already own.

I’m not sure how that works if it’s in a company 401k. I’d imagine they’re reinvested but I can’t be sure. It may be best to ask your HR department about that

@@rynewilliams thanks for the reply I notice you keep up on replying so I'm now subscribed and binging to catch up

@@kdm28 thank you so much! I’m happy to have you along for the ride 🙌

I would opt for a higher allocation of SCHD to be honest. I personally would feel more secure with a majority into SCHD

@@rynewilliamsit makes sense, though I like the idea of higher dividend payments that I can reinvest. 🤔

I really don't know much about SVOL to be honest!

@@rynewilliams ooh Thanks

Haha sorry I couldn't be more help for you there man

Hahaha love it Jaime 😂

I do not! Have you ever used it?

@@rynewilliams no I haven't. I didn't know if it was worth a flip

@@kyleb1984 what’s it even do?

@@rynewilliams it manages your portfolio for you

@@rynewilliams I don't know too much about it I was just reading about it today a little

In the hypothetical example in the video, it's a $10,000 initial investment, and then $100 invested every month on top of that, which would amount to $5,200 per year

You can get your own health insurance policy pretty easily. You'd just have to account for that in your monthly expenses when you're planning for early retirement

@@rynewilliams True but unfortunately it can be pretty pricey

@@mcc5746 that is unfortunate, but what are you going to do 🤷

@@rynewilliams very true. Could always move overseas lol

Are you asking how to calculate the dividend yield?

@@rynewilliams yeah, for example, i used to just take SCHD's 13.75% average annual growth, calculate that with how much id contribute, compound it by 30 years, and from there see what the current yield amount is to that amount.. but i feel like i got something wrong. is that the way? or is there more? i have a growth portfolio, but now i want to get into dividend/income investing and from what ive seen here and other videos it looks like the way dividend growth is calculated, including future dividends, are different...

Thank you!