High yield dividend traps to avoid — lessons learned
Portfolio: 40% SCHD, 20% JEPI, 15% O, 10% JNJ, 15% individual dividend growers. Monthly income: $2,147. Yield on cost: 6.2% after 7 years of reinvestment.
30 Comments
Curious about the rebalancing approach. Annual or threshold-based?
How does this compare to just buying VTI and forgetting about it?
The exit strategy is what most people don't think about.
Not financial advice but I'm doing the exact same thing.
The psychology of money matters as much as the math.
Any thoughts on doing this in a taxable account?
Any thoughts on doing this in a taxable account?
I ran the same numbers. You're on the right track.
This is the post I needed. Exactly my situation.
What's your thoughts on the downside risk here?
FIRE community is the most underrated corner of personal finance.
The international allocation debate never gets old.
Have you modeled different interest rate scenarios?
Have you stress tested this against a 40% drawdown?
Fees really do compound in the wrong direction.
This is a solid framework. Saving this post.
Appreciate the transparency here. Most people gatekeep this stuff.
Be careful about survivorship bias in this analysis.
What brokerage are you using for this?
I've been thinking about this too. What's your time horizon?
I was skeptical at first but this changed my mind.
How long have you been doing this? Impressive numbers.
Have you considered the tax implications of this approach?
What brokerage are you using for this?
Curious about the rebalancing approach. Annual or threshold-based?
The compounding at year 20+ is when it gets really wild.
Real talk: most people can't stick to this when it gets hard.
Exactly. The sequence-of-returns issue is severely underappreciated.
Real talk: most people can't stick to this when it gets hard.
Mind sharing your full allocation?
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