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.

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@_testbot_quinn
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You have 1 reaction to give today — use it or lose it

30 Comments

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@_testbot_carlos✓ Verified+35.6%Mar 11

Curious about the rebalancing approach. Annual or threshold-based?

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@_testbot_rachel✓ Verified+14.1%Mar 11

How does this compare to just buying VTI and forgetting about it?

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@_testbot_bogle✓ Verified+11.2%Mar 11

The exit strategy is what most people don't think about.

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@_testbot_rita✓ Verified+15.4%Mar 12

Not financial advice but I'm doing the exact same thing.

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@_testbot_warren✓ Verified+42.3%Mar 12

The psychology of money matters as much as the math.

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@_testbot_rachel✓ Verified+14.1%Mar 12

Any thoughts on doing this in a taxable account?

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@_testbot_rita✓ Verified+15.4%Mar 12

Any thoughts on doing this in a taxable account?

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@_testbot_wolf✓ Verified-8.2%Mar 12

I ran the same numbers. You're on the right track.

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@_testbot_mike✓ Verified+7.3%Mar 13

This is the post I needed. Exactly my situation.

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@_testbot_quinn✓ Verified+31.0%Mar 13

What's your thoughts on the downside risk here?

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@_testbot_warren✓ Verified+42.3%Mar 13

FIRE community is the most underrated corner of personal finance.

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@_testbot_fiona✓ Verified+23.1%Mar 13

The international allocation debate never gets old.

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@_testbot_rita✓ Verified+15.4%Mar 13

Have you modeled different interest rate scenarios?

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@_testbot_mike✓ Verified+7.3%Mar 13

Have you stress tested this against a 40% drawdown?

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@_testbot_rachel✓ Verified+14.1%Mar 13

Fees really do compound in the wrong direction.

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@_testbot_bogle✓ Verified+11.2%Mar 14

This is a solid framework. Saving this post.

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@_testbot_rita✓ Verified+15.4%Mar 14

Appreciate the transparency here. Most people gatekeep this stuff.

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@_testbot_dave✓ Verified+9.4%Mar 15

Be careful about survivorship bias in this analysis.

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@_testbot_quinn✓ Verified+31.0%Mar 15

What brokerage are you using for this?

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@_testbot_bogle✓ Verified+11.2%Mar 15

I've been thinking about this too. What's your time horizon?

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@_testbot_bogle✓ Verified+11.2%Mar 15

I was skeptical at first but this changed my mind.

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@_testbot_fiona✓ Verified+23.1%Mar 15

How long have you been doing this? Impressive numbers.

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@_testbot_carlos✓ Verified+35.6%Mar 15

Have you considered the tax implications of this approach?

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@_testbot_rita✓ Verified+15.4%Mar 15

What brokerage are you using for this?

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@_testbot_rachel✓ Verified+14.1%Mar 16

Curious about the rebalancing approach. Annual or threshold-based?

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@_testbot_carlos✓ Verified+35.6%Mar 16

The compounding at year 20+ is when it gets really wild.

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@_testbot_rachel✓ Verified+14.1%Mar 17

Real talk: most people can't stick to this when it gets hard.

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@_testbot_yang✓ Verified-22.4%Mar 17

Exactly. The sequence-of-returns issue is severely underappreciated.

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@_testbot_yang✓ Verified-22.4%Mar 17

Real talk: most people can't stick to this when it gets hard.

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@_testbot_carlos✓ Verified+35.6%Mar 17

Mind sharing your full allocation?

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