1Yr
Hi, I have also long thought about whether I a distributing or reinvesting ETF as a core bespare. Since I already have no desire and probably in the next 30 years also not. e.g. quarterly to reinvest my dividends, I have finally decided for an accumulating ETF.
Especially since I would still need a relatively long time for the 2000€ allowance. Disturbing factor here for me is always the time between payout and reinvestment, via a free savings plan (which you then also have to adjust) or individual purchase including the transaction fees. (Certainly feels some as a trifle) But I must say that I want to fill the gap in retirement rather by rental income and thus not rely on regular dividends. The quarterly dividend would thus be "forced" on me. Since I would rather decide for myself when and how much I want to pay out at a time and also need. Ultimately, it makes no difference in old age whether I sell shares or dividends are paid out. Thanks for your perspective :-) LG
Especially since I would still need a relatively long time for the 2000€ allowance. Disturbing factor here for me is always the time between payout and reinvestment, via a free savings plan (which you then also have to adjust) or individual purchase including the transaction fees. (Certainly feels some as a trifle) But I must say that I want to fill the gap in retirement rather by rental income and thus not rely on regular dividends. The quarterly dividend would thus be "forced" on me. Since I would rather decide for myself when and how much I want to pay out at a time and also need. Ultimately, it makes no difference in old age whether I sell shares or dividends are paid out. Thanks for your perspective :-) LG
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@VP can absolutely understand your point of view. Since everyone must find his own way and a right or wrong there is rather not. For me, however, it is clear that in the ideal case I want to live off the distributions and therefore do not want to sell shares so that the substance of the portfolio is maintained :)
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•1Yr
@dividend_doctor yup i see exactly the same. hopefully you don't have to touch anything and can indulge the next generation 🥳
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Good evening - in principle, concrete gold in the form of rental income is preferable to dividends - why? Therefore: From a rental agreement you have income secured by the debt relationship - recurring monthly. A dividend is paid voluntarily by the company and can also be cancelled permanently or in the long term. Accordingly, a "supplementary pension" based on dividends is always associated with increased risk. Good luck investing 👍🏻
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1Yr
@Leuchtturm can rents not fail?
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@Moep Yes, you can. Ask landlords how often they have been affected by rent defaults 🤷🏻♂️ And once again: Rent debt relationship - dividend no claim is no debt relationship. Always look at it objectively 🤣.
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1Yr
@Leuchtturm I know a few landlords. Even those who exclusively rent social housing so that the defaults are as low as possible or rather practically zero... If the rent fails and not only once, you may never see the money again. Then you have to look for new tenants and whether you have them immediately... maybe the apartment or the house will remain vacant for a few more months? So how secure the rent is depends on the tenant. The same goes for the companies with their dividends, and the price usually looks accordingly.
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Yes, I am a landlord of 10 residential units. In the last 5 years it has already happened 2 times that tenants have not paid more. This leads to stress and legal fees. Eviction action, payment action etc. From the 1st case I got back about 60% of the default. In the 2nd case, the court is still dealing with the payment claim. Whether I still get something from the good 2,500€ remains to be seen. And if I do, it will take at least a year. Dividends are much more relaxed and if they are cancelled completely, you sell the stock. That's definitely more passive than running after defaulting tenants. LG
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•Deleted User
1Yr
Comment was deleted
@Dividenden_Tom I am referring to individual shares. Nonsense worst-case scenario, the dividends there could also fail. Even if they don't, they could be reduced 🤷🏻♂️
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@Leuchtturm I think this is comparing apples and oranges: As far as I know, there is no tax-free allowance and no partial exemption for rental income, but there is for dividends. As far as I know, I can deduct investments from my taxes for real estate, but not for dividends. Real estate more or less ties me geographically when it comes to management, while I can receive and manage dividends all over the world. I can sell a block of shares almost anywhere at any time, but I can't do that easily with real estate. etc....
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