First of all: basically very well developed and mMn correctly described, but the point is how large the investment horizon really is from my point of view. I intend to remain fully invested until the end of my life, but I would like to profit from the portfolio much sooner. When exactly - I can't say. Maybe in 5 years, maybe in 10. Flexibility is clearly more important to me than the portfolio value in 30 years. I currently receive ~500€ net dividend per month, my partner has further dividend income. Should I and my partner have a child, we could already reduce our hours relatively relaxed. We would not have to touch the depot. In times of a bear market, I would never sell shares from a psychological point of view and would rather limit myself (i.e. continue to work full time). We are both 32. Whether we will ever reach retirement is not said. Therefore, I do not count on a theoretical deposit value in 2057, my retirement date, but look that my deposit gives me greater independence as soon as possible. If you look at the dividends paid out worldwide, you can see that they are much less volatile. With the exception of minor setbacks in years like 2020, they only know one direction. I am aware that I am partially losing performance through the dividend strategy. I have held my Allianz shares since 2001. At that time, there was a dividend of €1.20 per share (still listed in DM and euros); today it is "slightly" more. Feels better to me that way. Without dividends, I probably would have switched more often. If I wanted to have an 8-digit portfolio at age 70, I might prefer the accumulating option as well. However, with my broker (which I will not change due to the shares purchased before 2008 = tax-free sale) I pay a transaction fee of 10€.
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@KevinC thanks for your comment, I really enjoy discussing the topic from different angles! You say you get 500€ net dividend and later that you don't have to touch the deposit. But that's exactly what the article should make clear, that a retained dividend of 500€ is the same as a withdrawal. Both times the money cannot continue to work for you. Taxes are incurred in both cases. Only transaction costs and personal reasons remain. If the use of dividends in the near future is part of the previously defined and calculated strategy, then I would not do it differently and invest in distributors, precisely because of today's costs. Everything is also part of the personal circumstances.
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•@KevinC I can describe my situation again in simple terms. At the moment, as a family of three, we make ends meet very well with my sole salary. On the one hand because I earn well, on the other hand because we live cheap and consumption more than thoughtful. Soon my wife will work again and there will be the larger apartment. But that still lets plan for the next 15 years only with our salaries. Beyond that we will inherit well. Unfortunately, this is also part of financial planning and means for me, I will probably never have to go to the deposit until retirement. As silly as it sounds, but more money per month I do not need xD
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•@KevinC by which I do not mean that I exclusively pursue the dividend strategy. I buy companies that I consider to be attractively valued, but I am generally happy about dividends because I have a long investment horizon (my children are welcome to continue the portfolio), but I also want to have a cash flow in weak stock market phases. In addition, higher liquidity allows me to invest in other companies that seem attractively priced to me without having to sell shares in another company (I am basically convinced of all of them). Was able to collect Starbucks last year for 70€. By expensive vacation and setting up a second apartment I could secure at least 50 shares by previously received dividends. Because my portfolio suffered in 2022, I did not want to sell the values that were too heavily penalized from my point of view. For me, freely available money is important. Therefore, I always keep a correspondingly high nest egg. If I want to quit my job in the short term because something pisses me off, then I do so. Exactly for the fact that I can always feel comfortable in life and flexibly arrange my life / my working hours / my place of residence. What I'm getting at: if you only use investing to close the pension gap, accumulators have a clear advantage. Personally, this is too abstract for me. I may not be able to retire at 30 like some (see Mr. Money Moustache), but I want to benefit from my portfolio now - in the "prime of my life". Now I'm physically healthy - I don't feel it's worth spending the money later on the hottest nursing home (to put it bluntly).
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•@Fabzy I think we have clearly different goals and therefore strategies. I can't imagine continuing to work until the end of my life. I only like my job when it's stressful and demanding. But then I have to put in at least 45 hours, usually closer to 50. On top of that, I've already had to change states several times to get to this salary. I work in the automotive sector, my partner in the "science" sector. For example, we have massive problems finding jobs that are not too far apart regionally. The last time we lived together, I commuted daily from Bonn to Wuppertal (2x80km), 5:30 out of the house, depending on traffic 18-19 o'clock at home. I am actually rather the sporty type, but in a normal working week I hardly get to go running more than 2x. And we don't even have a child yet, let alone two. I have to admit that enjoying a job so much that it's fun until retirement (as it seems to be for you) would of course also be a nice option. If that should happen to me again, I don't rule out continuing to work after all. Hopefully, I will inherit when I'm 50+, and I don't want to be stuck in an "unloved" job for a long time. See this in my parents' generation, among my parents' acquaintances (now around 60-65) the only one still working is my father (who also does it purely for fun, not for financial reasons). The rest somehow "saved" themselves into retirement between 57 and 60 with rehab, sick leave, severance pay, partial retirement and 2 years ALG1. And they are all no longer in a physical condition to enjoy life properly (as a backpacker with 20kg backpack I can not imagine anyone 😅 ). That's the horror scenario for me, which I'd like to avoid. If I find my dream job, I'll probably continue working until I'm over 70 - then the dividend strategy definitely wouldn't have been worth it. 😃
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