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Junior Depot

Hello everyone!

I started building up a small portfolio for my junior about 12 years ago. Not everything went well...but $GOOGL (+0.4%) beat them all: 81 shares, on average for 47€! We sold 15 shares in the fall for 270€, the remaining position is now up almost 20k!

The boy is only 13 - and his mother and sister are envious ;)

For some time now, I've been tormented by the question: should I reallocate or let it run? If I now gradually shift the position towards "income", e.g. into a $K0MR (+0.04%), $JEGP (-0.38%) or $JEPQ (-0.26%) (or a mixture thereof), that would certainly be a good investment in the long term:

20k * 6% = ~100€ per month!

The rest of the portfolio ($AWF , $AM (+0.69%) , $ARCC (+0.65%) , $DLR (-0.46%) , $D (+0.24%) & $RITM (+0.85%)) is also already generating €100 - I think that's a good basis for long-term wealth accumulation with a focus on a 2-ETF strategy!

What do you think?

10 Comments

Get_Rich_or_Die_Tryin@Get_Rich_or_Die_Tryin

Covered call ETFs don't make any sense if you're not dependent on cash flow... they just mess up your performance in the long term. I would consider this counterproductive, especially for juniors.

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Markus@alemaorecifense

@Get_Rich_or_Die_Tryin Thank you.
In my idea, the regular income is used for the ETF savings plan. I.e. without his own contribution. And if he wants to add something himself, all the better.

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Chris@Multibagger

To be honest, I think it's nonsense for a 13-year-old to switch to income right now. What does he get out of it? Will he get the €200 a month as extra pocket money? I would continue on the growth path. And later he can decide for himself, depending on his inclination. In the next 4-5 years, you can certainly double the value again. Then he can use part of it for a driver's license or car if he wants.

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ETFBAAS@etfbaas

Going to repeat my answer like I did a few times in the past over here

Let me give you a better idea.

To allocate your money
30% $FTWG
30% $TDIV
15% $WINC
15% $LDGL
10% project OWN etf (find your own dividend/growth stocks)

This is the “perfect” balance between income and driven growth, and gives you the time to make mistakes and learn from your “own” etf project by picking stocks on your own (like Main Street Capital/ Hercules Captial and so on)

🫡💪

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Felix@Investor_in_Jogginghose

Let us run every year with sales cover. Alphabet is doing well, why sell us into companies that don't know what to do with the money?
Your sister and mom should also have a portfolio, don't they?
Get away from the mindset that dividends are somehow free income. You can also realize everything by selling slices.

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Markus@alemaorecifense

@Investor_in_Jogginghose
Thank you!
The sister got $AMZN - but didn't do half as well in that time. And mom is stubbornly investing in ETF.

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NichtRelevant@NichtRelevant

I am a dividend investor. But I wouldn't switch to a dividend strategy for a 13-year-old - I wouldn't recommend $JEGP or $JEPQ in particular.

It's better to achieve capital gains - via individual shares or a broadly diversified (non-dividend-focused) ETF. I know an MSCI World is boring, but it works without much effort.

If you still want to have some payout, then most likely the $K0MR (although I'm not a fan of it) or an MSCI Word that pays dividends. A $TDIV is also an option if you want to combine price growth and dividends and sleep well with a value-based approach.

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Ruben Schoff@Sand

Hold Alphabet - the dividend yield will be unbeatable in the long term (15-20 years) and the share price gains on top.

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Cristiano@Rocketman_23

My sons always have the same shares in their portfolio to avoid this, as you did with Alphabet and Amazon ;) I currently have Alphabet and Microsoft and I'm letting them run until something fundamentally changes and I also have an ETF (Big Data and AI) which is also doing very well and will continue to do so for the next few years.

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Dividenden_Dompteur@Dividenden_Dompteur

I have the Vanguard FTSE Allworld as a distributor for my four-year-old daughter. That saves you a few taxes and at 18 the attraction of spending it all at once on the party of a lifetime is hopefully less if you get a bit of money every quarter without selling. Incidentally, it also has a pretty good dividend growth rate of almost 7%.

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