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MY PLAN TO LIVE OF DIVIDENDS

Hello everyone, I'm 24 y.o. my portfolio is currently worth 55-60 k eur. My plan is to save around 1000 eur per month and invest in growth product for 15-20 years. Specifically:


GLOBAL ETF (50 % allocation):


MSCI WORLD VALUE $XDEV (+1,64 %)

MSCI WORLD MOMENTUM $XDEM (+1,96 %)

MSCI WORLD SMALL CAP $WSML (+1,04 %)


note: they all have had better return (on long range) in comparision with sp500 and ofc msci core world or ftse all word. Plus these etf offer a real diversification from having the big 7 as first positions.


GLOBAL TECH (50 % allocation):


MSCI WORLD INFORMATION TECHNOLOGY $XDWT (+1,31 %)

NASDAQ 100 $XNAS (+1,09 %)


note: msci world IT it's good bcs with the time it can move towards international technology stocks and not only american, meanwhile the nasdaq it has the advantage of having also companies that are not directly linked to technology but general innovation (plug power, rocketlab ecc.). BOTH ETF HAVE THE SAME RETURNS OVER THE TIME.


Once I'll reach the milestone of 1 million I'll allocate everything in these 2 etf high dividend stocks:


VanEck Morningstar Developed Markets Dividend Leaders


iShares STOXX Global Select Dividend 100


note: these etf are incredible, they have only 20 % of USA, they are super diversified all around the world + no tech sector present (that is usually speculative, volatile and where bubbles can be more likely to happen). Only big worldwide companies that offers high dividend and are super stable.


BE READY FOR IT:


avarage dividend annually: 4.5 %


avarage growth annualy: 8 %


it means that you start to take 45 k (before tax) annually in dividends + your capital of 1 million is growthing at 8 % rate and doing composite interest over the years. Each year your dividend passive income increase and your capital too. If there is a finacial crises ? well for sure these etf will loose way more then sp500, nasdaq and other products. These companies are defensive, they have big cash flow and investors invest in them when they are afraid of the tech market or others speculative sectors.


LET ME KNOW WHAT YOU THINK ABOUT IT !!!!!


Enjoy your day and let's make it.

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5 Comentarios

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In theory there is no direct connection between dividend and gained wealth.
You could just stay in your global etf plan and go for it.
Nearly the same goes for sector an Country etfs.
Still everything can go according to plan. Just brace yourself for a smaller crash when high yield stocks cut dividends in half.

You could stay in plan a) and just sell a part of your portfolio. When you need some money.
I plan to hold $XDEM $XDEV $XDEQ $ZPRV $ZPRX and $5MVL for life. Selling small parts of it when I want to spend.

That way I take a more scientific approach and don’t pay unnecessary taxes. At least for me in Germany dividends have high disadvantages anyway
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@SchlaubiSchlumpf thank you so much for your feedback !
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@SchlaubiSchlumpf dividends salary looks more automatic and constant but maybe a better approch would be the one of total return (selling assets constantly) I have to study better the matter.
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For me, perfect plan for young investors. If today I had the chance again (regarding age) I would go for it ! 👍
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@MozartsGeist thank you so much !!! Have a good day
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