1Settimana·

Switch to dividends?

Hi all - I had planned to expand my portfolio a few weeks ago because of an inheritance. Now a few things have happened: Money is there and at the same time the company is asking if I would like to quit in return for a severance payment. Yup, maybe I have. Do something other than IT, for example ... Volunteering at the food bank, riding my bike and Vespa, sports, traveling & chilling or something... But that's another story :-)

But does it work financially? Let's assume about 1.2 million in total (600k invested, 600k cash). House paid off, 2 kids out, wife self-employed, but only a small amount. I'm 58, I can retire at 62, with official deductions. That will therefore be a manageable pension in total. That's why I'll need monthly cash in 3 years. The severance payment would last until then. Now I'm thinking about reallocating a large part of my portfolio from tech, world ETF, S&P and some individual stocks to high-dividend stocks: 10% $ALV (-1,42%), 10% $MUV2 (-0,49%) , 10% $O (-0,07%) , 10% $VHYL (-1,8%) , 10% $WGLD (+0,12%) , 20% $IDVY (-0,3%) , 10% $XMME (-0,75%) , 10% $XEON (+0,02%) (in case the dividend falls in volatile phases and to bridge payout dates). dates), 10% play money GTAA, 2Spy, Momentum etc----hahaha, actually I just wanted to mention @Epi mention.

With the above you get about 4% dividend. At 800k = 32000-25%= 24000= just under 2k net on top. That should be enough. The assets won't grow that much, but cash per month is enough. What do you think? Completely wrong way of thinking? Forgotten something important?

VillaSpilla

@VillaSpilla

3Mes·

Anlage Blickwinkel - Heritage

Dear Community,

I have a 300k securities account with 50% shares, divided between $AAPL (-0,93%)
$ALV (-1,42%)
$AMZN (-1,26%)
$NOVO B (+0,79%) and some $VOW (-0,9%) the other 50% in ETFs, split between $CSPX (-0,4%)
$EXUS (-0,96%)
$NADQ (-0,68%) and something $DE000LS9U6W1 (-0,8%) ...

A strong US (tech) focus is desirable. Not because I believe that the USA does a lot of things right, but shareholder & shareholder value primarily have an influence on entrepreneurship in the USA, ok and the Mag7++ have a top position in other ETFs anyway.

I use the MSCI EX USA to shift the focus away from/to the USA as required.

I have built up this status quo over the last 2 years, after having a lot of individual stocks in the years before and following the "greed eats brains" strategy with some losses (see other post).

Now I would like to read your opinion or collect a few points of view, knowing that there is not THE right one. In the near future I will receive an inheritance of around 400,000 euros. Now I am torn. No, I don't really know what to do. My reflex was "keep going and split up if you're happy with the above strategy/allocation", but perhaps more asset classes could be included with this sum .... and/or more focus on crypto, or more diversification or or or or .... Or everything on GTAA , @Epi :-D hehe - What do you think?

PS: I am 58, IT manager, EFH paid for, 2 children, studies feddich. Controlled build-up with withdrawal plan start in about 5 years. Shift from 50% individual stocks to 75% ETF planned in 2025.

53 Commenti

Maximilian@Max095

1Settimana

It's sad to see how "little" dividend comes out of 1 million... 🫣 especially when you consider how long you have saved and worked for it.

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Dividende > Zinsen@GoDividend

1Settimana

@Max095 if you go via ETFs you have at least 30% tax-free due to partial exemption
Are already at 2200€ with 4% div return

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Maximilian@Max095

1Settimana

@GoDividend wow 😮

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SG@RundesBalli1

1Settimana

@Max095 the state says thank you...... These people who take the white out of our eyes!!! (And then distribute it completely wrong!)

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NichtRelevant@NichtRelevant

1Settimana

@Max095 Perhaps you can also add a few securities with higher yields to a limited extent - of course the risk then also increases, but this is of course a matter of consideration.

For example, $IAPD, $JEGP or, in the case of shares, $RIO or $BATS would be acceptable.

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John@Transporter

1Settimana

I would roughly calculate how many euros I need to live on a monthly basis (also think about health insurance, for example, which you might have to pay yourself until you retire), add a buffer and inflation of 3% and also include reserves for the house. Then extrapolate this sum. Once until retirement and then from retirement. If this all works out in terms of costs, reallocating is certainly an alternative. Instead of individual dividend stocks, you could also use a high dividend ETF. This will also yield around 4%. Or you could invest a small portion (e.g. your play money) in a BDC or the Aberdeen India Fund. You can also get a 10% dividend there. All in all, if I were in your shoes, I would do it immediately. You'll never get back the time you've given yourself and you don't know what will happen later. You could always do a mini job or a midi job on the side if you wanted to. This would also solve the problem with health insurance.

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