With a term of twenty years, you don't really need distributing ETFs now. And no yield brakes like covered calls either.
Yes, if it goes sideways, the covered will bring you something. If it goes down, you eat losses in the same way. But when it goes up, you simply leave profits behind. An investment should go up in the long term, otherwise you should leave it alone.
The same applies to dividends: this is a deinvesting strategy. For you, this means that you are making more effort now for twenty years from now. Without benefit. Dividends can be tracked with partial sales, and much more easily.
Yes, if it goes sideways, the covered will bring you something. If it goes down, you eat losses in the same way. But when it goes up, you simply leave profits behind. An investment should go up in the long term, otherwise you should leave it alone.
The same applies to dividends: this is a deinvesting strategy. For you, this means that you are making more effort now for twenty years from now. Without benefit. Dividends can be tracked with partial sales, and much more easily.
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4Mes
@Madhatter5566 Good thoughts! I'm unfortunately not that disciplined and have realized that the monthly return somehow does motivate me a lot. Positive growth but also 😄.
But the CC ETF is actually the one I'm most critical of myself. Maybe it really does still have to go. Thank you!
But the CC ETF is actually the one I'm most critical of myself. Maybe it really does still have to go. Thank you!
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@Uvilo Dividends are very good. Don't let them unsettle you. They are part of the return.
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•@bullish999 They are as pointless as a crop when building up the position and have no added value as long as they are reinvested. Worse, they are tax events, especially where they are not needed. Namely at the beginning of the investment, where every euro counts.
And at the end: unless you have planned them perfectly, you still have to sell part of them in order to live. Complete nonsense.
Of course, they are part of the return. But in the end, only the total return counts. And this is usually worse with distributing investments than with accumulating investments.
I understand that some people think dividends are magic money, but they're not.
You could also have part of your portfolio paid out every month, count it up and pay it back in. That's all you do when building up a position in dividends. But you have effort, trading costs, spread, your money is uninvested as long as it is paid out and not paid in again, etc.
Simply wasting time
And at the end: unless you have planned them perfectly, you still have to sell part of them in order to live. Complete nonsense.
Of course, they are part of the return. But in the end, only the total return counts. And this is usually worse with distributing investments than with accumulating investments.
I understand that some people think dividends are magic money, but they're not.
You could also have part of your portfolio paid out every month, count it up and pay it back in. That's all you do when building up a position in dividends. But you have effort, trading costs, spread, your money is uninvested as long as it is paid out and not paid in again, etc.
Simply wasting time
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@bullish999 Thanks for the feedback! I've already learned that a dividend strategy is polarizing 🤗! Do you have a dividend favorite?
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3Mes
@Madhatter5566 Mathematically, that's true. But you're always spoiled for choice as to what to sell and if you make the wrong decision, you regret it. I think dividends are a good thing for the head. But for 20 years I would add at least 50 % growth.
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@Pleni70 Or your dividends just sell at the completely wrong time for you.
None of this helps, you are no longer a small child
None of this helps, you are no longer a small child
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3Mes
@Madhatter5566 can now be discussed back and forth. Who always sells at the right time. It's also a personal matter where you feel more comfortable. But you're probably right in terms of the figures.
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