Hey Dave. Two quick questions: Why this ETF when TDIV has FBI status and is therefore more tax-efficient in the Netherlands? Wouldn’t you rather go all in on TDIV? I’m also wondering, given your net worth… Why not start with accumulating ETFs first? That way, you can grow your assets without immediately paying dividend tax, which slows down your asset growth. Later, once you have significantly more capital and really need the dividends, you can switch to distributing ETFs. I’m curious to hear your thoughts on this!
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@income_engineer_djuro Hi, first of all, great questions!
It’s always good to see that this community is taking a critical look at things and really knows what it’s talking about.
First off, I’m now 35 years old (relatively young) and have been an entrepreneur for 8 years.
During this time, I’ve been able to build up some personal equity, but I’ve actually managed my assets in a fairly risk-averse way.
Due to a lack of knowledge and financial advice—and partly because of inflation—my assets have grown by virtually nothing, if at all.
Aside from the fact that, of course, a lot will change in 2028 regarding the Box 3 system (where I’m convinced you’ll ultimately benefit more from dividends than from ACC ETFs),
Since you’ll still be taxed on notional returns—previously, many dividend ETFs lagged behind in price growth, but in my view that hasn’t been the case for a long time— so I think a combination of price appreciation and dividends is a good idea; see the ticker WINC as an example, with stable price appreciation and increasing dividends.
Psychologically and substantively, I’ve opted for a hybrid strategy: dividends (WINC/TDIV/LDGL) and accumulation (FTWG).
Why combine TDIV and LDGL? (one has FBI status, the other does not)
You have a point regarding the tax efficiency of TDIV in the Netherlands—a major advantage.
But my approach is that LDGL has a different index methodology and broader global diversification than TDIV.
LDGL focuses heavily on “Quality,” while TDIV is more specifically centered on the highest dividends; you can see that this can have both positive and negative outcomes, Nothing against the TDIV—it’s one of the largest positions in my portfolio—but you can definitely see this year (June) that the dividend is lagging slightly behind previous years.
I hope to offset this with the dividends from the LDGL.
Your question about why I’m not investing more in ACC ETFs right now is, for me, mainly psychological—waiting until I’m 60 to receive dividends means I’ll be sitting on a “dry spell” for at least another 32 years.
In my view, nothing is more motivating than receiving immediate cash flow that you can reinvest—of course, with the idea that your dividends will eventually take over your automatic contributions and your portfolio will “grow on its own” , and—what’s important to me—that you at least have the choice of whether to reinvest your dividends or use them for other purposes without having to sell.
As the saying goes, the choice is huge....
Have a great weekend!
It’s always good to see that this community is taking a critical look at things and really knows what it’s talking about.
First off, I’m now 35 years old (relatively young) and have been an entrepreneur for 8 years.
During this time, I’ve been able to build up some personal equity, but I’ve actually managed my assets in a fairly risk-averse way.
Due to a lack of knowledge and financial advice—and partly because of inflation—my assets have grown by virtually nothing, if at all.
Aside from the fact that, of course, a lot will change in 2028 regarding the Box 3 system (where I’m convinced you’ll ultimately benefit more from dividends than from ACC ETFs),
Since you’ll still be taxed on notional returns—previously, many dividend ETFs lagged behind in price growth, but in my view that hasn’t been the case for a long time— so I think a combination of price appreciation and dividends is a good idea; see the ticker WINC as an example, with stable price appreciation and increasing dividends.
Psychologically and substantively, I’ve opted for a hybrid strategy: dividends (WINC/TDIV/LDGL) and accumulation (FTWG).
Why combine TDIV and LDGL? (one has FBI status, the other does not)
You have a point regarding the tax efficiency of TDIV in the Netherlands—a major advantage.
But my approach is that LDGL has a different index methodology and broader global diversification than TDIV.
LDGL focuses heavily on “Quality,” while TDIV is more specifically centered on the highest dividends; you can see that this can have both positive and negative outcomes, Nothing against the TDIV—it’s one of the largest positions in my portfolio—but you can definitely see this year (June) that the dividend is lagging slightly behind previous years.
I hope to offset this with the dividends from the LDGL.
Your question about why I’m not investing more in ACC ETFs right now is, for me, mainly psychological—waiting until I’m 60 to receive dividends means I’ll be sitting on a “dry spell” for at least another 32 years.
In my view, nothing is more motivating than receiving immediate cash flow that you can reinvest—of course, with the idea that your dividends will eventually take over your automatic contributions and your portfolio will “grow on its own” , and—what’s important to me—that you at least have the choice of whether to reinvest your dividends or use them for other purposes without having to sell.
As the saying goes, the choice is huge....
Have a great weekend!
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•Thanks for your detailed response! That provides a lot of insight. You’re right—the tax changes in Box 3 starting in 2028 are something I still need to look into more closely. I’m curious to see if all of this will actually happen and if the 2028 deadline will even be met. But it’s certainly good to be prepared. And whether it’s dividends now or later—for me, it’s still a bit of a balance between emotion and logic. Dividends do give each payment a wonderfully tangible feeling. And, as you said, they offer freedom of choice in how to use them. The options really are vast. Thanks again for your explanation, and have a great weekend!
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