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@Madhatter5566 guess this may be right but not his question... So anoying when ppl ask about dividends and ppl come out of the dungeon and says something not related to dividends
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@Madhatter5566 What if my long-term strategy is to achieve independence from working hours in later years and then pass on this steadily increasing cash flow to my children? So that they also benefit from a never-ending stream of money? It's no good for me if I constantly have to sell shares, then I end up with 0 and my children also have 0.
This is not my illusion but my passion.
This is not my illusion but my passion.
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@Madhatter5566 Its not an ilusion for me, i know its not cash from nowwhere out of the matrix man. i know how dividends works thanks. still i want a steady cashflow WITHOUT selling shares you know? i just hold em not sell em for years.
we dont need to look in the same view, thats okay!
we dont need to look in the same view, thats okay!
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Yes its my money i Lose and you win money, be happy
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Accumulating etf perform better but dividends etf provide a steady and predictable income stream.
It really depends on the personal goal 🤷♂️
tax-wise there is little difference if you run the numbers… but taxes may increase in the long term (who knows) and that may impact more an accumulating etf if you sell most of it after the surge.
I’m personally focusing 60% on core/growth etfs and 40% on a mix of high yield dividends etfs (TDIV, ISPA, FGQI) - I’m 38
It really depends on the personal goal 🤷♂️
tax-wise there is little difference if you run the numbers… but taxes may increase in the long term (who knows) and that may impact more an accumulating etf if you sell most of it after the surge.
I’m personally focusing 60% on core/growth etfs and 40% on a mix of high yield dividends etfs (TDIV, ISPA, FGQI) - I’m 38
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@Madhatter5566 nah it does make sense.
Selling during a market downturn could mean locking in losses, especially if you’re withdrawing regularly.
So, unlike dividends, which provide predictable cash flow, selling shares means your income depends on market performance… If prices drop significantly, you may need to sell more shares to meet your income needs… and high growth etf perform better but they also are more volatile.
We should not ignore the psychological impact as well… watching your portfolio balance fluctuate and selling shares in a downturn can be emotionally difficult for many.
But again, there isn’t something such as a “perfect answer” it depends on a series of personal factors and goals
Selling during a market downturn could mean locking in losses, especially if you’re withdrawing regularly.
So, unlike dividends, which provide predictable cash flow, selling shares means your income depends on market performance… If prices drop significantly, you may need to sell more shares to meet your income needs… and high growth etf perform better but they also are more volatile.
We should not ignore the psychological impact as well… watching your portfolio balance fluctuate and selling shares in a downturn can be emotionally difficult for many.
But again, there isn’t something such as a “perfect answer” it depends on a series of personal factors and goals
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@Madhatter5566 I think you are a tad confused.
The key difference between collecting dividends and selling shares for income is that during market downturns, selling shares can lead to a *permanent* loss of value because you must sell more shares to generate the same dollar amount.
In contrast, if you rely on dividends, you retain ownership of the *same number of shares* allowing you to fully benefit when prices recover.
Of course, the reality is more nuanced… broad index funds tend to grow faster than dividend stocks over time, and in *some* cases, selling shares in an overvalued market can be advantageous.
The problem is that you are blindly polarised on this aspect… but relying on share sales exposes you to sequence of returns risk, where selling during market declines can significantly impact your portfolio’s long-term sustainability, potentially shortening its lifespan in retirement if market conditions are unfavorable.
You are just hoping for this to never happen to you, which is not a sensible / solid strategy.
Best of luck 🍀
The key difference between collecting dividends and selling shares for income is that during market downturns, selling shares can lead to a *permanent* loss of value because you must sell more shares to generate the same dollar amount.
In contrast, if you rely on dividends, you retain ownership of the *same number of shares* allowing you to fully benefit when prices recover.
Of course, the reality is more nuanced… broad index funds tend to grow faster than dividend stocks over time, and in *some* cases, selling shares in an overvalued market can be advantageous.
The problem is that you are blindly polarised on this aspect… but relying on share sales exposes you to sequence of returns risk, where selling during market declines can significantly impact your portfolio’s long-term sustainability, potentially shortening its lifespan in retirement if market conditions are unfavorable.
You are just hoping for this to never happen to you, which is not a sensible / solid strategy.
Best of luck 🍀
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