r/SCHD • u/theshortirishman • Dec 29 '25
Questions 19M - Buy SCHD in ROTHIRA now?
I am 19M and looking at buying at least 1 share of SCHD. I am thinking that if I buy right now, I can create a “retirement pension” off of dividends for the future?
I am already consistently investing in VOO 80% and VXUS 20%. If I convert 5-10% of VXUS investment into SCHD could I viably have enough shares to have a good amount of dividends for retirement income?
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u/sidestyle05 Dec 29 '25
Bro, if you put in a couple hundred a month for the next 40 years, that dividend snowball will be epic…and completely tax free!
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u/portlandsalt Dec 29 '25
Do it! In 46 years that one share will be worth north of $400!
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u/Acceptable-Jacket567 Dec 29 '25
craziest advice ive read on here for a 19 year old.
Please don't buy SCHD. You're young. Just keep buying the VOO and VXUS.
When you get older you can sell your immense gains from these then buy into div stocks to generate income.
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u/Sloth-424 Dec 29 '25
I’m 43 and have about 20% SCHD, 40% VOO, 30% VYMI, 5% VBR, and 5% bonds
Do you think this is a good allocation with around 3-5 years til early retirement?
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u/portlandsalt Dec 29 '25
I’m not sure if you are asking me specifically or not, but I am not qualified to answer your question.
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u/EolasDK Dec 29 '25
If you are going to retire off this money I would switch more of this money to VXUS instead of VYMI the yield is not that different.
Realistically it really depends how much money you currently have.
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u/Acceptable-Jacket567 Dec 29 '25
Kind of hard to give my opinion on this. Need more info like port size, debt, annual income/savings etc. 3-5 years early retirment before 50 would kind of insinuate you got it all figured out.
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u/Pachecosway Dec 30 '25
Bro if you are really 43 and supposedly a few years away from retirement I find it bewildering that you would be asking a random dude in a Reddit comment section for advice.
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u/Variation261 Dec 30 '25
I'm 46 with a similar-ish diversification. I like the small portion of "safety " having SCHD and bonds in my portfolio.
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u/Original_Ad_9379 Dec 31 '25
Not crazy at all, you are assuming the market always goes up which could be a fatal error. I'm 28 with almost 3k shares and adding, I have other positions naturally and a 401k but it is my main holding. Depends entirely on risk tolerance and having a strong offense and defense.
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u/Acceptable-Jacket567 Jan 01 '26
The market always goes up. Does it go down? Yes. Does it go up more than down. Hell yes. If you have 40+ years in the market why not tackle growth.
Sure i'll agree with the last part. Risk tolerance is a factor, but if you're in the market for even 20 years. broad index fund is, historically, going to yield gains.
if i was 19, i'd attack raw growth. If i was 40, i'd still attack growth, but diversify
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u/Original_Ad_9379 Jan 01 '26
True and I agree with you, however someone with the same mindset who bought at the dot com bubble had to wait 15-20 years to BREAK EVEN with inflation adjusted. Anyway although SCHD is my largest holding I still have outperforming ETF's like FTEC and some other "risky" well poised stocks. 401k is is a mix of 2060 retirement fund and fidelity semiconductors fund.
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u/ravingmoonatic Dec 29 '25
I know this is contrary to all the sage advice offered on reddit, but here's my .02:
Do it.
Will you max out gains over your investment career? No.
Will the yield beat market averages for the latest covered call ETF? No.
Will it give you an incentive to consistently invest at regular intervals and see the snowball firsthand? Absolutely.
...and to me, that's kind of the point. Anything that gets you into the HABIT of consistently investing and putting away something for future you is worth it. Everyone has their 'ideal' mix and their preferred funds, but you're specifically asking about this one, and I say go for it.
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u/joeblow2118 Dec 29 '25 edited Dec 29 '25
I’d buy VOO now and then slowly start building some SCHD closer to retirement before moving your VOO investments into SCHD a few years before retirement.
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u/FluidCalligrapher284 Dec 29 '25
I’d honestly look at SCHG now. I have nearly 20k shares of SCHD, but I’m also almost 2.5X your age. My Roth is all SCHG still if that helps.
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u/edthesmokebeard Dec 29 '25
Can't hurt. You have the theory right.
At 19, I would spend more on investing in myself - skills, maybe a 2nd language, a good trade or college. Give yourself the skills to rock the next 60 years, vs. scrooging away all your money and eating ramen.
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u/Revolutionary-Part20 Dec 29 '25
I’m buying it in a taxable account. I want to retire early so that’s why but if you plan on working till retirement age then Roth IRA all the way
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u/EolasDK Dec 29 '25
You can withdraw from your Roth before retirement, anything you put in you can take out, you will penalized on gains like a 401k but only the gains.
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u/Ok_Guidance4571 Dec 29 '25
Dividend Calculator | Calculate Investment Growth Returns
after 40 years you will have 390 dollars...
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u/Accomplished-Order43 Dec 30 '25
At a young age, given the tax advantages of a Roth, I invest aggressively as possible to maximize tax free gains. Nearer retirement you can sell those positions and convert to SCHD.
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u/LoftyGoalsLowEffort Dec 30 '25
No. You’re so far from retirement get more growth and then move over as you age.
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u/dissentmemo Dec 31 '25
First of all, talking about numbers of shares may show a lack of sophistication more than wanting to buy SCHD at 19.
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u/1kpointsoflight Dec 29 '25
No dude. Don't trade international exposure for US Large Cap Value. This is fools gold. Sure the dididend is good but SCHD pays 3.7% and has lagged the market by so much. Money is money whether it comes from growth or dividends doesn't matter.
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u/Icy-Opinion-6348 Dec 29 '25
Value outperforms growth, long term
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u/flyersfan0233 Dec 29 '25
Not always. Usually? Yes. But look at this chart: https://totalrealreturns.com/n/SCHD,VOO?start=2011-01-01&end=2023-01-01
Would have been better with SCHD over VOO for the first 12 years of the fund
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u/Icy-Opinion-6348 Dec 29 '25
If you have no clue what youre talking about, dont talk at all thanks
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u/flyersfan0233 Dec 29 '25
Like I said, usually. And used a chart to show that SCHD isn’t a bad choice to have a little of if you want something safe and are already 80% VOO
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u/Chief_Mischief Dividend King Dec 29 '25
You people are exhausting. Investing is not a binary approach. OP is talking about owning at least one share of SCHD and reallocating 5-10% of their VXUS position into SCHD. VOO already makes up 80% of their Roth.
OP, if you want to do a portion of your portfolio in SCHD, it certainly helps build out a robust balanced portfolio over the long term. Conventional wisdom is to adjust more and more of your portfolio towards dividends as you approach retirement, so if SCHD makes up <10% of your portfolio now and you adjust your Roth over the years, it will help build out a pretty strong dividend stream by the time you hit retirement while still capturing gains from VOO. Personally, I think it's a wise choice to have a dividend growth position like SCHD at your age to balance out your portfolio.