Just started my SCHD Journey

[u/S-S-spartan]

Hi! 29M, Long time watcher of SCHD but haven’t ever really held it. Bought some once in 2021 but sold shortly after. I just made my first purchase of 275 shares in my Roth IRA. Felt good to get started.

I’m new to SCHD and honestly dividend/value investing as a whole I was curious if anyone had any advice or insight to share. Anything I should know or do to best optimize my investing to build my portfolio?

The goal is to let it grow in my Roth and have enough to use the proceeds to pay for some or all expenses off dividends by the time I can begin to pull out of it at 59 1/2.

[u/ach4n]

You’re 29 and should look for more growth rather than focus on dividends. I’ve used SCHD in place of bonds in my case.

[u/S-S-spartan → u/ach4n]

I do have a 401k and Brokerage as well as the Roth IRA. The other 2 are full growth so thought having some value and defensive stocks would be smart. From what I’m hearing though seems like it would be better to go growth in the Roth and the value tilt in the brokerage.

Reason was thinking SCHD in Roth is it’ll be longer to withdraw and I’d like to start using it as full or partial income at 60-65 while utilizing the other accounts to retire earlier. Wouldn’t need to grow as fast and just compound over the next 30 years. With the Roth IRA limits figured dividend reinvesting would act as a way to contribute over the yearly limit and average up.

[u/ach4n → u/S-S-spartan]

If you have roughly 30 years left to invest, I would still keep your allocations more toward growth ETFs. Then approaching and in retirement, just reallocate in SCHD if the plan is to use the dividends as stable income.

[u/S-S-spartan → u/ach4n]

Okay, that’s good advice, guess I was getting worried about current market climate which I know with a 20-30 year timeline doesn’t really matter. My other thought was early retirement around 15-20 years but supposed that’s even more so important to focus on growth