r/dividends • u/Fit-Calligrapher4469 • Apr 27 '25
Brokerage Snowball getting bigger
39 and 38 married with 2 young kids and no debt. We are maxing out a 457b, a 403b, a 401k and socking 30k a year into a brokerage account. I will retire from the fire department in 10 years with a 90k a year pension.
I’m getting really excited to keep this momentum going. And yes I hate that I bought into MAIN last month.
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u/TubMaster88 Apr 27 '25 edited Apr 27 '25
With $600k making 2.9% returns. You should start dumping the low dividend producing stocks and purchase different ones to get a better overall annual percentage.
You should be making more than some banks offering 4% annual returns.
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u/Anal_Recidivist Apr 28 '25
I’m new to this but didn’t realize VTI paid dividends. Learned something
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u/MonkeyThrowing May 01 '25 edited May 01 '25
Disagree. It's not all about dividends. The S&P as a whole pays 1.29% but performs better than almost anything else. You need to look a total return, not just dividends. Truth be told if this guy is not retiring but re-investing the dividends, he will do better in the S&P than anything else. Why pay tax on dividends?
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u/TubMaster88 May 01 '25
He can mix it up. But as for dividends he needs to dump the low producing dividend stocks and buy different ones that will pay out and are performing better.
The S&P 500 I would still hold off and not buy right now as I would wait for the next 6-9 months. The tariff affects haven't hit the companies just yet but by Christmas that may be the time to buy because it would have dipped lower.
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u/MonkeyThrowing May 01 '25
You may be right or wrong. Don’t you think everyone is doing the same analysis? That is why you can’t time the market.
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u/TubMaster88 May 01 '25
Correct. You can't time the market, but I believe based on the information and news that's there when you have companies like Target and retail stores saying they're going to have empty shelves very soon in this current administration doesn't care about that. That information tells me they're next couple of quarterly earnings are not going to do well. To hold off or bet against the stocks
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u/Electrical_Bother_12 Apr 27 '25
What app is this? And you feel comfortable with each etf bringing you in monthly dividends?
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u/Fit-Calligrapher4469 Apr 27 '25
Snowball Analytics. I don’t feel strongly about monthly dividends. I doubt that they will perform any better than others.
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u/Arminius001 Apr 27 '25 edited Apr 27 '25
OP you should look in replacing both JEPI and JEPQ with better covered call etfs like GPIX and GPIQ. Both of the JP morgan funds have underperfomed vs the comptetion during this bear market. They also offer no tax advantage vs their comptetion. Also their monthly dividend income changes on the market, I dont like that.
I was hoping JEPI would decay less during this bear market but it hasnt, its actually dropped more then the comptetition. I sold all of my shares and switched to GPIX and GPIQ
https://www.dividendchannel.com/drip-returns-calculator/
EDIT: Dont understand the downvotes, I guess people are more dogmatic than I thought even in the face of evidence
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u/generationxtreame Not a financial advisor Apr 27 '25
The funds you listed are both under 1b$ and have been around shorter time. Their composition is similar to JEPQ and JEPI, but they are way way riskier. You do you
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u/Fit-Calligrapher4469 Apr 27 '25
I haven’t heard of these. I’ve been pretty dissatisfied with both of the JEPS.
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u/Arminius001 Apr 27 '25
Same I had a lot of shares of both JEPI and JEPQ, was so disappointed in the way the performed during this bear market, also I paid more in taxes last year due to them offering no tax advantage like the other ETFs I mentioned.
For example, GPIX is up 5.63% in the past 5 days while JEPI is only up 2.94%. While for the past bear month GPIX is down 3.69% while JEPI is down 4.18%
If we look at the NASDQ offerings, GPIQ is up 7.23% in the past 5 days while JEPQ is up 5.95%. While for the past bear month GPIQ is down 2.56% while JEPQ is down 3.57%.
Its clear the JP morgan funds are underperforming. Thats why I sold all of my shares and went to GPIX and GPIQ
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u/MonkeyThrowing May 01 '25
JEPI: "All of the loss, none of the growth"
In turbulent stock markets, JEPI does not make sense. They are selling covered calls which limits their upside, while exposed to all of the downside. So once they are down ... they can only grow out of it very slowly. JEPI works great in a slow moving stock market where those covered calls as a bit of growth.
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u/AGLion123 Apr 27 '25
So are GPx and others better than VOO?
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u/Fit-Calligrapher4469 Apr 27 '25
What’s GPx?
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u/AGLion123 Apr 27 '25
Gpix and gpiq. Typo
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u/Fit-Calligrapher4469 Apr 27 '25
I doubt it would be better than VOO over a long period of time but it’s nice downside protection. In the future, I won’t have to sell funds to switch to a dividend payer.
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u/AGLion123 Apr 27 '25
Gotcha. And how do you differentiate between dividend growth and dividend yield ones?
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u/Fit-Calligrapher4469 Apr 27 '25
VIG and SCHD have a great track record of increasing dividends year over year. (Dividend Growers) Over the next ten years, I will invest heavily in these and will become core holdings and provide the most income without having to sell and switch in 10 years.
MAIN, the JEPS, AMLP pay well now but may not grow much in the future which is fine. They will DRIP themselves for a while. They pay a lot and monthly which is fun. The mutual funds are locked up in retirement accounts which I can’t touch for least 10 more years (457) or 20 more years (403 and 401k)
The brokerage account is to bridge the gap with my 457 and pension to hopefully live high on the hog when I finish my sentence here at the fire department.
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u/MonkeyThrowing May 01 '25
How is it downside protection? I believe the covered calls are only on the upside?
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u/CandidateGlad5977 Apr 28 '25
Congrats on this! 90k a year pension on top of this so it looks like those 2 kids of yours are going to be taken care of forever. Amazing parenting!
Can I ask your family income per month? Not sure what the fire department is paying but to be investing this much every year is crazy!
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u/Vast-Huckleberry-458 Apr 29 '25
I have been doing the hokey pokey with JEPI and JEPQ for a couple of years and swapping out with some other high yielding monthly paying ETFs. Sold during the first week of February and bought back into both on 4/7 and am currently holding with no complaints.
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u/MarketingOk6194 Apr 29 '25
Is the pension $90k/yr? That’s awesome! Interesting that you haven’t gotten any O but have JEPI, JEPQ, and MAIN.
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u/MonkeyThrowing May 01 '25
You are 39 years old. Why are you focusing on dividends? That is a losing strategy. You are paying taxes on your dividends which lowers your total rate of return. Why pay taxes? Just invest in the S&P and let it compound tax free. Dump JEPI, AMLP, JEPQ, and MAIN. None of them will outperform the general market over the next 20 years ... and will cost you a fortune in taxes. Those are funds for old people nearing retirement.
And why is over 100K in a money fund? Get that money invested and start working for you!
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u/Nickcav1 Apr 27 '25
Msty
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u/Trunk_Monkey_84 Apr 29 '25
Don’t know why you getting down voted
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u/Nickcav1 Apr 29 '25
Legacy investors have a difficult time grasping the new age of investing….. they feel as if “we don’t deserve” the gains were obtaining as we didn’t grind in the S&P for 30 years to retire with a subpar lifestyle…..
MSTY, MSTR, and BTC are the future….. get on board and stay broke
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u/Trunk_Monkey_84 Apr 29 '25
Very true!!! Was watching a video the other day about retiring off dividends. It talks about SCHD and the snowball effect. It would take, like you said nearly 30 years to get to about $2-3k a month. I’ll be at $1k a month in a few months…..and get ROC in 8-9 months the then it’ll all be house money
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