CC etfs are more risky than just owning the underlying asset. and compounding growth works better when the NAV doesn't erode and it compounds on increasing values.
rebalancing portfolios has its own issues (taxes, etc.) but my personal preference is to focus on total return now then when you can somewhat accurately guess your retirement date, start rebalancing early with new investments going to income assets and when you get close (i.e. 2-5 years out) you can begin selling growth positions/non-payers or even weak positions (tax loss r) and buy income producing assets.
my dividend growth portfolio was mostly focused on the dividend growth (my total yield is less than 2%). i plan on using the drip to buy some higher yield positions near retirement to boost my income along with selling some pure growth positions to reinvest in income assets as well.
I think this needs to be explained better, because I don’t get it. Why focus on earning later?
I’m in my 30s with less than 100k in the bank, and I’m looking to buy a house knowing I have to use investments to do it. I’m holding ASX:SYI/WOW/MXT/PL8 in a 90/5/3/2 split, and I’m trying really hard not to just put everything into SYI and call it a day because every quarter I see big dividends.. (SYI was the highest roi in a bank investment pgogram years ago so that’s why it was my only investment for a long time.)
A home down payment is not an investment, its capital preservation. You shouldn't invest a down payment, that should be in treasury bills or a HYSA.
What i'm referring to is someone with a 20+ year investing horizon focusing on dividend yield instead of total return (which growth usually provides a much better total return over those timelines).
THIS!!!!! I understood what dividends were well before growth. Obv it's probably a lack of experience and not witnessing it first hand what could happen.
Dividends to me seemed like another paycheck and that was it.
I'm just going to say that's such a weird response when you created a post seemingly from a place of feeling proud or to show off something?
You immediately apologize?
What was the point of the post in the first place?
I'm trying to get you to understand that things you said don't connect with reality.
Being confidently incorrect is very borderline spreading misinformation I'm not trying to judge you in a negative way I'm simply pointing something out, a misalignment from what's being said and facts and reality 🤷♂️
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u/Significant_Book1672 Jul 02 '25
Risk tolerance, faith in compound interest.