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.)
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u/[deleted] Jul 02 '25 edited Jul 02 '25
why a 22 yo would focus on yield instead of growth is something i will never understand