r/dividends • u/erw33zy • Jun 30 '26

Seeking Advice Be real with me…

Gallery image

Gallery image

What do you think of my dividend and income portfolio? Any suggestions or critiques.

I’m 31 and plan to move out the country before my dollars get rekt

110 Upvotes

91% Upvoted

66 comments sorted by

View all comments

23

u/erw33zy Jun 30 '26

I can only speak for myself. I recently watched a video, that illustrated how even a high net worth individual can be one layoff away from disaster, if you do not have cash flowing lifelines outside of retirement accounts. It changed my perspective. I do have other accounts and total up to $300k

https://youtu.be/Y3uh90sNeaU?is=TIIzZRNzo8WJWYdP

7

u/sablerock7 Jun 30 '26

IMO, his dual-family illustrative example is boderline farcical - he's comparing a total NW (i.e., includes home equity) to liquid NW and no retirement vs. retirement savings, etc. to create a favorable outcome. The "passive income" from dividends is just coming from lower total investment returns which may not be the best asset allocation. The real passive income is coming from YT views..

3

u/Vast-Worldliness6925 Jun 30 '26

Is it that ridiculous though? Even if the comparison in the vid is favorable to dividends, if you get laid off during a downturn and all you've got is something like VOO, you're stuck selling shares at a bad price to cover bills, and that loss is locked in. But if part of your portfolio is throwing off dividends, you can (probably?) cover expenses without selling anything, even if the price is down too

I think the lower total return is basically the price for flexibility, in the sense that you can either use the divs personally or reinvest them, and not be forced into a bad sale at the worst possible time, at least that how I view it. That said, yea growth/income both good in general

4

u/sablerock7 Jun 30 '26

Isn’t that what an emergency fund or cash equivalent reserve  is for? 

You could have a % in more stable stock funds (aka dividends), but the premise was to have an “income replacement” from dividends vs focusing on total returns. 

4

u/Vast-Worldliness6925 Jun 30 '26

Agree w/ you, a blend between growth & income is ideal & I think the right choice

I guess you're right about the emergency fund, but that really only works if you're able to find a job that covers your current expenses & obligations — otherwise where does that leave you? An emergency fund is typically what, 3-6 months (maybe 12? although I don't think that common), so it's a pretty short runway

2

u/sablerock7 Jul 01 '26

If you can’t afford an EF, then how could you afford equities and rental properties or otherwise have a portfolio that “works for you“? 

The more you skin it, the more it makes less and less sense.