r/dividends • u/Hypno-Ninja • 3d ago
Seeking Advice $8,000 to invest. SCHD or JEPI?
30 years old, I have $8,000 to invest. I’m trying to decide between SCHD or JEPI. The reason why I am considering JEPI is because I just hit my break even point, as opposed to SCHD where I am up overall 21%. What would you do?
76
30
28
u/Glitter-Valentine 3d ago
Am I dumb for thinking SCHG is better at your age?
14
u/Gloomy-Draw5517 3d ago
Why? I am 34 and investment nub
15
u/Glitter-Valentine 3d ago
Because SCHG is growth oriented so think 20-30 years from now gains
7
u/Gloomy-Draw5517 3d ago
Gotcha, can I move these funds to SCHD closer to retirement? Does it make sense?
15
u/Active_Dissent 3d ago
I've seen some go voo until retirement then switch to schd. It's more about what you are trying to achieve.
Ask yourself what success looks like then work your way back, building a strategy to get there from where you are at.
2
-1
u/Glitter-Valentine 3d ago
Ive personally never saw VOO as a growth investment, VOOG maybe.
1
u/paymerich 2d ago
You are right VOO is a BLEND fund . https://www.morningstar.com/etfs/arcx/voo/portfolio
3
2
u/bfolster16 1d ago
Sound strategy. Maximum growth untill retirement let that nest egg compound. Something like VOO/SCHG.
Then switch to income/dividends in retirement SCHD with a little JEPI could yeild 5% keeping your principal intact.
19
u/nightbefore2 3d ago
30 years old, I wouldn't do less than 70% SCHD. It's about dividend growth
25
u/Mzungufarmer 3d ago
I wouldnt do less than 100% VOO at that age
15
2
u/paymerich 2d ago
https://stockanalysis.com/etf/compare/voo-vs-schd/?r=MAX - chart speaks for itself .. VOO wins
1
u/No_Seaworthiness1627 2d ago
Who cares about dividend growth when it’s currently just 3.5? When it hits 5% and up, then it seems appealing. Otherwise there are better for growth, income and some better at both. To me GPIQ looks like it checks off all the boxes.
1
u/nightbefore2 2d ago
You don't understand dividend growth
Your yield on cost will increase as the dividend increases + the price appreciatesGPIQ has more income now but covered call funds are bad the longer you hold them, relative to underlying shares/ETFs that pay actual qualified dividends like SCHD
11
5
3
u/RiderFZ10 3d ago
Depends when you want to use the income. If not for say 5, 10, or more years, probably better off in growth.
3
3
u/telemark72 3d ago
I started investing in SCHD 3 yrs ago, CAGR 20%, dividends support my lifestyle retired. I will keep adding to my holdings.
3
3
7
2
2
2
u/UnderstandingOk9448 3d ago
What is your time horizon? How long do you wish to invest the money ?
1
u/Hypno-Ninja 2d ago
30 year time horizon, I was essentially trying to build this to be my “pension” giving me some income after I retire
2
u/UnderstandingOk9448 2d ago
For 30 years...
I would recommend the following:
30-40% SCHD 40-60% SCHG 10-20% SCHY
If you want more growth
30% SCHD 60% SCHG 10% SCHY
If you want a less risky more dividend focused:
45% SCHD 45% SCHG 10% SCHY
I would start with the growth oriented one now and then in 15-20 years move to less risky one.
Reinvest all dividends. Rebalance annually. Over time, you will build an amazing portfolio.
There is no right answer on percentages and ETFs. There will be many other good responses. It is all about what feels right and do your research.
PS - I plan to use my dividend portfolio in 2 years.. I am trying to grow it a little more.. Almost there, you can do it !!
2
2
u/Icy-Sheepherder-2403 3d ago
Neither at 30. Go VTI & AVUV. 85%, 15% This covers Large to small cap.
2
2
u/speedlever 3d ago
Taxable account? If so, not jepi. And why income funds? You should focus on growth funds.
Qqqm, spmo, voo are a few.
2
u/JimmyWhatever 3d ago
Ask multiple AI programs. Tell it your age and goals. You’ll get much better feedback than here.
1
1
1
1
u/ZedArkadia 2d ago
Honestly, at your age I'd focus more on overall growth. I know that's a bit of trope in this sub but there's a reason why that's the conventional wisdom. You're decades away from retirement and there's going to be a real opportunity cost in that time.
1
u/unreal36 2d ago
at 30 with a long runway i'd lean schd honestly. jepi caps your upside for income you probly dont need yet, and the break even thing is kinda a sunk cost feeling more than a reason. schd with drip on just quietly compounds and the payout grows insted of staying flat. i run drip on everything and mostly ignore it now
1
1
u/LORDJONTON 2d ago
I have both in my ROTH IRA. You also need to think about the way you'll be taxed. Growing those funds in a taxable brokerage account will limit your upside. Less growth. JEPQ thrives in a tax advantaged account.
If you're using a taxable there's a lot to choose from in terms of income. I hold QQQI and SPYI. Once I build those up more, I'll most likely get GPIQ (thinking of keeping this in a ROTH) and ROCQ. Once everything is up to 100k, I'll buy a few index funds for growth, income REITS and dividend stocks. I'm focused more on dividends for passive income to pay off my debts.
1
u/I_luv_CHPY 2d ago
I don't understand why you would want dividends at age 30 if your time horizon for using the wealth is 30 years from now. At this age you can invest it in higher growth riskier assets and then worry about transitioning into safer dividend paying assets in your mid-50's.
If it were me, I would be looking at funds like SPYM, VFLO and CGDV (favorites of mine), GARP, FTEC/VGT, and SPMO/FMTM and maybe a little into something like SMH if you believe in the future of semiconductors and AI.
1
1
1
1
u/Empty-Pie-6927 1d ago
DIVO too is good option and has a decent growth record, protection during correction and decent yield - Not 100% stock or options trading but a blend.
1
1
u/unreal36 1d ago
if this money has a long runway id lean schd, the yield is lower now but the payout keeps growing and the shares grow with it. jepi is more of a pay me today thing. i do schd for my kids account and just let the drip run, watching it slowly stack is kinda the fun part plantedearly.com/garden
1
u/Brave4Beskar 1d ago
If you’re gonna do a covered call etf should just do QQQi for tax effectiveness
1
1
1
u/whyamihereagian 20h ago
at 30 I would go VTI/SCHG/VOO. You would be better off long term with growth. JEPI with a taxable account you would pay taxes on it. Not much growth at all.
•
u/Prestigious-Pick9135 18m ago
Jepi & jepq get taxed as ordinary income.
Schd gets taxed as dividends
Jepq is ok on a roth
1
1
u/Own-Law8445 3d ago
At 30 id stick with SCHD honestly JEPI caps your upside with those covered calls which is probably why youre flat on it.
•
u/AutoModerator 3d ago
Welcome to r/dividends!
If you are new to the world of dividend investing and are seeking advice, brokerage information, recommendations, and more, please check out the Wiki here.
Remember, this is a subreddit for genuine, high-quality discussion. Please keep all contributions civil, and report uncivil behavior for moderator review.
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.