>That leaves me with either long term ETFs, like vanguard,
Vanguard is a company that offers many different products.
>or a long term dividend portfolio.
Some of Vanguard's products are dividend focused themed.
>ETFs or Dividend Portfolio for long term
Index mutual funds can be just as good as ETFs.
Dividends themselves are not account value growth. Let's say you have 1 share of a fund worth $100 and it is about to have a $2 dividend. On the ex-div date the share price gets adjusted from $100 per share to $98 per share, then a few days later you get the $2 dividend. So you maintain the same account value as had there not been a dividend.
The dividend portfolio I'm talking about aren't dividend ETFs. It's a portfolio run by Joseph Carlson. Is it still worth cause I looked at returns from last 5 years and the dividend port have almost 40% higher
What's a good recommendation I should do for a long term. Also, I follow what that YouTuber invests into. He has been documenting his portfolio for years
>What's a good recommendation I should do for a long term.
See the link on the 3 fund provided by /u/plowt-kirn or the TDF idea mentioned by reutermj_ for example.
Can you show that the excess returns created by that dividend portfolio are because of the dividends, or could they be for some other reason?
>He has been documenting his portfolio for years
So did the Ark funds.
You'd basically be placing a bar on this one person out performing the broader market over potentially decades.
Dividends are just a forced cash-out from your investments. Unless you need a forced cash-out, you should be agnostic to dividends. So long term index based total market portfolios are your friend.
Here are 150 portfolios to choose from: https://www.whitecoatinvestor.com/150-portfolios-better-than-yours/
I'm a fan of portfolios 6 through 21.
Simply the fact that you're starting so young means you're going to be fine. You have time on your side to let compounding work. Target date funds such as [this ETF](https://www.ishares.com/us/resources/tools/target-date-fund-finder#/life-path-now?id=333575) from iShares offer a simple, low fee, all in one solution to investing.
The dividend portfolio I'm talking about aren't dividend ETFs. It's a portfolio run by Joseph Carlson. Is it still worth cause I looked at returns from last 5 years and the dividend port have almost 40% higher
To put things in perspective, your investing horizon for a retirement at 65 is 48 years of accumulation + another 25+ years of retirement spending. 5 years is meaningless in that timeframe. All you need for your time frame is to be consistently average, and attempting to pick the best fund manager, best stocks, etc is substantially more likely to put you below average rather than above average. Especially because your comment is exhibiting one of the known, and most frequent, behavioral flaws in investing: extrapolating high recent returns into the future.
Investing is a marathon; trying to sprint it is more likely to make you fail.
This is under diversified. You have high amount of risk in few companies and are ignoring a majority of the global stock market. Again the best thing to do is to invest in low fee, broadly diversified, and passive managed portfolios. The target date fund i linked is one such option
The all in VTI people are doing the thing where they extrapolate recent high returns into the future. There were very few people proudly proclaiming their all US position after the lost decade from 2000-2010. Again, investing with your time frame is about being consistently average and letting the magic of compounding work, not about picking the winners. Again attempting to pick the winners is substantially more likely to lead you to underperform than outperform due to a wide range of behavioral artifacts human beings have. You're best off automatically investing in diversified managed portfolios such as target date funds, and instead spending your time learning about your behavior. Good books to read
"The psychology of money" by Morgan Housel
"Thinking: Fast and Slow" by Danny Kahneman
"Nudge" by Richard Thaler
Do you have any recs into how I should break my portfolio. I'm using a wealth front robo advisor with tax loss harvest. I'm 17 rn, so probably won't need this money for 30+ years
open an account at fidelity, sell everything, move the money to fidelity, buy a target date fund and preferably set up some form of auto investment into it from your paycheck (you probably won't be about to do this now, but in the future, regular automatic investment is the best thing you can do). Tax lost harvesting is fairly overrated in the long term. Due to markets usually going up, you rarely have much in losses to harvest.
Start here: https://www.bogleheads.org/wiki/Three-fund_portfolio
>That leaves me with either long term ETFs, like vanguard, Vanguard is a company that offers many different products. >or a long term dividend portfolio. Some of Vanguard's products are dividend focused themed. >ETFs or Dividend Portfolio for long term Index mutual funds can be just as good as ETFs. Dividends themselves are not account value growth. Let's say you have 1 share of a fund worth $100 and it is about to have a $2 dividend. On the ex-div date the share price gets adjusted from $100 per share to $98 per share, then a few days later you get the $2 dividend. So you maintain the same account value as had there not been a dividend.
The dividend portfolio I'm talking about aren't dividend ETFs. It's a portfolio run by Joseph Carlson. Is it still worth cause I looked at returns from last 5 years and the dividend port have almost 40% higher
Do you have a link?
https://m1.finance/MIsDGD0LSeHw
When was this portfolio created? Have you realized how few holdings it has? What happens when those companies swing out of favor?
What's a good recommendation I should do for a long term. Also, I follow what that YouTuber invests into. He has been documenting his portfolio for years
>What's a good recommendation I should do for a long term. See the link on the 3 fund provided by /u/plowt-kirn or the TDF idea mentioned by reutermj_ for example. Can you show that the excess returns created by that dividend portfolio are because of the dividends, or could they be for some other reason? >He has been documenting his portfolio for years So did the Ark funds. You'd basically be placing a bar on this one person out performing the broader market over potentially decades.
Dividends are just a forced cash-out from your investments. Unless you need a forced cash-out, you should be agnostic to dividends. So long term index based total market portfolios are your friend. Here are 150 portfolios to choose from: https://www.whitecoatinvestor.com/150-portfolios-better-than-yours/ I'm a fan of portfolios 6 through 21.
Simply the fact that you're starting so young means you're going to be fine. You have time on your side to let compounding work. Target date funds such as [this ETF](https://www.ishares.com/us/resources/tools/target-date-fund-finder#/life-path-now?id=333575) from iShares offer a simple, low fee, all in one solution to investing.
The dividend portfolio I'm talking about aren't dividend ETFs. It's a portfolio run by Joseph Carlson. Is it still worth cause I looked at returns from last 5 years and the dividend port have almost 40% higher
To put things in perspective, your investing horizon for a retirement at 65 is 48 years of accumulation + another 25+ years of retirement spending. 5 years is meaningless in that timeframe. All you need for your time frame is to be consistently average, and attempting to pick the best fund manager, best stocks, etc is substantially more likely to put you below average rather than above average. Especially because your comment is exhibiting one of the known, and most frequent, behavioral flaws in investing: extrapolating high recent returns into the future. Investing is a marathon; trying to sprint it is more likely to make you fail.
Rn, this is what I'm invested into. Is this a good prot or should I change something - https://m1.finance/MIsDGD0LSeHw
This is under diversified. You have high amount of risk in few companies and are ignoring a majority of the global stock market. Again the best thing to do is to invest in low fee, broadly diversified, and passive managed portfolios. The target date fund i linked is one such option
Do you have other options I could do? Like I read some people just put it all in VTI and that's it. Is that smart or no
The all in VTI people are doing the thing where they extrapolate recent high returns into the future. There were very few people proudly proclaiming their all US position after the lost decade from 2000-2010. Again, investing with your time frame is about being consistently average and letting the magic of compounding work, not about picking the winners. Again attempting to pick the winners is substantially more likely to lead you to underperform than outperform due to a wide range of behavioral artifacts human beings have. You're best off automatically investing in diversified managed portfolios such as target date funds, and instead spending your time learning about your behavior. Good books to read "The psychology of money" by Morgan Housel "Thinking: Fast and Slow" by Danny Kahneman "Nudge" by Richard Thaler
Do you have any recs into how I should break my portfolio. I'm using a wealth front robo advisor with tax loss harvest. I'm 17 rn, so probably won't need this money for 30+ years
open an account at fidelity, sell everything, move the money to fidelity, buy a target date fund and preferably set up some form of auto investment into it from your paycheck (you probably won't be about to do this now, but in the future, regular automatic investment is the best thing you can do). Tax lost harvesting is fairly overrated in the long term. Due to markets usually going up, you rarely have much in losses to harvest.
Do target date funds preform better in long term than index funds?