10-15-2020, 01:29 PM
(10-15-2020, 12:36 PM)crimsonghost747 Wrote:It would be hard to convince me this isn't a very prudent strategy over time. (I mostly didn't do this) A few higher growth stocks will make it possible to achieve market returns overall. That can get you to your goals years ahead of time.(10-15-2020, 09:55 AM)fenders53 Wrote: Seriously interested in learning about the trust. We need an "old man exit this world correctly" thread lol.
definitely!
Regarding div payers in a "young man's" portfolio, sure go for it. Just be sure not to overdo it and go all in on the dividend and forget about the growth.
For one, you never know what happens and it's always nice to have some dividend income on the side. And of course you'll be DRIPing that dividend, so you'll get a nice little snowball effect with enough time.
Diversifying is always good. So why not diversify in this too? Have some higher growth stocks with no div, some low div stocks with good div growth, and a few high yielders in the mix.
The real reason though, is we just can't know what happens in 5-10 years. The market has hated value stocks for a decade, and ran quality growth stocks to double the average historical PEs. Is this forever? Nobody knows that and it will likely be too late to react when you do. With some diversification, you can react to some degree no matter what happens. I truly smile when the market gets hit 10% in a few weeks. Maybe you sell a share of AMZN and buy some financial stock trading at PE 5. Or maybe your tech crashes hard and you can pick up some cheap shares with those boring T dividends. I definitely lean far more bearish than I ever did in the past, but short of a severe blowout like MAR 2020, I maintain a position where I can try to make the future a little better. It helps me ALOT when I feel like I have some control.