12-07-2021, 05:58 PM
(12-07-2021, 05:17 PM)ken-do-nim Wrote: The 2.3% you have in the ROTH, have you thought about putting that towards high dividend payers? You'd just take the dividends out, tax-free.
I initially used it as my RIC account. I wanted to try those and did just REITs and BDCs in it. That worked out, not horribly but not great as a lot of the ones I owned cut last year. I started to switch to what I have always called sluggards - things that pay hefty dividends, then ran my numbers this spring and have switched again.
In the end it's just so darn small that even going all-in and shooting for 10% wouldn't gain me much. I've decided that it and the IRA will be TR accounts. Now I expect to lean towards dividend-payers. I like them, it gives me a stream of cash to make buys with and it's one more metric to measure a company by. But money in either of those accounts will stay in there unless I do some conversions.
When I do the initial IRA rollover I'll also buy some funds - SPY, IVV, QQQ, VTI. Those will be about 20% of the account and if after 3 years or so they're beating my stock picks I may sell all the stocks and go with index funds to save time. But so far I've been able to beat the S&P - not spectacularly but a little - each year since I've been in stocks. If that's the case I'll sell the funds. Why pay fees when you don't have to?
I joke that if my Roth was a person it would be in therapy. It's small enough that I experimented with it a lot but I've also changed it up completely 3 times in the last 2 years. Poor thing must be confused.
