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Anonymous

22 Mar 2023

Retirement

What's the best way to achieve a portfolio large enough to retire through passive income from dividends?

Mid-late 20s currently.

Should I start investing in dividend-paying stocks/ ETFs and slowly grow my portfolio? Or invest in growth stocks/ETFs (higher yield) until I reach a sizeable portfolio before I sell them and switch to dividend ETF?

Discussion (8)

What are your thoughts?

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For myself, I diversify my portfolio with dividends and growth equities. For growth, mainly using S&P 500 ETF which is low cost and for dividends, I am buying Singapore REITs and banks which do not have the 30% tax. For yourself, you can invest in a strategy that you are comfortable with and can also adjust the ratio / strategy as you grow older and to one more suited at that stage of your life journey

The decision of whether to invest in dividend-paying stocks/ETFs or growth stocks/ETFs depends on your investment goals and risk tolerance.

Dividend-paying stocks/ETFs can provide a steady stream of income, which can be beneficial if you're looking for passive income. These types of investments tend to be more stable and less volatile than growth stocks/ETFs, which can make them a good choice for investors who prioritize safety over higher potential returns.

On the other hand, growth stocks/ETFs tend to have higher potential returns but come with more risk. They may experience more volatility, but they also have the potential for significant long-term growth. If you're willing to take on more risk for potentially higher returns, then growth stocks/ETFs may be the way to go.

As for when to switch from growth stocks/ETFs to dividend-paying stocks/ETFs, it's difficult to provide a clear answer without knowing more about your specific investment goals and the market conditions at the time. Generally, it's a good idea to have a well-diversified portfolio that includes a mix of stocks/ETFs that offer different benefits, including growth potential and dividend income.

Ultimately, it's important to do your own research.

Since i'm still relatively young, i would invest in growth stocks then give it 10-15 years, switch over to dividend ETF.

There is no perfect strategy, i lost all my money early on in individual growth stocks and would recommend just DCA into an index

It boils down to individual comfort levels. Are you patient enough to wait for your ETF growth to co...

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