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Anonymous
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?
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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.
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Since i'm still relatively young, i would invest in growth stocks then give it 10-15 years, switch over to dividend ETF.
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There is no perfect strategy, i lost all my money early on in individual growth stocks and would recommend just DCA into an index
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It boils down to individual comfort levels. Are you patient enough to wait for your ETF growth to co...
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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