#wealthbuilding #Secureyourfuture #dividendinvesting #RothIRA
In Today’s video I will be discussing how to dividend invest in a Roth IRA.
I show an example portfolio of what a dividend portfolio would look like using etf’s only. I also will be discussing my personal dividend investment portfolio using dividend stocks.
I personally like investing in dividend paying stocks better then Dividend Etf’s because there is more control using individual dividend stocks. With dividend stocks I could diversify each sector according to the standard that I would like and not be at the mercy of a market weighted index or institutional fund.
The Final portion of the video I go over the power of dividend investing. Investing 6000 each year in a Roth IRA can yield $90,000 to $700,000 passive income each year after 33 years.
Dividend investing is a powerful investing strategy to secure your future and build true wealth that is passive!
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M1 Finance Dividend Portfolio:
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All information and data on my YouTube Channel, and other materials is solely for informational purposes. I make no representations as to the accuracy, completeness, suitability or validity of any information. I will not be liable for any errors, omissions, losses, injuries or damages arising from its display or use. All information is provided AS IS with no warranties and confers no rights. I will not be responsible for the accuracy of material that is linked on this site. Because the information herein is based on my personal opinion and experience, it should not be considered professional financial investment advice or tax advice. The ideas and strategies that I provide should never be used without first assessing your own personal/financial situation, or without consulting a financial and/or tax professional. My thoughts and opinions may also change from time to time as I acquire more knowledge….(read more)
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Very good tips. There's similar options here in the UK. I will definitely be looking into become a dividend investor as well as already being an index fund investor. You should make a video on the best dividend stocks, if you haven't done that already. Anyway, Keep up the good work.
A problem that I have with all of these DRIP calculators is that none of them start with a principal and than annual contributions thereafter.
Even in your own example at the end of the video, the calculator starts with $12,000 principal and $6,000 annual contribution; that’s not possible because you can only contribute $6,000 per year into a Roth IRA.
A way I’ve been going around this is by entering the principal (starting) amount as either $0.00 (or $0.01 if the website doesn’t accept $0.00) and entering the annual contributions thereafter.
Only modifications I’ve seen had to be made after that are adding +1 years to however many years you’d like to hold for, and adjusting the stock price to reflect what a stock price would be on Year 2 (which is technically Year 1).
Also, while it would be nice for no shares to gain or lose any value over time (since that would make dividends extremely powerful), it’s not idealistic.
I generally have just been pulling either 10-year CAGRs or the 20-year CAGRs for a good estimate, and using the 10-year Dividend Growth CAGR for how much I expect it to increase.
As for the Dividend Yield itself, I normally just average the last 10 years for a more conservative estimate.
MarketBeat is, by far, not my favorite DRIP calculator. I prefer this one (https://www.hughcalc.org/drip.php) since:
A) No ads, and
B) You can enter the price of a stock for a better estimation
Unfortunately, it only does Annual dividend calculations, but those are close enough for my purposes; plus, you can always check it against another DRIP calculator that does do Quarterly calculations.
Good video.
Hey Mike, I wanted to use your pie as part of a sub pie to my own but can't because of BBL within raw materials, any hance you'll be swapping that out?
Very informative great video
Great video! Can you please share your thoughts on my ROTH IRA portfolio? I am 38. Thank you and KEEP UP THE GREAT JOB!
Do you pay tax on dividend you received from rothira?
Do dividends that get reinvested count towards your annual contribution limit?
Do the dividend yields automatically get reinvested into your IRA or does is just get added to your overall investment portfolio? Great video and information!
No one should be dividend investing in their retirement account. You won’t be receiving that dividend until you retire, doesn’t make sense
Your objective should be to grow your money as much as possible for your retirement. Growth stocks, growth ETFs and leverage ETFs should be your only focused.
Then, when you are retiring, you sell and switch to dividend investing so that you can use those dividends
Can I just use this same portfolio when building mine
Too bad you can't do covered calls on M1 Finance, that's the only thing holding me from holding my ROTH ira there. I guess you can always transfer brokerages whenever you get closer to retirement.
You still have to pay capital gains tax, correct?
Can't wait to build my portfolio!!
nice monotone
Can you use the dividends to reinvest back into more shares without any penalties since that that money was already in your account? Meaning it’s not seen as a part of the $6000 that you can contribute each year
Tax efficiency is massively important to a portfolio and I'm so glad you covered this. I haven't seen it in M1 Finance yet so I appreciate your breakdown. Excited to see your next videos as your new sub 🙂
Thanks for sharing! Roth IRAs are great investments, just liked and subscribed!
Hi, enjoyed your content. Stocks definitely is the path to wealth. And tax advantaged accounts should definitely be taken into consideration. I just started my FIRE Journey and started my channel to document my progress. liked and subbed, love the clean look of screen recording!
Nice dividend portfolio! I recently bought SPHD since it was such a good deal.
Wow you're seeing some great return on your M1 Finance portfolio. Great job.
Tax free gains 🙂
Great information, in the UK we have ISA that we get tax free saving in 🙂
Great info and explanation of the advantages of a Roth IRA. Not enough people take advantage of these accounts.
Great info here for beginners looking to open a retirement account.
A Roth IRA is an amazing investment!! Got to take advantage of the opportunities offered to us!! Thanks for sharing this important video Michael!! ✨
I agree with your sentiment on have dividend paying stocks than dividend paying ETFs. Great breakdown and appreciate the transparency
Gotta love Roth IRAs! One of the best types of accounts out there—recently made a vid on this topic too! Thanks for sharing man!
It's like one of mentors told me… would you like to pay taxes on the seed? Or taxes on the crop? Great analogy!
I agree invest into a Roth IRA to save as much money as possible. Subscribed for more great information!