The Reason behind My $10,000 Investment in SCHD for Early Retirement

by | Aug 5, 2023 | SEP IRA | 41 comments

The Reason behind My ,000 Investment in SCHD for Early Retirement




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In today’s video, I’m going to smash buy $10,000 more of SCHD.

For those of you that aren’t familiar with SCHD, this is Schwab’s Dividend Equity ETF.

SCHD has been a core holding in both my SEP IRA and Taxable portfolios for almost 3 years now.

The reason for this video is to piggyback off of my most recent Dollar Cost Average vs Lump Sum Investing video.

In that video, we saw that the numbers favor lump sum investing over time, although I’ve personally been a dollar cost average investor for years.

There are a lot of things to like about the SCHD ETF, which we will discuss in this video.

Please watch until the end and share with a friend!

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⏰ Timestamps ⏰:
0:00 – Intro
1:01 – My SCHD Journey
1:57 – SCHD Prospectus IMPORTANT
8:33 – Masterworks Spot
9:57 – SCHD vs SP500 vs VYM
14:26 – BUYING $10K of SCHD
16:15 – My Thoughts
17:45 – Casual WBF

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Why I’m SMASH Buying $10,000 of SCHD for Early Retirement

Are you dreaming of a financially secure and stress-free early retirement? I certainly am, which is why I’ve made the decision to SMASH buy $10,000 worth of SCHD (Schwab U.S. Dividend Equity ETF). In this article, I will explain why I believe SCHD is an excellent investment for those seeking an early retirement strategy.

First, let’s understand what SCHD is all about. SCHD is an exchange-traded fund (ETF) that aims to track the performance of high dividend yielding U.S. stocks. This means that by investing in SCHD, you become a part-owner of a diversified portfolio of well-established and financially stable companies that consistently pay out dividends. These dividends can provide a reliable stream of income, which is essential for anyone planning an early retirement.

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One of the main reasons I’ve chosen SCHD is the fund’s focus on quality. SCHD selects companies based on various criteria, including cash flow to debt ratios, return on equity, and dividend growth consistency. This emphasis on quality ensures that the companies included in SCHD are financially strong and have a history of stable dividend payments. By investing in SCHD, I feel confident that I am putting my money into reliable and trustworthy companies.

Furthermore, SCHD’s approach to dividend stocks helps mitigate market volatility. By investing in a diversified portfolio of dividend-paying companies, the fund provides some level of protection against market downturns. Dividends can act as a cushion during bear markets, supplementing capital appreciation and potentially lowering the overall impact of market fluctuations. This stability offers peace of mind for those planning an early retirement, as preserving capital becomes a critical consideration.

Another attractive aspect of SCHD is its low expense ratio. With expense ratios being a measure of the costs associated with operating an ETF, it’s essential to minimize these fees to maximize your investment returns. SCHD boasts one of the lowest expense ratios for dividend-focused ETFs, meaning more of your investment goes directly toward your retirement savings rather than being eaten away by fees.

Moreover, the dividend income generated by SCHD can be reinvested, compounding your returns. Reinvesting dividends allows you to purchase additional shares of the fund, further increasing your exposure to the dividend-paying companies in SCHD. Over time, this compounding effect can significantly boost your investment and accelerate your journey to financial independence.

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Lastly, SCHD offers an attractive dividend yield, currently around 3-4%. This yield surpasses the average dividend yield of the S&P 500, providing an attractive income source that can help sustain your lifestyle during early retirement. By investing $10,000 in SCHD, I anticipate receiving an annual dividend income of around $300-$400, further enhancing my financial stability during retirement.

In conclusion, SCHD offers a compelling investment opportunity for those striving for an early retirement. With its focus on quality dividend-paying companies, low expense ratios, and potential for compounding returns, investing in SCHD can help you build wealth while safeguarding your capital. Furthermore, the attractive dividend yield makes SCHD an ideal choice for those seeking consistent income in retirement. So go ahead, SMASH buy $10,000 of SCHD, and take a step closer to realizing your early retirement dreams!

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41 Comments

  1. Zahair O'Brian

    I often wonder how top level investors are able to become millionaires off investing. I have about $700k to start up but I have no idea what strategies and direction I need to approach to help me make decent returns

  2. Nathan Edwards

    Marko, I have a daughter about the same age of yours… I agree that they are great at financial advice! Very upbeat and agreeable! haha, great stuff my man.

  3. JWH808

    Thanks for the review of SCHD. I bought shares of VYM, VIG and SCHD after watching your video about dividend investing. Currently have $16k of each.

  4. arseniclullaby87

    …… his account is down $28 lmao

  5. Yatasamar

    Can you do an update on your SCHD investment?

  6. The rebels

    If they have a five-year dividend growth rate, why did they add Ford to the Etf they cut their dividend and suspended it

  7. Trade Kings

    Starting early is simply the best way of getting ahead to build wealth , investing remains a priority . I learnt from my last year's experience , I am able to build a suitable life beause I invested early ahead this time .

  8. Josh Lawless

    I'm looking to invest extra money into SCHD, SCHG and VGT. I can't invest through Charles Schwab, because I have to purchase shares. I just want to invest $100, 200, 300 or whatever a month or some weekly amount. I have heard pros and cons with Robinhood. I do see that you use M1 Finance. I'm looking for ideas? Thank you.

  9. fort grove

    You hit cancel on the transaction after the video was over lol. I have SWTSX and SWPPX and will move some money to SCHD. Good stuff.

  10. Micheal brain

    Impressive video. I started a bit late (graduated from my doctorate program at age 30 in 2014 with 170k in school loan debt). Managed to pay off my debt by 2019 and currently have a house and 250k total in investments (combo of profit share, 401k and a brokerage account). I'm not very knowledgeable in investing, so I just have my investing currently in index funds mainly Too but have been putting a lot into Schd the past few months. I don’t know if that's the optimal strategy, but psychologically it is very set it and forget it, and prevents me from obsessing over individual stock performance.

  11. Cecilia Ronn

    I started investing when I was 27, mostly through sweat equity. I just turned 33, and this last month was the first time that my passive income broke $100,000 for the month. This is solid advice! DO IT!

  12. Parrish

    I’m currently retired, and considering the current rollercoaster nature of the stock market, I decided to stay on the sideline for awhile, now I’m worried with the numerous bank failures as of late, am I better off reinvesting my savings in the stock market or do I wait?

  13. ExEvolution

    I picked up 449 shares @ 69.5 😀

  14. orpha Rachel

    started investing when I was 27, mostly through sweat equity. I just turned 33, and this last month was the first time that my passive income broke $100,000 for the month. This is solid advice! DO IT!

  15. Lance Brown

    I picked up 380 shares of SCHD.

  16. Marchetti Bianca

    In life, I will forever be grateful for health, wealth and a great professional (Hamilton Phoebe Zoe) whose help has been great for my finances.

  17. ScreamingCheetah1212

    Your balance today would be $9,671.46 heading for a (-)18.96% annual return. Even from a simple technical perspective, this EFT is on the decline since Jan 2022.

  18. Trenton

    Why risk your money in SCHD when it only pays a dividend around 3.6% when you can get a gauranteed rate over 4% at most online high yield bank accounts now with no Risk. (synchrony bank, Ally Bank, etc etc) In fact you can lock in over 5% rates on CD's as long as 5 years now. I just bought an 18 month CD from Charles Schwab bank at 5.4% recently, which has zero risk… unlike SCHD. I was buying SCHD for a while the past few years, and a lot of my buy-ins were around $78 unfortunately. I'm currently sitting with a -9% loss with all my shares. So yeah I'm disgusted with myself for buying into this particular Schwab ETF.

  19. bob fletch

    I started investing in the stock market because of dividends. What matters, in my opinion, is that if you invest and earn more money in addition to dividends, you will be able to live off of dividends without selling. It implies that you can pass that on to your children, giving them a head start in life. I've invested over $600k in dividend stocks over the years; I continue to buy more today and will continue to do so until the price lowers even further.

  20. Rex Randall

    I DCA 500 a month into SCHD would be nice to be able to just buy 200 shares at once though

  21. masoncnc

    I smashed sold at 74

  22. Don Mynack

    Uh, are you still smashing SCHD? It looks ready for a collapse.

  23. Bert James

    This seems like the worst investing period. Started investing recently when the market prices were a bit high, then boom! I went more than 60% red! Hopefully, the markets will go back up Right?

  24. Evan Guarino

    its 13% financials with low tech exposure, tech is up relatively high compared to the rest of the market YTD, and due to the banking crisis which is why it is down, in my opinion great opportunity to buy.

  25. david brooks

    Even reading the prospectus doesn't guarantee anything

  26. david brooks

    You do know that dividends don't make you any extra money it lowers the value of that stock.. please look it up and do a video on that

  27. david brooks

    This stock is DOWN year to date!!

  28. 88888gerald

    ok its been a month…how is your investment going?

  29. Top Gun Academy

    I have SCHD in my Roth IRA. It paid me a dividend. What can I do with that dividend? I can’t withdraw. Can I reinvest dividends in a Roth IRA?

  30. Brady Ross

    The amount of bad advice in this video is concerning

  31. Dr. LeFort1

    Let’s get updates back on that SEP IRA

  32. Ipeacocks

    Don't you worry that SCHD has only ~11 years of history? I mean that's relatively young in terms of age compared to VOO or so.

  33. Toni Željeznik

    My question is, since I am new in this, are you investing directly in Schwab in order to get dividend payment, or is it some stock that is under Schwab ETF? I am on Trading 212 and when I look at Schwab, I cannot find it so I am confused.

  34. Easy Rawlins

    Maybe I misunderstood you. Dividend growth is important but money on hand is money on hand. I'll rewind again.

  35. Green Moxy

    Ever heard of EPD? Almost an aristocrat with them dividends! I sold almost everything 6 months after Biden "won". My average dividend was 4% but rolled $3M into brick commercial real estate at 11% so yeah that was a well timed pivot thus far.

  36. Valdas Dr

    Amazing! Today I found this channel and I can already tell it's at least as good as Maverick's. Authenticity is something I really admire nowadays. Buying $10k of stock after making a video is 10/10.

  37. Eric Wilde

    fantastic video I have 1670 shares of SCHD in an IRA and 959 shares of SCHD in my dividend portfolio. SCHD has improved significantly more than the general market. In my opinion, QQQ/VTI/VOO have more potential for growth. My dividend from SCHD on 12/12/22 was already DRIPped back into SCHD. I'm happy that my portfolio has finally reached the seven figure level, and my FA Susan kay Mack, who manages all of my investments and makes sure I outperform the market, deserves praise.

  38. john aleffi

    SCHD doing shit this year. 15% below SPY 11:53

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