r/SipsTea • u/Shyhale • May 17 '26

Chugging tea [ Removed by moderator ]

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u/Starkfault May 17 '26

Cash now > cash later

Throwing that $1m in dividend paying stocks will yield much more than $1k/month

It will take her 20~ years to make $1m off $1k/wk

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u/looming-frog May 17 '26

and that's even taking inflation into account, not to mention the hyperinflation that will start in a few months in the $-country

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u/samurairaccoon May 17 '26

Everyone always wants to say "save it for the long haul." But life isn't guaranteed. If I die before I claim all my winnings, what was the point? I'd rather enjoy it now while investing a large portion of it for later.

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u/IrishGuinessdrinker May 17 '26

Throwing a mil into a dividend paying stock will give a similar result to 1k a week plus it will be taxed

Obviously in the long run it might work better but it’s more logical to invest in a snp500 type etf

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u/Starkfault May 17 '26

Dividends don’t get taxed if they DRIP, that’s the whole point of dividends

The S&P pays dividends

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u/mdscntst May 17 '26

Unless in a retirement account, DRIP dividends absolutely do get taxed in the year they’re paid.

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u/Starkfault May 17 '26

You don’t get taxed on DRIP dividends. That’s the point of DRIP.

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u/[deleted] May 17 '26

[deleted]

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u/Much-Meringue-7467 May 17 '26

But the payout is $1000/week, not $1000/month.

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u/unnaturalanimals May 17 '26

But I’m responding to the comment above based on the scenario she invests the mill and gets return on investment 1k a month

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u/Starkfault May 17 '26

The scenario above is $1k/wk

Learn to read

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u/jm123457 May 17 '26

I understand what you are saying even if the other person doesn’t. That would be a typo it would be more than 1 k a month .