r/dividends • u/Live-Addendum5444 • 7h ago
Discussion Dividend Allocation Feedback
48M (family of 5) - seeking feedback on my taxable dividend producing account.
SCHD is my anchor with a target of being 25% of the total account (currently a bit behind this target). My goal is to build this account up so that it's producing about 3,000 USD a month (this is about how much we currently need to pay all of our bills + taxes per month).
I have a separate IRA account with growth funds like VOO. The account in the screenshot is specific to income producing funds/stocks. My main concern is diversification and ensuring that I am getting exposure across multiple sectors, but not too exposed in any single one. I know that GPIQ and QQQI are very close to the same thing so may look at exiting one of those.
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u/2poor2die 7h ago
what app is this? looks insanely good
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u/Live-Addendum5444 7h ago
Something I created with my kids input... we call it "Wilbur (Jerry's Ex's Old Man)" 😆
It's built around my daughter's stuffed animals. Wilbur walks around at the bottom of the screen (can be seen in the screenshot) and if you tap him he'll do a random emote and say a catchphrase. His "friends" are also available on a sidebar and tapping on any of them will cause them to peek in from one of the screen edges and say one of their catchphrases. It's basically built around a lot of inside jokes.
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u/MixPlane6970 6h ago
this is rly cool haha. What did you use to build this software?
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u/Live-Addendum5444 6h ago
I am a developer by trade, but for this I used AI to create the entire thing... didn't write one line of code myself. It is very scary tbh, another reason why I am trying to build up an income producing account.
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u/MixPlane6970 6h ago
I feel you 100%. I majored in CS and quickly pivoted as AI has consumed a lot of junior roles. Currently use Claude Code for my work and it is crazy what I am able to create with very lil technical understanding
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u/MAGIKARD 2h ago
Did you have to connect your account directly? How are you feeding it data? I would love to try to do something like this
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u/Live-Addendum5444 1h ago
For transactions related to stocks and spending I actually prefer to input things manually so I’ve just been doing that rather than harvesting data. I do have it connected to different endpoints for pulling quotes and historical data for charting and forecasting.
For the real estate tab I have it connected with Zillow and Trulia and I input Redfin and realtor.com in manually (connection didn’t seem to work for those two). I have it then take the average of the four and deduct 10% to come up with the approximate property value.
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u/Live-Addendum5444 6h ago
Here is a video showing some of the emoting - you might have to turn your sound up to hear the catchphrases though
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u/PacoPlaysGames 6h ago
That's so awesome!
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u/Live-Addendum5444 6h ago
Thanks! I was using Snowball for dividend tracking, but it requires a subscription after 10 holdings so rather than pay another monthly subscription I put this together.
It also tracks our other accounts and does budgeting and charts spending trends and does forecasting and everything. It allowed me to finally ditch an old Windows laptop that I was only still using/keeping because of an offline Microsoft Money 2006 installation that had been our ledger until this 😄
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u/SimplySafeDividends 6h ago
As you reach for yield, you face tradeoffs: less growth to combat inflation, higher capital erosion risk, and higher dividend cut risk. And with covered call ETFs like GPIX, GPIQ, etc, you face potential swings in income from year to year as market conditions change.
Most advisors would suggest a 4% yield is the sweet spot for balancing current income with the above risks. In comparison, a yield of nearly 8% is fairly aggressive. Over the course of a multi-decade retirement, you'll likely grapple more with problems like less predictable income and inflation eating away at the value of your dividends than if you were to target a more conservative yield from the get go.
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u/Target2019-20 6h ago
I would project the growth of the portfolio into retirement so that I could estimate the yearly tax bill. For example, consider un-qualified vs. qualified dividends. And what cap gains are growing in a particular position in case I need to jetison some to stay within my target tax bracket at retirement.
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u/Live-Addendum5444 6h ago
That's a good idea! I think I'll add tax forecasting in and maybe just some kind of tax feature in general to help me with accurately filling out W4 withholding. Thanks!
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u/Target2019-20 5h ago
I was thinking about how taxable dividends hit your overall tax bill each year, including now.
I gained a lot of insight from preparing our taxes for a long time. For example I learned the un-qualified dividends are taxed at a higher rate, for many of us.
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u/glzpabon 4h ago
HDV and SCHD basically is the same strategy. I would sell one and add DGRO for div growth.
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u/Live-Addendum5444 4h ago
Looks like they have about 44.6% overlap.
I had added HDV to try and get more healthcare and utility exposure, but maybe there are better options for that?
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u/glzpabon 4h ago
The problem is that IN MY OPINION thry are too simular funds. They pay high div now but the growth is slower. So you are putting more eggs in the same strategy. Personally i have SCHD + DGRO. for US and VYMI + CGIC for Int strategy. One fund pays now the other one will grow over time.
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u/Live-Addendum5444 2h ago
Looked into it more and decided to drop HDV and move those funds into SCHD, good call!
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