Summary of Why I Quit Dividend Investing

00:00:00 - 00:15:00

The speaker in the video reflects on their decision to quit dividend investing, citing their preference for "vti" (a broad market index fund) over "vo" (a Roman numeral for 500, representing the S&P 500). Both funds have been nearly identical in performance over the past few decades, and the speaker likes VTI for its inclusion of stocks like Tesla Inc. before the S&P 500 does. Tax loss harvesting between the two funds allows for more flexibility in portfolio composition.

• 00:00:00 Andre Jake shares the reasons why he quit dividend investing, including that it's a "giant card trick" and that it's not really making money. He goes on to argue that dividend investing is one of the few strategies that still exists that can provide above-average returns with little risk.
• 00:05:00 Andre explains the five reasons why dividend investing is an amazing investment strategy, including the fact that it allows you to plan for your retirement much better than if you were only investing in stocks. He also points out that dividend investing is not guaranteed to provide consistent returns, and that if the market crashes, your portfolio may decrease in value. Having rich people problems because of this increased wealth can be a motivator to stay invested in dividend-paying stocks.
• 00:10:00 The video's presenter explains that, after investing in growth stocks over dividends, they now find themselves in a higher tax bracket and may have to pay more in taxes. They also mention that the Roth IRA has a contribution limit of six thousand dollars per year, which is better than nothing, but is still a lot less than what they typically want to invest. The presenter goes on to say that there are three reasons why anyone should be a growth investor over a dividend investor: index investing has almost always beaten dividend investing, the real work around to the problem of having less money to invest is the mega backdoor Roth conversion, and growth investing or index investing has always been better than dividend investing for people who want to retire early. The presenter shares that, because of this, they will not be selling their dividend portfolio and will instead leave it as is, reinvesting all of their profits back into it. They also mention that, in the event the market goes down, they can still live off of their dividends even if they get cut in half.
• 00:15:00 The speaker reflects on their decision to quit dividend investing, citing their preference for "vti" (a broad market index fund) over "vo" (a Roman numeral for 500, representing the S&P 500). Both funds have been nearly identical in performance over the past few decades, and the speaker likes VTI for its inclusion of stocks like Tesla Inc. before the S&P 500 does. Tax loss harvesting between the two funds allows for more flexibility in portfolio composition.