So I was browsing some of the main investing sub reddits and ran across the following strategy which caught my attention but I don't know how feasible it is in practice.
I have personally thought about this strategy before theoretically but never did the math on paper to see how it would turn out in practice.
Anyhow below is the strategy the person stated they used to grow their Roth IRA faster given its $7k yearly contribution limit.
Strategy 1. Invest 30-50% of yearly contribution into something such as JEPI or another high income dividend ETF
- Use monthly / quarterly dividend payments to by more VOO (or VTI, any etf, etc)
I can also dig into my history to see if I can find the post to directly link to it.
However, based on the above thought process, what's your take on the entire approach?
TLDR: Let's say that you have a 20-30 year horizon for your Roth IRA, does it really make a big difference if you do perhaps a 70/30 or 50/50 split in the form of VOO / FXAiX//etc + JEPI/SCHD?
Interested in hearing everyone's feedback and if anyone else has tried this in their roth ira or trad irs's to try to grow it faster, thank you!
Submitted August 01, 2024 at 10:25PM by Upbeat_Variety8531 https://ift.tt/MKpj3cy
