42-Year-Old Dad Gets $1M Windfall, Asks: 'SCHD Or High-Yield Dividends?' – Redditors Clash Over Growth Vs. Safety

After selling a family business, finding the right places to invest your money can be exciting and tricky.

This is the case for a 42-year-old dad who got his hands on a $1 million windfall after selling his family business. His concern about replacing a $50,000 annual dividend and ensuring stability and long-term growth for his family made him turn to Reddit for advice.

While he researched the market and is eyeing dividend-focused ETFs, such as SCHD and higher-yield options, like JEPI and YMAX, he wondered which combination would be best for a steady and reliable income.

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He asked for suggestions on the board’s r/dividends community and has received mixed recommendations from several investors. Let’s see what they advised the inquirer.

Top 5 Stock Investment Recommendations From Redditors

SCHD

Most of the r/dividend community members have agreed that SCHD is a good investment (even though it’s considered a moderate yield, not a high yield), with one, in particular, mentioning that the shares and the payout should grow steadily in time.

“Honestly, SCHD would be a fine investment. It won’t give you $50k off the bat, but both payout and the shares should go up nicely,” the comment says.

Another Redditor suggested splitting the money in two directions as it would make a great combo considering the 42-year-old investor’s goal.

“Assuming no DRIP, the dividend CAGR and starting yield from SCHD is a tough combo to beat,” he said.

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VTI

It seems like Redditors love VTI and suggest it continuously as a good investment option. This happened in this thread as well.

“My opinion, but I would buy VTI (Vanguard total U.S. market), set it and forget it,” says a Reddit member.

In another comment to the r/dividend community thread, a second Redditor suggested the inquirer split the money between a CD and several ETFs, starting with VTI.

“Put away 50% into something with no risk like a CD to pay the tax man next year. The other 50% I'd split it between VTI, SCHD, JEPI and JEPQ,” he recommended.

JEPI

While not many investors venture into high-yield ETFs, some like JEPI and recommend it as a good investment. However, others, like this Redditor, might not consider JEPI a good investment option.

“JEPI has not performed well since its inception,” the Redditor wrote in the r/dividend community thread.

On the other hand, a few members of this community have suggested that the 42-year-old father invest in this particular ETF because it’s worth it.

“Quarterly dividend or $50K is gone but you could easily get $75-$100K per year in dividends with SPYI, JEPQ, JEPI, SCHD,” says one of the Redditors.

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JEPQ

JEPQ was also mentioned in the r/dividend thread, with one member asking the inquirer if he has a job because, in his opinion, not having a reliable income and still investing in a high-yield ETF might not be a good idea.

“Personally, I'd put half of that in growth stocks and the other half in JEPQ. Do you currently have a job? That really depends on how risky I would plan on being,” the Redditor says.

SPYI

One member of the board suggested SPYI as a good investment, but only if the 42-year-old dad was willing to take some risks, as he was.

“I am a bit of a gambler. I would go all in on SPYI. It pays monthly.”

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