From Military To Millionaire? 23-Year-Old Shares $40K Robinhood Strategy – Reddit Debates Best Investments For Retirement Freedom

Robinhood has become a go-to platform for investors looking for an affordable way to expand and oversee their wealth mainly because of its commission-free trading and lower fees. The platform offers access to stocks, ETFs and dividends.

One Reddit user, a 23-year-old military member, recently shared his investing journey on the r/dividends community, starting a thread that received mixed advice on the best investments for retirement financial freedom.

The soldier opened a Robinhood account just two months ago and has already acquired 39.99 shares of SCHD and 17.77 shares of Realty Income (O).

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He aims to build a dividend-producing nest egg to supplement his military benefits, including a Roth TSP, to which he contributes 10% of his salary and receives a 5% match.

“I plan on using this Robinhood account to build up a nice dividend-producing nest egg. I opened the account about 2 months ago. I plan on maxing it out in 2025 pretty quickly. My main retirement account is my Roth TSP through the military. I contribute 10% + get a 5% match. This Robinhood will be used for leftover money,” he said.

He has 16 years left to serve in the military and plans to retire at 38 with a pension, VA benefits and several income streams. As he puts it, “I really want work to be an option when I turn 38.”

But he is seeking guidance on what steps to take now to ensure his goals become reality, so he posted on Reddit asking investors for advice.

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Let’s breakdown Reddit’s r/dividends community recommendations for the 23-year-old military man’s portfolio.

Reddit’s Advice on Best Investments to Achieve Financial Freedom

Focus on Growth Instead of Dividends For Now

Many Redditors from the community suggested that at 23, the investor should focus on growth-focused stocks like VOO or VTI instead of dividend-focused stocks because growth stocks offer higher long-term returns.

According to the community, this strategy will create a large nest egg before transitioning to dividend-focused stocks for a reliable income.

“I would argue you shouldn’t be investing in any dividend players at all … you should be focused on growth (VTI, VOO, etc.) and then you can convert that massive nest egg into dividend-paying equities when you’re ready to get a constant stream of income,” one comment reads.

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Another Redditor explained the long-term difference between growth-focused stocks and dividend-focused stocks.

“At 23 forget about dividends. The only thing that matters is that you keep on investing in what you think will give you the best return based on your risk tolerance. Dividend is not free money. Would you rather have 1,000 shares of SCHD or 1 share of BRK.A?” the Redditor said.

A third comment reflected the community consensus on focusing on growth, not dividends, at 23 years old.

“I'd focus on growth stocks at your age and later on worry about dividend stocks,” the comment reads.

Consider a Mix of Growth and Dividend ETFs

While most Reddit members advised the soldier to prioritize growth over dividends, some suggested mixing growth and dividend ETFs for a balanced strategy.

“Keep doing Robinhood! Maybe try a mix of ETFs? VOO/SCHD/DGRO 33/33/33?” one comment suggests.

Another commenter recommended pairing DGRO or DGRW with SCHD to combine growth and dividend strategies, offering both appreciation and reliable income.

“DGRO or DGRW are very nice options to pair with SCHD for a set-and-forget long-term dividend growth portfolio,” the commenter said. 

Wondering if your investments can get you to a $5,000,000 nest egg? Speak to a financial advisor today. SmartAsset’s free tool matches you up with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.

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