Since this has essentially become my question and answer thread, I also have some questions about dividends.

1. The last dividend from VTI was stated as $0.708 if you look at the historical data. So if I held 1000 shares that means I would have gotten $708 into my settlement fund?

2. Let's say I setup my account to reinvest the $708. What happens if the price per share at reinvestment is $200. Since $708 would only buy me 3 shares at $200/share, what happens to the $108 left over?

1. Yes

2. You get partial shares with dividend reinvestments. So say it's $708 in dividends with a $200 price when the dividend hits, that would be 3.54 shares of VTI exactly.

Awesome, thanks!

Well friends, I have the vast majority of my rollover back in the market now. What do y'all do with the leftover cash like $20 or so that couldn't quite get into anything due to the prices?

Are there any less than $5 stocks out there that may be worth throwing that $20 into?

BITF and HUT are under $5 if you'd like to toss a little bit at some bitcoin exposure via publicly traded mining companies. BTG if you prefer shiny rocks instead.

I feel like an idiot after today for not waiting. I could have gotten in much lower today. Instead, I got back in right at the bear market rally peak, losing about 3%.

Question: Am I allowed to contribute the $6k per year to my rollover IRA if my wife and I also both have 401k's through our jobs?

Post tax I know the answer is yes, not sure about pre tax.

XXXVII said:

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Since this has essentially become my question and answer thread, I also have some questions about dividends.

1. The last dividend from VTI was stated as $0.708 if you look at the historical data. So if I held 1000 shares that means I would have gotten $708 into my settlement fund?

2. Let's say I setup my account to reinvest the $708. What happens if the price per share at reinvestment is $200. Since $708 would only buy me 3 shares at $200/share, what happens to the $108 left over?

---

most brokerages offer partial shares.

I was analyzing my Fidelity today and could see exactly how many additional shares have been purchased by reinvesting my dividends automatically

then the question becomes- is it financially better to reinvest automatically into Conagra? or take the dividends and buy instead MSFT..

Ag CPA said:

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Post tax I know the answer is yes, not sure about pre tax.

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This one is pre tax.

What about those who are temporarily unemployed or within 5 years if retirement?

I over reallocated to bonds and away from heavy equities in December. I am considering reallocating back some into equities to more of a 50/50 allocation.

Also, is it time to through in the towel on growth and emerging markets and move all equities to American and value stocks?

XXXVII you have a long time to retirement if I remember right...don't sweat the small *****

https://www.amazon.com/Simple-Path-Wealth-financial-independence/dp/1533667926

Gabster43213 said:

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What about those who are temporarily unemployed or within 5 years if retirement?

I over reallocated to bonds and away from heavy equities in December. I am considering reallocating back some into equities to more of a 50/50 allocation.

Also, is it time to through in the towel on growth and emerging markets and move all equities to American and value stocks?

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If within 5 years of retirement I would seek professional input.

Temporarily unemployed? Wouldn't change a thing, depending on what my setup was initially and how close I was to retirement.

XXXVII said:

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Well friends, I have the vast majority of my rollover back in the market now. What do y'all do with the leftover cash like $20 or so that couldn't quite get into anything due to the prices?

Are there any less than $5 stocks out there that may be worth throwing that $20 into?

---

Palantir

Tattoed Chef

Oatly

I am still diversified as I sought professional advice in November.

Most of my equity mix is between growth, emerging markets, American stocks, and a small percentage in social choice.

Question regarding dividends. Is it likely that overall dividends from mutual funds like VTI will decrease significantly as the market continues dropping?

My whole strategy at this point is to hold long term to benefit from dividend reinvestment, hoping that this works more to my favor as the dividends reinvest at lower prices. Does this make sense as stock values drop?

https://www.investopedia.com/articles/investing/090915/reinvesting-dividends-pays-long-run.asp

Reinvest and don't look back for your timeline. This article lays it out as well. Check out that book I mentioned earlier maybe too.

Following up on my question from earlier.

I have a Rollover IRA in which I rolled over a previous employer's 401k. My wife and I both have 401k's through our current jobs which we max out. Can I contribute after-tax dollars to my Rollover IRA up to the $6000 limit?

I want to average down my cost basis given the lows we're hitting in the market right now. I read something about an IRS Form 8606 that you need for this. Is this correct?

Looking back through my records, it looks like this year (my financial year is counted between my July birthdays) will be the second biggest percentage drop in my 401K performance since 2000/2001. Of course I was a new worker with not much in the account back then, now that represents an amount of money - on paper - that is a bit disconcerting. Buying opportunity of course, and I have 10-15 more years of work.

XXXVII said:

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Question regarding dividends. Is it likely that overall dividends from mutual funds like VTI will decrease significantly as the market continues dropping?

My whole strategy at this point is to hold long term to benefit from dividend reinvestment, hoping that this works more to my favor as the dividends reinvest at lower prices. Does this make sense as stock values drop?

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I thought of the same type of strategy and I don't think it actually works like that.

from observing my own personal brokerage account:

yes, my highest dividend investments are paying me out. some over 5%

on the other hand, most have dropped in their share price more than 7%.

one can look at that as: well at least having Conagra and Kraft and SPG are not collapsing as bad as other stocks.

but trying to build a retirement fund on investments that pay dividends yet actually lose more in share price each year than the dividend payout- you are still net at a loss for the year.

I don't see how that works out long term for success.

My thought is to merge a few strategies and really go as diversified as possible: dividends, commodities, high growth, ONEQ, QQQ, YOLO stocks, DIA, crypto, value, real estate.

do that and over the long term I think it will work.

My point is that the stock market goes up over time. Wouldn't something like VTI make sense to put a large percentage into with the dividends it provides given that the market should eventually go way up 25+ years from now?

Yes, it's going down fast with this crash, but I expect it will recover fast when we get out of this current mess.

I don't mess around much with my retirement investing, especially since I have a long working time left just like you. Your thought is right, throw in the $ at VTI for now and relax and don't worry so much.

Buy more

pic.twitter.com/EqbvipN510

— Ryan Long (@ryanlongcomedy) June 29, 2022

XXXVII said:

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My point is that the stock market goes up over time. Wouldn't something like VTI make sense to put a large percentage into with the dividends it provides given that the market should eventually go way up 25+ years from now?

Yes, it's going down fast with this crash, but I expect it will recover fast when we get out of this current mess.

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Agreed, I also have VTI

I just don't agree with some of these youtube "experts" who claim they are living off of $5000 a month in dividends (and they are 27 years old)

sure, some dividends are good to have, but if you have ONLY a dividend portfolio one is going to be screwed.

alot of those top dividend producers actually HAVE to have a strong dividend, because no one would buy their stock without it.