r/investing
How would you approach this?
A 61yo Canadian investor asks for advice on deploying $3k new cash into a portfolio of dividend and growth ETFs.
Hi, I’m 61 and live in Canada. My portfolio includes JEPQ, JEPI, QQQI, SCHD, VTI, and VUG.
I’ve got about $3,000 sitting in a taxable account (not TFSA or RRSP), and I’m trying to decide how to approach adding to it.
Given what I already hold, how would you think about deploying new money in this situation?
Thanks.
Post in r/PersonalFinanceCanada too.
Your 61 the priority should long term inomce at the lowest taxes. invest the money in QQQI in the US QQQI generates ROC dividends and as a result the dividends will not be taxed until the share cost basis reaches zero. It will take about 7 years for the QQQI cost basis to reach zero. At that point the dividends are taxed as long term vcpatial gains. tax rate. VTI and VUG don't genrate any meaningfulll dividend income. JEPQ and JEPI generate high yield dividend income but they are taxed as ordinary income (the highest tax rate). My understanding canadian taxes are similar toUS. so I am assuming for you it is taxed the same way as in the US.
So at 61 you're already heavy on income ETFs which makes sense. JEPQ, JEPI, QQQI, and SCHD all overlap a lot in what they're trying to do though — you're paying for four slightly different flavors of the same thing.
On $3k I wouldn't add a new position. I'd top up whichever one you're most underweight in relative to where you want your income vs growth split. If you want more stability, SCHD. If you're okay with volatility for higher yield, JEPQ.
Since it's a taxable account, keep in mind the dividend tax drag(something to think about) Canadian withholding on US ETFs in a non-registered account eats into your yield more than people realize.
at 61 youve got a really solid base there. for the 3k in taxable id keep it simple — VTI or VOO. the covered call ETFs generate income but theyre less tax-efficient in a non-registered account. at your stage the priority is preservation and steady growth not chasing yield. time in market beats timing the market even with 3k. not financial advice but thats how id think about it
at 61 you've got a really solid base there. for the k in taxable i'd keep it simple — VTI or VOO. the covered call ETFs generate income but they're less tax-efficient in a non-registered account. at your stage the priority is preservation and steady growth not chasing yield. time in market beats timing the market even with k. not financial advice but that's how id think about it