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Stupid 20-Year Investment Plan? Investor Questions $200,000 Dividend Strategy - 'Is It Stupid To Put In That Much Into SCHD?'

The article discusses an investor's query on whether it's wise to invest $200,000 into the Schwab U.S. Dividend Equity ETF (SCHD), which focuses on high-dividend-yielding U.S. companies. The investor, nearing retirement, is considering this strategy to generate passive income. The article explores the pros and cons of such an investment, highlighting SCHD's benefits like a diversified portfolio, a history of increasing dividends, and a relatively low expense ratio. However, it also points out potential risks such as sector concentration in financials and industrials, which could be vulnerable to economic downturns. The discussion includes opinions from financial experts who suggest that while SCHD can be a solid choice for income-focused investors, putting all funds into one ETF might not be the best strategy due to lack of diversification across different asset classes or investment styles. They recommend considering a mix of investments to mitigate risk, especially for someone close to retirement.

Read the Full Benzinga Article at:
[ https://www.msn.com/en-us/money/news/stupid-20-year-investment-plan-investor-questions-200-000-dividend-strategy-is-it-stupid-to-put-in-that-much-into-schd/ar-AA1AWdBW ]