Investing at a young age is one of the most powerful decisions one can make regarding their financial future. Thanks to compound interest, starting early allows even modest investments to grow significantly over time.

For many young investors, the aim isn’t just to accumulate wealth but to be financially independent, and to reach that independence, many people choose stocks and/or ETFs as vehicles.

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One such investor is a 24-year-old Reddit user who recently sought advice on his investment strategy in the r/Dividends community. With $49,000 to play, the young investor is betting big on a 50/50 split between Schwab U.S. Dividend Equity ETF SCHD and Schwab U.S. Large-Cap Growth ETF SCHG, having already invested $29,000 in the two ETFs through a recently-opened brokerage account.

“I'm super driven to build my future for myself and hopefully a family someday. My goal is to not have to work in my 40s. I probably still will because I like working, but I want flexibility when I get to that age,” he wrote.

In his post, the 24-year-old asks for advice on whether he should dollar-cost average into his brokerage account with the same split, especially since he has the other $20,000 to invest. 

The Reddit community responded with a mix of encouragement and practical advice, so let’s dive into the comments below.

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Keep DCA’ing Into SCHD/SCHG? Reddit Weights In His Strategy

Yes. Maintain a Disciplined Approach

Many commenters agreed with the young investor’s strategy, supporting the dollar-cost average approach, and some shared a few more insights with the poster.

“This split is a good start. Do lots of research on anything new you look into. Keep reading information related to SCHD/SCHG. Monitor and maintain your account. If you can set up a reinvest strategy, then I would absolutely do so,” a Redditor suggested.

“Continue to do that every month!” a comment reads.

One Redditor touched on the importance of discipline and knowledge when it comes to investing and also mentioned dividend income as a must-have after the poster retires at 40.

“Great financial security starts with a commitment to ‘Pay yourself first.’ Great to see posts by so many 20-year-olds starting to invest early. I believe successful, long-term securities investment requires knowledge, experience, and active portfolio management to grow and protect your nest egg. Also, if in your case retiring in your 40s, statistically you will live 60 more years and need dividend income all that time to live a great life from your own income sources,” he said.

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Focus More on Growth-Oriented Assets For Now

Considering the poster’s young age, several commenters suggested the investor focus on growth-oriented ETFs and stocks.

“Drip the D and contribute to the G. You want to be more independent by 40, so should have a bias toward growth. If you can stand it, try to squirrel away 10% [iShares 0-3 Month Treasury Bond ETF SGOV] or cash, that you can buy D if it goes on sale, or pump G on a market dip. Try not to rebalance between the two more than yearly,” a comment reads.

One Redditor thinks that SCHD is way too defensive for a 24-year-old and suggested he go with another growth-focused fund.

“At 24, SCHD is too defensive. SCHG is a good choice. I mix in [Vanguard U.S. Liquidity Factor ETF VFLO] for a ‘defensive growth.’ The nifty part is the three are almost mutually independent, so next to no overlap in holdings,” he wrote.

This user proposed what he thinks is a better split between the two ETFs so the portfolio leans into growth.

“At 24, lean heavier on SCHG, more growth is better for you. 70/30,” another Reddit user suggested.

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Lower interest rates mean some investments won't yield what they did in months past, but you don't have to lose those gains. Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities.

Arrived Home's Private Credit Fund’s has historically paid an annualized dividend yield of 8.1%*, which provides access to a pool of short-term loans backed by residential real estate. The best part? Unlike other private credit funds, this one has a minimum investment of only $100. 

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