I've been thinking of theories and strategies for maximizing a Roth IRA assuming the laws stay the same and you can put in 6000 a year. The classic strategy is to DCA into some safe index fund and by retirement age it will have grown bigly. But what if the first year you put the 6000 in a high dividend like MO, so now you have 7% of 6000 extra dividend of cash to buy into the index fund with. 6420 DCA'd into an index fund over the next 40 years is gonna be significantly more than 6000 DCA into it for 41 years right?
If you DRIP with the dividend and put another year's 6k into something like MO after two years you could have over 800 in dividend cash every year extra to contribute to an index fund above the 6k yearly limit. I wonder if there is an optimum strategy here given a number of years and assuming some long term average growth rate for the fund
Any thoughts on this?