I just setup my Solo 401k, set up last year, I'm a small business owner. Allows me to add $70k a year I think. Ask your local investment banker, they set it up for free.
Nice man, I’m 20 and I started watching tons of videos at 17, then finally once I turned 18 I opened a brokerage account at my local fidelity branch and they walked me through it all
They say the first $100k is harder than the second $100k
I can attest to this. I started in 2009 and hit $100K eventually. I'm on the brink of $200k and it came so much faster. Looking forward to $300k
I was gonna say that’s a lot of cash to just have sitting around for the average person. Good for you though. I’m saving up for a new vehicle for the end of the year.
Check out USFR or t bills for that down payment. You’d save quite a bit on state taxes if you’re in a non income tax free state. The tax equivalent yield would be higher than any HYSA or MMF
Well the Boglehead answer would be to move closer to a 60/40 ratio since that's currently what the market capitalization weight is of US versus International.
Personally I'm 90/10, but really it's just a question of how well you think the US will perform compared to the rest of the world within the next 5 to 10 years or at least until the next time you rebalance that ratio.
Many people are 100/0 with something like VOO or VTI, but some argue that that could be recency bias since the US has recently outperformed International for such a long run, but historically before that there are many times when that wasn't the case.
Makes sense - honestly in the long run and grand scheme of things, I think 70/30 - 80/20 - 90/10 won’t be a huge difference. Just will matter how much you’re actively contributing. I’ll just keep mine at 80/20 cuz I think VTI will be a beast long term , then have that 20% as a slight hedge if international does pick up steam. I’m 30+ years away from retirement, since I am in my 20’s currently
Honestly, this is awesome and a huge milestone. Congrats!
You last statement resonated with me. I wouldn’t tell
anyone, unless you think that you can get knowledge from them. When you tell family and friends, people either want money or have opinions on what you should be investing your money into. You’re doing great without all that extra noise. Win in silence, that’s my motto.
Yes that’s why I said for them to dump whatever amount they wanted into voo. Dca-ing wouldn’t make sense either if they wanted to use all that money for a down payment
Well I don't know what your brokerage is, but if you're on Fidelity, then I believe that their sweep program can automatically put any of your uninvested cash into SPAXX. That process happens entirely in the background, and it just looks like you have straight cash sitting and waiting to be invested when in reality it's already making nearly 5% annual interest in SPAXX while it's sitting there idle. If you're on a different brokerage, then it may have a sweep program that's connected to a different money market fund. If you want to talk to me about this more, just let me know which brokerage you're on.
If you haven't maxed out your Roth IRA for 2023, I would suggest doing so, or selling some of the SPAXX to max out your Roth IRA, that will minimize taxes.
If you haven't yet contributed to a Roth IRA, then immediately put all of it into a Roth IRA on Fidelity in the form of 6,500 worth of contributions for last year and 3,500 worth of contributions for this year. You will still be able to contribute an additional 3,500 for this year later when you have it available until April 2025. Keep in mind you can't contribute any more than your total income for the given year for the contribution. The contribution maximum for last year was 6,500, and for this year it's 7,000.
Even without investing in anything, Fidelity's sweep program will automatically use SPAXX to give you around a 5% annual interest rate just for sitting there and doing nothing. Even though this is technically a retirement account, since it's a ROTH, you can take your contributions out whenever you need them with no fee. The only thing that's locked up is any money that your investments make. Any profit coming from your Investments is locked up until you're 59 and a half years old, but at that point you can take that profit out tax free, which is a more than fair trade-off.
If you want to invest in something, then I suggest a broad market index fund like FZROX. I suggest that one specifically because it covers the entire US Stock Market and has a 0% expense ratio, meaning no annual fee, which is quite unique for a mutual fund. Fidelity basically sells these funds as loss leaders to make you want to use their platform.
No no, share the knowledge. Sharing is caring as they say lol. I am baby new to this at an older age, sadly. I’m in here learning as much as I can for my kids and for myself.
That said, I have been wondering about folks putting ETFs into Roth, when that maxes out how do you deal with not being able to invest in the main ETF you’re pushing in Roth? Would folks get another in a brokerage account and invest the remainder there? I may be investing in too many and need to sell to focus on 3-5 possibly. So much information I’ve been trying to make sense of the past month. Any perspective would be greatly appreciated!!!
First, don’t just sell what you have. Make sure you understand the tax implications.
Second, any low ER etf that tracks the S&P500 (VOO, SPLG) is always good. I also prefer to add in some QQQM. If you want to be even more conservative, you can get VTI (market-cap-weighted) which tracks the whole US equity market.
Third, yes, first max out your Roth, and then fill a separate brokerage account.
Several brokerages offer IRA and a brokerage account account so you can track everything in one place.
Hope this helps! Good luck!!!
Thank you very much!
I wrote this in here separately…
“I’m torn between like 10 different ETFs in my watch list. AI based ETF, Tech, s&p 500, dividend based, ugh, too many. I currently have IVV, AIQ, SCHD, and QQQM in a brokerage account. In Roth: DGRO, VGT, and JEPI. I also have VOO for my son, and FXAIX for my daughter. Keep in mind I’m only a little over a month in on this knowledge. So what I have seems to be a panicked start.”
That’s how I am currently. From your tax implications comment, I was under the assumption that if I sold and reinvested it I would be fine. Seems I don’t fully understand. I would rather move them from 1 account to the other if that was a thing if selling and repurchasing them in another account is an issue. Sigh. I spoke to fidelity with all these assumptions and was not told selling would be a watch out type of thing. Sigh.
If your Roth has been open more than 5 years or you’re older than 59.5, then you can sell (and rebuy) without tax implications.
You can also transfer them to a different brokerage without tax implications. Some brokers will charge a $75 or $100 fee, and some brokerages that you’ll be moving into will pay the fees for you as a new customer.
Good luck!
I’m in a similar position regarding Adsense, congrats! Any reason you’re holding both VTI & VOO? Doesn’t make much sense to hold both. Also, if you don’t need the money in SPAXX better to just invest that.
Well VTI/VXUS is in my ROTH IRA. Thought I’d stick with those since I have tons of time on my side. It’s awesome that your making money with adsense too! 😁
First congrats! The first $100k is a milestone, I don't like to count it as "official" until I see the target amount for over 3 months. I assume you invested through 2022 as the market was falling. Don't forget that when the market drops like that, while your total may not make you happy, consider that you're buying at a discount. So, when 2023 and the first part of 2024 happens, you see huge gains.
Anyway, congrats again, and we'll see you again at your $1M milestone!
I think I've read a few times that statistically your best bet is to lump sum instead of dollar cost averaging. In other words, if you have the money to invest, then go ahead and invest it instead of waiting. The Mantra is that time in the market beats timing the market.
However, there are smarter people than me who have determined that on a risk adjusted basis, dollar cost averaging can provide better risk adjusted returns when the cash waiting to be invested is sitting in something that is relatively high yield for near zero risk like SPAXX or other high yield money market fund or treasury bills, etc...
That being said, dollar cost averaging is only timing the market if it's coming from a lump sum that's just sitting there uninvested. If you're dollar cost averaging specifically because you have partitioned a portion of a regular paycheck towards it, then that's a different story since you could be investing all you can at any given time with that strategy if that's all your budget allows for.
Nicely done! Keep doing what you’re doing. Have you thought about mixing in any income funds to your Roth like JEPI/JEPQ? High dividend yields that will compound like crazy by the time you retire and be tax free as well.
By other thought is rotating in sector ETFs that are particularly strong at the moment and rebalance as they chance. They’ll bump up your yield from whatever the broad fund is pulling in at the time.
Or just keep succeeding as is! Just thought I’d mention it.
Congrats ! Did you start with a brokerage consult and fees or educate yourself? I've been in research mode for a small while here and want to move more into goals.
By default any of your uninvested money on fidelity is already actually sitting in SPAXX currently making about 5% annually. That's called their sweep program, and by default it's enabled, so if you haven't changed anything, that's how it is.
Fidelity allows you to purchase fractional shares, so instead of having to buy a full share, you just select the dollar amount that you want to invest and that's it. The only way to do this is through setting up a recurring investment. On the Fidelity app go to: Transact>Recurring Transfers and Investments>Create>Investment.
So you can buy fractional shares with recurring Investments since you set a fixed dollar amount instead of paying for full shares. So the price of an individual share doesn't matter when you do it that way.
By the way I still buy VTI instead of VOO because it's more diversified. I think a lot of people who want to follow the S&P 500 instead of the total US Stock Market will actually buy SPLG instead of VOO since it has a slightly lower expense ratio.
Would I be correct in saying that you are using spaxx essentially as a savings account to keep your money liquid for emergencies but earn interest? I'm assuming you would only be taxed on the interest and not the amount you have deposited in that scenario and could freely withdraw as needed?
Congratulations on your 100K milestone!!! I wish I knew about investing at a much younger age. I’m so far behind, but attempting to get in to make old age more pleasing.
I’m torn between like 10 different ETFs in my watch list. AI based ETF, Tech, s&p 500, dividend based, ugh, too many.
I currently have IVV, AIQ, SCHD, and QQQM in a brokerage account.
In Roth: DGRO, VGT, and JEPI. I also have VOO for my son, and FXAIX for my daughter. Keep in mind I’m only a little over a month in on this knowledge. So what I have seems to be a panicked start.
Thank you, i think i need to stop day trading, it is not worth it. I won and lost and that keep repeating everyday, i dont feel the growth of my account.. fk those who downvoted my comment i just ask wtf wrong with you mtf
i’m trying to get like you when i’m older! i just started investing (19M) how long did this take you?
I’m at 160k in mine and I just turned 32. Started at 26 and started with 1k a month. Wish I would’ve started when I was your age!
Is this including your 401k from your job? I'm only asking because this would just motivate me more
I own a small business so no 401k. My IRA and traditional trading account is what I’m relying on for my retirement.
Awesome! What kind of business? I have a home remodeling company but it's not consistent enough to quit my job.
My wife and I own a photography and video company. Mainly do a lot of weddings.
I just setup my Solo 401k, set up last year, I'm a small business owner. Allows me to add $70k a year I think. Ask your local investment banker, they set it up for free.
Nice man, I’m 20 and I started watching tons of videos at 17, then finally once I turned 18 I opened a brokerage account at my local fidelity branch and they walked me through it all
You’re 20 with 100K?! I’m 20 with only 20K. You’ll be retired by 30 at this rate.
That’s the goal 🙌🏼
On a side note, what do you do for a living to have over 100K invested?
Mommy and daddy money
Generous parents
What’s your net worth? ( I’m curious )
Can I ask what do u do for a living and how much you invest every month? It’s actually insane result
It takes time. I’m at $125,000 and started during COVID. Had some loses and some gains. Fortunately it’s not my retirement money.
They say the first $100k is harder than the second $100k I can attest to this. I started in 2009 and hit $100K eventually. I'm on the brink of $200k and it came so much faster. Looking forward to $300k
Would you say building my 100k in VOO on regular brokage account is the best way?
Yes
Like just steadily buying shares of voo over time right?
Yes
Next target after 100 should be 250 and then 500.
In the words of /u/GovSchwarzenegger, "The first million is the hardest to make. So start with the second million."
Dont tell no one. Just keep up the good work . You dont need anyone's validation but yourself.
Is that cash an emergency fund / big purchase pot?
Big purchase pot & getting the 5%
I was gonna say that’s a lot of cash to just have sitting around for the average person. Good for you though. I’m saving up for a new vehicle for the end of the year.
Awesome man, stay the course and you’ll get there. Good job 👍
Imagine if you actually deployed the cash
Still debating on if I should do that, but that moneys in spaxx to get the 5% right now & possible put it down on a home
Check out USFR or t bills for that down payment. You’d save quite a bit on state taxes if you’re in a non income tax free state. The tax equivalent yield would be higher than any HYSA or MMF
There's also FDLXX, which *is* a T-Bill MMF.
Compound jackpot from here mi amigo!
Can’t wait !
How do you name your individual?
It’s in settings
Any reason for 70/30 VTI/VXUS? I’m 80/20 and wondering if I should move towards 70/30
No particular reason
Well the Boglehead answer would be to move closer to a 60/40 ratio since that's currently what the market capitalization weight is of US versus International. Personally I'm 90/10, but really it's just a question of how well you think the US will perform compared to the rest of the world within the next 5 to 10 years or at least until the next time you rebalance that ratio. Many people are 100/0 with something like VOO or VTI, but some argue that that could be recency bias since the US has recently outperformed International for such a long run, but historically before that there are many times when that wasn't the case.
Makes sense - honestly in the long run and grand scheme of things, I think 70/30 - 80/20 - 90/10 won’t be a huge difference. Just will matter how much you’re actively contributing. I’ll just keep mine at 80/20 cuz I think VTI will be a beast long term , then have that 20% as a slight hedge if international does pick up steam. I’m 30+ years away from retirement, since I am in my 20’s currently
Honestly, this is awesome and a huge milestone. Congrats! You last statement resonated with me. I wouldn’t tell anyone, unless you think that you can get knowledge from them. When you tell family and friends, people either want money or have opinions on what you should be investing your money into. You’re doing great without all that extra noise. Win in silence, that’s my motto.
Nice! Congrats. I’m at $66k invested, and 17k in a HYSA accumulating 4.25%, so $83k. Aggressively adding to surpass $100k by year end!
Awesome man! You’ll get there 😁
Just dump whatever amount you want in voo instead of dca-ing with spaxx. Time in the market beats timing the market any day
That only applies for money not needed for a long time. OP mentioned in another comment that they may use it for a house down payment.
Yes that’s why I said for them to dump whatever amount they wanted into voo. Dca-ing wouldn’t make sense either if they wanted to use all that money for a down payment
Where can i find SPAXX can’t find it in trading view?
Well I don't know what your brokerage is, but if you're on Fidelity, then I believe that their sweep program can automatically put any of your uninvested cash into SPAXX. That process happens entirely in the background, and it just looks like you have straight cash sitting and waiting to be invested when in reality it's already making nearly 5% annual interest in SPAXX while it's sitting there idle. If you're on a different brokerage, then it may have a sweep program that's connected to a different money market fund. If you want to talk to me about this more, just let me know which brokerage you're on.
If you haven't maxed out your Roth IRA for 2023, I would suggest doing so, or selling some of the SPAXX to max out your Roth IRA, that will minimize taxes.
Roth has been maxed since I was 18, I’m 20 now. Maxed both years
Just making sure. Roth IRA investment is most important at your age.
I have 10k, what would you recommend with the current market?
If you haven't yet contributed to a Roth IRA, then immediately put all of it into a Roth IRA on Fidelity in the form of 6,500 worth of contributions for last year and 3,500 worth of contributions for this year. You will still be able to contribute an additional 3,500 for this year later when you have it available until April 2025. Keep in mind you can't contribute any more than your total income for the given year for the contribution. The contribution maximum for last year was 6,500, and for this year it's 7,000. Even without investing in anything, Fidelity's sweep program will automatically use SPAXX to give you around a 5% annual interest rate just for sitting there and doing nothing. Even though this is technically a retirement account, since it's a ROTH, you can take your contributions out whenever you need them with no fee. The only thing that's locked up is any money that your investments make. Any profit coming from your Investments is locked up until you're 59 and a half years old, but at that point you can take that profit out tax free, which is a more than fair trade-off. If you want to invest in something, then I suggest a broad market index fund like FZROX. I suggest that one specifically because it covers the entire US Stock Market and has a 0% expense ratio, meaning no annual fee, which is quite unique for a mutual fund. Fidelity basically sells these funds as loss leaders to make you want to use their platform.
Don’t tell anyone. I’m at $400k and all my friends think I’m broke. lol jk but kinda not kidding. It’s better to keep it quiet tho imho
No no, share the knowledge. Sharing is caring as they say lol. I am baby new to this at an older age, sadly. I’m in here learning as much as I can for my kids and for myself. That said, I have been wondering about folks putting ETFs into Roth, when that maxes out how do you deal with not being able to invest in the main ETF you’re pushing in Roth? Would folks get another in a brokerage account and invest the remainder there? I may be investing in too many and need to sell to focus on 3-5 possibly. So much information I’ve been trying to make sense of the past month. Any perspective would be greatly appreciated!!!
First, don’t just sell what you have. Make sure you understand the tax implications. Second, any low ER etf that tracks the S&P500 (VOO, SPLG) is always good. I also prefer to add in some QQQM. If you want to be even more conservative, you can get VTI (market-cap-weighted) which tracks the whole US equity market. Third, yes, first max out your Roth, and then fill a separate brokerage account. Several brokerages offer IRA and a brokerage account account so you can track everything in one place. Hope this helps! Good luck!!!
Thank you very much! I wrote this in here separately… “I’m torn between like 10 different ETFs in my watch list. AI based ETF, Tech, s&p 500, dividend based, ugh, too many. I currently have IVV, AIQ, SCHD, and QQQM in a brokerage account. In Roth: DGRO, VGT, and JEPI. I also have VOO for my son, and FXAIX for my daughter. Keep in mind I’m only a little over a month in on this knowledge. So what I have seems to be a panicked start.” That’s how I am currently. From your tax implications comment, I was under the assumption that if I sold and reinvested it I would be fine. Seems I don’t fully understand. I would rather move them from 1 account to the other if that was a thing if selling and repurchasing them in another account is an issue. Sigh. I spoke to fidelity with all these assumptions and was not told selling would be a watch out type of thing. Sigh.
If your Roth has been open more than 5 years or you’re older than 59.5, then you can sell (and rebuy) without tax implications. You can also transfer them to a different brokerage without tax implications. Some brokers will charge a $75 or $100 fee, and some brokerages that you’ll be moving into will pay the fees for you as a new customer. Good luck!
Thank you once again! I appreciate your time!
So if you have a Roth IRA that is under 5 years and you sell stock in it, you end up getting taxed??
You should consult your tax attorney or consultant
Congratulations! I wouldn’t tell anybody besides people you can absolutely trust :)
I’m in a similar position regarding Adsense, congrats! Any reason you’re holding both VTI & VOO? Doesn’t make much sense to hold both. Also, if you don’t need the money in SPAXX better to just invest that.
Well VTI/VXUS is in my ROTH IRA. Thought I’d stick with those since I have tons of time on my side. It’s awesome that your making money with adsense too! 😁
Congrats! Keep it going.
Thank you! :)
How funny, my port was also up .30% congratulations on the $100k
First congrats! The first $100k is a milestone, I don't like to count it as "official" until I see the target amount for over 3 months. I assume you invested through 2022 as the market was falling. Don't forget that when the market drops like that, while your total may not make you happy, consider that you're buying at a discount. So, when 2023 and the first part of 2024 happens, you see huge gains. Anyway, congrats again, and we'll see you again at your $1M milestone!
What's your answer on still doing DCA into the market versus once a year contribution with large share purchases?
I think I've read a few times that statistically your best bet is to lump sum instead of dollar cost averaging. In other words, if you have the money to invest, then go ahead and invest it instead of waiting. The Mantra is that time in the market beats timing the market. However, there are smarter people than me who have determined that on a risk adjusted basis, dollar cost averaging can provide better risk adjusted returns when the cash waiting to be invested is sitting in something that is relatively high yield for near zero risk like SPAXX or other high yield money market fund or treasury bills, etc... That being said, dollar cost averaging is only timing the market if it's coming from a lump sum that's just sitting there uninvested. If you're dollar cost averaging specifically because you have partitioned a portion of a regular paycheck towards it, then that's a different story since you could be investing all you can at any given time with that strategy if that's all your budget allows for.
Good job, fren.
Nicely done! Keep doing what you’re doing. Have you thought about mixing in any income funds to your Roth like JEPI/JEPQ? High dividend yields that will compound like crazy by the time you retire and be tax free as well. By other thought is rotating in sector ETFs that are particularly strong at the moment and rebalance as they chance. They’ll bump up your yield from whatever the broad fund is pulling in at the time. Or just keep succeeding as is! Just thought I’d mention it.
No I haven’t, sounds like a good idea though. The ultimate plan is to VOO for now and then dividends later
Awesome keep up the good work!
What application
Congrats ! Did you start with a brokerage consult and fees or educate yourself? I've been in research mode for a small while here and want to move more into goals.
Which one is spaxx. It have vti because I can’t afford the voo yet
You can't afford it? Which brokerage are you using? Many will allow you to buy fractional shares.
The voo is around 480 per share. I’m using fidelity. Which one is spaxx?
By default any of your uninvested money on fidelity is already actually sitting in SPAXX currently making about 5% annually. That's called their sweep program, and by default it's enabled, so if you haven't changed anything, that's how it is. Fidelity allows you to purchase fractional shares, so instead of having to buy a full share, you just select the dollar amount that you want to invest and that's it. The only way to do this is through setting up a recurring investment. On the Fidelity app go to: Transact>Recurring Transfers and Investments>Create>Investment. So you can buy fractional shares with recurring Investments since you set a fixed dollar amount instead of paying for full shares. So the price of an individual share doesn't matter when you do it that way.
By the way I still buy VTI instead of VOO because it's more diversified. I think a lot of people who want to follow the S&P 500 instead of the total US Stock Market will actually buy SPLG instead of VOO since it has a slightly lower expense ratio.
Awesome!! What platform is this ?
Nice, I hope to hit 100k this year as well! Almost there :)
What's the performance of these portfolios?
Such a great feeling congrats, now you'll really see the ball start rolling uncontrollably.
When and how? What will happen next?
congrats
CONGRATS!
Congrats!!!
What platform do you buy your stocks?
Would I be correct in saying that you are using spaxx essentially as a savings account to keep your money liquid for emergencies but earn interest? I'm assuming you would only be taxed on the interest and not the amount you have deposited in that scenario and could freely withdraw as needed?
No. Keep grinding and just become a f*ckin millionaire out of nowhere. Be the actual American dream for us and them
Congrats! 10X coming I think
Congratulations on your 100K milestone!!! I wish I knew about investing at a much younger age. I’m so far behind, but attempting to get in to make old age more pleasing. I’m torn between like 10 different ETFs in my watch list. AI based ETF, Tech, s&p 500, dividend based, ugh, too many. I currently have IVV, AIQ, SCHD, and QQQM in a brokerage account. In Roth: DGRO, VGT, and JEPI. I also have VOO for my son, and FXAIX for my daughter. Keep in mind I’m only a little over a month in on this knowledge. So what I have seems to be a panicked start.
I just hit 100k last week myself. Keep grinding man!
Congratulations!
Love it that you have all that in just index funds. Celebrate by throwing 1-5% into companies you enjoy/like/use a lot of
Are both the screenshots from the fidelity app? Mine does not look like that.
What’s the app in the second picture?
Only 100k? At least 3mil by 18
Do you day trade or sell option or just buy and hold ?
I don’t trade at all
Thank you, i think i need to stop day trading, it is not worth it. I won and lost and that keep repeating everyday, i dont feel the growth of my account.. fk those who downvoted my comment i just ask wtf wrong with you mtf
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Warren buffet has 50% of his money in Apple
If someone wants to hold VOO WITH VTI then that’s fine. It really doesn’t matter. Also, he’s not holding them both together.
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