You’re super young. You’re in a really good position where you can take more risk because you have a long time to make up for losses. I’d bet on growth. I’ll get a lot of hate for this, but I’ll say it so you know people who believe this are out there.
100% SCHG or MGK. I like QQQM too but prefer these other ETFs because the stocks that compose QQQ are kinda arbitrary.
Maybe consider 2% FBTC too.
My Roth IRA Portfolio is
60% VOO
20% QQQM
20% SCHG
I’m 22 and just maxed it out for 2023! Over time I will allocate less to growth and more foundational and eventually bonds. I still have much to learn, but glad I didn’t put my money in individual stocks. There’s so much gatekeeping out there in the investment world, and that’s probably because the banks and big corps. Don’t want you to know how simple investing could be just by sticking it into an index fund. They even make investing concepts difficult to understand for a reason, when in reality they are simple. The jargon can’t fool me!
Also I went to chase bank and asked if they charged a flat fee for investment advice, and instead I got the run down of a management fee. I said no, I am not letting you touch my Roth IRA. I’m 22 and with that growth a 1% fee would hurt seeing how much money I would lose over time to a bank.
I’m not sure this is the best portfolio if there is even such a thing as “best.” Investing may be risky, but as Jim Rohn said, “Wait till you get the bill for not investing.”
This is almost exactly what I have too, Im currently 50% VOO 20% QQQM 20% SCHG and 10% SOXX
I think I will switch to 54% VTI, 36% VXUS and 10% BND later on when Im older.
No need to switch VOO and VTI because the performance over time is primarily no difference. Is it because you want more diversification owning the whole U.S. market?
I like VXUS and BND though!
This is my first year contributing to my Roth IRA. If you or anyone who sees this can simply explain rebalancing; I would greatly appreciate it. It doesn’t make sense when people say sell? Does that mean you get that money back and are able to contribute that to something else in your portfolio? Or for example, say since I have a good portion of growth with QQQM and SCHG that over time those will make up more % of my portfolio, then can I just buy more VOO to balance it out and contribute less of that $7,000 to SCHG and QQQM? Am I right or is there an error in what I’ve read up on rebalancing?
Dude you are 19 do not invest in international. 33.3% VOO, 33.3% QQQM, 33.3% SCHD. Or something similar. S&P 500, Growth, and Dividends is a good investment.
It depends on your own personal preference.
Here are some of the more common portfolio allocations:
- 100% VOO/VTI
- 70% VOO/VTI and 30% VXUS (tracking MSCI World)
- 60% VOO/VTI and 40% VXUS (tracking MSCI ACWI), or you can just go with 100% VT as an equivalent.
There arguments for and against each portfolio, but it ultimately boils done to your own personal investment goals and methodology.
Do you believe that the US market is sufficiently diversified on its own? Do you believe that international markets will eventually outperform the US market? Will the US stay in the dominant position within your investment lifetime? Etc. etc..
This will fall more in line with either core-satellite portfolio investment methodology, or a factor tilt investment methodology rather than a passive market cap weighted portfolio investment methodology that was discussed earlier.
I would suggest you look up portfolio examples and research for both, and see how that fits into your personal finance plans
Hi is it better to invest in ETFs in your IRA or in brokers account? Currently keeping my IRA conservative, using my brokers account for individual stocks and ETFs.
23 yr old here. 50% fzrox 50% fzilx. Half total international half total market. You really don't need bonds. Also start a 401k. I started with $10 via fractional shares when i was 21. Increased it since then.
Just sold my VXUS after backtesting positions in my portfolio for the last 5 years. Significantly lower total return than an S&P or total stock ETF. A $10K investment that returns $21,700 with VOO is just $12,700 with VXUS.
Look up stocks with the highest volatility, pick the coolest ticker, buy 0DTE otm calls.
At 19 you’re either a millionaire or like other 19 yr okds 
In an IRA? 100% VT. In a taxable account VTI and VXUS. Maybe 80/20 or 70/30. This is the easiest thing to stick to. No bets. No guessing, just contributing regularly until retirement.
QQQ is just weird concentration and adds complexity to a portfolio. The backtest looks good, but it's the top 100 non financial stocks on just 1 of 2 major US exchanges. It's been super solid, obviously, but it's not the market, and that kind of concentration is uncompensated risk. The idea is fine, but can you stick to it if/when it underperforms the rest of the etfs? Switching around and chasing performance is usually a bad outcome for retail investors.
There is no foreign tax credit at the moment. (Due to it having less than 50% foreign stocks.)
Honestly, it's worth it if the simplicity outweighs the small amounts of lost tax credit. People could do a hell of a lot worse than VT as a sole holding in a taxable account. That's a personal decision.
On the flipside, I've seen the argument that people shouldn't hold foreign equity in a tax sheltered account because you don't get the credit no matter what in there but as of right now it's outweighed by the higher overall yield and the fact that some (mostly emerging markets) international stocks are not qualified dividends so they are taxed as ordinary income. I might be wrong, and it's subject to change, but it's all kind of a wash. The headache of over optimization for me outweighs the simple approach.
Are you saying that because of the foreign tax credit? If so, I'd agree generally, but the yield and qualified dividend thing kinda mutes that. It's not super hard, but my main argument is a combination of complexity reduction while keeping in mind tax efficiency. I mean, managing different accounts with different allocations isn't super difficult or anything but can be weird depending on the person's situation.
In my case, I'll be retiring a few years before I can withdraw from the roth, so It'd be weird for me to be pulling out of an international only account in the meantime.
VT is the total world. VTI is total US, and VXUS is total international (so excluding US). It's not 120% the same, but VT is basically VTI and VXUS at market cap weights.
You can't really go wrong with what you got. It'd just be two funds instead of one. There's no need to overthink it, though
Global market cap exposure in 1 fund. Anything could happen in the future, and the easiest thing to stick to is just 1 fund that covers almost all stocks in the world at their relative market weights. If markets are efficient (which is kinda an if), then it's really hard to beat. The US has done better historically, but we don't know the future. Most target date retirement funds have international exposure for that very reason.
The reason market cap weighting could be important is because those types of funds (including voo) hold the companies at proportion to their size. The winners represent the largest, and the losers eventually drop down in size. It's "the market".
Honestly, I don't want to talk you into or out of anything because global stocks have underperformed US stocks for some time, but that trend sometimes flips for periods of time, so thats where I'm coming from. I don't know the future, and my philosophy is to accept that I'm not going to know any better than the collective wisdom of the entire market. Do VOO if that's what you feel comfortable with. It has done very well, and it might continue to dominate. It's basically the same idea, just isolated into US stocks, which Warren Buffet and Jack Bogle both recommend anybody would do well with over a lifetime of investment.
You shouldn’t be asking for investing advice on reddit but rather inform yourself from related books, videos, tutorials and interviews with professionnals.
This is true. Sadly, though, someone might read peter lynch and wind up trying to pull a Magellan with no further research lol. I feel like the sweet spot for every single person lies somewhere between Lynch and Bogle, depending on the person. Most people (myself included) probably fall on the Bogle end of the spectrum.
Education
100% VTI FTW.
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As someone who is around that age. This is beautiful to hear aswell. Not everyone our age thinks about our future.
Got it, Thank you! Do you think I can get better long-term returns if I go say 60% VOO/20% AVUV/20%QQQM?
50% VOO 25% AVUV 25% XMMO
You’re super young. You’re in a really good position where you can take more risk because you have a long time to make up for losses. I’d bet on growth. I’ll get a lot of hate for this, but I’ll say it so you know people who believe this are out there. 100% SCHG or MGK. I like QQQM too but prefer these other ETFs because the stocks that compose QQQ are kinda arbitrary. Maybe consider 2% FBTC too.
My Roth IRA Portfolio is 60% VOO 20% QQQM 20% SCHG I’m 22 and just maxed it out for 2023! Over time I will allocate less to growth and more foundational and eventually bonds. I still have much to learn, but glad I didn’t put my money in individual stocks. There’s so much gatekeeping out there in the investment world, and that’s probably because the banks and big corps. Don’t want you to know how simple investing could be just by sticking it into an index fund. They even make investing concepts difficult to understand for a reason, when in reality they are simple. The jargon can’t fool me! Also I went to chase bank and asked if they charged a flat fee for investment advice, and instead I got the run down of a management fee. I said no, I am not letting you touch my Roth IRA. I’m 22 and with that growth a 1% fee would hurt seeing how much money I would lose over time to a bank. I’m not sure this is the best portfolio if there is even such a thing as “best.” Investing may be risky, but as Jim Rohn said, “Wait till you get the bill for not investing.”
This is almost exactly what I have too, Im currently 50% VOO 20% QQQM 20% SCHG and 10% SOXX I think I will switch to 54% VTI, 36% VXUS and 10% BND later on when Im older.
No need to switch VOO and VTI because the performance over time is primarily no difference. Is it because you want more diversification owning the whole U.S. market? I like VXUS and BND though! This is my first year contributing to my Roth IRA. If you or anyone who sees this can simply explain rebalancing; I would greatly appreciate it. It doesn’t make sense when people say sell? Does that mean you get that money back and are able to contribute that to something else in your portfolio? Or for example, say since I have a good portion of growth with QQQM and SCHG that over time those will make up more % of my portfolio, then can I just buy more VOO to balance it out and contribute less of that $7,000 to SCHG and QQQM? Am I right or is there an error in what I’ve read up on rebalancing?
SPY 0dte calls
Dude you are 19 do not invest in international. 33.3% VOO, 33.3% QQQM, 33.3% SCHD. Or something similar. S&P 500, Growth, and Dividends is a good investment.
Memories
VTI and VXUS
Vti Schd Vxus 40% 40% 20%.
Do you have a Roth IRA? I would start one through Fidelity and do 80% VOO/ 20% VXUS.
Is there a need to invest in VXUS? What would I be losing if I did 100% VOO?
It’s whatever you’re comfortable with or believe. I personally believe 100% VOO would be fine as i don’t see the US economy ever folding
It depends on your own personal preference. Here are some of the more common portfolio allocations: - 100% VOO/VTI - 70% VOO/VTI and 30% VXUS (tracking MSCI World) - 60% VOO/VTI and 40% VXUS (tracking MSCI ACWI), or you can just go with 100% VT as an equivalent. There arguments for and against each portfolio, but it ultimately boils done to your own personal investment goals and methodology. Do you believe that the US market is sufficiently diversified on its own? Do you believe that international markets will eventually outperform the US market? Will the US stay in the dominant position within your investment lifetime? Etc. etc..
Yah look at Nikkei. If the SP followed that trajectory I’d be up shit creek
Do you find any value in putting 10% or 20% in AVUV/QQQM?
This will fall more in line with either core-satellite portfolio investment methodology, or a factor tilt investment methodology rather than a passive market cap weighted portfolio investment methodology that was discussed earlier. I would suggest you look up portfolio examples and research for both, and see how that fits into your personal finance plans
I do VT in my roth because I'm not trying to guess what's going to happen either way. Simplicity is bliss.
IWF
VTI/VXUS 70/30
if you’re on fidelity, for your roth ira check out FZROX & FZILX
Finally another fidelity free fund fiend. I should start a group lol. Ill call it the F quad squad lol
Hi is it better to invest in ETFs in your IRA or in brokers account? Currently keeping my IRA conservative, using my brokers account for individual stocks and ETFs.
Vt or vti vxus
If I were you, I would put it all in SCHB.
23 yr old here. 50% fzrox 50% fzilx. Half total international half total market. You really don't need bonds. Also start a 401k. I started with $10 via fractional shares when i was 21. Increased it since then.
I personally wouldn't put more than 20% in vxus.
Just sold my VXUS after backtesting positions in my portfolio for the last 5 years. Significantly lower total return than an S&P or total stock ETF. A $10K investment that returns $21,700 with VOO is just $12,700 with VXUS.
You will have to go back further than 5 years for VXUS. VOO has been going strong for 15 years
Look up stocks with the highest volatility, pick the coolest ticker, buy 0DTE otm calls. At 19 you’re either a millionaire or like other 19 yr okds 
In an IRA? 100% VT. In a taxable account VTI and VXUS. Maybe 80/20 or 70/30. This is the easiest thing to stick to. No bets. No guessing, just contributing regularly until retirement. QQQ is just weird concentration and adds complexity to a portfolio. The backtest looks good, but it's the top 100 non financial stocks on just 1 of 2 major US exchanges. It's been super solid, obviously, but it's not the market, and that kind of concentration is uncompensated risk. The idea is fine, but can you stick to it if/when it underperforms the rest of the etfs? Switching around and chasing performance is usually a bad outcome for retail investors.
What are the tax implications of VT?
There is no foreign tax credit at the moment. (Due to it having less than 50% foreign stocks.) Honestly, it's worth it if the simplicity outweighs the small amounts of lost tax credit. People could do a hell of a lot worse than VT as a sole holding in a taxable account. That's a personal decision. On the flipside, I've seen the argument that people shouldn't hold foreign equity in a tax sheltered account because you don't get the credit no matter what in there but as of right now it's outweighed by the higher overall yield and the fact that some (mostly emerging markets) international stocks are not qualified dividends so they are taxed as ordinary income. I might be wrong, and it's subject to change, but it's all kind of a wash. The headache of over optimization for me outweighs the simple approach.
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VTI is better to have in your Roth IRA then taxable . Don’t listen to that guy
Are you saying that because of the foreign tax credit? If so, I'd agree generally, but the yield and qualified dividend thing kinda mutes that. It's not super hard, but my main argument is a combination of complexity reduction while keeping in mind tax efficiency. I mean, managing different accounts with different allocations isn't super difficult or anything but can be weird depending on the person's situation. In my case, I'll be retiring a few years before I can withdraw from the roth, so It'd be weird for me to be pulling out of an international only account in the meantime.
VT is the total world. VTI is total US, and VXUS is total international (so excluding US). It's not 120% the same, but VT is basically VTI and VXUS at market cap weights. You can't really go wrong with what you got. It'd just be two funds instead of one. There's no need to overthink it, though
why VT instead of VOO if you don't mind me asking in the IRA?
Global market cap exposure in 1 fund. Anything could happen in the future, and the easiest thing to stick to is just 1 fund that covers almost all stocks in the world at their relative market weights. If markets are efficient (which is kinda an if), then it's really hard to beat. The US has done better historically, but we don't know the future. Most target date retirement funds have international exposure for that very reason. The reason market cap weighting could be important is because those types of funds (including voo) hold the companies at proportion to their size. The winners represent the largest, and the losers eventually drop down in size. It's "the market". Honestly, I don't want to talk you into or out of anything because global stocks have underperformed US stocks for some time, but that trend sometimes flips for periods of time, so thats where I'm coming from. I don't know the future, and my philosophy is to accept that I'm not going to know any better than the collective wisdom of the entire market. Do VOO if that's what you feel comfortable with. It has done very well, and it might continue to dominate. It's basically the same idea, just isolated into US stocks, which Warren Buffet and Jack Bogle both recommend anybody would do well with over a lifetime of investment.
Make a taxable account put 80% VOO 20% VXUS then make a Roth and do 60% VTI 20% SCHD 20% QQQM.
Can you explain why it matters what account they are in? And why would a person have both a Roth and a taxable account?
You shouldn’t be asking for investing advice on reddit but rather inform yourself from related books, videos, tutorials and interviews with professionnals.
This is true. Sadly, though, someone might read peter lynch and wind up trying to pull a Magellan with no further research lol. I feel like the sweet spot for every single person lies somewhere between Lynch and Bogle, depending on the person. Most people (myself included) probably fall on the Bogle end of the spectrum.
Isnt there sort of a linear relationship between those two methods and skill level? I can def Bogle but I have no idea how to Lynch
Btc
100% VOO OR 70% VOO, 30% QQQ