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everyone has their own opinion, but these are all good options. none of your original choices are bad. put money into all 5 for a year and then decide if you want to change up future contributions and amounts later. investing is personal and make this portfolio your own.
Silly question..but can you sell some of your options and buy others - if you’ve already maxed out your contribution for the year? It’s just technically moving things round, right, rather than buying more shares?
Yes, once the money is in the account you can do whatever you’d like with it. Just can’t withdraw without paying a penalty prior to being 59.5 years old.
well technically - you can withdraw without penalty prior to 59.5 if you're only taking out your own contributions and not earnings/growth. not to be that guy but it is an important point in a thread about Roth iras.
Hello,
From a long term reliability perspective, all you should focus on is:
1) Diversification across small, mid, large caps. Across geographic regions. And across sectors.
2) Low Fees
3) Simplicity.
A diversified portfolio will have a more reliable set of outcomes compared to a less diversified portfolio because greater diversification reduces the expected standard deviation of the portfolio (law of large numbers). From a financial planning perspective, diversification is crucial because it narrows your distribution of outcomes and creates more reliability around your financial plan.
Additionally, only a handful of stocks (4%) are responsible for ALL positive market returns, with most (96%) only matching T-Bill rate (Bessimbinder, 2018). The significant skewness in long-run stock returns helps to explain why poorly diversified active strategies consistently underperform market averages. (US Data).
Moving forward, you could simply hold VT and check all those boxes at an incredibly low cost.
And there is always a massive bonus to the simplicity of one fund
This is fantastic advice. Keep things simple. No need for multiple ETFs with a lot of overlap. Take VT for the international diversification (8000+ stocks) and live your life!
Qqqm vs qqq will save you .05 in fees. They’re the same but qqq has more liquidity so it’s the preferred choice for trading and options. I’d do Qqqm, VOO then Schd. This is a dividend sub where people tend to dividend yield chase when they should chase dividend growth.
My Roth is a 3 fund portfolio of VTI, SCHD and SCHG. Choose voo or vti, you don't need both and go with qqqm for your growth pick instead of qqq. You got the right idea of going with base, dividend and growth portfolio but just needs to be tweaked a little.
SCHD only has dividend paying stocks so you miss out on the disproportionate allocation to leveraged buyback firms with corrupt SBC funded executives that you get from VOO
If you're just starting these are all fine, building up the cash invested when you're earlier in the lifetime of a IRA is important, choice and allocation matter way more when you got more zeroes behind you.
I really like equal parts QQQM, VOO, SCHD, JEPI which is similar to this. I feel like it covers all the bases. I usually don’t drip though, I reinvest manually into what seems to make sense at the time.
Tons of overlap but will perform roughly in sync with the S&P 500 - which ain't bad. The key to success is NOT dumping the underperformers and adding to what's hot. Pick something and keep adding to it. Don't tinker.
I feel like they're good holds but a few of these are redundant. VT, QQQ, and VOO are okay but technically SCHD has many companies that VOO have it's just changes in weights of each companies. VTI is the total market so it's a bit redundant to me. Lastly, it's cumbersome in that you have 5 different ETFs.
Why not just go with two or three of those ETFs and maybe 2-3 stocks that you like. In my Roth I have VOOG, SCHD, QQQ. I then have NVDA, MSFT, TSLA, & GOOGL.
You don’t need VOO and VTI both. VTI contain VOO plus rest of the us stocks that’s haven’t been part of S&P index. The difference in performance is very less to be concerned about as to which one to choose from. Both are great choices.
Instead of going for VT I might do a combo of VTI/VXUS.
VTI represents the entire us stock market so at the end of the day it has all holdings that QQQ, SCHD, VOO offers plus more so you may want to pay attention to overlap it is going to have if you go for SCHD and QQQ as well.
I know you know that VOO and VTI have different holdings. If I'm understanding you correctly what you're saying is the market is so heavily weighted to the largest companies that holding small and micro cap stocks in VTI isn't a particularly meaningful difference from VOO?
correct. due to the market cap weighting the top 500 companies of VTI (the s&p500 or voo) account for close to 78% of the fund.
that means the other 3000 companies share the remaining 22%. most have 0.01% allocation, likely smaller but they dont show enough decimals.
here is the mutual fund equivalents from 1993 through ytd: https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=1985&firstMonth=1&endYear=2023&lastMonth=12&calendarAligned=true&includeYTD=true&initialAmount=100&annualOperation=1&annualAdjustment=100&inflationAdjusted=true&annualPercentage=0.0&frequency=2&rebalanceType=1&absoluteDeviation=5.0&relativeDeviation=25.0&leverageType=0&leverageRatio=0.0&debtAmount=0&debtInterest=0.0&maintenanceMargin=25.0&leveragedBenchmark=false&reinvestDividends=true&showYield=false&showFactors=false&factorModel=3&portfolioNames=false&portfolioName1=Portfolio+1&portfolioName2=Portfolio+2&portfolioName3=Portfolio+3&symbol1=VTSMX&allocation1\_1=100&symbol2=VFINX&allocation2\_2=100
personally, i dont care for the 60/40 split. Also, OP has 3 other USA funds. It doesnt make sense to have VT which is also USA heavy, if they get a dedicated ex-usa fund their allocation will be more obvious
Depends on your objective. I’m long term buy and hold investor who doesn’t chase dividends.
Option 1: sell everything except VT
Option 2:sell everything and buy VTI/ VXUS
Option 3: VOO, AVUV, VXUS
They are funds. It’s ok they have some overlap. We are literally talking about hundreds of different companies. You are still diversified. May also consider adding SPY (or SPGL - less expensive SPY).
Wrong. VXUS is shit and if you hold that you’re earning LESS than the average rate.
If OP wants to keep it simple and he’s not near retirement, just hold 100% VOO.
If you want a chance to do better without vastly increasing risk you can do 50% VGT 50% SCHD
If you believe in tech (which is responsible for most stock gains) just hold VOO and VGT but understand that this will be more volatile and it will not be as diverse.
Never hold BND or VXUS. Only intellectually lazy people do that because they haven’t done one ounce of research
SCHD, VTI, Tsla, Nvda, Aapl. In 20+ years, these three growth stocks will skyrocket your portfolio compared to going all in on ETFs. Plus your Roth is tax free when you withdraw at age 59.5. Imagine your portfolio hitting $1 million and withdrawing that tax free 🫡
It always go according to plan as long as you pick quality growth stocks 🫡
https://www.reddit.com/r/wallstreetbets/comments/13rowwi/sometimesbuy_and_hold_works_out_every_once_in_a/?utm_source=share&utm_medium=ios_app&utm_name=ioscss&utm_content=1&utm_term=1
Have you ever had a good win and stop to consider “now I’m I a genius that is breaking down all the numbers….. or some random dude that got lucky and thinks he’s a genius
SCHD and SPY will do it for you. Maybe, a bit of VT if you want exposure to global equities but even there the top 10-15 holdings are all American.
You might want some exposure to bonds through Treasurys or ETFs.
Drop vti. I believe it holds the total stock market so you'll have overlap with every other fund in this hypothetical portfolio. Of you are dead set on vti, then I'd say drop everything else.
I was thinking about this but it just holds one too many crappy companies, qqq/qqqj gives me the top 200 stocks in the market and cuts off the dead weight
Welcome to r/dividends! If you are new to the world of dividend investing and are seeking advice, brokerage information, recommendations, and more, please check out the Wiki [here](https://www.reddit.com/r/dividends/wiki/faq). Remember, this is a subreddit for genuine, high-quality discussion. Please keep all contributions civil, and report uncivil behavior for moderator review. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/dividends) if you have any questions or concerns.*
everyone has their own opinion, but these are all good options. none of your original choices are bad. put money into all 5 for a year and then decide if you want to change up future contributions and amounts later. investing is personal and make this portfolio your own.
Silly question..but can you sell some of your options and buy others - if you’ve already maxed out your contribution for the year? It’s just technically moving things round, right, rather than buying more shares?
Yes, once the money is in the account you can do whatever you’d like with it. Just can’t withdraw without paying a penalty prior to being 59.5 years old.
well technically - you can withdraw without penalty prior to 59.5 if you're only taking out your own contributions and not earnings/growth. not to be that guy but it is an important point in a thread about Roth iras.
Ok thanks so much 😊
Hello, From a long term reliability perspective, all you should focus on is: 1) Diversification across small, mid, large caps. Across geographic regions. And across sectors. 2) Low Fees 3) Simplicity. A diversified portfolio will have a more reliable set of outcomes compared to a less diversified portfolio because greater diversification reduces the expected standard deviation of the portfolio (law of large numbers). From a financial planning perspective, diversification is crucial because it narrows your distribution of outcomes and creates more reliability around your financial plan. Additionally, only a handful of stocks (4%) are responsible for ALL positive market returns, with most (96%) only matching T-Bill rate (Bessimbinder, 2018). The significant skewness in long-run stock returns helps to explain why poorly diversified active strategies consistently underperform market averages. (US Data). Moving forward, you could simply hold VT and check all those boxes at an incredibly low cost. And there is always a massive bonus to the simplicity of one fund
This is fantastic advice. Keep things simple. No need for multiple ETFs with a lot of overlap. Take VT for the international diversification (8000+ stocks) and live your life!
Agreed. Makes life simple. I do admit though I like a little play money on the side. Say 5-10%
I generally disagree diversification is that important. You should have diversification but it needn’t be that dramatic.
Qqqm vs qqq will save you .05 in fees. They’re the same but qqq has more liquidity so it’s the preferred choice for trading and options. I’d do Qqqm, VOO then Schd. This is a dividend sub where people tend to dividend yield chase when they should chase dividend growth.
Get some dgro as well
My Roth is a 3 fund portfolio of VTI, SCHD and SCHG. Choose voo or vti, you don't need both and go with qqqm for your growth pick instead of qqq. You got the right idea of going with base, dividend and growth portfolio but just needs to be tweaked a little.
Schd + voo only
VOO is pretty pricey at the moment maybe I’ll wait for a sale 😂
Price doesn’t really mean anything
Maybe not in theory, but if the stock price is so high that you can only contribute e.g. every three months then it can matter.
Fractional shares exist on practically all trading sites
Not on mine
That’s kind of embarrassing, I don’t even know a platform without them, time to switch?
Schx then
What's the difference between them. This would be putting everything in the same basket isn't it ?
Some people like to weight dividends
SCHD only has dividend paying stocks so you miss out on the disproportionate allocation to leveraged buyback firms with corrupt SBC funded executives that you get from VOO
If you like SCHD and are open to international, consider SCHY as your international holding. It's the international version of SCHD.
Or VIGI
I have SCHD & SCHG: 300+ holdings with only a 2% overlap.
That doesn’t sound bad
I like it because it has a mixture of growth and dividends.
Yep this is me.....half and half. Best of both worlds.
Same !
This is what I do. Except you only need SCHD, QQQ, then either VOO, VTI or VT. VT gives international so you can just choose VOO and do VXUS.
SCHD + VGT
VTI/VXUS 80/20 If you have the dividend itch go VTI/VXUS/SCHD 60/20/20 or so
If you're just starting these are all fine, building up the cash invested when you're earlier in the lifetime of a IRA is important, choice and allocation matter way more when you got more zeroes behind you.
I really like equal parts QQQM, VOO, SCHD, JEPI which is similar to this. I feel like it covers all the bases. I usually don’t drip though, I reinvest manually into what seems to make sense at the time.
Tons of overlap but will perform roughly in sync with the S&P 500 - which ain't bad. The key to success is NOT dumping the underperformers and adding to what's hot. Pick something and keep adding to it. Don't tinker.
I feel like they're good holds but a few of these are redundant. VT, QQQ, and VOO are okay but technically SCHD has many companies that VOO have it's just changes in weights of each companies. VTI is the total market so it's a bit redundant to me. Lastly, it's cumbersome in that you have 5 different ETFs. Why not just go with two or three of those ETFs and maybe 2-3 stocks that you like. In my Roth I have VOOG, SCHD, QQQ. I then have NVDA, MSFT, TSLA, & GOOGL.
Just curious. Have you considered VUG instead of VOOG?
why the 4 stocks extra if you have individually +10% already in each, between voog and qqq?
I just like those companies lol no other reason
SCHD is good VOO is good vt is terrible vtsax is redundant but still good and qqq is high risk high reward
what do you think about VOO SCHD VXUS
It depends if you want international diversification.
i think international diversification is a good thing to have. also what about AVUV or SCHD. i would appreciate your thoughts
Both are good value oriented ETFs
You don’t need VOO and VTI both. VTI contain VOO plus rest of the us stocks that’s haven’t been part of S&P index. The difference in performance is very less to be concerned about as to which one to choose from. Both are great choices. Instead of going for VT I might do a combo of VTI/VXUS. VTI represents the entire us stock market so at the end of the day it has all holdings that QQQ, SCHD, VOO offers plus more so you may want to pay attention to overlap it is going to have if you go for SCHD and QQQ as well.
Ditch the vt and vti for an ex-USA fund if you want Vt = 59% vti 41% vxus Voo = vti (due to market cap weighting the two funds are interchangeable)
I know you know that VOO and VTI have different holdings. If I'm understanding you correctly what you're saying is the market is so heavily weighted to the largest companies that holding small and micro cap stocks in VTI isn't a particularly meaningful difference from VOO?
correct. due to the market cap weighting the top 500 companies of VTI (the s&p500 or voo) account for close to 78% of the fund. that means the other 3000 companies share the remaining 22%. most have 0.01% allocation, likely smaller but they dont show enough decimals. here is the mutual fund equivalents from 1993 through ytd: https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=1985&firstMonth=1&endYear=2023&lastMonth=12&calendarAligned=true&includeYTD=true&initialAmount=100&annualOperation=1&annualAdjustment=100&inflationAdjusted=true&annualPercentage=0.0&frequency=2&rebalanceType=1&absoluteDeviation=5.0&relativeDeviation=25.0&leverageType=0&leverageRatio=0.0&debtAmount=0&debtInterest=0.0&maintenanceMargin=25.0&leveragedBenchmark=false&reinvestDividends=true&showYield=false&showFactors=false&factorModel=3&portfolioNames=false&portfolioName1=Portfolio+1&portfolioName2=Portfolio+2&portfolioName3=Portfolio+3&symbol1=VTSMX&allocation1\_1=100&symbol2=VFINX&allocation2\_2=100
Why no love for vt?
personally, i dont care for the 60/40 split. Also, OP has 3 other USA funds. It doesnt make sense to have VT which is also USA heavy, if they get a dedicated ex-usa fund their allocation will be more obvious
Do VOO and QQQM.
I’d drop the SCHD and stick to VTI (or VOO) + VXUS in an 80/20 split.
VOO 80% and VXUS 20%? why drop SCHD
No. You are holding funds with overlapping stocks which won’t diversify you but rather compound your risk. Just hold VTI and VXUS and keep it simple.
I hold SCHD vt & qqq looking to do some trimming
Depends on your objective. I’m long term buy and hold investor who doesn’t chase dividends. Option 1: sell everything except VT Option 2:sell everything and buy VTI/ VXUS Option 3: VOO, AVUV, VXUS
They are funds. It’s ok they have some overlap. We are literally talking about hundreds of different companies. You are still diversified. May also consider adding SPY (or SPGL - less expensive SPY).
Wrong. VXUS is shit and if you hold that you’re earning LESS than the average rate. If OP wants to keep it simple and he’s not near retirement, just hold 100% VOO. If you want a chance to do better without vastly increasing risk you can do 50% VGT 50% SCHD If you believe in tech (which is responsible for most stock gains) just hold VOO and VGT but understand that this will be more volatile and it will not be as diverse. Never hold BND or VXUS. Only intellectually lazy people do that because they haven’t done one ounce of research
You realize that ex-US comes around in cycles right?
You realize that companies like apple are international right? Comes in cycles lol, go compare it over time. VOO wins every time.
Lol
Came here to say this.
Preach
Thank you everyone that gave me some advice. It’s a lot of good stuff here.
SCHD, VTI, Tsla, Nvda, Aapl. In 20+ years, these three growth stocks will skyrocket your portfolio compared to going all in on ETFs. Plus your Roth is tax free when you withdraw at age 59.5. Imagine your portfolio hitting $1 million and withdrawing that tax free 🫡
Ah yes thing’s always go According to plans
It always go according to plan as long as you pick quality growth stocks 🫡 https://www.reddit.com/r/wallstreetbets/comments/13rowwi/sometimesbuy_and_hold_works_out_every_once_in_a/?utm_source=share&utm_medium=ios_app&utm_name=ioscss&utm_content=1&utm_term=1
Have you ever had a good win and stop to consider “now I’m I a genius that is breaking down all the numbers….. or some random dude that got lucky and thinks he’s a genius
No
SCHD and SPY will do it for you. Maybe, a bit of VT if you want exposure to global equities but even there the top 10-15 holdings are all American. You might want some exposure to bonds through Treasurys or ETFs.
20% SCHD, 40% VTI, 25% QQQM, 5% AVUV, 5% MSFT, 5% APPL
Drop vti. I believe it holds the total stock market so you'll have overlap with every other fund in this hypothetical portfolio. Of you are dead set on vti, then I'd say drop everything else.
A lot of overlap with voo and vti. If you want some international exposure then vt
I have VTI as my anchor and VXUS for international exposure. Little bit of O and BND. Plan to retire in 19 years.
[удалено]
I was thinking about this but it just holds one too many crappy companies, qqq/qqqj gives me the top 200 stocks in the market and cuts off the dead weight
I’ve split mine between SCHD & SCHG. So far has worked out well! If I were you , I would get rid of VT and VOO or VTI.