401K - invest in index funds or individual stocks?
All, my employer provides Brokerage Link feature from fidelity which allows me to invest my 401k contributions into individual stocks as well. What would you do if you were allow to invest in any individual stocks you want in your retirement account? I am well aware of difference between investing and trading. I don’t believe in short term gains nor I hesitate to keep stocks for long term growth. Asking this question here because I’m 30M can take some calculated risk and thinking to invest 401k in some blue chip stocks like #apple #amazon #google #facebook #microsoft instead of risking it. I would truly appreciate any help or suggestions as I really like this option. Yoe 7 Tc 270k #investments #personalfinance #retirement #401k #fidelity
I always set aside 30k for speculative investment. Rest all in SnP 500
"thinking to invest in these 5 stocks instead of risking it" wtf you have no idea how this works if you think that's the option that's not "risking it"
From all these years, i have noticed that those 5 carries the market basically. Also, if you look at most of the etfs they all carry those 5 heavily.
How do you differentiate conservative approach vs moderate and aggressive? Or how would you diversify?
I use the brokerage option. wanted more funds. our offerings are minimal. but mostly buying VOO, SLYV(small cap value fund). and apple stock right now.
What’s your investment strategy? Is it more conservative or moderate?
majority is VOO. w a tilt to SLY and apple is minimal in my 401k..... so us SP as foundation, get a tiny tilt towards growth w apple, and a bit of small cap.... small cap value can more volatile but, traditionally it's done better over longer time period.. growth has kind of owned it the last couple decades though. I probably lean moderately aggressive. I'm older but, late to the game so sorta playing catch up. my taxable acct is similar but has some crypto and MJ stocks as well.(like 15% of portfolio)
Do both but mostly etfs
Eeeyy that’s what I wanted to hear. What’s your investment strategy?
90% etf 10% individual stocks
Market is brutal, every few months the whales keep rotating in and out of sectors. There is no guarantee your stocks will be in favor when a return to sector occurs. If I were you, I'd stick to ETF and carry on with my life.
Yes, you are right. I have seen the wave. Thank you for your advice.
Invest in 3-fund portfolio with small-cap-value fund tilt. See this on how small-cap-value fund tilt can boost your portfolio performance: https://firetobiz.com/own-the-stock-market-with-small-cap-value-fund-tilt/
I would suggest s&p 500 index ETFs. Since it's inception in like the 1920s/1930s it's almost always had at least 7% returns. Now i know past performance is not an indicator of future performance, but your risk is way more diversified.
I'd recommend looking at Little Book of Common Sense Investing. It goes into a number of case studies where index ETFs nearly always prevail. Plus it's by John Bogle the guy that started Vanguard.
Any recommendation for ETF’s?