I opened up my Roth IRA recently, however I’m not sure which stocks to pick. I want to be hands free after selecting the stick and just set up automatic payments each month of $500. If you have a fidelity Roth IRA and it’s doing well, which stocks do you buy/recommend? What should my split be between the different stocks? #personalfinance #investments
Index funds
Do ETFs/index funds and then never look at your account again. They're more reliable in terms of risk
I picked right now fzrox and fxlix, do you think those are good? 60/40 split
Since you are young I would follow an aggressive strategy for next 10 yrs. Even if you lose everything you can start over This will also give you an opportunity to learn the chops and get better returns than the market eventually
Congrats. You made a wise decision and already ahead of 50 percentile of people in your age group in financial planning. Now just do broad market ETFs and sector funds. Vti, voo, spy, vtsax. Also remember that there is no one set of stock which gives good returns forever, so if you want to maximize returns you need to keep up with times and change your strategy accordingly. Not too frequently though, maybe once in 6 months reassess and adjust your holdings. For eg now market is volatile and taken a beating good time to enter broad market ETFs. Maybe few years later growth stocks come back and you can balance your portfolio by picking up some of those.
Pick one of Vanguard's target retirement index funds. The fee is about .08% and it will place you in the right mix of stocks and bonds as you age. Right now you will be 100% in equities.
This is imo better than VTI for a Roth IRA.
Do your own research, but as a general guideline to get you started — SPY, VOO would be my choice if you want to “set it and forget it” Stay away from actual stock picking, or make sure it represents a small % of your investments SPY, VOO = Market, Diversified Stock Picking = Putting all your eggs in very few baskets (equivalent to going to the casino) Plus, the market’s total cap is already 20% tech, so you’ll be covering those stocks as well w market ETFs
Don’t buy stocks in this market. ETFs at best, unless you have the crystal ball 🔮
OP just to clarify, this post means don't buy *individual* stocks. Idk if that's obvious to newcomers. ETFs distribute your risk, while individual stocks can tank
Gotcha, I picked fzrox and fxlix as of now 60/40
Hire a financial advisor if you can, it’s fun to DIY but you’ll get better results and learn from the best
VTI or VOO
Since I have invest in the fidelity equivalent. If so, should I split it 50/50 between the two?