Roth IRA Allocation Suggestions

[TeslaCoil]

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This should be a fun one. Recently fired my advisor, who was sucking down 1.4% total assets just to manage a roth. Was netting 7%. Goodbye edward jones. Looking for suggestions for allocations for growth-aggressive growth-ish. Looking at a 25 year timeframe until retirement. I like VOO and VTI, just dont know what percentage to put into that vs others. I like the idea of tech sector funds since I think AI and quantum computing will go far. Very on the fence about international market funds (warren buffet says nix em, but a lot of advisors say to include them). On the fence about dividend funds at this phase in the game. Suggestions anyone?

 

[rowsdower88]

I'd recommend a Bitcoin ETF. I've heard it's God's money.

 

[UscGhost]

106% IBIT

Straight fungible gains

 

[NICMAN]

Yup, those wealth managers rob people blind (and I have several close family including parents and siblings in the industry).

Invest in mostly large cap s&p 500 etf like SCHG or VOO possibly some mega cap VOOG with some diversified small (VB) or mid cap ETFs.

Don’t overthink it.

 

[aneftp]

I cannot believe anyone would pay 1.4% in management fee. Even at say 1 million in assets (which is common these days) for almost anyone these days 7 plus years out of anesthesia residency due to the stock market boom.

Just do VTI 25%
VOO 25% or similar
VGT 25%
VB 10% small cap

The rest of the remaining 15% invest whatever you want like bitcoin etf

 

[ambiturner]

Two approaches I considered for Roth are putting your highest taxed assets in (dividend stocks, REITs, etc) versus your riskiest since they have the highest growth potential. I think most people opt for riskiest, which based on your posts it would seem tech and bitcoin would be good choices.

Another consideration is that the Roth IRA is the last money you’ll touch and may very well go to your kids.

 

[TeslaCoil]

I cannot believe anyone would pay 1.4% in management fee. Even at say 1 million in assets (which is common these days) for almost anyone these days 7 plus years out of anesthesia residency due to the stock market boom.

Just do VTI 25%
VOO 25% or similar
VGT 25%
VB 10% small cap

The rest of the remaining 15% invest whatever you want like bitcoin etf

I could probably sleep pretty well at night with this portfolio...

 

[TeslaCoil]

Two approaches I considered for Roth are putting your highest taxed assets in (dividend stocks, REITs, etc) versus your riskiest since they have the highest growth potential. I think most people opt for riskiest, which based on your posts it would seem tech and bitcoin would be good choices.

Another consideration is that the Roth IRA is the last money you’ll touch and may very well go to your kids.

Sure, but my understanding is that dividend stocks are a better asset to switch into closer to retirement, since they deliver slightly lower yields but also tax exempt dividends... no?

 

[TeslaCoil]

I cannot believe anyone would pay 1.4% in management fee. Even at say 1 million in assets (which is common these days) for almost anyone these days 7 plus years out of anesthesia residency due to the stock market boom.

Just do VTI 25%
VOO 25% or similar
VGT 25%
VB 10% small cap

The rest of the remaining 15% invest whatever you want like bitcoin etf

Building on this though, is there really much sense in having both vti and voo? Why not just 50% in one or the other?

Also why small caps since you have small cap coverage within vti and voo?

 

[aneftp]

Building on this though, is there really much sense in having both vti and voo? Why not just 50% in one or the other?

Also why small caps since you have small cap coverage within vti and voo?

Definitely overlap with what you stated. And you are correct. But that’s what my current portfolio is like.

I’m not a real savvy investor.

I try not to overthink things these days.

I used to own 5% international but international underperformed for so long

 

[TeslaCoil]

Definitely overlap with what you stated. And you are correct. But that’s what my current portfolio is like.

I’m not a real savvy investor.

I try not to overthink things these days.

I used to own 5% international but international underperformed for so long

I agree on international markets... think i'll probably skip those...

 

[ambiturner]

Sure, but my understanding is that dividend stocks are a better asset to switch into closer to retirement, since they deliver slightly lower yields but also tax exempt dividends... no?

If you’re just buying total funds then you probably don’t want/need to get into the weeds on that. If you like splitting into small/international/large/value etc then you can put different funds in different places and the Roth is a nice place for things with a lot of payouts.

I’ve done that and my returns are lower than they would be with a simpler strategy. I have much less volatility though and every now and then you get a nice surprise (like this year with international doing so well).

 

[abolt18]

100% VTI/VTSAX or equivalent in all my retirement and brokerage accounts. I'll likely one day add international exposure and eventually bonds, but those days are not today. The more I've read and learned about personal finance, the more I've found I like things as simple and as hands-off as possible. I know that VTI alone has a near 100% likelihood of allowing me to achieve my financial goals.

Most importantly of all, it's simple for my wife if something ever happened to me. She has far less interest in personal finance than me, and if I died or became severely disabled, I want to reduce the stress/challenge for her as much as possible.

 

[abolt18]

Building on this though, is there really much sense in having both vti and voo? Why not just 50% in one or the other?

Also why small caps since you have small cap coverage within vti and voo?

No real sense in my mind of doing VTI and VOO. They're virtually the same thing. Their correlation is 0.99. No value of having both.

 

[TeslaCoil]

No real sense in my mind of doing VTI and VOO. They're virtually the same thing. Their correlation is 0.99. No value of having both.

Right that was my thinking as well.

 

[soccerboy2288]

If you wanna keep it simple, just put everything in VTI or VOO.

If you want to bet more on AI/quantum computing, can also do VTI/QQQ anywhere from 50/50 to 75/25 if you can handle more volatility but potentially more gains (basically heavier on tech).

Keep it simple

 

[abolt18]

Right that was my thinking as well.

In my work 403b/457 they don't have a total stock market fund, but they do have an s&p 500 so I do 90% that and 10% small cap, to mimic VTI exposure. I consider this VTI equivalent.

 

[gator2886]

VGT 100%

 

[TeslaCoil]

If you wanna keep it simple, just put everything in VTI or VOO.

If you want to bet more on AI/quantum computing, can also do VTI/QQQ anywhere from 50/50 to 75/25 if you can handle more volatility but potentially more gains (basically heavier on tech).

Keep it simple

Yea I think this is where Im leaning

 

[TeslaCoil]

VGT 100%

I do like VGT but 100% is a bit above my risk tolerance… Im thinking something like 70/30 VOO/VGT maybe?

 

[aneftp]

I do like VGT but 100% is a bit above my risk tolerance… Im thinking something like 70/30 VOO/VGT maybe?

That’s good ratio also.

Again. Don’t overthink things. U can always rebalance stuff. It’s not like you are trying to load 30% in to ptlr stock now at its peak waiting for it to go up more or implode.

 

[triggermaster]

52% VTI
15% VXUS
20% QQQM
10% VBR
3% FBTC

Or something like that.

 

[TeslaCoil]

52% VTI
15% VXUS
20% QQQM
10% VBR
3% FBTC

Or something like that.

but why vxus? International etfs are so unappealing…

 

[banister]

Lol my current degenerate IRA portfolio:
IBIT 50%
ETH 25%
NVDA 15%
COIN 10%
VTSAX 10%

 

[TeslaCoil]

Where is @BLADEMDA when you need him?

 

[triggermaster]

but why vxus? International etfs are so unappealing…

Because it’s possible US is relatively overvalued and international is relatively undervalued. It’s probably a good idea to have some exposure. What percentage? I have no idea. I maintain a significant home country bias for the US, just less than others on here. Plus, international stocks correlate less with US stocks than US bonds do long term, so it’s better diversification with better returns (vs bonds). That’s my understanding anyway.

 

[pgg]

Where is @BLADEMDA when you need him?

He's been an active manager of his investments, and has readily admitted over the years that he'd probably have done better passively.

I think that he (like most physicians) has done so well primarily because he's worked like a dog, for a long time, while saving aggressively, spending carefully. He is well-read on financial issues but I think he's been successful despite his stock picking and market timing, not because of it. 🙂

We used to have a prolific financial poster named dr_doze, who may or may not still be around. I valued his contributions. 🙂

 

[TeslaCoil]

He's been an active manager of his investments, and has readily admitted over the years that he'd probably have done better passively.

I think that he (like most physicians) has done so well primarily because he's worked like a dog, for a long time, while saving aggressively, spending carefully. He is well-read on financial issues but I think he's been successful despite his stock picking and market timing, not because of it. 🙂

We used to have a prolific financial poster named dr_doze, who may or may not still be around. I valued his contributions. 🙂

Well what abt you? Any advice?

 

[pgg]

Well what abt you? Any advice?

I'm a passive indexer. I don't pick stocks or speculate. I save aggressively. I live below my means. It'll all work out. It's the easy button.

I could retire or go part time right now (I'm 50) but I basically enjoy anesthesia most days, and the pay is so good that I can't help but keep at it full time. For now. My kids are not in super high earning professions so I'd like to have the ability to help them as time goes by.

Some people love finance and derive enjoyment from the game. That's OK of course. All of us earn so much we can't help but win out in the end.

The most important issue, by far, is spending. See for example the other thread going now where the guy can't figure out why he can't get ahead despite his 90th %ile job ... he blames generational societal decline, not his $24,000 mortgage and $6000 nanny. Hidden in that scenario is the likelihood that he'll take on too much risk in his investments, chasing high returns to make up for what is entirely a self-inflicted spending problem. And when the risk shows up, and it probably will, he'll be doubly screwed.

 

[anonperson]

This should be a fun one. Recently fired my advisor, who was sucking down 1.4% total assets just to manage a roth. Was netting 7%. Goodbye edward jones. Looking for suggestions for allocations for growth-aggressive growth-ish. Looking at a 25 year timeframe until retirement. I like VOO and VTI, just dont know what percentage to put into that vs others. I like the idea of tech sector funds since I think AI and quantum computing will go far. Very on the fence about international market funds (warren buffet says nix em, but a lot of advisors say to include them). On the fence about dividend funds at this phase in the game. Suggestions anyone?

VTI and VOO have similar performance with VOO slightly outperforming.

VTI vs. VOO — ETF Comparison Tool

Compare VTI and VOO across key investment metrics, including historical performance, risk, expense ratio, dividends, Sharpe ratio, and more, to determine which asset aligns better with your portfolio strategy.

portfolioslab.com

If long term, either is fine. If you want small cap exposure, go VTI.

International is another question. I'm basically 99% VTI/VTSAX.

If you go back far enough though, international has outperformed US. I'm slowly diversifying but it's not a huge priority.

Easiest thing is just VTI and chill.

 

[aneftp]

VTI and VOO have similar performance with VOO slightly outperforming.

VTI vs. VOO — ETF Comparison Tool

Compare VTI and VOO across key investment metrics, including historical performance, risk, expense ratio, dividends, Sharpe ratio, and more, to determine which asset aligns better with your portfolio strategy.

portfolioslab.com

If long term, either is fine. If you want small cap exposure, go VTI.

International is another question. I'm basically 99% VTI/VTSAX.

If you go back far enough though, international has outperformed US. I'm slowly diversifying but it's not a huge priority.

Easiest thing is just VTI and chill.

How far are we going back?

The last 15 years international stock index is less than 6%

Going back 30 years international has performed less than 6%

Vanguard - Product detail -

institutional.vanguard.com

 

[anonperson]

How far are we going back?

The last 15 years international stock index is less than 6%

Going back 30 years international has performed less than 6%

Vanguard - Product detail -

institutional.vanguard.com

Depends on time frame as well.

I haven't really focused much on international. I've gotten Lucky so far as have others due to the great stock market run up these last several years.

Jack Bogle didn't think international was necessary for your typical investor so that is interesting.

I'm starting to re evaluate things and will try to get some more international exposure but it's not a huge priority.

 

[TeslaCoil]

Executed 70% VOO 30% VGT this am. Im gonna pass on the international markets.

 

[aneftp]

Executed 70% VOO 30% VGT this am. Im gonna pass on the international markets.

Excellent choice.

 

[GassYous]

I'm a passive indexer. I don't pick stocks or speculate. I save aggressively. I live below my means. It'll all work out. It's the easy button.

I could retire or go part time right now (I'm 50) but I basically enjoy anesthesia most days, and the pay is so good that I can't help but keep at it full time. For now. My kids are not in super high earning professions so I'd like to have the ability to help them as time goes by.

Some people love finance and derive enjoyment from the game. That's OK of course. All of us earn so much we can't help but win out in the end.

The most important issue, by far, is spending. See for example the other thread going now where the guy can't figure out why he can't get ahead despite his 90th %ile job ... he blames generational societal decline, not his $24,000 mortgage and $6000 nanny. Hidden in that scenario is the likelihood that he'll take on too much risk in his investments, chasing high returns to make up for what is entirely a self-inflicted spending problem. And when the risk shows up, and it probably will, he'll be doubly screwed.

How hot is this nanny??

 

[TeslaCoil]

How hot is this nanny??

“Doubly screwed”, by the nanny that is.

 

[TeslaCoil]

I'm a passive indexer. I don't pick stocks or speculate. I save aggressively. I live below my means. It'll all work out. It's the easy button.

I could retire or go part time right now (I'm 50) but I basically enjoy anesthesia most days, and the pay is so good that I can't help but keep at it full time. For now. My kids are not in super high earning professions so I'd like to have the ability to help them as time goes by.

Some people love finance and derive enjoyment from the game. That's OK of course. All of us earn so much we can't help but win out in the end.

The most important issue, by far, is spending. See for example the other thread going now where the guy can't figure out why he can't get ahead despite his 90th %ile job ... he blames generational societal decline, not his $24,000 mortgage and $6000 nanny. Hidden in that scenario is the likelihood that he'll take on too much risk in his investments, chasing high returns to make up for what is entirely a self-inflicted spending problem. And when the risk shows up, and it probably will, he'll be doubly screwed.

Fortunately, I dont have those problems. Stay at home wife. No mortgage, no car pmt. 50%+ of my income goes to investments.

I do agree this is where most physicians falter though.

 

[finalpsychyear]

I'm a passive indexer. I don't pick stocks or speculate. I save aggressively. I live below my means. It'll all work out. It's the easy button.

I could retire or go part time right now (I'm 50) but I basically enjoy anesthesia most days, and the pay is so good that I can't help but keep at it full time. For now. My kids are not in super high earning professions so I'd like to have the ability to help them as time goes by.

Some people love finance and derive enjoyment from the game. That's OK of course. All of us earn so much we can't help but win out in the end.

The most important issue, by far, is spending. See for example the other thread going now where the guy can't figure out why he can't get ahead despite his 90th %ile job ... he blames generational societal decline, not his $24,000 mortgage and $6000 nanny. Hidden in that scenario is the likelihood that he'll take on too much risk in his investments, chasing high returns to make up for what is entirely a self-inflicted spending problem. And when the risk shows up, and it probably will, he'll be doubly screwed.

Bro living like he got 10 mill liquid and even then thats his 4% SWR with 30k in monthly expenses right there.