Pringles Posted October 9 Share Posted October 9 @DakotaHale Question for you, as I’m curious. What are the best Roth IRA accounts in your opinion? Lots of providers, from banks to investment companies. Mine is with Fidelity. Though I’ve heard good things about Schwab, and a few others. Quote Link to comment Share on other sites More sharing options...
DakotaHale Posted October 9 Share Posted October 9 3 hours ago, Pringles said: @DakotaHale Question for you, as I’m curious. What are the best Roth IRA accounts in your opinion? Lots of providers, from banks to investment companies. Mine is with Fidelity. Though I’ve heard good things about Schwab, and a few others. Truth is it doesn't really matter, it's mostly a choice between which UI you prefer and any special funds the broker may offer (Fidelity being extremely competent and competitive in both departments). Mine is with TD Ameritrade (which will become Schwab shortly). The bigger question is what you invest in. I personally recommend the Boglehead approach, which is an investment philosophy that you may have heard of that emphasizes investments into total market, low-cost index funds (via ETFs or mutual funds, but ETFs are better nowadays due to lower expense ratio, often 10x cheaper). ETF = Exchange-traded fund (i.e., a fund that's traded on a stock exchange). Think of it like a combination of 1000s of stocks into one stock (because that's exactly what it is). Usually cap-weighted, which means that say you buy an ETF that represents the US market, and Apple is 5% of the US market, the stock will have 5% of its holdings in Apple, going all the way down to the smallest stock which is probably like 0.001% or something. My favorite one is VT. It is quite literally 9000+ stocks in one, US and international, large and small cap. You literally cannot get more diversified than that. If you want to hedge risk, BND is a bond market ETF with lower volatility, but since you're young I wouldn't recommend more than 10% allocation. But as you grow older and approaching retirement definitely look at increasing bond allocation as your goals change from capital growth to capital preservation. That's my favorite investment philosophy and the one I always tell people to do. Don't take unnecessary risk (and waste valuable time) gambling on individual stocks when you can just own the entire stock market in a "set-it-and-forget-it" mindset and enjoy other things. There's tons of research on this and passive investing beats over 90% of active investors. I'm sure you already knew a lot of this stuff but I'm trying to be broad in case someone else was interested. In short: Who provides the Roth IRA doesn't matter; the actual investments do. Two-fund portfolio, VT and BND. Allocation depends on how close you are to retirement. 2 1 Quote Link to comment Share on other sites More sharing options...
Pringles Posted October 10 Author Share Posted October 10 (edited) 5 hours ago, DakotaHale said: Truth is it doesn't really matter, it's mostly a choice between which UI you prefer and any special funds the broker may offer (Fidelity being extremely competent and competitive in both departments). Mine is with TD Ameritrade (which will become Schwab shortly). The bigger question is what you invest in. I personally recommend the Boglehead approach, which is an investment philosophy that you may have heard of that emphasizes investments into total market, low-cost index funds (via ETFs or mutual funds, but ETFs are better nowadays due to lower expense ratio, often 10x cheaper). ETF = Exchange-traded fund (i.e., a fund that's traded on a stock exchange). Think of it like a combination of 1000s of stocks into one stock (because that's exactly what it is). Usually cap-weighted, which means that say you buy an ETF that represents the US market, and Apple is 5% of the US market, the stock will have 5% of its holdings in Apple, going all the way down to the smallest stock which is probably like 0.001% or something. My favorite one is VT. It is quite literally 9000+ stocks in one, US and international, large and small cap. You literally cannot get more diversified than that. If you want to hedge risk, BND is a bond market ETF with lower volatility, but since you're young I wouldn't recommend more than 10% allocation. But as you grow older and approaching retirement definitely look at increasing bond allocation as your goals change from capital growth to capital preservation. That's my favorite investment philosophy and the one I always tell people to do. Don't take unnecessary risk (and waste valuable time) gambling on individual stocks when you can just own the entire stock market in a "set-it-and-forget-it" mindset and enjoy other things. There's tons of research on this and passive investing beats over 90% of active investors. I'm sure you already knew a lot of this stuff but I'm trying to be broad in case someone else was interested. In short: Who provides the Roth IRA doesn't matter; the actual investments do. Two-fund portfolio, VT and BND. Allocation depends on how close you are to retirement. Thanks for the detailed answer! I even learned some new things! I completely agree with the set it and forget it approach. Edited October 10 by Pringles 1 Quote Link to comment Share on other sites More sharing options...
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