My wife and I are teachers so I don't have to save every cent I make towards to retirement, luckily. However, I am starting a ROTH IRA. I opened it with Fidelity and an interested in y'all's suggestions for funds/etfs/stocks. So far I have some in ARKK, ARKG and fidelity's international index fund. I also threw a little a new gold mining stock just for fun. I appreciate it in advance.
New to investing. Ideas welcome.
- Thread starter BigDawgs2010
- Start date
First tip is not to take investment advice on a message board.
Second tip is to read about asset allocation, decide what risk you are willing to take and spread your investments over 8-12 segments in ETFs or low cost mutual funds.
Ehh. By that advice, I wouldn't have learned anything in my life. Lol
Fidelity's research tools are valuable, so I'd spend time becoming versed in them. If you wanted to spend $200 for a year, Morningstar can really help with fund selection. Fidelity uses Morningstar's star rating for funds, but the analysis is far more in depth if a member. One year might serve to get you pointed in the right direction. I have come to the opinion that the vast majority of individual investors should not own most individual stocks unless they have enough money to effectively diversify, and at that point it's hard to keep up with earnings and corporate news, financial ratios, etc.
Yeah I think you are right. I have a good friend in finance I just thought I'd get rich quick with the rest of the dawgchat investors, lol. And get people's minds off of Tulsa telling us all were terrorists
For portfolios under say, $250,000, you may want to consider using one of Fidelity’s life cycle funds. If you are 50 years old and plan on retiring at age 62 for example, you may put your money in the 2033 life cycle fund or the 2035 fund. The fund will automatically diversify you for long-term growth and will adjust each year to become more conservative as you move closer to your retirement date. It’s low cost, convenient, and you don’t have to worry with it.
they put you heavy fixed income towards the end, which has performed terribly given interest rates
If you use a target date that is close, I would be wary of the life cycle / target growth funds unless you want heavy exposure to fixed income. You will be sacrificing returns as the fund shifts to lower risk as you approach your end of the life cycle.
I personally think a better light touch approach is using sector ETFs and ETNs (or even S&P 500 / Russell 3000 ETFs) to gain the same exposure while maintaining better awareness of your asset allocation
Fixed income helps to mitigate both risk and volatility in a balanced investment portfolio. If you are risk averse, use the lifecycle fund closest to your retirement date. If you are more risk tolerant, simply select the lifecycle fund that is five years beyond your planned retirement date.
Rule # 1: Don’t trade on tips!! There are many ways to “invest or trade.” Discover what you're capable of and how much time you have to devote to managing you own portfolio. Base you're strategy depending upon your financial situation and / or stomach for risk, goals, and time horizon. You first need knowledge and you need rules. That will require time, discipline, and work. Will PM you some things. Rule #2 Never, EVER, allow a small loss turn into a big loss.
Last edited:
50% SPY, 50% QQQ, set it and forget it, check back in 20 years.
Fixed income has had lower risk adjusted returns for a long time. If you're risk averse, you should be devoting a relatively low proportion to fixed income, period. Maybe if you're savvy enough to look for riskier fixed income funds that focus on higher returns you're ok for returns, but places that look to IG and government bonds are at or near negative real yields today.
If you want income protection rather than income growth during retirement, then you should look to more fixed income (and higher credit quality within fixed income)
But if you want to maintain higher risk adjusted returns, you should likely invest in equities or other asset classes based on historical performance
the "set it 5 years beyond retirement" doesn't really address what someone may actually want - it could meet their goals but I don't think it's a good rule of thumb
Please note that Silver said that he is new to investing and just starting a Roth IRA. Keep it simple, low cost, and worry free. Adjustments and upgrades can be made as the available money to invest increases along with knowledge, experience, and confidence.
Some people at some ages care far more about capital preservation than about returns. Many people have ridden out the crashes and bear markets which happen every 8 or so years and enjoyed the great returns by not panic selling. Some of those people are content with zero percent returns and do not care if their savings are eroded by inflation. Peace of mind is a good thing. Weathering a deep bear when invested in riskier assets when retired is not.
Whatever you do know HOW MUCH you paying in fees at the time of withdrawal? They ain’t making you a millionaire for free .
HERO etf and QTUM etf are great long plays, thank me later
HERO is a gaming and esports etf up 90% in the past year
QTUM is the defiance quantum computing etf (be careful not to mistake it with the QTUM cryptocurrency), includes a lot of companies like Google, Nvidia, Honeywell, etc. up 47% in the past year
HERO is a gaming and esports etf up 90% in the past year
QTUM is the defiance quantum computing etf (be careful not to mistake it with the QTUM cryptocurrency), includes a lot of companies like Google, Nvidia, Honeywell, etc. up 47% in the past year
So with a Roth, I was under the understanding that h could take my investment (if there) with out any penalty, anytime. Not that I want to. I just thought that was how it works.
Qtum, cool.....I'll look it up. Yeah I did good in cryptocurrency but got out in 2019. Not as well if I would stayed in until now though, lol.
You can take out your contributions to your ROTH at anytime but you can't take the earnings without penalty until you turn 59 1/2 and its been at least five years since you first contibuted. There are exceptions to the early withdrawal penalty, such as a first-time home purchase, college expenses, and birth or adoption expenses.
That’s his business. The point is you don’t need anything “exciting”. SPDR and be done with it. His personal investments are in funds that track or mirror the S&P 500.
Two points:
the only hedge fund manager ever invested in only SPY is/was Jeffrey Epstein.
and if you think SPY as a solo investment is diversified, go back to stock broker school.
The SPY is a well-diversified basket of assets, which allocates its fund into multiple sectors, such as 24.19% information technology, 13.82% healthcare, 13.55% financial services, 11.18% communication services, 9.04% industrials, 7.17% consumer defensive, 10.99% consumer cyclical, 2.86% utilities, and 2.52% real estate.
By design it is a diversified, managed fund that is intended to index the S&P 500. The S&P 500 is the benchmark for diversity and averaged returns across the market so you might just be wrong there fella.
By design it is a diversified, managed fund that is intended to index the S&P 500. The S&P 500 is the benchmark for diversity and averaged returns across the market so you might just be wrong there fella.
@silvercreekdawgs2010 in case you want a bit more info on SPY.
www.investopedia.com
The long game is the goal for retirement savings. If you have other accounts for “playing” the market there is certainly nothing wrong with that. Take note- as my business school professor said in class one day- “all the information you ever need is on the internet (Yahoo Finance), the market by design makes sure we all have the same amount of information. You have just as good of a chance with a single stock pick from a hooker in Brooklyn as you do a broker on Wall Street.” Point being- just do your research. Contrary to @deadduckdawg’s belief, a fund diversified like SPY is just as diversified as if you bought 10 individual stocks. It’s just basic math. If that make you uncomfortable get two like @phoenixdawg suggested. Make sure there isn’t a lot of overlap in the holdings otherwise you aren’t diversifying any further.
SPY ETF: The SPDR S&P 500 ETF Trust and What It Holds
Learn about the SPY ETF (SPDR S&P 500 ETF Trust), its characteristics, and the suitability of investing in the fund.
The long game is the goal for retirement savings. If you have other accounts for “playing” the market there is certainly nothing wrong with that. Take note- as my business school professor said in class one day- “all the information you ever need is on the internet (Yahoo Finance), the market by design makes sure we all have the same amount of information. You have just as good of a chance with a single stock pick from a hooker in Brooklyn as you do a broker on Wall Street.” Point being- just do your research. Contrary to @deadduckdawg’s belief, a fund diversified like SPY is just as diversified as if you bought 10 individual stocks. It’s just basic math. If that make you uncomfortable get two like @phoenixdawg suggested. Make sure there isn’t a lot of overlap in the holdings otherwise you aren’t diversifying any further.
I own SPY. It is diversified in American large cap stocks only, with a small percentage of mid-caps. There is no other asset class, such as bonds, other fixed income, only 2% in commodities/materials, small caps, foreign stocks, etc. Has that never occurred to you? If you are in a position to be 100% in equities, MAYBE that is fine, but holding ONLY SPY is not truly diversified and not appropriate for many investors. You sound like an investor who has never ridden out serious crashes and long bear markets. Truly diversifying among asset classes can smooth out the bear which can last a decade, maybe more.@silvercreekdawgs2010 in case you want a bit more info on SPY.
SPY ETF: The SPDR S&P 500 ETF Trust and What It Holds
Learn about the SPY ETF (SPDR S&P 500 ETF Trust), its characteristics, and the suitability of investing in the fund.
The long game is the goal for retirement savings. If you have other accounts for “playing” the market there is certainly nothing wrong with that. Take note- as my business school professor said in class one day- “all the information you ever need is on the internet (Yahoo Finance), the market by design makes sure we all have the same amount of information. You have just as good of a chance with a single stock pick from a hooker in Brooklyn as you do a broker on Wall Street.” Point being- just do your research. Contrary to @deadduckdawg’s belief, a fund diversified like SPY is just as diversified as if you bought 10 individual stocks. It’s just basic math. If that make you uncomfortable get two like @phoenixdawg suggested. Make sure there isn’t a lot of overlap in the holdings otherwise you aren’t diversifying any further.
This doesn’t have to be hard if you are long the market - bet the 2 indexes Nasdaq for the tech side, SP for the traditional value growth companies. 85% of fund managers don’t beat the market averages. Fees on the ETFs are low. 10 year Annual Returns on the 2 are 13% and 20% respectively. In a split portfolio with no additional contributions a $10,000 investment would be worth over 10 years would be worth $46,000.
Last edited:
That's pretty true if you are using QQQ and SPY as your two indexes and do not mind your diversification limited to US large cap equities. You would be 94% in that asset class with about 6% in US mid-caps. The vast majority of portfolio models recommend a lot more diversification than that unless you are in your 20s or 30s and very risk tolerant. Your market beta is obviously about 1.00.
No question but in all honesty, I am long the US before international, i am also long dividend paying large cap over small cap stocks. If you look at majority of targeted retirement fund their diversification is predominantly us large caps and large value with a portion of bonds mixed in the folio. Yes your Beta is a 1 indicating a more the folio moves in lock step with the market. Even if you are in your 40s or 50s you could have the same portfolio it just depends on your time horizon to need the money. For example if I had a million dollars liquid and a 3 million investment portfolio I would be fine with that beta calc.
FIRST- be careful with "Financial advisors". I dumped both of mine when I realized that a S&P 500 mutual fund was just as good.
Second look at closed end funds. CEF connect.com has a fund screener. I am getting monthly dividends with a 10% yeild average. Look at GGM, ETV, JQC, ETJ are just a few. https://www.dividendchannel.com/ will give you a history of a fund's dividends. Fidelity's research section of dividends and distributions is also valuable.
Crash is coming. Sit back and wait until at least summer or Fall and you’ll have some deals to choose from. The talking heads are FOS. The market makes zero sense right now, but more importantly tenant (and consequently landlord) defaults are about to explode. Blue states shut down their businesses and $600 ain’t going to cut it. China wants to be number 1 and this is their chance. We have morons in charge playing checkers in a nuclear war.
Well the time to get in was last winter. That's when everything was at it lowest. But I'm killing it with Delta, FTEC and Bitcoin right now. I definitely took advantage of Darden but I think it's going to start to drop with restaurants having to shut down indoor dining again. With the stressful and uncertain future Phillip Morris may be a good bet. In stressful times folks buy tobacco and alcohol LOL.
Yeah I'm not looking to dump a big sum of cash, rather just start a monthly contribution.
I made a good bit on crypto from 17-20. Obviously I'd made about 3-5 times more by now if I'd have stayed in but if I rode btc to here, I'd jump out here and wait for a pullback. I have little doubt btc comes back to the teens again.
I didn't have the stomach for the scams and hacks that go on all over crypto. Be careful and I hope you have your btc on a cold wallet. Hackers are going to be going crazy at these prices.
Had my wife listened to me when we first invested in Bitcoin I'd be building a house in the Hamptons right now, but still doing very well. Think I may get her a sports car when all is said and done.
It may but I'd be very surprised. If it does I don't think it will be this bill run. I'd keep inching those stop losses up.
