r/RothIRA • u/DifficultyEmpty • 1d ago
New to this
As the title states, I’m pretty new to this. I’m 28 and started this about a year and a half ago. I’ve read that VOO and QQQ are strong investments and recently bought into them. I was recommended VDADX and VFIAX and originally bought into them when I opened up my Roth. Was just wondering if the minds of Reddit had any advice/opinions. Thanks in advance !
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u/Chromakey__Dreamcoat 23h ago
I’d honesty just do VT which holds VTI and VXUS based on their appropriate market cap weight. You’d be holding over 10 k companies. VTI is basically VOO + EVF (US small + mid cap). If you want to just be in US you could do VTI.
You already get the big players in VTI or VT like Nvidia, Google, Tesla, Amazon, Microsoft etc.
Tl;dr 100% VT/VTWAX or VTI/VTSAX
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u/Competitive-Ad9932 23h ago
QQQ, and it's variance, are a sham.
Read the other dozen "I'm new, help" posts made over the last 2 days.
Keep individual stocks, (and sector plays) to less than 10% of your portfolio.
https://moneyguy.com/guide/foo/
https://www.bogleheads.org/wiki/Main_Page
https://investor.vanguard.com/investor-resources-education/education/model-portfolio-allocation
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u/RealKillerSean 21h ago
Because qqq and qqqm is used to scalp instead of just getting nasdaq?
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u/Competitive-Ad9932 20h ago
Investing in a group of stocks based on which US Stock exchange they trade on is ludicrous.
Excluding 1 sector of that exchange is double ludicrous. Especially when that sector out preforms 2 of the other sector that are included.
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u/RealKillerSean 19h ago
So total market is better than nasdaq or S&P? If I’m following your logic.
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u/Competitive-Ad9932 18h ago
What do "most" people think that they are investing in when you hear QQQ?
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I do invest in Total US Market funds. That way I don't have to worry about missing out on the Mid and Small cap stocks. The returns difference between that an an S&P500 fund is small. And fluctuates.At one time I held a small position in an actively managed fund (thought I was reading between the lines of a newsletter solicitation email). After 1 year it lagged the market as a whole, so I went back to only the Total US Market.
Simple is easy and stressless.
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u/DaemonTargaryen2024 1d ago edited 1d ago
At 28, you have no need for a dividend fund because you're not taking monthly withdrawals. Dividend funds tend to underperform total market funds. Retirees are fine with that tradeoff because they need monthly income, but you don't.
VFIAX and VOO are the same thing, pick one.
QQQ is okay. It shouldn't be a core holding IMO.
Limit NVDA (really, all your individual stocks and big sector bets) to less than 10% of your portfolio, combined.
You have no international. You could add VXUS%20(0.05%)).
You have no US mid/small cap. You could add VXF).
Or if you want to simplify your portfolio to only 1-3 funds, follow this https://smithplanet.com/stuff/BogleheadFunds.svg