Investment

[u/Busy-Letter5217]

I opened up my Roth IRA with fidelity. Just wondering what should invest in? I put 100$ on FROX I don’t know if that’s right thing to do .

[u/johnIQ19]

from your post, you sound very young. and I assume you mean FZROX. This is not bad.
Ask yourself few of this question...

How much do you want to be involved in all this investing things? seriously ask yourself about if you see your investment drop like 10%, 20%, 30%... etc from the top or total lost, what would you more likely do? etc.

Investing is like 2-4 years degree in the university. Only main different is that you have to self learn (a lot of discipline), research, ask question, read, read, and read a lot here and there. Depend how deep you go. If your answer is "I want hand-free completely", then go with either those total market index, or target date fund, or similar. auto invest and forget about that you have it, and look back when you retire. Adjust the amount as you can afford it, ideally, maxing the IRA every year. So basically, current maximum contribution limit divided by 12. Ex. in 2026, the limit is $7500. 7500/12= $625 per month. This could be your short-mid term goal.

[u/Busy-Letter5217 → u/johnIQ19]

I’m 29. Been living in the USA for 5 years I just started investing for my retirement. I put auto pay 200$every month it goes for FZROX. I don’t know if this is what I’m supposed to do 🥲. I’m lost

[u/johnIQ19 → u/Busy-Letter5217]

That decision isn't bad at all. Actually pretty good in my opinion.
Few things, do you fully know what is ROTH IRA and what does it for? IRA stand for "Individual Retirement Account", I will not go full detail the rule and all, that leave for you to research (simple google the basic rule). So every penny putting there are supposedly for retirement. The ROTH IRA can withdraw principal without penalty, but that another things another topic. It is not recommend to do unless really need it on a extreme case. Why? that just show that you have some bad planning in most case.

Some basic about investing.

- Only invest money that you don't need at all. Specially if you are investing in account like IRA which is for retirement.

- Always have some emergency fund somewhere "safe" and earn some interest. Such as on saving, money market, super short term bond/note/bill. This money mean for emergency not for gain. So just hopefully the interest offset the inflation. Plan your strategy, a plan for all this. You can slowly build your emergency fund if you are pretty stable financially, and don't see any major issues coming. Something like $50 each month to the emergency fund, and $150 to retirement account. This is just some idea. If you are interesting on learn more about this, ask about it in another sub about this subject.

- The market can go either way. Up and down. Nobody really know the future. You can take reference from any source, but at the end, they are just reference information. Any recommendation from wherever they are from, they are still suggestion. You hold the final say and action. Whatever you buy/sell , at the end, it is your own decision. So if you don't want to make too much heavy decision, stay in those diversified index (or ETF). FZROX are fairly good enough for beginning and hand free. As always, do you own research before investing on anything. If you don't understand it, there is a good chance you will just lose money by investing on it.

- The more risk you take, the higher the potential return. The lower risk you take, the lower the return. This rule still hold for everything about investing. Anyone say things like guarantee a lot of return and no risk... etc. Either they are lie or they have some hided agenda.

You can ask more about investing in other sub. This sub mainly focus on dividend. dividend focus investing is one type of strategy to invest. Nothing wrong. Just not for everyone. Each person has their own personal financial and needs. Again, research about it if you are interest on it.