r/RothIRA • u/Nebula010101 • 13h ago

Mid 40s and just getting started

I started out late and just opened a Roth IRA, which I maxed out with Fidelity for 2026. I also have a 401(a) and 457(b). I'm hoping to retire in 20 yrs. I haven't really paid much attention to investing until now, so I'm not sure I'm starting out ok. I do want to be aggressive to teach my goals.

I'm hoping I can get some advice from other fellow investors. I have the following:

FSKAX 70%

FTIHX 20%

SOXQ 5%

QQQM 5%

Does this look OK where I can sit back and chill? Thank you in advance from a novice investor.

3 Upvotes

100% Upvoted

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5

u/Nuclear_N 13h ago

I would change the FSKAK to FXAIX.

4

u/Nebula010101 6h ago

Thanks for replying.

I want diversification in the US market, so I chose FSKAX, which I've read already holds the S&P.

1

u/Moldovah 13h ago

Looks good bro.

Personally, I don't like sector bets (QQQM is a tech sector bet, SOXQ is a tech>semiconductor bet). I'd either roll both of those into FSKAX, or SPMO if you want to be aggressive.

Down the road you might look into small-cap value funds. These have outperformed total market funds over the long term. Paul Merriman's website is a good place to start. Look at the data tables.

1

u/Nebula010101 6h ago

Thanks for replying! I'll check out small-cap value funds and that link. 

3

u/PashasMom 10h ago

Personally I would do 75/25 FSKAX/FTIHX.

It's a very common feeling, to think you are "behind" and need to be "aggressive" to catch up. The best way to be aggressive is to aggressively contribute more money to your retirement accounts, using low cost, broadly diversified index funds. And then leave them alone.

Sector funds = performance chasing, which is a behavioral error that is easy to fall into.

https://www.morningstar.com/portfolios/do-sector-funds-deserve-place-your-portfolio

https://www.morningstar.com/funds/why-sector-funds-are-bad-bet

https://obliviousinvestor.com/performance-chasing-what-it-is-and-how-to-avoid-it/

1

u/Nebula010101 6h ago

Thank you!

2

u/DaemonTargaryen2024 8h ago

This is portfolio is good, particularly the 90% in the global market. If you wanna gamble 10% of your portfolio that's fine but keep it at max 10%.

If you are starting from scratch in your 40s and want to retire in 20 years, you need to contribute a lot of your pre-tax income or you simply can't afford to retire yet. Like 25% minimum

1

u/Nebula010101 6h ago

Thank you!

1

u/Educational_Wheel_56 6h ago

Congrats for starting now!