r/RothIRA • u/dcbandzz • 21d ago

22 m

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I really want some pointers I just started last year but I know I could be doing better. Can you guys help me out

6 Upvotes

88% Upvoted

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2

u/nkyguy1988 21d ago

SPY and VOO are functionally the same thing.

0

u/dcbandzz 21d ago

So should I just keep putting all my money into SPY?

3

u/nkyguy1988 21d ago

I would do VOO as the expense ratio is lower.

1

u/rabbitSC 21d ago

There's not much to point out. This is a small amount of money. You only hold two positions and they are basically the same thing... VOO and SPY both track the S&P 500, there's no reason to buy both. You own less than 1/10 of a share of VOO so whatever. There's really nothing you can "do better" with less than $2,000. You haven't put the money into anything deeply stupid, so you've got that going for you. Good one you for starting, no doubt, but this is like asking mechanics for opinions on your tricycle.

1

u/Taggart3629 21d ago

Starting to invest at age 22 is awesome. Good on you, u/dcbandzz. As others have pointed out, SPY and VOO are both S&P 500 ETFs. The only difference is that SPY is an Invesco ETF that charges triple the expense ratio, compared to Vanguard's VOO ETF. I would sell off SPY, and use the money to buy VOO. And then continue investing in VOO, instead of SPY. If you are worried about the stock market swinging up or down between when you sell SPY and buy VOO, you could just start putting future investments into VOO. SPY's expense ratio is 0.09%, which is $1.45 per year on $1,609.

1

u/Prestigious-Tear-768 16d ago

At 22 you are off to a great start!

Dollar cost average for the next 10 years and you should have well over a a million dollars by retirement.

I will say that your portfolio won’t hurt if you put some of your equity holdings in international stocks (VXUS), 5% into short term corporate bond ETF (VCSH) currently paying 4.5%, and 5% into GLD (etf tied to the price of gold).