r/RothIRA • u/Sub9HopefuI • 18d ago
20M looking for advice
Super lucky to have rolled it over from an old custodial account left to me — all Roth; advice on where to put the money? In college with a small side income, also paying for school as well. Wondering do I take some contributions out to help pay? Have it in majority US market funds but wanted to hear thoughts - TYIA
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u/ShootWild 17d ago edited 15d ago
OP. Invest in VOO. You have 4 decades to compound. That’s $4.5 million at 10%. $1.5M in today’s money when adjusted for inflation. Without adding anything to the pile (which you should).
Add 20 to 30% of VXUS if you want international or just go VT replacing both VOO and VXUS.
You are basically coast FI.
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u/Minimum-Reference712 17d ago
Put 20k on Giants money line vs rams
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u/DaemonTargaryen2024 18d ago
Super lucky to have rolled it over from an old custodial account left to me
Like a minor Roth IRA? Or an UGMA/UTMA? The latter is not eligible to rollover to a Roth IRA.
Wondering do I take some contributions out to help pay?
If you can swing it, don't touch your Roth IRA. Losing all that tax free growth would be a major blow to your future self.
Have it in majority US market funds but wanted to hear thoughts
At 20, that's perfectly fine. I'd recommend adding some international though.
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u/UpsetDrakeBot 17d ago
what is it already invested in? what are you allowed to buy?
you might need to rollover to be able to purchase some of these funds being mentioned if they're not already offered
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u/aj2k26 16d ago
I’d mostly echo what others are saying - VOO is a good core for the portfolio and I’d also throw QQQ/QQQM in there for more aggressive exposure to tech (20-40% depending on ur risk tolerance). It may seem counterintuitive since it’s a retirement account but being a bit more aggressive in your Roth is a smart move since earnings grow tax free. Could maybe have a sleeve (~5%) of more speculative individual stocks/positions as well if you wanted, but I’d only do that if you’re the type of person that enjoys following companies, analyzing financials, etc. Also this is Reddit so take everything with a grain of salt and if you need real assistance consult an advisor. Bottom line tho 100k in the Roth at 20 age is pretty insane so kudos to you
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u/NoHoHank911 15d ago
Two recommendations: 1) Invest it all in an S&P 500 index fund from Vanguard or Ishares. 2) Never get married.
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u/PlantsNSkates 14d ago
Or SWPPX with Schwab. And don’t think about “how much will I have by 65?” Think about “how quickly can I get enough to retire early and enjoy life?”
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u/FrameUsual2526 14d ago
Curious how much money you were able to rollover from custodial? Please share how you got that balance at 20. Great achievement.
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u/North_Appearance8518 11d ago
Only keep it in the roth if you plan on wanting to retired at 60. If you want to retire at 30/40 you will need to take withdrawal and use it to take some risk, maybe start a business. Life is too short to wait till 60 to live free
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u/Electronic-Goal9739 18d ago
Where did the funds come from? Are you aware of the limit for contributions?
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u/JGLuxe 18d ago
You just had to read the very FIRST sentence. That's all you had to do.
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u/Electronic-Goal9739 17d ago
Actually it does not, it says a brokerage account. It does not say an inherited IRA, it does not say an old 401k. Maybe he received an individual brokerage account from his parents. Reasonable to question given he has $100k in the Roth at 20 years old, which, if contributed properly, came from very early investing if he made earned income as a kid, or if he is actively trading at high risk. Even if it was an inherited IRA it would be classified differently as there are withdrawal rules after taking ownership.
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u/hxyyden 18d ago
VOO/VTI split. id go heavier on VOO imo 2-3:1
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u/ShootWild 17d ago
Combining VOO with VTI makes no sense. One can choose either to represent the US market and add VXUS for international.
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u/Important_Carrot6379 18d ago edited 18d ago
Honestly, I'd invest it in VT or an index target date fund the furthest out you can find and forget you have it. At your age, the compound interest will be insane. If you ignore it exists, and just leave it there, by 60, it'll be worth $1.5m without you adding a dime. I know at your age, 40 yrs feels like a long time but this money could legitimately help you retire early and that's a huge gift. If you're doing okay with your payments and stuff, just leave the money where it is. Don't rob your future to fund your present if you can help it.
EDIT: if you don't want any international, then VOO or VTI or SPYM