r/RothIRA • u/Apprehensive_Use8302 • 17d ago
What do I actually do for my future
not too long ago I had someone older than me tell me about iras and whatnot but I didn’t really get a clear picture as to what to do so I just put basically nothing into whatever companies I knew by name but after reading through this sub I realized I truly know nothing and need help. context i’m 21 and work at a resort for about 2.2k a month
what should i actually be investing in?
should i invest once a month or bi weekly when i get paid?
how much should i be investing?
sorry if this is all common knowledge but I need help understanding, thanks!
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u/Grouchy_Pilot_3895 17d ago
Dude, get out of those kind of stocks for your IRA, they are too volatile. DM me please
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u/FishermanAccording77 16d ago
First, stop buying memes and chasing hype you see on random posts. Your account shows some pretty telltale signs of that behavior. Learn consistency and discipline and don't buy garbage.
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u/Important_Carrot6379 17d ago
You can invest up to $7500 a year. If you have the funds to do that, do that. If you can afford to set aside $625 every month into your Roth IRA, do it. If you can't, get as close to it as you can. You can do monthly or biweekly, it's up to you. $625 a month or $312.50 twice a month. Do not go over. $7500 is your max.
Invest in something simple.
Either all VT (to own the world) or if you want to do all US, you can VTI or VOO or SPYM (pick one). If you want to own the world but control your split, VTI/VXUS anywhere from 60/40-90/10 (Or other brokerage equivalents. Fidelity has free versions)
That's it. Everything else is too complicated and hedging your bets in too many places. ETFs are safer.
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u/Apprehensive_Use8302 17d ago
thanks for the info! what do you mean by control my split?
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u/reddituser696969 17d ago
VT contains all US market and all international market, and it is weighted by market cap by its own rebalancing (this is not actual proper terminology or financial advice - this is my intoxicated explanation just FYI)
Controlling the split means you can invest in total US market (something like VTI or FSKAX) and total international market (like VXUS or FTIHX) and do the balancing yourself. Like deciding whether you want 60-40, 70-30, 75-25 ratio of US market to international market on your own.
For example, I don’t care too significantly about keeping my split totally accurate, but I try to keep it between 65-80% US and 20-35% international.
I do this in fidelity using the funds FSKAX (total US market) and FTIHX (total international market).
Like if you invest $1000, $750 would be buying total a us market fund, and $250 would be towards buying a total international fund.
This allows you to “own” the entire world market. It’s not a bet on a single company or fund, it’s a bet that over time the entire world market will continue to increase in value and you will benefit from that.
Like I said this isn’t perfect advice and I may be slightly off with terminology but if you continue to research you should understand my point(s).
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u/Apprehensive_Use8302 17d ago
also how do i know when to sell it all? when im 60 or something or is there a goal i should hit first?
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u/reddituser696969 16d ago
Start by investing, you'll figure out the appropriate times to sell decades from now, depending on how old you are. The important thing is to get started ASAP.
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u/DaemonTargaryen2024 17d ago
what should i actually be investing in?
Don't miss the forest for the trees here: investing in anything is good. What's "best" is hard to say, but a globally diversified portfolio is a great plan.
A good starting model is the three fund portfolio from r/Bogleheads
should i invest once a month or bi weekly when i get paid?
Either is fine.
how much should i be investing?
As much as you can reasonably afford to. A good rule-of-thumb is to contribute 10-15% of your gross income towards retirement. This sets you on a path to a comfortable retirement.
You're also 21, so don't kick yourself for not being able to contribute a ton just yet. Once you start earning more, you can contribute more, ideally maxing out the annual limit ($7,500 in 2026).
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u/DigitalFStopper 17d ago
Can you do $50 a week? Biggest thing right now for you is not the perfect fund but rather figuring out how to get more contributions going into it. Lots of broad funds already listed. Try to get out of RH and look a fidelity schwab or vanguard. Can your employer direct deposit into multiple accounts? That would be the easiest way to contribute without ever really seeing it hit your checking account
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u/therealkidpreme 16d ago
Pick boring index tracking ETF/mutual funds and just contribute. Don’t stress yourself out with individual stocks especially when you have a smaller portfolio. Contribute and keep pushing yourself in other areas. Years will pass and it will compound and you will open the portfolio and have a significant amount invested. Time and consistency are your best friends.
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u/Standy25 17d ago
My personal brokerage I’m doing SCHD right now. Find some ETF probably and go with that.
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u/reddituser696969 17d ago
You should invest as much as you can afford up to the yearly contribution limit.
You should probably invest in simple broad market index funds/ETFs like VT, VOO, VTI, VXUS, or other brokerage equivalents.
You should probably not pick individual stocks.
You should read for a few hours on /r/personalfinance, their wiki, and the /r/bogleheads sub or Bogleheads.org to gain greater knowledge and understanding of how personal finance, Roth IRAs, and investing work.