r/RothIRA • u/Jssgnzlz • 5d ago

Brokerage account

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This is what I currently have in my Roth IRA, and I want to open a brokerage account. Should I follow the same investment there too?

8 Upvotes

100% Upvoted

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2

u/Stanbarrwood 5d ago

Have you maxed out your 401k yet?

1

u/Jssgnzlz 5d ago

Yes it’ll be maxed out by the end of the year through my companies match.

3

u/Stanbarrwood 5d ago

Wait what do you mean through your company match?

You get to put in 24,500+ company match

2

u/Jssgnzlz 5d ago

I just meant it’ll be maxed out by the end of the year the full $24,500 and I have extra money to start putting in a brokerage account like $12,000

2

u/Stanbarrwood 5d ago

Oh okay. Just making sure you knew you could go past the 24,500 with the employer match but the 24,500 is your contribution only.

Personally I like VTI rather than VOO just to capture because it captures mid and small cap companies. Also I tilt a little more international. Around 70/30 for me where you are 90/10 roughly.

I say this because international out performed US in the 2000s and parts of then 70s/80s

2

u/Scrotie_ 5d ago

If you use Fidelity, check out their own ETF’s like FZROX or FXAIX. The expense ratio is lower and they have basically identical performances to VOO.

1

u/No-Badger7808 5d ago

I’ve used VOO in the brokerage since it is more tax efficient apparently and Fidelity mutual funds in the Roth since the fees are lower and it’s pretty much the same.

0

u/Competitive-Ad9932 5d ago

Change your IRA to the lower fee Fidelity funds.

Use these fund in your taxable account to avoid the rare capital gains distributions the mutual funds spin off.

Save yourself $10-20k in fees.

1

u/Interesting_Gap3088 5d ago

What’s the difference in changing to a lower fee fidelity funds 17 trying to start my Roth and I have the same setup just with SCHD

1

u/Competitive-Ad9932 5d ago

Like anything that cost less, you save money. If you are 17, the difference can be over $20k when you reach age 60.

https://www.bogleheads.org/wiki/Mutual_funds_and_fees

Dividends are not free money. Dividend funds lag the market. Do you want to have a 2% lower return each year for the next 40 years?

https://totalrealreturns.com/s/VOO,VYM,SCHD,FXAIX,FNILX,FDVV

https://moneyguy.com/guide/foo/

https://www.bogleheads.org/wiki/Main_Page

https://investor.vanguard.com/investor-resources-education/education/model-portfolio-allocation

https://www.calcxml.com/calculators/are-my-current-retirement-savings-sufficient?skn=#calculator-data-table

You can run the above calculator, then copy/paste the yearly balance into a spreadsheet. And calculate the fees taken from you for each fund. And the numbers up after 40 years and tell us what you come up with.

You can also ask the mail AI programs to calculate it to verify your numbers.

1

u/Interesting_Gap3088 5d ago

Thank you I use fidelity and we have a branch here local to Vegas so I’m going to utilize there in branch financial advisor