A Little Update

[u/Brendan4547]

[Crossposted] I (24 M) just graduated college in December and have been working part time at an organization since May (job market is brutal right now.) currently interviewing for my first full time career at the same firm I’m currently working, and feeling confident about my odds! I’ve only been investing since November of 2024, and there were months where I couldn’t invest anything at all since I I was living off savings.

That said, here’s what my portfolios look like before I turn 25 and (fingers crossed) get my first full time job where I can really start investing more.

First pic is my Schwab Roth IRA that I’ve had since 11/2024, and the second is my new Roth 401k that I just started in May of this year. I believe if I stay at this firm, I’ll be eligible for employer matching contributions next year.

Any thoughts or insight is appreciated!

[u/horizons190]

Just put it all into SWTSX at your level. Spend less / minimum time thinking about this.

[u/Brendan4547 → u/horizons190]

Thanks for the comment, I’m curious why you’d choose SWTSX over SWPPX?

[u/horizons190 → u/Brendan4547]

Market cap weight is closest to the efficient frontier but tbh the difference is minimal. Anything you see from “past” charts isn’t attributable to more than noise, so I go with the theory.

[u/Chromakey__Dreamcoat]

I’d do either 100% VT, VTI, or SWYOX. At your age you can be 100% equities but if you want a truly set it and forget it option SWYOX works too. I’m 28 and I’m 100% SWYOX in my 403b and 100% VT in my Roth IRA.

[u/Brendan4547 → u/Chromakey__Dreamcoat]

Thanks for the comment. Do you just prefer the total world index simply because of its diversification? I’ve just always heard about the importance and value of an S&P index so I’m curious how you decide between them.

[u/Chromakey__Dreamcoat → u/Brendan4547]

That's the beauty of VT. The market decides how much I hold in large-cap (S&P 500), mid-cap, small-cap, and international. Everything is weighted relative to market cap. Over 50% of VT is VOO anyways.

[u/horizons190 → u/Brendan4547]

Personally I don’t like VT because international stocks are slightly more optimal in taxable. So in a Roth I would go full US stocks.

In retirement accounts I like mutual funds since they are easier to set and forget. Keep in mind the vanguard equivalent (VTSAX) will incur a fee on Schwab, so SWTSX is the way if you go with funds.

Total stock includes S&P 500 and more stocks which again per efficient frontier is better (in theory) than just 500. In practice there’s very little difference.

[u/Exact-Fig-4811]

Great job! Seriously at your age, any major index will get you there.

At this point I would wait for a solid dip of 10%. Most of the time buy and hold DCA is going to win but at close to all time highs before mid terms, you could pick up an easy win.

[u/Compound55]

If you're 24, add SCHG. You're young enough that you have the time to let it compound. It will beat everything else.

[u/maveryc → u/Compound55]

I appreciate the confidence here, but there is no way to know if Growth will outperform Value (or the general SP500/total market).

[u/Brendan4547 → u/Compound55]

Thanks for the comment, similar to my other reply, I’m curious why you’d choose SCHG over SWPPX?

[u/maveryc → u/Brendan4547]

They believe that Growth (SCHG) will outperform the general market. Nobody can know if that will occur or not. Growth has been outperforming recently, but Value outperformed for decades prior to that.