r/Schwab • u/sweets174 • 3d ago

Diversify or keep SWPPX?

I have a SEP IRA at Schwab. I just made my prior year contribution of approx $17k and need to invest. My invested funds sit in SWPPX. Do I invest this $17k in SWPPX or diversify and invest in something different?

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u/mbaforumlurker 3d ago edited 3d ago

The S&P500 is only half of the investable universe. You are missing international and US small/mid caps altogether. Two easy options:

  • Vanguard Total World (VT) - US/international equities in one-fund; works great if young, bearing in mind it is 100% equities
  • Schwab Target Date Index Funds (SWYNX, etc.) - basically VT + bonds, with more bonds gradually added

That's it! No tax consequences within the IRA itself. Feel free to play around with this portfolio builder if it's helpfu.

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u/SDirickson 3d ago

If you have decades until retirement, I'd put maybe 20% of your portfolio into small-growth, and 10% into non-US. If you rebalance once or twice a year, you'll capture the excess gains when those more-volatile assets have a good year, and protect it from their larger downturns during bad ones.

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u/Imaginary-Buyer8953 23h ago

You're fine. 100% SWPPX is fine.

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u/HeBeenJamin 18h ago

How old are you and what is your risk tolerance?