I’m a relatively new investor, 23, but I’m already invested into QQQM, SOXQ, SCHF, VWO, and two stocks: EME and CAT.
I opened a ROTH a couple months back and deposited $1000 and then invested it into QQQI, and it has performed well (but it could’ve been better if I invested it into the underlying fund).
I’m looking for good dividend yields and price appreciation (leaning more towards the latter).
What are some stocks/etfs that can help with this?
What stocks should I invest my $1000 into (Roth IRA).
byu/AlexNeedsHelpLoll ininvesting
Posted by AlexNeedsHelpLoll
7 Comments
What difference does dividend yield make to a 23 year old in a Roth IRA?
SCHG and DGRO might be worth a look.
Why do you want dividends?
Roth IRA in an index. Monthly. Don’t look at it. Don’t think about it.
If you get a job with a 401k – max it out.
This is conventional wisdom for a reason.
Every young man thinks he’s going to be the guy that beats the market. Don’t be another guy that gives his hard earned cash to rich guys.
If I could go back in time and re-start with what I know now, I would just do my current allocation- 65% VTI, 25% VXUS, 5% gld, 5% Ibit. Sectors have too many ups and downs, and you have to time them right- QQQQ (simulated) was terrible from 2000-2015- earning 2% cagr. It took 2020-2025 to pump the numbers back up. If you want to try to outperform, I’d recommend the same allocation, but take 10% at most to actively pick stocks/sectors with. S&P 500 has cagr’d 9.4% and averaged 11% since 1871, that beats almost all funds/stocks over a 20 year period. Make this the majority of your funds, then add some VXUS for time periods when EX-USA beats USA equites like 1969-1989 and 2000-2010 (and 2025). As long as those are the bulk of your retirement, everything else is details, and the amount you contribute is the biggest factor.
Just buy a target date fund because frequent tinkering will mess with your returns..
Keep it simple and stick to a few stock index funds, like a US index fund (e.g. based on S&P500) and an international stock index fund. Don’t bother with trading individual stocks. You can get great returns with indexes, and you can “set it and forget it”. Maybe twice a year, spend 5 minutes rebalancing. If you get into trading individual stocks or more complex trading (options), you’ll likely spend a lot of time on it, a lot of stress & anxiety, and at the end of it you’ll probably do worse than just holding index funds.