Roth investments

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tangelo
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Joined: Sun Aug 06, 2017 8:20 pm

Roth investments

Post by tangelo » Sun Aug 06, 2017 8:23 pm

Hey guys,

I can afford high risk in my Roth IRA. But I wanted to hedge it with some safety as well. Would this be ok?

Vanguard S&P Small-Cap 600 Growth ETF (VIOG) 25%
Schwab U.S. Large-Cap Growth (SCHX) ETF 20%
Vanguard REIT ETF (VNQ) 20%
Take Two Interactive Software Inc (TTWO) 15%
Glu Mobile Inc (GLUU) 10%
Arotech Corp (ARTX) 10%

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Jerry55
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Joined: Tue Jan 27, 2015 1:56 am
Location: That Toddlin' Town

Re: Roth investments

Post by Jerry55 » Sun Aug 06, 2017 9:09 pm

Honestly, whatever is good for the goose is always or not always good for the gander.

That's like asking "Does this fit" if no one knows your size, the size of what you're trying on, or your sex.
Usually, what you feel is a good fit is good for you, and without knowing more specifics, that's a tuff question for certain.

Hopefully, someone comes in with a better response that me.
Retired 12/19/2012 @ age 57 | Good Bye Tension, Hello Pension !!!

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David Jay
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Joined: Mon Mar 30, 2015 5:54 am
Location: Michigan

Re: Roth investments

Post by David Jay » Sun Aug 06, 2017 9:16 pm

Welcome to the forum. A couple of thoughts:

1. Single-stock risk is "off the charts" high. You have 45% in 3 individual company stocks. I would read "A Random Walk Down Wall Street" first. If you want to make a "bet" on individual stocks, I would hold the total (all 3) under 10%. Your Roth space is too valuable to take "flyers" with that space.

2. There is a lot of academic support for "value" and "small cap" tilts, but I have not seen any support for "growth". I would swap Small Cap Growth and Large Cap Growth for Small Cap Value and Large Cap Value.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

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ruralavalon
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Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: Roth investments

Post by ruralavalon » Sun Aug 06, 2017 9:21 pm

Welcome to the forum :) .
tangelo wrote:Hey guys,

I can afford high risk in my Roth IRA. But I wanted to hedge it with some safety as well. Would this be ok?

Vanguard S&P Small-Cap 600 Growth ETF (VIOG) 25%
Schwab U.S. Large-Cap Growth (SCHX) ETF 20%
Vanguard REIT ETF (VNQ) 20%
Take Two Interactive Software Inc (TTWO) 15%
Glu Mobile Inc (GLUU) 10%
Arotech Corp (ARTX) 10%
What is OK, high risk or hedged, depends on lots of information you haven't told us like -- your age, your debts, your tax bracket, your other accounts and investments. Please see the post "asking portfolio questions".

David Jay is correct that a value fund might be better than a "growth" fund, and in suggesting not using stocks of individual companies.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

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celia
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Joined: Sun Mar 09, 2008 6:32 am
Location: SoCal

Re: Roth investments

Post by celia » Sun Aug 06, 2017 11:12 pm

If your Roth is worth $5K or less, it probably doesn't matter since the potential losses in individual stocks would be small (although the lesson could be good for you).

But if the Roth is worth $5M, you are crazy to rely on individual stocks to that extent.

fundseeker
Posts: 630
Joined: Mon Dec 24, 2007 9:02 am

Re: Roth investments

Post by fundseeker » Mon Aug 07, 2017 5:47 am

No, it is not okay. I don't see any safety hedge in that mix. If you really want to benefit from this forum, you will need to post information about your entire financial situation. Welcome!

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