What are you putting in your Roth IRA?

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AK59
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What are you putting in your Roth IRA?

Post by AK59 »

Curious to know what others are doing with their Roth IRA.

Age: 36

Income: $60K

Occupation: Self-employed (Own a private gym)

IRA Holdings:
T Rowe Price
TRBCX
PRWCX

Goal with IRA
Maximize up to retirement currently investing 100% allocations in to a high growth blue chip fund.
wetgear
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Re: What are you putting in your Roth IRA?

Post by wetgear »

FSKAX (TSM) - Standard for rIRA
FXNAX (TBM) -not the most tax efficient but I like some reduced volatility in my rIRA
FTIHX (TISM) -- Standard for rIRA
USHY (Junk Bonds) -only option for holding tax efficiently

All ERs below 0.2% which is my personal cut off for acceptable expenses.

Note high growth =/= best total return.
Jayx
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Re: What are you putting in your Roth IRA?

Post by Jayx »

Max out 401(k) through employer, $19k + 50% match vested right away. Backdoor Roth conversion at $40k per year.

Target lifetime funds and some Vanguard mutual funds / ETF exposure.
Doctor Rhythm
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Re: What are you putting in your Roth IRA?

Post by Doctor Rhythm »

FSKAX & FTIHX (see wetgear’s post above for definitions)
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GerryL
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Re: What are you putting in your Roth IRA?

Post by GerryL »

This is likely to be different at different stages in life. As a retiree with a substantial tIRA and a nice, little Roth (an investment option that only became available when I was in my 40s), I have most of my international stock in the Roth in the form of Total International Stock Index fund. This was based on a recommendation from a Vanguard CFA and it made sense to me since I don't expect to need to tap it.
bugleheadd
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Re: What are you putting in your Roth IRA?

Post by bugleheadd »

VTI 100%
esteen
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Re: What are you putting in your Roth IRA?

Post by esteen »

VTSAX
VTIAX
This post is for entertainment or information only, and should not be construed as professional financial advice. | | "Invest your money passively and your time actively" -Michael LeBoeuf
lakpr
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Re: What are you putting in your Roth IRA?

Post by lakpr »

VLCAX (Vanguard Large Cap Index), since my taxable has VTSAX and I don't want to be subject to wash sales rules.
bubbadog
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Re: What are you putting in your Roth IRA?

Post by bubbadog »

VTSAX
Triple digit golfer
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Re: What are you putting in your Roth IRA?

Post by Triple digit golfer »

esteen wrote: Thu May 27, 2021 4:52 pm VTSAX
VTIAX
These two funds for me as well.
JS-Elcano
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Re: What are you putting in your Roth IRA?

Post by JS-Elcano »

I have RothIRAs in three places :? , two are 100% VOO and one is 100% VTI.
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ruralavalon
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Re: What are you putting in your Roth IRA?

Post by ruralavalon »

AK59 wrote: Thu May 27, 2021 3:59 pm Curious to know what others are doing with their Roth IRA.

Age: 36

Income: $60K

Occupation: Self-employed (Own a private gym)

IRA Holdings:
T Rowe Price
TRBCX
PRWCX

Goal with IRA
Maximize up to retirement currently investing 100% allocations in to a high growth blue chip fund.
What fund for or brokerage is this Roth IRA with? Do you have any other accounts? It's often better to coordinate investments among all accounts, rather than treat each account separately.

In general use very diversified funds (to reduce your risk) with low expense ratios (to increase your net return. If this Roth IRA is with T.Rowe Price, this wiki article lists funds to consider in an IRA at T. Rowe Price, such as T. Rowe Price Equity Index 500 (PREIX) ER 0.30%.

You could consider rollover of your Roth IRA to a Roth IRA lower cost fund provider like Vanguard, Fidelity or Schwab.

There are other tax-advantaged accounts available for the self employed, which you could consider. Vanguard "Compare SEP-IRAs, SIMPLE IRAs, and i401(k)s", link.

Our accounts are all at Vanguard. My Roth IRA is invested in Vanguard Small-cap Value Index Fund (VSIAX) ER 0.07%. My wife's Roth IRA is invested in Vanguard Total Stock Market Index Fund (VTSAX) ER 0.04%. These are not all of our accounts. I also have a rollover traditional IRA, and we have a joint taxable brokerage account.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
Danw
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Re: What are you putting in your Roth IRA?

Post by Danw »

500 Index, total international, dividend growth, health care, capital opportunity, primecap, mid cap value index. I’ve thought about reducing or eliminating health care ever since Ed Owens retired but inertia has overcome me.
My taxable account has total stock market.
Last edited by Danw on Thu May 27, 2021 5:50 pm, edited 1 time in total.
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TJat
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Re: What are you putting in your Roth IRA?

Post by TJat »

Should be able to get 32k or so in mine this year. All in VTSAX (total stock market index). If I held REITS, they’d be here too
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yangtui
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Re: What are you putting in your Roth IRA?

Post by yangtui »

VTSAX
sycamore
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Re: What are you putting in your Roth IRA?

Post by sycamore »

VTSAX - total stock market
VBR - small cap value
Last edited by sycamore on Fri May 28, 2021 11:16 am, edited 1 time in total.
razorbacker
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Re: What are you putting in your Roth IRA?

Post by razorbacker »

100% FXAIX
euphonious
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Re: What are you putting in your Roth IRA?

Post by euphonious »

100% PSLDX
blueberrypi
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Re: What are you putting in your Roth IRA?

Post by blueberrypi »

Wellington.
JD2775
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Re: What are you putting in your Roth IRA?

Post by JD2775 »

Roth IRA - 100% VFIAX (Vanguard 500 Index Admiral)
Taxable - 100% VTSAX (Vanguard Total Stock Market Index Admiral)
Nohbdy
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Re: What are you putting in your Roth IRA?

Post by Nohbdy »

SWPPX
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dodecahedron
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Re: What are you putting in your Roth IRA?

Post by dodecahedron »

GerryL wrote: Thu May 27, 2021 4:50 pm This is likely to be different at different stages in life. As a retiree with a substantial tIRA and a nice, little Roth (an investment option that only became available when I was in my 40s), I have most of my international stock in the Roth in the form of Total International Stock Index fund. This was based on a recommendation from a Vanguard CFA and it made sense to me since I don't expect to need to tap it.
Agree that different allocation makes sense in different stages of life.

I currently have a large Roth with mostly Schwab's TIPS fund and some equities (all of my international equity is in my Roth and some domestic is also in Roth), a bit of TIAA Trad and TIAA TREA. I am continuing to gradually grow my Roth (still contributing to Roth 403b and Roth IRA each year as well as occasional opportunistic conversions) and expect that equities will probably grow relative to TIPS. (I expect that my ultimate asset allocation for my Roth will eventually converge to one more appropriate for my younger heirs than for me.)
classicindexer
Posts: 184
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Re: What are you putting in your Roth IRA?

Post by classicindexer »

Roth IRA
VNQ
VXUS

Also have a 401k and a Rollover IRA so I am using https://www.bogleheads.org/wiki/Tax-eff ... _placement and aggregate my asset allocation across 3 different accounts.

401k
S&P 500, mid-cap & small cap, and total bond market funds

Rollover IRA
VTI
VXUS
BND
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anon_investor
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Re: What are you putting in your Roth IRA?

Post by anon_investor »

VTSAX and VGT (and small amount is allocated to play money)
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GeraniumLover
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Re: What are you putting in your Roth IRA?

Post by GeraniumLover »

100% VTI. I don't keep International in Roth because then I lose the foreign tax credit.
Bama12
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Re: What are you putting in your Roth IRA?

Post by Bama12 »

25% Each.

Vanguard Wellesley Income-VWINX
Vanguard Total Stock Market-VTI
Vanguard S&P Small Cap 600 Value-VIOV
Vanguard Real Estate-VNQ
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anon_investor
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Re: What are you putting in your Roth IRA?

Post by anon_investor »

GeraniumLover wrote: Thu May 27, 2021 9:04 pm 100% VTI. I don't keep International in Roth because then I lose the foreign tax credit.
So you keep all your international in taxable?
Turtlemilk
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Re: What are you putting in your Roth IRA?

Post by Turtlemilk »

100% VTWAX in both Roth IRAs (+ wife).
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JonnyDVM
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Re: What are you putting in your Roth IRA?

Post by JonnyDVM »

BRSIX as microcap tosses off a lot of dividends. I think I have some Fidelity extended market in that space as well.
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Armani
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Re: What are you putting in your Roth IRA?

Post by Armani »

JS-Elcano wrote: Thu May 27, 2021 5:27 pm I have RothIRAs in three places :? , two are 100% VOO and one is 100% VTI.
May I ask how this is accomplished?
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drumboy256
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Re: What are you putting in your Roth IRA?

Post by drumboy256 »

100% AVUS
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Triple digit golfer
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Re: What are you putting in your Roth IRA?

Post by Triple digit golfer »

anon_investor wrote: Thu May 27, 2021 9:21 pm
GeraniumLover wrote: Thu May 27, 2021 9:04 pm 100% VTI. I don't keep International in Roth because then I lose the foreign tax credit.
So you keep all your international in taxable?
Where do you hold your international? :twisted:
dru808
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Re: What are you putting in your Roth IRA?

Post by dru808 »

Armani wrote: Thu May 27, 2021 9:33 pm
JS-Elcano wrote: Thu May 27, 2021 5:27 pm I have RothIRAs in three places :? , two are 100% VOO and one is 100% VTI.
May I ask how this is accomplished?
How what is accomplished?
Good growth stock mutual funds. D.R.
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anon_investor
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Re: What are you putting in your Roth IRA?

Post by anon_investor »

Triple digit golfer wrote: Thu May 27, 2021 9:38 pm
anon_investor wrote: Thu May 27, 2021 9:21 pm
GeraniumLover wrote: Thu May 27, 2021 9:04 pm 100% VTI. I don't keep International in Roth because then I lose the foreign tax credit.
So you keep all your international in taxable?
Where do you hold your international? :twisted:
The same place you hold your emergency fund! :twisted:
Triple digit golfer
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Re: What are you putting in your Roth IRA?

Post by Triple digit golfer »

anon_investor wrote: Thu May 27, 2021 9:46 pm
Triple digit golfer wrote: Thu May 27, 2021 9:38 pm
anon_investor wrote: Thu May 27, 2021 9:21 pm
GeraniumLover wrote: Thu May 27, 2021 9:04 pm 100% VTI. I don't keep International in Roth because then I lose the foreign tax credit.
So you keep all your international in taxable?
Where do you hold your international? :twisted:
The same place you hold your emergency fund! :twisted:
:sharebeer
Armani
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Re: What are you putting in your Roth IRA?

Post by Armani »

dru808 wrote: Thu May 27, 2021 9:42 pm
Armani wrote: Thu May 27, 2021 9:33 pm
JS-Elcano wrote: Thu May 27, 2021 5:27 pm I have RothIRAs in three places :? , two are 100% VOO and one is 100% VTI.
May I ask how this is accomplished?
How what is accomplished?
Multiple Roths. Or do you just divide your yearly allotment of $6,000 among the three as opposed to doing it all in one account?
JS-Elcano
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Re: What are you putting in your Roth IRA?

Post by JS-Elcano »

Armani wrote: Thu May 27, 2021 9:33 pm
JS-Elcano wrote: Thu May 27, 2021 5:27 pm I have RothIRAs in three places :? , two are 100% VOO and one is 100% VTI.
May I ask how this is accomplished?
I have my pre-tax retirement account with TIAA and therefore opened my first RothIRA with them (had never heard of VG or Fido at that time). After a few years of contributing to it, I discovered VG and opened a RothIRA there because of the availability of better funds (100% VTI). In the meantime, TIAA added a brokerage option to the RothIRA so I can now invest in anything I want there too and have it in VOO. And then I have two Roth403bs (sorry was mistaken about them being RothIRAs). One I opened at TIAA, but when they did not allow me to pick different funds for the 403b and the Roth403b I decided to go to Fidelity with the Roth and kept the 403b at TIAA. I once tried to move the RothIRA from TIAA to VG, but it was so complicated and involved so much paperwork and medallion signatures that I gave up. I have a handy excel spread sheet that keeps it all sorted, but I do wish I had known what I was doing when I started out and avoided this mess :oops:
JS-Elcano
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Re: What are you putting in your Roth IRA?

Post by JS-Elcano »

Armani wrote: Thu May 27, 2021 10:01 pm
dru808 wrote: Thu May 27, 2021 9:42 pm
Armani wrote: Thu May 27, 2021 9:33 pm
JS-Elcano wrote: Thu May 27, 2021 5:27 pm I have RothIRAs in three places :? , two are 100% VOO and one is 100% VTI.
May I ask how this is accomplished?
How what is accomplished?
Multiple Roths. Or do you just divide your yearly allotment of $6,000 among the three as opposed to doing it all in one account?
I only contribute the full amount to the RothIRA at VG now.
Robert20
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Re: What are you putting in your Roth IRA?

Post by Robert20 »

classicindexer wrote: Thu May 27, 2021 8:55 pm Roth IRA
VNQ
VXUS

Also have a 401k and a Rollover IRA so I am using https://www.bogleheads.org/wiki/Tax-eff ... _placement and aggregate my asset allocation across 3 different accounts.

401k
S&P 500, mid-cap & small cap, and total bond market funds

Rollover IRA
VTI
VXUS
BND
Why VXUS inside Roth? U r missing FTC.
Armani
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Re: What are you putting in your Roth IRA?

Post by Armani »

Question, what happens if you have a Roth IRA and earn more than the limit? How would the brokerage house know to stop you? For you get some sort of penalty come tax time?
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AerialWombat
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Re: What are you putting in your Roth IRA?

Post by AerialWombat »

deleted
Last edited by AerialWombat on Sat Feb 05, 2022 4:55 pm, edited 1 time in total.
This post is a work of fiction. Any similarity to real financial advice is purely coincidental.
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anon_investor
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Re: What are you putting in your Roth IRA?

Post by anon_investor »

Robert20 wrote: Thu May 27, 2021 10:05 pm
classicindexer wrote: Thu May 27, 2021 8:55 pm Roth IRA
VNQ
VXUS

Also have a 401k and a Rollover IRA so I am using https://www.bogleheads.org/wiki/Tax-eff ... _placement and aggregate my asset allocation across 3 different accounts.

401k
S&P 500, mid-cap & small cap, and total bond market funds

Rollover IRA
VTI
VXUS
BND
Why VXUS inside Roth? U r missing FTC.
In a high enough tax bracket, doesn't the tax drag of the higher dividend yield and unqualified dividends from VXUS become too much for the FTC to offset?
Ron Ronnerson
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Re: What are you putting in your Roth IRA?

Post by Ron Ronnerson »

Age: 46 and 46

Income: $115k

Occupations: public school teacher and stay-at-home parent

We mostly put VXUS (Vanguard Total International Stock Market Fund) in our Roth IRA accounts lately though we also have VTI (Vanguard Total Stock Market Fund) in there from past years. We contribute $12k/year.

Other Accounts: Total U.S. Stock Market Fund goes into a 457b ($19.5k/year) and Total Bond Market goes into a 403b ($19.5k/year) and I also contribute $11.5k toward a teacher's pension.

Overall asset allocation is about 50/30/20 (U.S. Stocks/International Stocks/Bonds). The pension should pretty much cover our retirement expenses (expecting $100k/year around age 60 with 100% survivor benefits and COLA).
phantom0308
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Re: What are you putting in your Roth IRA?

Post by phantom0308 »

classicindexer wrote: Thu May 27, 2021 8:55 pm Roth IRA
VNQ
VXUS

Also have a 401k and a Rollover IRA so I am using https://www.bogleheads.org/wiki/Tax-eff ... _placement and aggregate my asset allocation across 3 different accounts.

401k
S&P 500, mid-cap & small cap, and total bond market funds

Rollover IRA
VTI
VXUS
BND
+1, this is my strategy as well. No rollover IRA (rolled into 401k), so I can use back door Roth
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jakehefty17
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Re: What are you putting in your Roth IRA?

Post by jakehefty17 »

My Roth IRA is at Fidelity.

40% - FTIHX (Fidelity Total International Index Fund) - ER 0.06%
30% - FXAIX (Fidelity 500 Index Fund) - ER 0.015%
30% - FSMAX (Fidelity Extended Market Index Fund) - ER 0.035%

I plan to hold a mid/small-cap tilt in my Roth IRA and HSA accounts like this for the long term. Easier to rebalance the accounts, and holding more risk in that tax-exempt space. I split equities 60% US and 40% INT in all accounts that are not using an ACWI (All-Country World Index). I'm 29 years old, so that money wont be touched for a long time.

My 401k is a global total market index fund, a couple bond index funds, and a global REIT index fund. I hold VTI and VXUS in my taxable account. Mostly because those are either the best funds available or the easiest to manage. This helps balance my overall portfolio.

Spreadsheet says that overall right now I'm about 11% bonds, 89% equity - and approximately 71% Large cap, 20% Mid cap, and 9% Small cap. A typical all-country world index is 75% large, 18% Mid and 7% Small... so overall a very minor tilt to my portfolio. Makes things a little more interesting to compare returns between accounts though.

That's what I've been doing... working out okay so far. :sharebeer
"The problem with the world is that the intelligent people are full of doubts, while the stupid ones are full of confidence." -Charles Bukowski
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TJat
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Re: What are you putting in your Roth IRA?

Post by TJat »

Armani wrote: Thu May 27, 2021 10:06 pm Question, what happens if you have a Roth IRA and earn more than the limit? How would the brokerage house know to stop you? For you get some sort of penalty come tax time?
Look up the back door Roth technique. You make a non deductible after tax contribution to a traditional IRA and roll it over to a Roth.
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dogagility
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Re: What are you putting in your Roth IRA?

Post by dogagility »

Maximizing growth potential... 100% stock index.
The more flexibility you have the less you need to know what happens next. -- Morgan Housel. A penny saved in a storage headache. -- Conor Friedersdorf
Armani
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Re: What are you putting in your Roth IRA?

Post by Armani »

TJat wrote: Fri May 28, 2021 6:19 am
Armani wrote: Thu May 27, 2021 10:06 pm Question, what happens if you have a Roth IRA and earn more than the limit? How would the brokerage house know to stop you? For you get some sort of penalty come tax time?
Look up the back door Roth technique. You make a non deductible after tax contribution to a traditional IRA and roll it over to a Roth.
I understand what you’re supposed to do. What I’m wondering is if you contribute to your Roth anyway. If they catch you, what happens?
TSWNY
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Re: What are you putting in your Roth IRA?

Post by TSWNY »

Mine and my Wife's are a mix of VTSA and VTIAX
classicindexer
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Re: What are you putting in your Roth IRA?

Post by classicindexer »

Robert20 wrote: Thu May 27, 2021 10:05 pm
classicindexer wrote: Thu May 27, 2021 8:55 pm Roth IRA
VNQ
VXUS

Also have a 401k and a Rollover IRA so I am using https://www.bogleheads.org/wiki/Tax-eff ... _placement and aggregate my asset allocation across 3 different accounts.

401k
S&P 500, mid-cap & small cap, and total bond market funds

Rollover IRA
VTI
VXUS
BND
Why VXUS inside Roth? U r missing FTC.
DW and I have a joint taxable brokerage with VTI and VXUS so we get some FTC. Taxable balance right now is only about 10% of our total retirement accounts.

We have two Rollover IRAs and two Roth IRAs and one 401k. In the 22% tax bracket and still in the accumulation phase so this was the way to get to our target AA. Taxable is nowhere near the balance of what our desired AA is for VXUS.

If VXUS is in a 401k or Rollover IRA you also miss the FTC, correct?
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