re: With Jan 1 approaching...where are you putting your IRA money?

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For someone who just opened a Roth earlier this year at 28 yrs old and is depositing $100 a week, what would be general advice?

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- Index funds instead of individual stocks (you are more likely to under perform market than beat it)
- Dont be fooled by dividends. It is just a forced liquidity event and stock price adjusts to reflect the dispersed capital. I'd rather choose when to take $ out of my investments. (Not a huge issue in a Roth though since no tax on dividends)
- Finish funding 2023 Roth IRA then bump up contributions to max in 2024. A small increase to $134/wk would hit max if started a beginning of year.
- If you insist on picking individual stocks keep them a small portion of overall portfolio and have exit strategy. Roth is a good place for them since no tax on sales so you can stick to your strategy without regard for taxes. I've often failed to sell positions due to tax aversion and didnt have strategy for when to sell.

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For someone who just opened a Roth earlier this year at 28 yrs old and is depositing $100 a week, what would be general advice?

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First congratulations. You are way ahead of the game. Your investment will double every 7-10 years so time is your greatest advantage (rule of 72).

Second never buy an individual stock for retirement investing. Go index all the way and distribute your risk. You really only need some combination of S&P 500 index, total stock market index (VTI), and/or small cap index. Don’t overthink it.

Third if you buy individual stocks outside of your Roth, realize this is mainly a hobby for you and gambling with better odds than Vegas. You cannot beat the market consistently and are not smarter than Wall Street. Index funds are still your best bet.