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.