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21 Year Old Looking for Most Value/Growth for a Roth IRA
5 Top-Ranked Small-Cap ETFs to Buy for the January Effect
5 Top-Ranked Small-Cap ETFs to Buy for the January Effect
Recommended allocation for long term investing - large cap vs small/mid cap
Facebook/Meta "fair value estimate" at Morningstar is 400/share.
First ever options trade (covered call). Can you help me understand what I'm looking at...?
SQUEEZE _ IMPORTANT 🦍 SHARE!!! 💎🖐 re-post I didn’t write this, credit to u/qilin22 HODL, it is that SIMPLE if 🦍 wants LOTS of 🍌 #AMC2008.01 NOT financial advice, I like the stock, it’s only my personal opinion, Do whatever you like, Do your own DD, I like crayon colored popcorn.
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Well AVUV is having a rough year, but the 5yr performance is double that of SCHA and VB. Small cap is also the kind of fund I want actively managed, which AVUV is. Like I said, it’s the only small cap equity I have.
Well AVUV is having a rough year, but the 5yr performance is double that of SCHA and VB. Small cap is also the kind of fund I want actively managed, which AVUV is. Like I said, it’s the only small cap equity I have.
Nope. I use schwab so SCHF and SCHA ETF are what I use. I keep the gambling money to less than 1% of my overall investments. Literally "this money could get tossed in a fire and it wouldn't bother me". That money has probably made me richer. It reminds me that most of my individual picks are kind of dog shit.
SCHG isn't more aggressive; it's a bet that "growth" stocks (ones that have lower expectations and thus lower prices) will outperform the average. Historically they sometimes do and sometimes don't, and on average over longer time periods are basically the same to a little worse than the average. SCHA _is_ more aggressive, although [people have noticed small cap growth is particularly underwhelming](https://www.etf.com/sections/index-investor-corner/swedroe-small-cap-growth-anomaly) and so a popular option is to do [small cap value](https://www.optimizedportfolio.com/best-small-cap-value-etfs/) instead. That can take time to bear out though so you need to be convinced of the thesis. SCHB and SCHF is a very reasonable choice if you want to stick with it.
I’m trying to out away $500 a month in a Roth IRA and I have a question. Wife and I are mid 30s and I’ve been putting most of the money in SCHB and SCHF but wondering if, since we are still relatively young, if I should switch the SCHB to something more aggressive like SCHG or SCHA. Also have custodial accounts for our kids and same thing. I have all theirs in SCHB also. Thanks for any advice!
I’m trying to out away $500 a month in a Roth IRA and I have a question. Wife and I are mid 30s and I’ve been putting most of the money in SCHB and SCHF but wondering if, since we are still relatively young, if I should switch the SCHB to something more aggressive like SCHG or SCHA. Also have custodial accounts for our kids and same thing. I have all theirs in SCHB also. Thanks for any advice!
I’m trying to out away $500 a month in a Roth IRA and I have a question. Wife and I are mid 30s and I’ve been putting most of the money in SCHB and SCHF but wondering if, since we are still relatively young, if I should switch the SCHB to something more aggressive like SCHG or SCHA. Also have custodial accounts for our kids and same thing. I have all theirs in SCHB also. Thanks for any advice!
>Am I correct to have a sense of urgency not leaving this type of cash in CD’s perhaps. what's the time horizon? if you'll need this money in less than about 5 years just leave in CDs. if it's 5+ years, think about investing at least part of it. it's not all or nothing. you could invest half the cash, and leave the other cash in the bank. >despite the overvalued markets there are more options than VOO or VTI, which are at high valuations historically. VOOV, FNDX or SCHD has a much more attractive valuation than VOO. small cap stocks are also more reasonably valued (IJR, AVUV, SCHA), ditto for international broadly speaking. >how would you diversify? much more international, and probably more bonds. possibly diversify into more reasonably valued options. at current market valuations like CAPE ratio, the US market is likely to have disappointing returns in the next 10-12 years while international stocks are likely to perform better. Bonds are also likely to perform pretty well. The projections from Research Affiliates for the next 10 years are pretty typical, and historically their forecasts have been more accurate than not. you can see for yourself that international stocks are likely going to perform better than US stocks. https://tinyurl.com/336v3yvd >I’m 46, and not yet ready for bonds see above. Bonds beat the S&P 500 from 2000 to 2020, so you're not guaranteed to get the best long-term results from stocks. https://www.nytimes.com/2020/05/01/business/bonds-beat-stocks-over-20-years.html
I made the mistake initially of having my 401k and Roth almost mirroring each other. So if you can find low cost index funds then you should have that as bulk or your 401k and at least in my humble opinion take different risks in your brokerage account. e.g. I used to have S&P 500 index fund, small cap, in 401k and SPY, SCHA in my Roth brokerage. Then realized that it was the same risk and in my brokerage account I have what 401k doesn't offer (bit of SCHG, SCHD, SCHH, SCHE, GLD, BTC). hopefully this helps.
Im deep in SCHA shares right now. Lower fed rates in theory benefit small caps more due to cheaper borrowing to help boost companies more. Hopefully small caps out perform in the next year or so
SCHA is redundant because you already have US small cap in SWTSX. SCHE is not redundant because you don't have exposure to emerging markets. A core global stock position using Schwab funds would be SCHB (or SWTSX), SCHF, and SCHE. F and E are only large cap, so if you wanted to fill in there you'd need to add additional funds.
Is it too redundant to add SCHA and SCHE to my portfolio of SCHG SCHF and SWTSX? I have a large growth tilt going that I am ok with but I want to be sure I am fully diversified too. I am 23 and will hold this for 40 years
Leave your investment in the company you mentioned, if all your other boxes are filled, get some broad market investments. ETFs allow you to invest and be broad and keep your money invested but not have to worry if APPLE is doing the right thing all the time. I like SCHA, SCHB, SCHB but there are tons of options. I like them because the price is lower than VOO or SPY. But I am a simple person. Set a target, when company A get stolen $100 a share you sell and move it into broader fund to play it safe. You know you made some money but didnt risk it for ever.
I sold a loss of SCHA for -60 and moved the funds to SOXL at $12, now up on those funds $200+. Sometimes it’s good to cut losses for greater opportunities
I’ve been building a cash position for a year now and have not spent much. Also took some early losses and converted some positions to cash or shifted them into Brk B, GME, GLD and SCHA (Shibsted Oslo)
I know literally one person who knows anything about the stock market and they are just an acquaintance. They said we should put as much money as possible in the following stocks because they are at a record low: SCHF, SCHA, SCHR, SCHX I would love to hear opinions from anyone who knows what they are talking about. I’m ready to pull the trigger and put 1-4k in each of those.
* Why have any dividend focus at all? * Have you considered either SWTSX or SCHB to combine SWPPX + SCHA into one? * You're currently taking on a tilt towards emerging markets compared to developed (market cap weight would be roughly 35% of stock as combined international, within that roughly 70-75% would be developed, the rest emerging). The 2 are fine, but if you want further simplicity and are willing to give up the emerging tilt, you could use VXUS or IXUS instead for your international coverage (Schwab went free to trade on ETFs, even those from other issuers, back in 2019).
Vxus, IEMG, XLP, SCHA. I don’t trust much rn
SCHH is Schwab’s REIT ETF (since you asked about REITs). SCHA is US small-cap. SCHC is foreign (developed) small-cap. For broader market ETFs you can go with SCHB (broad US market), SCHF (broad foreign (developed) market) and/or SCHE (broad foreign (emerging) market).
Yeah true and the AI bubble is not equal to the dot com bubble - people are making money and buyers are mega cap corporations vs little companies which bought Cisco. AI models are getting more and more expensive. I am going to hold my position in VOO after all the advice but I do think I am going to diversify into SCHA, ISF, JEPI and Intermediate corp bonds.
Your argument is good and AI is going to keep on giving. I just think the potential is too enormous. I am probably not selling my VOO (I have about 32K right now - not a huge percent but a decent investment). I just think for me I am going to diversify into ISF this year a bit more since that's majorly under valued and UK about to have a good couple years. I also am going more JEPI and SCHD, SCHA as I am a bit older and like dividends. I also think this should finally be a good year for small cap rotation hence SCHA.
VTI VXUS VUG SCHA VNQI I like VTSAX and VTIAX or just VT Keep in mind everyone has different goals, age till retirement or withdrawal for FIRE movement etc, paid off house vs renting or mortgage, debt free, job security, Dual income. In retirement vs just starting out. Ultimately you should have a nice emergency fund in an online savings account and then invest in roth then 401k up to match then pay off items over 5% interest rate. Then invest in brokerage, kids 529 plan, hsa too
I’ve got SPLG/SCHA/SCHG
When you have an allocation at 5% or less it basically becomes negligible to affecting rate of return , at least for funds , if it were individual stocks which could return 20% or more than it can affect your overall cagr. Also VB is the largest market cap of small cap funds https://www.morningstar.com/funds/why-how-index-us-small-caps, I would do either 100% AVUV/ DFSV for your small cap part, or have a core small core fund like IJR or SCHA then add SCV. To replace VOOG and tech , use QQQ VOO 35% QQQ 25% AVUV 40%
Look at SCHA for scv or vanguard strategic equity. VSEQX
Mainly VOO, I also have VUG, VXUS, and SCHA
I think VOO is great and it’s probably my main one rn probably. I did read in the past that it’s good to have some different ETFs that follow different parts of the market so I followed that advice. I have VOO since it follows the S&P 500 VUG, it targets potential growth and has been my best performing ETF(might have bought it at a good time as well) VXUS for international companies, not performing as great as VOO but thought I’d add it for diversification. SCHA, small cap portion of the total stock market. I think it’s totally fine to just park it in VOO or something similar and you’ll do great. I added the others to target different areas of the market and there maybe better ones but I don’t worry about it too much. Most of my holdings, maybe 40% are in VOO and it’s outpaced all the others except VUG since I bought them.
At 21, regularly contribute some of paycheck to VOO.SCHX SCHA or whatever the other typical indexes are. Respect for learning about options but time in the market typically beats timing the market and while you could be lucky and keep doing well with options you could also lose everything you have in a day. Pandemic or another black swan event may show you that you can lose a huge chunk of what you have even if you aren't playing options. Record what you have with some interval because charts can be misleading. Pick some stocks to practice regular trading with while being mindful of your annual taxes. Do this for a few years maybe and revisit options with a safety net strategy in place for yourself with some money set aside as an "oh shit" fund. Wish you luck. I didn't have this at 21
Small cap index. SCHA trading around $50-55 a share. Cheapest name on my radar.
90% SCHG 10% SCHE. Personally I like 50% SCHG 20% SCHA 20% SCHM 10% SCHE
Buying everything via SCHA/G/M and X
A lot of interest in small caps lately, a lot of excitement being generated around the idea that rate cuts are substantial tailwinds. I was interested in the relative performance of various ETFs about 8 months into the year. Here is a table of the 8 largest small cap ETFs by AUM. Note this is delayed data as of Thursday close. Since a lot of movement occurred Friday, I will try to put up another one tomorrow. Still should give you an idea of relative performance and it appears rankings between them did not change too much, [they all did great Friday.](https://i.imgur.com/UExjX7q.png) |**Symbol**|**ETF Name**|**Total Assets ($MM)**|**YTD Price Change**|**Avg. Daily Volume**| :-:|:-:|:-:|:-:|:-:| |IJR|iShares Core S&P Small-Cap ETF|$84,851|5.15%|3,539,714| |IWM|iShares Russell 2000 ETF|$68,282|6.97%|31,931,624| |VB|Vanguard Small Cap ETF|$58,188|7.55%|601,177| |VBR|Vanguard Small Cap Value ETF|$29,433|8.32%|409,989| |SCHA|Schwab U.S. Small-Cap ETF|$17,571|5.84%|856,555| |VBK|Vanguard Small Cap Growth ETF|$17,542|6.59%|291,578| |AVUV|Avantis U.S. Small Cap Value ETF|$12,682|3.99%|735,970| |IWO|iShares Russell 2000 Growth ETF|$11,666|8.78%|411,345| Very different benchmark and a poor comparison but S&P 500 is 18.1% YTD.
A lot of interest in small caps lately, the thesis being that cuts are good for them. I was interested in the relative performance of various ETFs about 8 months into the year. Here is a table of the 8 largest small cap ETFs by AUM. Note this is delayed data as of Thursday close. Since a lot of movement occurred Friday, I will try to put up another one tomorrow. Still should give you an idea of relative performance and it appears rankings between them did not change too much, [they all did great Friday.](https://i.imgur.com/UExjX7q.png) |**Symbol**|**ETF Name**|**Total Assets ($MM)**|**YTD Price Change**|**Avg. Daily Volume**| :-:|:-:|:-:|:-:|:-:| |IJR|iShares Core S&P Small-Cap ETF|$84,851|5.15%|3,539,714| |IWM|iShares Russell 2000 ETF|$68,282|6.97%|31,931,624| |VB|Vanguard Small Cap ETF|$58,188|7.55%|601,177| |VBR|Vanguard Small Cap Value ETF|$29,433|8.32%|409,989| |SCHA|Schwab U.S. Small-Cap ETF|$17,571|5.84%|856,555| |VBK|Vanguard Small Cap Growth ETF|$17,542|6.59%|291,578| |AVUV|Avantis U.S. Small Cap Value ETF|$12,682|3.99%|735,970| |IWO|iShares Russell 2000 Growth ETF|$11,666|8.78%|411,345| Very different benchmark and a poor comparison but S&P 500 is 18.1% YTD.
A lot of interest in small caps lately, the thesis being that cuts are good for them. I was interested in the relative performance of various ETFs about 8 months into the year. Here is a table of the 8 largest small cap ETFs by AUM. Note this is delayed data as of Thursday close. Since a lot of movement occurred Friday, I will try to put up another one tomorrow. Still should give you an idea of relative performance and it appears relative rankings did not change too much: [https://i.imgur.com/UExjX7q.png](https://i.imgur.com/UExjX7q.png) || || |**Symbol** |**ETF Name** |**Total Assets ($MM)** |**YTD Price Change** |**Avg. Daily Volume** | |IJR|iShares Core S&P Small-Cap ETF|$84,851|5.15%|3,539,714| |IWM|iShares Russell 2000 ETF|$68,282|6.97%|31,931,624| |VB|Vanguard Small Cap ETF|$58,188|7.55%|601,177| |VBR|Vanguard Small Cap Value ETF|$29,433|8.32%|409,989| |SCHA|Schwab U.S. Small-Cap ETF|$17,571|5.84%|856,555| |VBK|Vanguard Small Cap Growth ETF|$17,542|6.59%|291,578| |AVUV|Avantis U.S. Small Cap Value ETF|$12,682|3.99%|735,970| |IWO|iShares Russell 2000 Growth ETF|$11,666|8.78%|411,345|
40% Large Cap (SCHX), 25% Mid Cap (SCHM), 25% Small Cap (SCHA), 10% Emerging Markets (SCHE)
50% VOO 10% SCHA 40% in mid cap stocks is my diversification
In my brokerage I have 50% VOO since I don't really like holding large caps individually and I trust the market entirely, I bought some SCHA since I think 1-2 september rate cuts are inevitable, and i'll be buying a few shares each week up until september.
I would sell half on NVDA and put it SCHA or AVUV
An advisor would just put some into QQQ, some into SCHD, some into SCHD, RYLD, SCHA, and lastly some into a money market fund. Thats what mine did when I had a lump sum of 300k. Then I left them after a year or so because they take 1% and suck all your dividends away. I'm free now and just letting that ride and reinvesting it.
Please critique or give pointers on my portfolio. I’m in this for the long haul so I can take on risk and deal with it no problem. SWPPX SCHD SCHA SCHH SCHF SCHE
>But do we think small caps will outperform a growth etf long term now that growth rebalances and is fairly new compared to small cap ETFs? No. These new finds just follow old ideas. Growth and value have always rebalanced. Growth has far higher valuations than value. Currently the P/E is over 35 for SCHG, compared to under 20 for SCHV. Price to book of over 8 for SCHG compared to less than 3 for SCHV. Thinking about it, wouldn't the rebalancing of a growth ETF actually be harmful to expected returns? It'd be dropping the things with lower valuations, wouldn't it? And isn't a low valuation exactly what factor investing would favor? >SCHG vs SCHA (growth etf vs small cap etf). You might be mixing up 2 different factors. Growth vs value, small vs large. You can arrange things on a 3x3 grid with value, blend, and growth on one axis and small, medium, and large on another, so you'd be able to get small growth or large value. After tax total return is what matters.
I would be curious as to your insight on SCHG vs SCHA (growth etf vs small cap etf). I wrestled with this for a while knowing everyone said small caps tend to outperform long term. The reason I chose SCHG is because I hold it in a taxable account. (So that’s a personal thing for me and not indicative of everyone else’s experience). So I rely on growth. But do we think small caps will outperform a growth etf long term now that growth rebalances and is fairly new compared to small cap ETFs? I know that was a lot but I was genuinely curious as to your thoughts on the matter. I am thinking due to tax advantages and the major companies we have growth may outperform small caps long term. But dividends make up a lot of returns with some small cap ETFs. Idk. Lol
IWM if you want to sell options against it. Otherwise SCHA or VB.
I have my Roth IRA on Charles Schwab. Currently, I have my money in SWPPX, SCHH, SCHE, SCHF, SCHD, SCHX, SCHA. I chose these trying to mirror a target date index fund but didn't really want bonds included so I did everything individually and I also like the process of buying whatever I choose every week. I.guess I want to know if these funds are pointless if I'm investing in SWPPX and if there is a lot of overlap here.
I started at 29 as well. It starts slow man but you got to get going at some point. You’re early enough that it’s more than worth it. Open a Schwab account and start putting money in monthly. By safe stocks, I do mostly Schwab ETFs… SCHG, SCHB, SCHD, SWPPX, SCHA, SCHF. Not equally weighted. I invest bi weekly and have had a 9% return over 3 years. Started at 29
For what it's worth, my strategy is as follows, and I wish I had done this when I was your age: 1) Max out 401k for the year, currently $23,000 2) Max out traditional or Roth IRA, currently at $7,000. I have to do a backdoor Roth conversion to do this. 3) If available, choose your company's high deductible plan and max out the HSA, currently at $4,150 for an individual and $8,300 for family. I no longer use the HSA to pay for medical expenses. I pay them out of pocket and invest the HSA. I.e., I basically treat the HSA like a 401k. 4) Personally invest in broad market ETFs. I was putting money into SCHB, but now I've stopped. My original reason was that I reinvested all dividends, and I thought that since SCHB tracked the market and was more stable that it would be good. But I've been trying to consolidate my ETFs and not have so much overlap. So now it's just SCHB, SCHA, SCHG, SCHE, SCHF. I wish I had done this *much, much, much* sooner. It took me until my late thirties to figure this all out. I'd probably be a millionaire by now if I had done this. And I regret working for startups that didn't have 401k matches.
I was doing all SCHG as well but started to diversify a bit. SCHG is just way too tech heavy for me even if my investment window is 25 years. I'm now 55% SCHG, 20% SCHB, 10% SCHA, and 10% SCHF, 5% SCHE. I feel a lot better about this blend going forward. I realize I'll probably earn a percent or two less with this but I just don't fathom tech being the bull it's been for another twenty years. I think Ai is going to be a lot like the driverless car craze not too long ago. Everyone was convinced travel would be automated by now but like most things the final 10% is 90% of the actual work. Ai is going to change a lot of minor things quickly and then stall out.
Yes - if you’re asking a question, maybe try to find the answer first. If you search SCHA - Schwab U.S. Small Cap ETF.
THOUGHTS ON PORTFOLIO SCHA : $43 IBM: $125 SCHD: $130 VIG: $150 VOO: $290 Keep in mind this is my first portfolio and I’m honestly just learning the ropes of investing. I’m investing about $100-200 every week or so Goals are for the long term more than anything and I’m looking to maintain diversification. Lmk what you think. Good, bad, and ugly. THANKS!
SCHA : $43 IBM: $125 SCHD: $130 VIG: $150 VOO: $290 Keep in mind this is my first portfolio and I’m honestly just learning the ropes of investing. I’m investing about $100-200 every week or so Goals are for the long term more than anything and I’m looking to maintain diversification. Lmk what you think. Good, bad, and ugly. THANKS!
At 80, my investing experience has spanned a relatively short 40 years. And all the ups and downs of the markets including the devastating 2001-2003 arctic plunge and the 2008-2009 debacle where I "lost" around 50% of my portfolio each time. My approach has always been DIY - and in retrospect arrogantly so given my total lack of knowledge of finance or the markets. If there was a mistake to be made, I made it. My saving grace was that I never sold during the big downturns. Not because I was smart but because I froze and didn't know what to do. Dumb blind luck. Over the years I slowly settled into a pattern. First, why does everyone try to "beat" the market? Whoever set that as the benchmark for everyone? So I decided that my goal would be to work toward a yearly annual average gain of 10% - what I call my benchmark for doubling my money in a reasonable amount of time. Quality stocks that pay dividends with those dividends reinvested in the same company. Second, I discovered that a financial statement looks like hieroglyphics so I looked for sources that could do the heavy lifting for me. For valuation I use Fast Graphs, for dividend safety Simply Safe Dividends (really great spreadsheet), and for quality, ValueLine (600). Between the three I have all the information I need and for less than $600 a year. Third, when I discovered the dividend growth strategy I knew I had found my "home." It is my foremost strategy. But I do include a few index funds for areas I'll never understand - like small cap. Rather than acting like a monkey throwing darts at a listing of small cap stocks, I use SCHA. If you want to beat an index, my advice is just invest in the index. But if you choose to actively manage, set your own personal goals and ignore the hype. In my 40 years I've gone from an investment of $150K to over 2m. Probably could have done much better if I had invested in the index but like I said, I'm a DIY person and have loved every minute of my journey. And I have more income in my retirement than I ever made working. Praise to the markets! And my mentors Charles Schwab, John Bogle, and Warren Buffett.
If you have 60% of your net worth in big cap stocks like spy voo and VTI, it would also be okay to buy some small caps and mid-cap ETFs and stocks to kind of even out your portfolio because they are still underperforming and have not hit a bull market's cycle just yet. There's lots of good ETFs for small and mid caps VTWO IWM VTWV VOE VB SCHA MDYV Or maybe consider investing in actively traded ETFs FLPSX - buys undervalued companies in the small and mid-cap region. (Mostly) and is an actively traded ETF that has consistently done very well versus s&p 500 ZSCCX- uses Zach's proprietary info to maintain a solid ETF holding of small cap stocks. I found out about this ETF a little over a month ago and I'm already up over 11% since purchase I noticed in September and October. How every time Apple, Microsoft and the top magnificent seven stocks had a big move. My coal account was moving with it and wanted to kind of diversify a little more so I added a few hundred dollars of each of these above and my account is doing very well and I believe small and mid-cap stocks will continue to do well in 2024. Just my opinion. Best of luck. Not financial advice. I'm just a dude that reads a lot of reddit post
because small cap were 6% up just today (SCHA)
look at SFY but I am also a fan of SCHM, SCHA, and SCHF
Hey everyone. I just turned 21 and have finally been able to earn $6500 to invest in my Roth. Most of my money is in a high yield savings account in Wealthfront. For my Roth IRA, I'm thinking about the following mix: 70% Large Cap ETFS = 70% SCHG 10% Small Cap ETFS = 10% SCHA 15% International ETFS = 15% SCHF 5% Emerging ETFS = 5% SCHE I also want to invest in SWTSX but don't know how I would include that in my mix. If I was to input my SWTSX, I'm thinking 50% SCHG and 20% SWTSX. Thoughts?
Do: invest as much as you can regularly into ETFs & Blue chips. Don’t: try get rich quick and YouTube guru methods. You don’t have the knowledge to evaluate more complex strategy. An ETF portfolio I really like is 25% DIA, 30% XLK, 24.5% FNDX, 3.5% XLY, 13.5% SCHA, 3.5% VBK. Similar systematic risk to the S&P500 and well diversified. ≈ 2% alpha to SPY. You save a bit on expense ratios. Since you’re young, I might take some out of DIA and invest in some high growth blue chip tech individuals, maybe NVDA or other AI exposure — do some homework
> I could've been making a steady 5% in a HYSA > What am I missing? Apparently you are missing math. In 2023, QQQ is up 40%. VOO and VTI are up 16%+. 40 and 16 are bigger than 5... and in fact you likely won't be getting that 5 in three years or eight years when you finall catch up with what VOO/VTI and QQQ have gotten you in eight months. (Even SCHA/VXUS are up 7% ytd. As for why you have useless crap like AGG and mediocre stocks like KO and HD, that's your fault for picking them as opposed to VOO/QQQ/VTI.)
I am down 17.50% on AGG, 16.8% on SCHA, and 11.7% on VXUS. They are literally the cancer of my portfolio that I refuse to recognize the loss on. I would sell the second they hit green cause they've been terminal since day 1. I thought I was doing the right thing by diversifying but I regret it.
Dude, are you late to every party? Rates are going to start going down by early spring at the latest. See if I am right or wrong. And my ETF portfolio of things like SFY, SCHM, and SCHA did 15 percent since January 1. Next year should be a banger for stocks and crypto. See if I am right or wrong.
I have AVUV for value and SCHA for the blend.
For your stocks: (My preference percentages are listed. Other's preferences may vary) SCHA Small Cap - 10% SCHM Mid Cap - 15% SCHX - Large Cap - 55% SCHF - International - 20% I like low-cost funds, and I like Schwab. This mix of ETFs gives you great diversification. Bonds while yield curve is inverted: SGOV - %100 To determine your allocation ratio between bonds and stocks...take 120 minus your age to get stock percentage of portfolio overall, and rest is bonds.
Because I want to have certain percentages of things and so I do it individually. I like doing it and I also trade so it’s not a big deal. I do the same with my core stuff like SCHA, SCHM, and SFY because I favor mid caps and always seem to want a higher percentage than what a index does.
> with 75% into RFHTX and 25% into the 500 Index Fund. I am not looking to change that allocation unless folks have a compelling recommendation. that allocation has you more concentrated in large US companies. you're increasing your risk. RFHTX is already 68% US stocks, then you're adding more of the same with the S&P 500. https://www.capitalgroup.com/individual/investments/fund/rfhtx#com-mod-holdings-section > As we are moving into Schwab, what index funds or ETFs would make the most sense for the Roth IRAs? Schwab has good options, but you can buy most US ETFs through most US brokerages. you could buy Vanguard, Fidelity, etc, within the Schwab account. but SCHB would give you coverage of most of the US market, SCHF for international large companies and SCHC for smaller international, plus perhaps a bond ETF. full list of Schwab ETFs here: https://www.schwab.com/etfs/invest-in-etfs or you could break it down with SCHK for large/mid US and SCHA if you wanted a heavier small-company stock allocation. >Should we be maxing out Traditional IRAs with the intent to do a backdoor conversion later? probably but check with a tax professional. >What should be done with the cash that we have in our bank’s low-interest savings account? I'd pay down the mortgage. because you would never take out a HELOC at 2.4% and put the cash in a low-interest savings account. and the people who say 'invest the cash because you can beat 2.4% in the market' are using hypothetical market returns. you are not guaranteed to get a return in the stock market. the US market was flat from about 1968-1982.
I put the most volatile stuff in the Roth. Emerging market and foreign in IRA. Aggressive growth and BITQ in HSA. And super boring growth ETFs like SFY, SCHM, SCHA, SCHF (I know, foreign), in regular brokerage. I know my colleagues in financial services are conservative with retirement but I feel differently. Because the 1700 I can get at 62 is my conservative part. Social Security isn’t going anywhere, that’s nonsense. Because then there would be riots like the Jan 6th but it would be everyone, not just some fringe weirdos.
In my research, Schwab has the lowest expense ratios, best customer service, and best website out of Fidelity, Schwab, and Vanguard. At Schwab, take a look at: * SCHF * SCHE * SCHD * SCHA * SCHB * SCHG * SCHY It's basically all you need.
Yeah those three are also good. I also mix in SCHA SCHM and SCHE for other risk exposure but they just haven't done as well as SCHX. But I think they do offer better buying opportunities when they react strongly to economic shocks. So I don't usually buy them regularly instead I buy the dip with them. Also I wouldn't advise dabbling in options unless you at least have experience with stocks. Options are an easy way to lose a lot of money fast.
I absolutely should've included that. It's as follows. 24% - VUG 17% - SPDW 16% - VO 14% - SCHA 13% - VTV 9% - XLRE 7% - VWO This is following the "Aggressive" model portfolio. The biggest reason in seeking and insight is my contributions currently outweigh my 401's value. I'm young and still have time on my side though, so I'm just trying to be proactive.
Don't use the FND- funds, they have a high ER. SCHX, SCHA, SCHM are better alternatives.
Schwab, by a country mile. I went through this a few years ago and went with Schwab, and I couldn't be happier. * Schwab's color scheme is both pleasant and professional. * Schwab's customer service is honestly the best customer service I have experienced. They do not read from scripts. The only time they ever do that is when they're required to provide some disclosure that's obviously required by law or regulation. They just talk to you. If you ask them something they don't know, they try and figure it out, but then they're more than willing to transfer you or give you the direct line to specific departments. You do not have to jump through automated calls and systems to speak to a person, and when you do speak to a person (I usually do online chat or phone calls), they are efficient. * Schwab's customer service has *never* tried to sell me a Schwab product. Not once. Fidelity holds a former employer's 401(k) of mine, and they are forcing me to call in to roll it over to an external party (i.e., my Schwab account). I called them and had to listen to a guy blabber for 50 minutes (!), and in the end, we didn't perform the rollover and he had scheduled an appointment with a Fidelity investment advisor for me. * Schwab is the only brokerage who is also a bank. You can transfer money between your checking and brokerage accounts instantaneously. They have unlimited reimbursement for ATM fees, including internationally. * They have been pretty steadily updating the website and mobile app, and I generally feel it's an improvement. It's not perfect, but it's clear they're paying attention to feedback. * They once fixed a bug I reported in just a few days or a week. In general, their customer service offers up to forward on feedback to the relevant teams. * Since they purchased TD Ameritrade, they are now the only brokerage of Fidelity and Vanguard that has a trader API (i.e., an HTTP API) available to individuals. There is now a new Schwab Developer Portal, and they're rolling this out now. * No commissions for their customer service and broker workers, so they just talk to you like normal human beings. No fees on any normal trading. Very low expense ratios. * They have a wide selection of great ETS and mutual funds. Good ETFs are SCHB, SCHD, SCHE, SCHY, SCHH, SCHA, SCHG, SCHF. * They have stock slices and a robo advisor. I haven't used the latter yet. * They are an extremely conservative and professional company. This means that they treat you like an adult, don't try to upsell you on anything, and provide good warnings when trading to make sure you aren't cowboying it up. They really make sure that the thing that *you* are doing is in *your* best interest. * They have a Schwab branded American Express Platinum credit card that is a 1.5% flat cash back (no moving categories). The cash back deposits directly into your linked brokerage account with no action from you. Fidelity's card has 2.0%, but I feel Schwab is better than Fidelity in general, and the 0.5% wasn't enough to make me get their card and split management across Schwab and Fidelity. Schwab's credit card could be better, but it's good enough for my uses. (I use two other dedicated credit cards for most purchases and then the Schwab as back for anything those two don't cover well.) * Schwab has some automated investing features. Could it be better? Yes. Could it allow automated investing of more products? Yes. However, I'm happy enough currently with what they have. I just really like them. It's just astounding how pleasant it is to talk to their people. It's clear that they are trained very well. Schwab has basically every product you need. Do Fidelity and Vanguard have some features that are tweaked in their favor over Schwab? Yes. But Schwab has features they don't have as well, and I believe Schwab's features are much more enabling in general for my needs.
Directionally I like InvisibleEar's advice. I think you could lose VOOG and QQQM there and just put that in FSKAX. I also like bumping up International to a higher %. However, I do like having the Mid Cap and Small in there since FSKAX like all total market funds is very large-cap weighted. I'd lose the Balanced Fund and Target Date Funds and up the BND %. So you'd wind up with * FSKAX * VXUS * VO * SCHA * BND I'm not going to suggest any %'s as that's up to you. Personally for convenience I like just having the funds in one fund family whether it be Fidelity, Vanguard, or somebody else.
What do you guys think about this allocation? First time investing so not too sure about how to do it. Looking to keep this portfolio for 20+ years (still 20 years old). S&P 500 Index - VOOG - 14% Nasdaq Index - QQQM - 11% Total Stock - FSKAX - 10% International - VXUS - 10% Mid Cap - VO - 8% Small Cap - SCHA - 8% Balanced Fund - AOR - 12% Retirement/Target Fund - VLXVX - 1 Bonds - BND - 11% Open to any feedback and changes, especially as I am a beginner and haven’t invested anything yet! Thank you! 20 years old - Stable income and employment contract signed - Retirement
VIG and VYM are the best ones from an expense ratio perspective. But, like others have said before, dividends are part of the value of a stock. If you get a 3.5% yielding stock/ETF, then its value drops by that amount. So, most recommend reinvesting it in the ticker. You could create a dividend snowball...buy shares of a better stock/ETF with dividends from others. Ultimately, it all depends on your goals. JEPI or SCHD would be better options for big dividends. Or pick up a few REITs like O, or a REITs ETF like SCHA or REET
SCHA, RWJ, and XSVM are some that come to mind. VBK as a *growth* not value might be worth looking at in Vanguard world.
How're the rest of you SCHD, SCHA, and SCHX holders feeling out there tonight.
SCHA, JEPI, JEPQ, VXUS, SPYD, and our lord and savior SCHD.
I like SCHD and SCHA ETFs, SWPXX mutual fund, and SWVSS money market fund. I’m sure Vanguard and Fidelity offer similar.
Is there any problem with investing as follows for a long term brokerage account? Trying to build a nest egg portfolio for my son who is due in April. All dividends are set to reinvest and I will be putting in a few hundred dollars a month SCHM 15 percent SCHD 20 percent SCHG 50 percent SCHA 15 percent
SCHA is a very good and cheap small-cap ETF with better performance than VTWO. SCHA and VTWO are similar, but SCHA is of better quality, whereas VIOO is the SP 600, which is much better quality for small cap companies.
IF you’re debt-free, have health insurance and an emergency fund, I recommend investing in no-fee, no-load, dividend-paying index ETFs, like SCHA and SCHD.
My family what’s had a sail boat which was fine. I’d pay off debt, keep an emergency fund, live frugally, and invest heavily in dividend paying ETFs like SCHA and SCHD… like me!
I’m happy with my SCHA and SCHD ETFs. Today my Schwab portfolio made its greatest one-day gains in my investing since 1983 at over $20,000. Of course I need to grow another $200,000 just to recover from Biden’s election. Nit to mention opportunity costs.
CIBR is like the dark horse of tech stocks. I really like it long term. ​ Hard to pick one. ​ Strong cases for google and apple and other big dogs. ​ EV stuff could be on the riskier side but talking about the next 10 years.. Certainly has a lot of investors interest. I mean look what happened with some of the start ups this year holy shit people love EV stocks. ​ ​ Bank stuff like IYF VFH (DPST if you degen like me) should see nice growth. ​ SCHA has my interest for small cap growth. Everything is on sale, but just don't pick a stock that is a pile of steaming dog shit. manage your risk. not financial advice. Just enjoy some investing!
Schwab dividend-paying, tax-friendly SCHD and SCHA, plus US Treasury I binds.
There are only THREE ways to make money in the stock market: capital gains on principal, dividends either reinvested or taken as cash, or stock splits which lead to capital gains. Some funds offer all three, as did SCHA!
Safest investment is in dividend-paying, tax-friendly ETFs. I like Schwab SCHA and SCHD. They’re at bargain prices now!
I like Schwab’s dividend-paying SCHA and SCHD ETFs as a high-income, debt-free retired conservative American man.
schwab etf options dont have enough liquidity; no ones trading in them. look at their open interest. i still hold them and if i want to trade options, i find the similar etf for that asset class with good liquidity. e.g. hold SCHA, trade options in IWM.
So this might sound like a silly question, but for my IRA should I actively be selling high and buying low during this market? For example, if I bought in VOO at an average cost of $320 should I sell all of it right now at $366 in case it goes down? Also, is it okay to have all of my IRA in VOO? If diversified into IXUS, BIV and SCHA but it doesn’t do well so I feel like it’s a waste of allocation. Does anyone have any recs if not all into VOO?
I just rolled over an old 401k into my IRA and now I have to invest it. I haven't looked at my IRA for a while, so I just wanted to see if I should change anything. Appreciate any feedback on funds or percentages. Age: 36, USA Employed, 165k/yr Objectives: Retirement savings Time Horizon: Until retirement, so another 30 years or so Risk Tolerance: The IRA is for long term growth, so I'm focusing on stable ETFs Holdings: About 600k spread between various other retirement and managed accounts. IRA Holdings: Schwab Total Stock Market Index Fund® (SWTSX): 48% Schwab International Index Fund (SWISX): 24% Schwab ® U.S. Large-Cap Growth Index Fund (SWLGX): 12% Schwab US Small-Cap ETF (SCHA): 10% iShares Core U.S. Aggregate Bond ETF (AGG): 4% Question: Should I just divide the rollover between these to maintain the current balance? Buy something else? Change the weighting?
Yes I had constant contributions until around January of this year , and i’m only in VTI, VT, and SCHA. Any ideas?
You were right about the crap S&P small cap funds. I just looked at $SCHA which a Schwab small cap fund I could move my 401k into. They have $AMC and $GME in their top 10 holdings. I don't care how well those stocks are doing; I am not buying a small cap ETF that's largest position is AMC.