I reveal my entire Roth IRA portfolio and the passive investing strategy approach I use which includes ETFs. I also explain what is a Roth IRA and give you some beginner tips on how to choose what’s in yours.
A Roth IRA is a tax free savings account (if you’re not in the US – you can look up similar ones). Enjoy!
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1. What is a Roth IRA
The Roth IRA is an individual retirement account that anyone can start provided they have something called EARNED income. This means that you need to make wages/salaries/tips, so basically you need to have a pay stub or W2 or 1099 income.
You can open a Roth IRA at almost any brokerage firm, and the main advantage of having a Roth IRA is that your earnings and profits are growing tax free. That means when you retire, and you withdraw all the earnings on this account, you won’t pay ANY taxes on it.
That’s the biggest benefit of this account, so since all our earnings grow tax free – there are going to be some investing strategies that we can employ within the Roth IRA to really take advantage of this fact.
2. What’s in MY Roth IRA?
My Roth IRA has around 29k invested and holds the following:
VTI, which is a Total Stock Market ETF – $13k
VEU – gives you broad access to international markets that are developing and emerging – about $8.8k
BNDW – 4k world bond ETF, this gives me access to bonds in the world
VOO – $3.3k S&P 500 ETF.
Now initially when I started my Roth IRA, I chose these three funds only, and the split at the time was 40% VTI, 40% VEU, and 20% BND.
Now at the time, the reasoning was pretty simple, I was in my late 20s, I wanted to have exposure to the US and International stock markets, which are riskier than bonds, but I didnt want to be 100% in equities – and I wanted a passive investment that I did not have to actively manage, hence why I chose ETFs.
Based on my risk tolerance at the time – which was moderate/moderately aggressive for the next 30+ years, I chose an 80/20 split of equities to bonds, and I wanted my equities to be hedged across US and emerging world, just in case something happened with the US market, I still had the international ones to bolster me up. This was diversifying not only with the ETFs, but with the international markets as well.
3. How should you pick investments for YOUR Roth IRA?
1. Assess your risk tolerance (conservative, aggressive, etc)
2. Identify the type of investor you are (passive vs active)
3. Pick investments that are beneficial for your Roth.
You can invest in:
ETFs like I do – these are great, passively managed, they also will pay dividends and those dividends won’t be taxed in the tax sheltered Roth.
Individual Stocks – these are also great to hold in a Roth IRA since earnings are tax free, over a long term time horizon that could be amazing.
Bonds – since you cant reinvest interest payments from Bonds, having bonds in your roth IRA could be a good investment since the Roth IRA will protect you against taxes of those payments.
Real Estate Investment Trusts – Reits are especially good because they’re required to pay 90% of their income as dividends to their shareholders, which are typically taxed in a normal account, but in a Roth the dividends will be tax sheltered so you get a ton of value.
📧 Contact: If you have a question feel free to leave me a comment on my videos or follow me on IG and send me a DM! If you have a business related inquiry, please then send me an email at humphreytalks@gmail.com
Disclaimer: I am not a financial advisor, any investment commentary are my opinions only. Some of the products and services that appear on this channel are from companies that I have an affiliate relationship with, such as Robinhood, for which I recieve a small percentage made via those links, but it doesn’t cost you anything extra!
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Timestamps:
0:00 – Start Here
1:28 – What is a Roth IRA?
4:03 – What’s in MY Roth IRA?
6:12 – Investing for YOUR Roth IRA…(read more)
LEARN MORE ABOUT: IRA Accounts
TRANSFER IRA TO GOLD: Gold IRA Account
TRANSFER IRA TO SILVER: Silver IRA Account
REVEALED: Best Gold Backed IRA
I subscribed within the first minute. Love your transparency and clear iteration of what your going to talk about.
Investing in crypto has made a lot of investors millionaires, I had no prior experience, when I was about to begin investing in my retirement, I was introduced to a professional. At first, I was scared believing that I might loose money but I decided to try. I was amazed at the quick results. All thanks to the expert trader, Suzanne Stephens Ellis. I recommend her to all beginners.
This video is incredible! As someone that started investing into a Roth IRA this year, I got a lot out of this. I have 2 questions:
1. What platform/broker do you use for your Roth IRA?
2. How do you compare having ETFs vs Mutual Funds in your IRA? And which do you prefer?
Investing in crypto has made a lot of investors millionaires, I had no prior experience, when I was about to begin investing in my retirement, I was introduced to a professional. At first, I was scared believing that I might loose money but I decided to try. I was amazed at the quick results.
All thanks to the expert trader, Suzanne Stephens Ellis.
I recommend her to all interested and serious beginners.
I want to build a investment account with different people as share holders and give them a account to put money in to and buy shares which they must hold for 10, 15, or 20 years before selling. what should I do
So if I start a Roth IRA today, and I already own stocks, can I transfer those stocks to my IRA or can I only put money in the IRA, and then buy stocks?
Hmmm did you change from index funds to all ETF? Is there a reason to change? I watched the other videos you got and your ROTH were invested in index finds but not in this video.
I’d be interested to see an update about this type of portfolio with the current decline in the markets. Maybe words of advice and adjustments that could be made as market continues to decline.
And then January 2022 came around…and that changed everything.
Im 22 and starting my first job out of college in a few months. These videos are very helpful and I am going to open an account this year. thank you!
Hello Humphrey, I recently opened up a Roth IRA. I'm utilizing the 3 fund portfolio method, with just a couple shares of 3 different stocks. Am I supposed to be realizing the gains or do I ignore that and just contribute money every month if I'm on a long-term growth strategy? Could you maybe do a video discussing unrealized gains/losses, the different types of trades, and how and when to rebalance your portfolio?
Thank you a lot!!! This in the future is going to help me with my investments. (I also just subscribed)
I started watching your videos earlier last year as a beginner before giving stocks a trial and I've been able to scale from $220K to $680K, I did get an advisor for supervision and accountability as you recommended.Thanks. any body who wants to give him a try his email above my comment cheers
Ok
Ok
I am a civilian contractor overseas American citizen but I am not taxed on my income can I contribute this money into a Roth IRA?
Doubled mine so far this week thanks to Hycroft going brrrrr.
I purchased before it was announced that AMC invested in Hycroft. Been riding it up since.
There's also something called a mega backdoor roth ira. That's how someone was able to amass a five billion dollar roth ira.
Retirement investing robs the masses of their purchasing power and ability to impact real world assets. You get lured in with the promise of millions but inflation ensures you wont get ahead or compete in retirement. The real wealthy know it’s a scam.
Investments is the best way to find balance between saving and living, This way
you have your savings
intact and then live comfortably off the revenue coming in from your investments.
Financial freedom is possible, you just need to know what to do
and when to do it. I am a living testimony.
FSKAX, FTIHX, FXNAX
Completely off topic but what’s everyone planning on naming their kids?
Why feel that voo and vti are not redundant?
My roth IRA of about 30k is all in VTSAX.
Overlaps between VOO AND VTI thank you
IRAs are not really a good account. Try an IUL instead. No tax, no income limit, guaranteed no loss, avg 7-10%, plus life insurance. I sell these products and the IUL is such an easy one to sell because of how amazing it actually is
Hi Humphrey! Really enjoy your content, what brokerage do you have your Roth IRA with? And do you manage it yourself?
Nobody can become financially successful over night. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals.
Hi Humphrey,
I have a Transamerica Roth IRA that’s 100% invested in a 2050 mutual fund. Am I on the right path?
Help Please!!! If I'm on SSI disability, can I still open a ROTH IRA? THANK YOU IN ADVANCE
THE SECRETE TO MAKING MILLIONS IS SAVING FOR A BETTER INVESTMENT. I ALWAYS TOLD MYSELF
I DON'T NEED A NEW MASERATI OR AN EXPENSIVE VACATION JUST YET. THAT SINGLE MINDSET
HELPED ME TO MAKE MORE MONEY INVESTING. I MAKE STEADY WEEKLY PROFIT BY
INVESTING THROUGH A PORTFOLIO MANAGER, SUZANNE STEPHENS ELLIS.
IT IS GOOD TO HAVE MORE THAN ONE STREAM OF INCOME.
I’ve found you on TikTok I wish I had found you sooner. Absolutely love your context.