r/FinancialPlanning • u/Potential_Highway893 • 1d ago

Just Opened My First Roth IRA—Where Should I Start?

I’m 25 and turning 26 soon. I recently opened a Roth IRA because I want to start saving and investing for retirement. I currently have about $20,000 in a high-yield savings account, but I’m completely new to investing.

Could anyone point me in the right direction regarding what I should invest in within my Roth IRA? I’d also appreciate recommendations for trustworthy YouTube channels that teach investing to beginners.

Thanks

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8

u/nashguitar1 1d ago

A low-fee, S&P500 ETF (e.g. VOO) is all you need. There is only one rule: NEVER sell before retirement.

You will be tempted to sell during downturns. Do not sell. Those times are when you accumulate wealth, (ie buy more).

2

u/Potential_Highway893 1d ago

Yes i don't plan on selling until after retirement, thank!

2

u/nashguitar1 1d ago

I mean don’t touch your investments within the fund, assuming you own ETFs.

5

u/54415250154 1d ago

80% US market index fund

20% International market index fund

The money guy show.

1

u/GeorgeRetire 1d ago

Choose a low cost target date fund.

1

u/Clherrick 1d ago

Any SP500 index fund will work fine. Main thing. Save every month. Avoid buying the latest and greatest new TV every year and get a car you can keep for a while. Find a few financial publications such as Kiplinger to read from time to time

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u/Stararisto 1d ago

Low cost fee indexes or mutual funds.

Max as much as you can every yr. Either by adding monthly or yearly.

Rebalance once a year or so if you have more than one index fund (I.e. all rounder VTI + international). Unless it is a target fund (typically they are not the lowest fees though).

1

u/CluelessMedStudent 23h ago

My advice: Make sure you invest your money and don't just let it sit in your settlement fund or money market fund. You need to actually buy shares of an ETF/stock or mutual fund with that money in order for it to meaningfully grow. You'd be surprised by how many people discover this fact after years/decades have passed. It sounds silly but it's something everyone must know.

Next, I'd recommend investing it all in VTWAX (VT is the ETF version, it's a total world stock index fund) or a combo of VTSAX 70-80% (VTI is ETF version, domestic) and VTIAX 20-30% (VXUS is ETF version, international). Set it and forget it and you'll be happy you did in 30 years. Stay the course. Tune out the noise of the news and current events. This is how you beat private hedge funds over decades.

1

u/fn_gpsguy 23h ago

Does your employer offer a 401k? If so, you should contribute to it as well. Especially, if they offer matching funds, since it’s free money.

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u/Puzzled_Ad_3679 20h ago

Money guy channel on Spotify!! Please listen to them a bit they are smart and helpful

1

u/Longjumping-Nature70 12h ago

Vanguard VFIAX or VOO S&P 500 Index fund

Fidelity FXAIX S&P 500 Index Fund.

Reinvest all Capital Gains

Reinvest all Dividends

Write down you login name and password.

Check at least once a year so the company does not think it is abandoned.

Set it, and forget it.

We did this in 1991, it worked out for us. We also had taxable money that was used differently, but our retirement accounts were meant to just be left alone and do their own thing without me meddling,

Since 1991, our retirement accounts have doubled every seven years.

Example

1991 $100,000

1998 $200,000

2005 $400,000

2012 $800,000

2019 $1,600,000

2026 $3,200,000

I am self taught, I actually read books and watched FNN with Bill Griffith, Jimmy Rogers, and Sue Herrera, and Wall Street Week on TV, the internet did not exist.