@humphreytalks: Here are 3 options to invest in within a Roth IRA: and the riskiest one is last. First option are index funds - these are low to medium risk over a longer time horizon (20+ years). You set it and forget it - and on average should return about 8-10% per year. Second, you can go with a 3 fund portfolio. That’s where you have a US stock market index fund, an international stock market index fund, and a bond fund. This is more diversified than the first option, so lower risk in general - and is overall solid. Third, individual stocks - especially mega caps. Since the Roth IRA gives you tax free gains, if you want to take full advantage of that you want holdings with high upside. These are riskier, but having a few positions of companies of the caliber of Apple or Amazon Google etc, could be good. $1000 in Apple stock 20 years ago is worth more than $700,000 today - and if you invested in a Roth IRA then all of your gains would be tax free. That's the power. Let me know if you have any questions.

Humphrey Yang

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Wednesday 22 January 2025 22:12:50 GMT