Revealing My Roth IRA Portfolio + How To Pick Investments for YOUR Roth IRA (2022)

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.

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!

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

[pizzaguy]

I subscribed within the first minute. Love your transparency and clear iteration of what your going to talk about.

[MaximilianFischer]

Most of my $2m portfolio is in (20% Index funds, 20% CD's 30% Bonds/T-bills and other assets) but I want to explore different strategies for better growth with the current market, just here for ideas

[Riggsnic_co]

The concept of mini-retirement changed my life. I'm no longer waiting for some retirement paradise when I'm 65. It helps to know how to fund the lifestyle. You know, making money while you sip that piña colada by the beach does help. I wouldn't have been able to do it otherwise.

[alexsteven.m]

Becoming a millionaire through a Roth IRA or a 401(k) involves different strategies for maximizing profits. A Roth IRA offers tax-free withdrawals in retirement, which can be advantageous if you expect to be in a higher tax bracket later in life. On the other hand, a 401(k) provides tax-deferred growth and potential employer contributions, boosting your savings. The optimal choice depends on factors like your current and future tax situation, employer match, and investment options. Consulting a financial advisor can help tailor a strategy that aligns with your financial goals and circumstances.

[AlyceJefferies]

I have about $250k distributed across various investing accounts, with 35% of my capital invested in an IRA and 25% in index funds. In Q3, 2023, I suffered a great deal. I'm just searching for methods to get better in 2024 right now.

[YashHolland]

Amazing content, keep up the good work. Learned alot from my market journey, especially the importance of living within one's means. With Chloe Gullman guidance, my nest egg has grown to a 7-figure sum. My advice - get an analyst for better financial trade decisions and peace of mind.

[noahsmith]

21 years old and i got my tax return and decided to finally open a Roth IRA. So excited to see how much it grows. Thank you for all of the advice!

[JanetMorgan]

Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Instead of trying to predict and prognosticate the stability of the market and precisely when the change is going to happen, a better strategy is simply having a portfolio that’s well prepared for any eventually, that’s how some folks' been averaging 150K every 7week these past 4months according to Bloomberg.

[BrewNoCarbs]

I have an $800k portfolio from my old job and retired six years ago. Lately, it’s been doing poorly, with only 6% growth in the past three years and I feel stuck. I desperately need to revamp my investments. Any advice on what to do with my money would be greatly appreciated.

[albacusBC]

Investing in Roth IRA can be a good choice since they are funded with after tax dollars, your contributions can grow tax-free over time. When you withdraw money from your Roth IRA in retirement, you won’t have to pay tax on it, which will help you keep more of your hard-earned money. I retired with 5 million dollars

[keishaofthe]

Everyone has been preaching "buy now, stocks are at a discount" but I've been buying stocks at a discount since the beginning of the year and yet the cycle continues with more losses, I know the idea is to hold long term but God I could really give anything to see some growth happen to my portfolio.

[Hannahbenowitz]

I just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $450k gains with months, I'm really just confused at this point.

[ericmendels]

With Roth IRA, the money you are contributing has already been taxed. At any time for any reason, you can withdraw your contributions tax-free and penalty-free. Additionally, any earnings on investments can also be withdrawn tax-free and penalty-free, Not sure how much to contribute, I'm still at a crossroads deciding if to liquidate my $338k stock portfolio.

[GeertKins]

I feel frustrated watching my portfolio underperform as I often jump in and out of stocks. Warren Buffett’s advice that $114 invested in the S&P 500 in 1942 would be worth $400, 000 today. How can I adopt a consistent, long-term approach to finally build meaningful wealth?

[nicolelv]

Man…now THIS is what should be taught in schools! If it wasn’t for just listening to other people around me talking about managing finances i never would have know what a Roth IRA was! Thank-you for your explanations!

[khaleelorwhatever]

You saying that starting in your late 20s isn't too late realy helps. There are times where I feel like I don't have enough time but then I realize that I still have more income to earn and then that will change my contributions which whill in return increase my investment. Great video Humphrey!

[CaitlynGoesHiking]

I really appreciate seeing the perspective of someone who started later with investing. It’s very intimidating to see these type of videos from people well into their journey who started maxing out their Roth IRA at age 18. I’ve had my Roth for about five years now, but only started seriously contributing the past two years or so. This will be the first year that I finally max it out after slowly increasing my contributions each year. Thank you for sharing!

[victorlaranjahal]

Investing in Roth IRA can be a good choice since they are funded with after tax dollars, so your contributions can grow tax-free over time. When you withdraw money from your Roth IRA in retirement, you won’t have to pay tax on it, which will help you keep more of your hard-earned money. I retired with 2 million dollars

[milespalero]

I am 41 & just starting my ROTH. Thank you for these infos!

[edensisters]

Early retirement is the dream. I refuse to accept that I have to be at the end of my life to enjoy time freedom. Let's hustle to financial independence!