I have a decent amount of money in a Roth IRA currently with a financial advisor. It has been underperforming the market plus paying small fees so I'm considering just moving it to a Schwab account and managing myself.

I won't touch this for over 20 years and don't want to actively manage it. What are some of your favorite holdings and how would you allocate it? I would like to have some options with a high yield as well as some standard index funds.

Let me know what y'all do for those that manage on your own. Thanks!

How much is a "decent" sum of money? What are the current holdings? What benchmark were you comparing to for underperformance? What's your risk tolerance?

Self direct into real estate?

Same thing with Edward Jones, gotta break it to my FA next week that I'm pulling funds

WestTXag18 said:

---

I have a decent amount of money in a Roth IRA currently with a financial advisor. It has been underperforming the market plus paying small fees so I'm considering just moving it to a Schwab account and managing myself.

I won't touch this for over 20 years and don't want to actively manage it. What are some of your favorite holdings and how would you allocate it? I would like to have some options with a high yield as well as some standard index funds.

Let me know what y'all do for those that manage on your own. Thanks!

---

40% VOO
60% QQQ

I did this for my daughters account.

I find it's very hard to beat the market and this combination is a good reflection of the market.

MS08 said:

---

Self direct into real estate?

---

he said he didn't want to actively manage it

txaggieacct85 said:

---

MS08 said:

---

Self direct into real estate?

---

he said he didn't want to actively manage it

---

Right. But, into a deal as investor/lender and get a return on that invested capital in the way of interest or dividend. Like 15% per annum on capital while the capital is deployed.

What does that look like? Very curious

I would be curious in what the self directed RE option is as well.

In reply to Good Poster - I have around $150k. I am ok with high risk. I was comparing to S&P. The funds I am currently in have quite a bit of international exposure.

I have considered putting a small percentage into JEPI or another high yield play. I like the idea of having monthly income that can be dripped into the market each month. Any thoughts on that?

The rest would likely be a Vanguard index fund and just let it ride.

txaggieacct85 said:

---

MS08 said:

---

Self direct into real estate?

---

he said he didn't want to actively manage it

---

He wouldn't have to.

IRA's invested in real estate have rules you don't normally have in regular IRA's. Maintenance for one. You need a company to run things for you who are certified to handle IRA money for another. Get a bad tenant and you're in for more trouble than you can imagine.

tlh3842 said:

---

What does that look like? Very curious

---

Cool, we could PM some more in the future, but here is the skinny:
It is possible to do without actually buying a house and having the headache of rental property.
You would need to find a custodian who does the processing and handling of self-directed IRAs. This comes with fees, but paying the fees allows you to be a part of different investment strategies that beat the market. You can invest in a LLC, private business, real estate, and even promissory notes that are tied to real estate, which is more of what I was alluding to in my initial post. Essentially your IRA acts as its own entity and would be the lender, like to a real estate developer looking for capital, and your IRA would receive the interest per the terms spelled out in the promissory notes. No different than privately loaning some one money to do the same thing, but underneath the umbrella of the IRA has its advantages. And, since your money is already tied up in the IRA, might as well have it working harder/better for you than the market.

https://irainnovations.com/an-alternative-investment-to-consider-lending-money-with-your-self-directed-ira/#:~:text=To%20lend%20money%20with%20your,with%20any%20related%20loan%20documents.

***not investment advice, just a thought.

see post i just made.

***not investment advice, just a thought.

50% VTI
50% BRK.B

Quacked said:

---

Same thing with Edward Jones, gotta break it to my FA next week that I'm pulling funds

---

Just open the account elsewhere and have them transfer the funds. Avoid the awkward breakup conversation.

The ACAT system is great

I do 70% VOO and 30% Vanguard Target Retirement Fund. Or equivalent funds by other brands.

I use QQQ in a brokerage account as well.

I've been very happy with Vanguard VTSAX for over 10 years. I'm just a dumb engineer and not a financial expert though, so do your own research.

I manage my daughters account and put her in 60% QQQ and 40% VOO

Last year you took an extra hard beating huh?

SquareOne07 said:

---

Last year you took an extra hard beating huh?

---

I literally just moved into those positions about two months ago.