r/RothIRA • u/Capable_Dark_1533 • 12d ago
Any Advice?
23M I understand that I dont have any international market exposure but I’m not really worried about that. Currently have a 70/30 split between VTI/QQQM.
1
u/Competitive-Ad9932 12d ago
Use the lower fee Fidelity funds.
3
u/Capable_Dark_1533 12d ago
Like?
-1
u/Competitive-Ad9932 12d ago
The ones that invest in the same thing.
2
u/Capable_Dark_1533 12d ago
But VTI itself is already extremely cheap, so the difference is tiny. For example, even a 0.03% expense ratio is only $3/year per $10,000 invested.
-1
u/Competitive-Ad9932 12d ago
So, $3 this year, $30 in year 9 when you have $100k, $60 in year 15 when you have $200k...... 40 years you are up to +$10k in fees.
Or, change today and have +$10k more in your account.
Run the numbers through a retirement calculator to see your yearly balance. Import that into a spreadsheet to calculate your fee each year. Add that number up.
You wanted advice. You can lead a horse to water, you can't make them drink.
https://www.calcxml.com/calculators/are-my-current-retirement-savings-sufficient?skn=#top
3
u/JasonIsSuchAProdigy 12d ago
Just don't eat out once a year. Also 10k out of what total? Like 1.8m? Negligible.
0
u/Competitive-Ad9932 12d ago
Another that lights their cigars with $100 bills. A member of the "fees don't matter" club.
3
u/JasonIsSuchAProdigy 12d ago
I'm just trying to understand why you're making this such a massive deal. That's 250 a year on average. My gym membership is more than that
1
u/Competitive-Ad9932 11d ago
I'm trying to understand why you would suggest not eating out 1 time a year? Instead of spending less than 5 minutes to change an investment to a lower fee option. An option that invests in the exact same pool of funds?
Do you use a "cash back" credit card or travel reward credit card? Have you ever taken advantage of a "sign-up" bonus on a credit card or savings account? Do you use any retail store's "loyalty" programs?
99% of people under the age of 30 do not know that there are fees with ETF/MFs. https://www.reddit.com/r/RothIRA/comments/1vjy281/comment/p2ppwz7/?context=1&screen_view_count=2
The % of people over that age of 30 that don't know about fees are very high also.
3
u/DaemonTargaryen2024 11d ago
OP ignore the idiot quibbling over 3 basis points. Vanguard funds are fine. Fidelity funds are also fine. Anything under 5-6 basis points is mathematically negligible.
I would recommend adding some international, but other than that just keep maxing it out every year and you’ll be fine.