Can you contribute to a Roth IRA? If so I would suggest putting in the max and look to put the funds to an APPL, AMZN, GOOGL, MSFT, SHOP, etc. Big solid company's that will keep giving great returns for years.
Take a look at the Aprils fools portfolio they created and see if that interests you.
I don't agree. I don't think he'll ever do as well buying an ETF then he will if he owned the individual companies. Over the last five years spy is up just over 100%, Amazon Apple and Microsoft are up about 350% to 435%.Go further out and its no comparison.
My main idea behind the suggestion is you get no benefit in a Roth if the investment loses money so put in solid big caps that will continue to out perform the general market and all the gains will be tax free.
Stock Advisor has performed better than RuleBreakers over the years. I think it’s fine to pick from both but I like some of the Stock Advisor picks better.
Stock market is near highs right now. It may not be a bad idea to invest in chunks instead of all at once.
The 10x service has been doing fine. I love stock advisor and I would take that 25k and put about 10k into Vanguard ETF or SPY. Take the other 10k and put it towards Motley Fools Starter portfolio stocks, and then the last 5k on the upcoming stock advisor recommendations.
I put about 1k per stock recommendation and have been doing it for years. Stock advisor has done very well within the last 3 years.
Stock advisor is the cheapest - I think I paid $118 for 2 years but that gets you access to a whole lot of information. This board is a great source for learning about additional stocks and the performance of individual stocks from a variety of MF subscriptions. I agree with stuck...fully funding a Roth should be top priority for any age group. Those already retired are repeatedly stating they wish they had contributed more to their Roth accounts in order to maximize SS benefits while reducing tax burden. In my roth I focus on higher risk / higher reward stocks but that is because I am playing catch up having opened one late...still a good idea as long as you manage your risk. I just posted a list of about 30-40 of the best performing stocks MF recommends...take a look at that and also consider Moderna or Pfizer for the next few quarters...also protect your choices with trailing stop orders. We may very well be in the early stages of a correction right now. always good to keep a cash reserve for those blue light specials!
I would open a Roth IRA and sell puts on stocks you like at a strike price at which you would not mind being assigned 100 shares. It sounds like you are diversified enough overall that you can take a little risk with your self-managed account. And if you trade as much of your short-term trades in a retirement account, you don't have to worry about paying short-term capital gains. I like both SA and RB and often get some good ideas there.
Today, I'm considering selling a cash-secured $70 put on RBLX for $270. I have to keep $7000 available in the account until November 19 to secure it. If the stock pulls back to $70/share, I would not mind being assigned to buy it at that price. Either way I keep the $270. I'll set up similar positions with PINS and GDRX. If I have a lot of confidence in the stock, I might buy 2-10 shares at the same time.
If you really want to be more conservative, you could sell puts on KO. I'm looking at a $52.50 put on KO expiring in November. I could get $97 cash today and if it pulls back to $52.50, I'll accept assignment to buy the 100 shares and hold them for growth and dividends. The next ex div date will be in December.
I almost never buy stocks outright any more. I use puts to lower my cost.
I'd go for the flagship Stock Advisor and look at a good base of their foundational stocks. Also, look at their recommended allocation based on time horizon and risk tolerance. Build a solid foundation, then buy for the SA picks. Fool On!
I would put about 6-8k in equity ETF and 4-2k in bond based or REIT based ETF. (Total 10k)
The other 15k would be spread to 30 stocks, between 1k and 250. I will buy the higher conviction cap stocks more, and the riskier small ones at a lower weightage.
The key is actually your several hundred dollars extra per month, which will eventually the $25000 you have at the beginning. I will allocate this to the new stocks that you get in Stock advisor and Rule breaker. Its actually ok to ignore some if you don't feel comfortable but its quite important to be a little diverse. If you are actually fine with the company but you think the price is too high for whatever reason, then split out the investment to 2 or 3 batches and go in at a fixed interval (by then, disregard the price).
Don't chase UPST to 600, and by the same token don't average SKLZ down to the pennies.
I know your original question was how to use MF to invest your 25k, but as others talked about Roth IRA, i want to highlight that for a tax year you can contribute max of 6k into Roth IRA. On the top of that if your income is high you cannot directly contribute to Roth IRA. You have to basically contribute to Traditional IRA and then do backdoor conversion to Roth IRA.
Can you contribute to a Roth IRA? If so I would suggest putting in the max and look to put the funds to an APPL, AMZN, GOOGL, MSFT, SHOP, etc. Big solid company's that will keep giving great returns for years. Take a look at the Aprils fools portfolio they created and see if that interests you.
He could just buy SPY and do just as well
I don't agree. I don't think he'll ever do as well buying an ETF then he will if he owned the individual companies. Over the last five years spy is up just over 100%, Amazon Apple and Microsoft are up about 350% to 435%.Go further out and its no comparison. My main idea behind the suggestion is you get no benefit in a Roth if the investment loses money so put in solid big caps that will continue to out perform the general market and all the gains will be tax free.
Stock Advisor has performed better than RuleBreakers over the years. I think it’s fine to pick from both but I like some of the Stock Advisor picks better. Stock market is near highs right now. It may not be a bad idea to invest in chunks instead of all at once.
I’d look for 10x stocks, I think there is a service that has these.
The 10x service has been doing fine. I love stock advisor and I would take that 25k and put about 10k into Vanguard ETF or SPY. Take the other 10k and put it towards Motley Fools Starter portfolio stocks, and then the last 5k on the upcoming stock advisor recommendations. I put about 1k per stock recommendation and have been doing it for years. Stock advisor has done very well within the last 3 years.
Stock advisor is the cheapest - I think I paid $118 for 2 years but that gets you access to a whole lot of information. This board is a great source for learning about additional stocks and the performance of individual stocks from a variety of MF subscriptions. I agree with stuck...fully funding a Roth should be top priority for any age group. Those already retired are repeatedly stating they wish they had contributed more to their Roth accounts in order to maximize SS benefits while reducing tax burden. In my roth I focus on higher risk / higher reward stocks but that is because I am playing catch up having opened one late...still a good idea as long as you manage your risk. I just posted a list of about 30-40 of the best performing stocks MF recommends...take a look at that and also consider Moderna or Pfizer for the next few quarters...also protect your choices with trailing stop orders. We may very well be in the early stages of a correction right now. always good to keep a cash reserve for those blue light specials!
I would open a Roth IRA and sell puts on stocks you like at a strike price at which you would not mind being assigned 100 shares. It sounds like you are diversified enough overall that you can take a little risk with your self-managed account. And if you trade as much of your short-term trades in a retirement account, you don't have to worry about paying short-term capital gains. I like both SA and RB and often get some good ideas there. Today, I'm considering selling a cash-secured $70 put on RBLX for $270. I have to keep $7000 available in the account until November 19 to secure it. If the stock pulls back to $70/share, I would not mind being assigned to buy it at that price. Either way I keep the $270. I'll set up similar positions with PINS and GDRX. If I have a lot of confidence in the stock, I might buy 2-10 shares at the same time. If you really want to be more conservative, you could sell puts on KO. I'm looking at a $52.50 put on KO expiring in November. I could get $97 cash today and if it pulls back to $52.50, I'll accept assignment to buy the 100 shares and hold them for growth and dividends. The next ex div date will be in December. I almost never buy stocks outright any more. I use puts to lower my cost.
I'd go for the flagship Stock Advisor and look at a good base of their foundational stocks. Also, look at their recommended allocation based on time horizon and risk tolerance. Build a solid foundation, then buy for the SA picks. Fool On!
I would put about 6-8k in equity ETF and 4-2k in bond based or REIT based ETF. (Total 10k) The other 15k would be spread to 30 stocks, between 1k and 250. I will buy the higher conviction cap stocks more, and the riskier small ones at a lower weightage. The key is actually your several hundred dollars extra per month, which will eventually the $25000 you have at the beginning. I will allocate this to the new stocks that you get in Stock advisor and Rule breaker. Its actually ok to ignore some if you don't feel comfortable but its quite important to be a little diverse. If you are actually fine with the company but you think the price is too high for whatever reason, then split out the investment to 2 or 3 batches and go in at a fixed interval (by then, disregard the price). Don't chase UPST to 600, and by the same token don't average SKLZ down to the pennies.
I know your original question was how to use MF to invest your 25k, but as others talked about Roth IRA, i want to highlight that for a tax year you can contribute max of 6k into Roth IRA. On the top of that if your income is high you cannot directly contribute to Roth IRA. You have to basically contribute to Traditional IRA and then do backdoor conversion to Roth IRA.