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Short the vix?
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Pro
Very good thought.
Some things to keep in mind:
- If the $400k includes your 401(k) you'll be stuck with some mutual/index funds. I'm yet to see an employer based retirement plan that offers ETF. That shouldn't be a problem though, index funds should do just fine
- If you have a taxable brokerage, and hold stocks in the account, better not to sell those if you had them for less than a year. LTCG are taxed lower that short term.
My perspective on ETFs for different accounts:
- Keep growth ETFs, that pay little to no dividends, in your taxable brokerage. MGK/VBK/VOT/VUG. Aim is to not pay taxes on dividends but cover as broad as the market as possible. If you want to keep it simple, VTI would do.
- Keep income generating ETFs in your Roth and t-IRA. Bond (BND/BLV), REITs (VNQ), and dividend (VYM/VIG). To keep it simple, VTI and BND should do.
- At 31, your overall portfolio should skew heavily (90/10 at least) towards stocks
Thanks for the response. My portfolio is around 90/10 as I am very comfortable with the ebbs and flows of the market. As you pointed out, I have limited options with my 401k, but I’m happy with what I’ve selected. I hadn’t thought about putting income generating ETFs in my t-IRA. Thanks for the tip! I’ll be looking up some of the recommendations you made, so I appreciate the advice.
Rising Star
What accounts do you have? 401k (Roth or traditional) Ira, brokerage etc. and what percent of equity vs fixed income? Most people on here are pretty young so maybe no fixed income? The main ones I use are ITOT and IXUS. These are the ishares total market etfs. One us and the other everything else. I prefer mutual funds in tax advantaged accounts and etfs in brokerage. I use all index funds except for a very small amount of a fund in my 401k. I also have a little bit of IJS in my Roth IRA.
Rising Star
No problem. Good luck with everything.
I am actually doing the same currently. I am going to try to do a 40% growth ETFs (QQQ, QQQJ), 30% Value ETFs, 15% GLD, 10% VPN REIT ETF, and 5 TLT in my brokerage account. I have about 10 solid long term stocks in my Roth IRA (Disney, Walmart, Microsoft).
Right now I feel like I have too many investments and want to simplify my portfolio.
IRA: FTEC, FBOX, and Zoom.
Brokerage: combination of growth and value ETFs, index funds, bonds, stock
It's helpful to see others have a similar number of investment streams; however, I think I could do a little consolidation.
Conversation Starter
i’m primarily invested in the below 5:
VOO - s&p 500
VXUS - international
IJR - small cap
QQQ - tech
ARKK - growth/innovation
Conversation Starter
definitely not badly, i think all the ARK funds are supposed to be pretty good! ARKQ is related to autonomous vehicles, robotics etc. ARKF is fintech, ARKG is genomic revolution, ARKW is next generation internet. And then ARKK is the combination of all 4.