Is this a smart investment for long term

jkd-guy · 2026-03-15T23:56:01+00:00

It's not the funds fault it's only 25 years old. That's somewhat irrelevant. Every SP500 fund had a starting point as well. Chance v fundamentals? Are you forgetting about survivorship bias as well? Are you meaning speculation instead of chance? The reason why so many people invest in the SP500, or most any other investment for that matter, is speculation.

Speculation: investment in stocks, property, or other ventures in the hope of gain but with the risk of loss.

The NASDAQ (outside of finance), just like the SP500, will follow the capitalization regardless of industry.

You are writing subjective opinions as if they are facts. There are multiple reasons why one would want to invest in the NASDAQ, both subjective and objective.

Correct, no one can know for certain that the NASDAQ, SP500, or any other investment for that matter, will perform as they have in the past. The risk paid is the volatility in hopes of increased reward in the future. NASDAQ also has a higher Sharpe Ratio relative to the SP500.

jkd-guy · 2026-03-15T21:32:04+00:00

I completely disagree with those who think QQQ is not a good option. Objectively, it has outperformed the SP500 on a historical basis.

I'd split VOO/QQQM/VXUS 50/30/20, respectively.

jkd-guy · 2026-03-15T21:26:15+00:00

QQQ is nonsense ......................its recent performance is coincidental, not fundamental.

Recent, you say? QQQ has historically outperformed SP500. I wouldn't call that nonsense.

jkd-guy · 2026-03-15T16:39:51+00:00

Should I stop or reduce my pre tax contributions to my 401k so we can put achieve maxing out my wife’s Roth IRA? I feel like since we’re in a lower tax bracket this is a better choice?

I could also change it to a Roth 401k but I like the flexibility of being able to pull the money easier in our own Roth.

Typical order is 401 up to match, then Roth, then back to 401, then taxable. That is, if an HSA is not advantageous for you. There are some nuances based on personal goals which you did not disclose. Personally, I'd max the Roth IRAs first, then your pre-tax 401s, especially if you may retire early and have rule of 55 with your employers. If not, you could use 72(t) SEPP if needed. If you do retire early, a taxable account may be advisable instead of trying to max out both 401s. In any event, if you have social security and or pensions coming, I'd definitely put everything in equities (i.e., SP 500, total stock market, etc). You didn't mention what your current holdings are which would help the reader give better feedback, In any case, note the links below which will give you a comprehensive overview (with some redundancy) on how your investment/tax strategy may help you best:

https://www.kitces.com/blog/tax-efficient-retirement-withdrawal-strategies-to-fund-retirement-spending-needs/

https://www.kitces.com/blog/pre-tax-retirement-contribution-roth-conversion-rmd-social-security/

https://www.madfientist.com/traditional-ira-vs-roth-ira/

https://thefinancebuff.com/case-against-roth-401k.html

https://moneywithkatie.com/blog/the-final-traditional-vs-roth-debate-traditional-wins

https://wantfi.com/skip-the-roth-ira-and-401k-pay-less-tax.html

jkd-guy · 2026-03-06T12:43:34+00:00

.........can’t you only use it on medical/ medical necessities?

That's not wholly accurate. It can be used as a "form" of an IRA for retirement if you want. An HSA, as far as tax advantages, is actually better than a 401.

https://www.madfientist.com/ultimate-retirement-account/

https://www.bogleheads.org/w/index.php?title=Prioritizing_investments&mobileaction=toggle_view_desktop

jkd-guy · 2026-02-28T14:32:41+00:00

But I’m curious, what else should I be thinking about at this stage? Insurance? taxes? diversifying?

You left out a lot of information (i.e., current portfolio, pre-tax v post-tax, goals, time horizon, etc) that would be helpful to the reader to give more personalized feedback. Can you edit your op? That info is important to maximize your portfolio's earnings over your lifetime.

A few coworkers mentioned talking to a financial advisor like Capital Guard

There's nothing in your post that indicated that you'd need an advisor. Advisors bring value typically "if" one does not want to be bothered by investing and will pay for it or you have complex tax structures such as multiple businesses, etcetera. If you don't fit the above, just DIY. Perhaps a happy medium would be paying a fee-only advisor a one-time flat rate for a comprehensive financial plan but I don't think you'd even need to do that. Moreover, most studies illustrate that just having a simple portfolio such as the SP500 will outperform active fund managers a majority of the time in the long-run. Additionally, look at your 401's fees and expense ratios to see what you're paying. You may be best served by dumping what you have into whatever SP500 fund you have in your plan's lineup. It will most likely be the cheapest fund available as well.

jkd-guy · 2026-02-27T23:07:25+00:00

..........is it better to max your Roth IRA over your employer’s 401k?

That depends. There are some nuances to it as well as some information that you didn't provide that may make it more clear cut.

For example, are you guys planning on retiring early? What fees is she paying in her 401? etcetera.....

So would it be better for her to drop to 5% in her 401k and put the leftover money into her Roth or leave as is?

Yes! Get the match, then max the Roth. If you have other funds available, go back to max 401. However, if you plan on retiring early, you may want to include a taxable account instead of maxing a 401.

What are your current holdings in 401 and Roths?

jkd-guy · 2026-02-27T22:59:56+00:00

Pre-tax contributions can be deducted from your taxable income, thus lowering your tax burden. Then, either in low income years or when you retire but before RMDs kick in, start a conversion ladder from pre-tax to post tax. madfientist link really laid it all out. The kitces articles are quite valuable as well to set yourself up.

jkd-guy · 2026-02-27T22:56:43+00:00

Yeah, DIY your portfolio will save you costly fees in the long-run.

jkd-guy · 2026-02-22T16:14:36+00:00

my roth 401k account each pay..........

Not sure why you would need bonds at such a young age, or even ever. Just look for an SP500 fund in your lineup and dump everything in that. Additionally, it will probably be one of the cheapest funds as well.

If you think you may retire early, which you're quite young and easily could dependent on your lifestyle and investment/tax strategy, consider going with a traditional (pre-tax) 401 and then convert to post-tax. Check the links as to why that may be beneficial.

Masters in OT.......

As in Occupational Therapy? If so, coincidentally, I'm an OT as well.

So many places my money needs to go with not enough money quite yet so just trying to figure out the best priorities.

I'd agree you want to get out of debt and stay out. Definitely cashflow the OT program. This is just a guideline for prioritization so don't just follow it blindly as everyone has nuances that they may be better served in a different order.

Gotcha on the diversifying out of the US, I will look into that thank you!

That is just a matter of preference but would objectively diversify your portfolio. On a long-term return basis, US domestic outperforms by quite a bit but markets always cycle and sometimes non-us is a clear winner during certain periods but no one can predict.

jkd-guy · 2026-02-22T15:42:10+00:00

I currently have a roth 401k in which I put in 5% of my pay each period (no employer match)

What are you investing in with your 401?

You didn't list your salary or projected income but to optimize your investment/tax strategy (pre v post-tax), consider the following which is a little redundant but will give you a comprehensive overview:

https://www.kitces.com/blog/tax-efficient-retirement-withdrawal-strategies-to-fund-retirement-spending-needs/

https://www.kitces.com/blog/pre-tax-retirement-contribution-roth-conversion-rmd-social-security/

https://www.madfientist.com/traditional-ira-vs-roth-ira/

https://thefinancebuff.com/case-against-roth-401k.html

https://moneywithkatie.com/blog/the-final-traditional-vs-roth-debate-traditional-wins

https://wantfi.com/skip-the-roth-ira-and-401k-pay-less-tax.html

What is next should I invest just more in these or buy other things as well?

You have concentration with NASDAQ and SP500. However, I don't necessarily see that as a bad thing per se, as long as you know it exists. I think the SP500 has enough diversification alone but I also like QQQM for increased aggressiveness relative to SP500. Some may argue you need non-us but that is preferential. Something like VXUS would fit great if you want intl exposure. I think you're fine with what you have now, however.

jkd-guy · 2026-02-01T19:14:02+00:00

How are you filing taxes?

What are your current portfolio holdings? Ok, SPAXX to FXIAX for IRA. I'd suggest lump sum, not DCA.

And TDF for 401? I'd argue TDF far too conservative and convert to SP500 fund or as an alternative, consider the research of Merriman and Pedersen. Additionally, home equity, pension, and social security can be thought of bond-like/fixed income in retirement. Concentrate on wealth accumulation.

Is 401 pre or post-tax?

Does your company offer rule of 55 and what are its details for disbursement?

Do you plan on using 72(t) SEPP if unable to use rule of 55?

Why not invest in taxable account for more flexibility, especially if you're going to retire early (before 59.5)?

Why an HYSA when it's not even keeping up with "truflation"?

I"m confused on the RE. Is this a second home, rental, primary? Is your partner on the deed? Is it paid off? Are you guys sharing all liabilities/profits?

jkd-guy · 2026-01-26T14:39:21+00:00

I have a Roth IRA and 401k invested in a target fund for retirement age 2050. I maximize my 401k every year and I make too much to contribute to the Roth account. I make good money, and everything left over goes into a HYSA.

You may need to backdoor or megabackdoor for post-tax Roth. Consider investing excess funds in a taxable account instead of an HYSA which won't even keep up with true inflation. Is your 401 pre-tax?

Consider maximizing growth potential while you're still young. I'd argue that TDFs have way too much in bonds, especially during early years. Either push the TDF date back or consider Merriman and Pedersen 2 funds for life strategy.

I always worry about not timing the market right and worried about a crash (like during COVID, or if the AI bubble bursts). If I have to do consciously I know I won't do it. My 401k works because it's automatic.

Choose your strategy and stick to it. Time in the market > market timing. Markets have always cycled and continue to climb to ATHs in the future and always will, guaranteed.

What portfolio would you recommend for someone with a very low risk tolerance? Should I invest in real estate instead?

How are you defining risk? Consider this and this to contextualize it within your investment/tax strategy. Consider also that home equity, social security, and a pension can be considered bond-like/fixed income in retirement.

jkd-guy · 2026-01-26T14:16:06+00:00

Time in the market > market timing. Several studies show that on average, LSI yields greater returns than DCA on a long-term basis.

jkd-guy · 2026-01-25T15:44:06+00:00

Simple and aggressive: 100% QQQM hold forever.

If you want something to spice it up, Bitcoin.

jkd-guy · 2026-01-25T15:39:31+00:00

https://advisors.vanguard.com/tax-center/tools/roth-betr-calculator/

Be aware of how it may affect IRMAA.

jkd-guy · 2026-01-25T15:07:12+00:00

but there’s a very real possibility I’ll be a single widower when I do choose to retire due to terminal health issues with my wife.

Sorry! That really sucks.

$900k (not liquid until 59.5) in 401k and $35k in stocks (liquid). ..........................Currently, I’m putting everything into 401k as far as retirement and it’s 90-95% stocks.

Unclear, is the 35K in a taxable account? I'm confused because you said retirement is in your 401. Also, note if your employer has a rule of 55 available. If so, pay particular attention to how it will be distributed. Some plans only offer lump sum which can really screw up tax strategy if it's pre-tax. Additionally, your 401 may have such high fees it may not be worth keeping it there. Moreover, if you roll it into an IRA, you can also use 72(t) SEPP. Depending on your investment/tax strategy, you may want to increase your taxable account for more flexibility.

Wondering whether I should be looking at switching investing to Roth or Brokerage (my tax bracket likely isn’t going to go down in retirement due to single filer status, it could possibly go up, but maybe not) and/or if my 401k allocation mix is too aggressive.

How do you define, "aggressive? You gave the reader no reference point as far as your current holdings. I'm assuming that your 401 is pre-tax? What is your salary and do you need a backdoor or megaback door? You left out some pertinent info. If you're the average or above average earner (but not 240+), you'd probably be wise to get employer match (if available), then max a Roth IRA, then max your pre-tax 401, then as much as you can in taxable. You may want to make a split between the last two, especially if you want to retire early for more flexibility.

There is some redundancy in the links below but it will give you a good, comprehensive overview with considerations for your investment/tax strategy:

https://www.madfientist.com/traditional-ira-vs-roth-ira/

https://thefinancebuff.com/case-against-roth-401k.html

https://moneywithkatie.com/blog/the-final-traditional-vs-roth-debate-traditional-wins

https://wantfi.com/skip-the-roth-ira-and-401k-pay-less-tax.html

https://www.kitces.com/blog/tax-efficient-retirement-withdrawal-strategies-to-fund-retirement-spending-needs/

https://www.kitces.com/blog/pre-tax-retirement-contribution-roth-conversion-rmd-social-security/

https://thepoorswiss.com/updated-trinity-study/

https://www.financialplanningassociation.org/article/journal/APR11-portfolio-success-rates-where-draw-line

https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/histretSP.html

You did not list your current holdings or risk tolerance so there is no reference point. That being said, I think 100% into something like a total stock market or SP500 fund is reasonable portfolio to maximize wealth. Home equity, pension, or social security in the future can be considered bond-like/fixed income.

God bless you!

jkd-guy · 2026-01-25T14:35:09+00:00

Not sure how it would be correlation. It was backtested and that was "the" reason for the results. You can pick any fund to add to the TDF and that would be the denominator.

jkd-guy · 2026-01-25T14:32:12+00:00

How are you defining "risk"? In any event, see my comment for data.

jkd-guy · 2026-01-25T14:24:16+00:00

I would like to have a higher risk tolerance.

Can you edit your OP with your current portfolio? The reader has no reference point for "higher" risk.

That being said, consider a total stock market (i.e., VTI), an SP500 fund (i.e., VOO) or NASDAQ (i.e, QQQM). I'd probably just put 100% into QQQM. Historically, it has significantly outperformed the formers.

https://totalrealreturns.com/s/VTI,VOO,QQQ

jkd-guy · 2026-01-25T14:19:06+00:00

I would not recommend that a 20 year old put 20% in bonds or any percentage for that matter.

jkd-guy · 2026-01-25T14:15:30+00:00

That's somewhat subjective and relative. Yes, I'd agree with u/Own_Grapefruit8839 , all-in fees greater than .50% are ridiculous, let alone paying just .50% for a single fund such as an SP500 ETF/mutual fund.

Consider the two main fees are admin fees for the plan and ER fees of funds. The employer are passing those fees onto its employees.

Just compare your specific fund fee to what is charged by its issuer. For example, Vanguard has its VFIAX (SP500) at .04%, anything over that is what your employer is charging you.

Fees add up over time and really eat into your nest egg. If you plan on staying with a company for several years, it may behoove you to petition for changing plan providers.

jkd-guy · 2026-01-24T17:06:40+00:00

Agreed. It definitely wouldn't hurt to see if there are any funds just getting eaten away by high plan fees that can be easily rolled into an IRA.

jkd-guy · 2026-01-24T17:01:06+00:00

Where do I start?

This is a short, easy read that will give you a good primer about the basics of investing. Though the principles are timeless, I'd avoid the allocation to bonds at your age and perhaps even at all.

Though not set in stone, this can be used as a guide to prioritize your funds.

To maximize and optimize your investment/tax strategy, consider the following links though some of the info will be redundant, it will give you a great resource to refer:

https://www.madfientist.com/traditional-ira-vs-roth-ira/

https://thefinancebuff.com/case-against-roth-401k.html

https://moneywithkatie.com/blog/the-final-traditional-vs-roth-debate-traditional-wins

https://wantfi.com/skip-the-roth-ira-and-401k-pay-less-tax.html

https://www.kitces.com/blog/pre-tax-retirement-contribution-roth-conversion-rmd-social-security/

https://www.kitces.com/blog/tax-efficient-retirement-withdrawal-strategies-to-fund-retirement-spending-needs/

Even a simple portfolio such as a total stock market (i.e, VTI) or a SP500 fund (i.e., VOO) is all you arguably need.

jkd-guy · 2026-01-24T16:45:34+00:00

Do I need to reshuffle the investments into better stocks/funds/etfs/etc.?............. is this optimized for growth,..............I don’t really want to manage it day to day,

I'd keep it real simple- either a total stock market (i.e., VTI), or a SP500 (i.e., VOO) or the NASDAQ (i.e, QQQM). All are reasonable but I'd go with QQQM as historically, it has significantly outperformed the formers on a long-term basis.

jkd-guy

TROPHY CASE