I decided to shift from using a age-indexed mutual fund for my Roth IRA to more actively managing that part of my investment portfolio. So far it's been an interesting journey as I've been forced to do a lot more reading and research on index funds, mutual funds, and EFTs.
One negative of this new approach is that I'm finding I spend a lot more time reading up on and thinking about that particular account. In return, my goal is a better overall return as compensation for that time investment.
Because the market is still near an ATH, I'm working to slowly buy into some EFTs by taking advantage of a very recent dip.
I'm still working on the overall ratios I want, but I do know that I currently am looking at owning:
- VTI
- QQQJ
- QQQM
- SMH
- TQQQ
VTI is a standard as a "baseline" for a retirement account as it tracks essentially the entire market. I decided to break up QQQ and instead get QQQJ and QQQM. In part, because the fees are lower than in QQQ and my IRA will benefit more from that.
Rather than directly buying each, I decided to use Cash Secured Puts (CSPs) to slowly work into them. There is a very good case that I should simply buy and hold and not worry about overpaying in the short-term since it's a long-term hold. That said, I may wheel some stocks in the IRA because of the tax benefits of the Roth meaning I don't have to stress over capital gains if I sell under a year, so, if the premium is worth it, I'll look at wheeling even the EFTs to slowly work the cost basis down.
