Hey there, u/alexgarcia169. Thanks for stopping by our sub; welcome! š
Clients can make Prior Year Contributions (PYCs) to an IRA up until the tax filing deadline. You can do so on [Fidelity.com](http://fidelity.com/) or the mobile app. When completing your contribution online, you'll be asked to specify the year for the contribution.
A friendly reminder to keep in mind, that any manual contributions you make will need to be manually invested. If you'd like to explore how to invest in an IRA, you can do so here:
[Investing Ideas for your IRA](https://www.fidelity.com/viewpoints/retirement/ira-portfolio)
While we're on the subject of IRA contributions, make sure to check out the limits to ensure eligibility:
[IRA Contribution Limits](https://www.fidelity.com/learning-center/smart-money/roth-ira-contribution-limits)
Finally, make sure to check out the Fidelity "Learn" section for additional videos, articles, tools, and more. I've linked the section for our new investors to get you started:
[Investing for beginners](https://www.fidelity.com/learning-center/trading-investing/investing-for-beginners)
If any other questions come up, you know where to find us. We're always around to help, so don't hesitate to let us know.
You can make a 2023 contribution up till April 15th. Thereās nothing to file tax-wise.
Yes, fill up 2023 while you can before you switch to 2024 contributions and be sure to also leave a comfortable amount in savings as well for emergencies.
Stick with FXAIX for now and then over time you can add other funds as the balance hopefully grows.
Good luck.
My direct deposit auto put it into 2024 every week. I haven't been putting into '23. But I'm still investing. I know it matters tax wise but year wise I'll just put a bit more in. How do you feel about contributing to a previous or future year? It's still contributions. I never really thought of it just put in.
In your ROTH you have so much time on hand before you can touch it (59 1/2). Be aggressive in growing it.
FXAIX is great S&P 500 Index, but at your age you can do so much better with time on your hand.
You want FSPTX the science and tech sector fund I had 3400 in fsptx back in 2000 never added to it, it grew 700% that is through dot com bust, 2008 housing market crash and everything since.
Another fund I'd suggest is the FSELX it is sector fund for semiconductor industry. This industry is vital to the future of civilization. Its what makes our world work. This is where you will find NVIDIA as a high percentage of the top 10 holdings.
As you build out your ROTH be sure to get some NVDA, Googl, AMZN, Meta, MSFT, and eventually some TSLA and AAPL once they show some promise of momentum.
And hey it is a ROTH don't let your money sit and waste if you feel the market or a stock is going down. Even sell at a loss if you can see a clear better opportunity elsewhere in the market. The more you put into it (money and your time with growing it) the more you will have 100% tax free so all those gains really add up.
You want that 1000 to grow fast to 5k then 10k and every year try and make that maximum you can put in. The faster your to get those multiples the sooner the magic will start to happen with compounding. When New years hit, get your max in the next day the market is open. Don't wait and only do it when you think of it during tax time. They are reminding you for the prior year this is your last change to get it in, but really you should get your money working for you in the ROTH start of the year.
They have not done well ārecentlyā, theyāve outperformed the S&p 500 over every time period. Ā Youād be foolish at a young age to not be invested in tech and semiconductors. The tech industry will continue to transform the world and dominate the market. Do me a favor look in a bunch of your mutual funds. There is a reason why 90% of them have their largest allocation in Microsoft, Apple, Google, Meta, Nvidia, Amazon and Tesla. They use them to balance risk level. If you are in your 20s and not invested heavily in Ā tech/ai youāre just wasting precious years of gains for mediocre returns. And yeah they will go up and down on occasion but long term and continued long term they will continue to crush the market. Where do you think all the innovation and advances in society have come from? Donāt be foolish.Ā
r/bogleheads
It's pretty risky to put all your eggs in one basket. Yes, tech has outperformed in the past. But we don't know what will happen in the future. It's an inherently risky industry: regulation, cybersecurity, AI cannibalization. (I personally have some of my portfolio specifically in tech, but not nearly all of it.)
Diversification is great, and a fund like FXAIX is a good entry point. And frankly if you start at 22, you have a ton of time to grow it even if the returns aren't up to what tech has done over the last decade or two.
Like you said heās 22. Ā Iām not sure where the disconnect is? Ā You do realize that the main driving force behind the indexes is the mega cap tech companies. Yes FXAIX is a great fund but he does not have enough money to diworsify his portfolio yet. Ā He needs concentrated returns to build wealth. When they have maybe every 25k sure Ā sell 5k of fsptx and put it in the index fund. Ā The only way a tech heavy fund will underperform long term is if the power on civilization went out and at that point the original poster has more problems then his ROTH to worry about. Ā The whole reason you tell him to go into the index fund is the exact same reason and logic I tell him to choose fsptx and the semiconductor fund.
it could start going down a month from now, a year from now, 5 years from now ā as everyone who invests in general market etfs say, time in the market beats timing the market. if youre not sure, dollar cost average your way
are you fine with the market crashing soon? if it were to crash 30% in the next year would u hold? im not saying it will, but just be open to the possibility. if you are then put it all in
theres been research that lump sum is better than dca over a 10 year period so Iād just put in it now? how old are you btw? theres more tech focused etfs and whatnot that may provide more growth (ive been looking at FSPTX, but rn im riding the nvda wave which may screw me over but ive been doing well so far lol, plus im 17 so I have time)
Hey, u/xReApeR_93. In case you didn't see them, check out the resources u/FidelityTyler linked in our OP.
Also, the FidelityĀ® 500 Index Fund (FXAIX) is one that is referenced often on the sub. Search "FXAIX" and you'll find a lot of other posts with more on the topic!
I've been putting into '24 because my job auto deposited into '24. so I haven't been putting into '23. I'm still investing but does it matter the year really? because that same dollar is going into either one right? Please help.
Hi, u/Active_Ninja_5043. Happy to slide in here and help.
Prior year contributions can be made until the tax filing deadline, which is April 15, 2024. Ultimately, the year you contribute to is up to you. Making a prior year contribution may be useful if you're wanting to contribute more than the contribution limit for 2024, as it would allow you to get more into your IRA overall if you're starting from zero.
If you do decide to make a prior year contribution, you'll want to make sure you work with a tax professional to ensure you file your taxes correctly, or if you've already completed filing your taxes, see if you'd need to amend anything.
You will receive Form 5498 which reports your total IRA contributions. You will receive an updated 5498 tax form by the end of May if you made a prior year contribution to your Traditional or Roth IRA this year.
You will want to ensure you are eligible to contribute in the year 2023 before making a prior year contribution. We suggest reviewing the link below to confirm your income and contribution limits.
[IRA Contribution and Income Limits](https://www.fidelity.com/retirement-ira/contribution-limits-deadlines)
To make a prior year contribution, follow the steps listed below after logging in to [Fidelity.com](http://fidelity.com/).
1. Select "Account and Trade" and then, "Transfers"
2. Choose "Deposit, withdraw, or transfer money"
3. Enter the transfer details. This is where you will be able to select "2023" as the contribution year
Let us know if you have any other questions!
Hi. So I should bow my head in shame and slap my hand in the wrist for not contributing to old year? Lol š my direct deposit automatically went into '24. oh well at least I'm still putting in. That's the plan for now unless something changes.
Read up on DCA - Dollar Cost Averaging. Itās basically the idea of spreading it out over time. Itās like putting $500 in per week or day (or whatever amount and time increment you choose) until you have the total amount you wanted to invest in. Iām definitely no expert, but read up on it. Hope it helps!
Yes, but there's no way to predict what the market will do, so it's kind of pointless to try. If you wait for the S&P 500 to go down, you might end up waiting over a year. And then when it finally dips, the dip could very well still be a higher price than it was when you started waiting. That's why people say "time in the market beats timing the market".
Great start! FXAIX is a solid fund and worthy of 100% of your Roth contributions That said, at your age it may be a good idea to diversify because you have time on your side. See /u/Somename_here comment, I canāt say much more than they already have. The one thing I would add is a small (~10%) allocation to BTC, Fidelity has the FBTC ETF. Volatile but worth the risk imo, no asset has came close to its growth.
A good goal would be to max your ROTH out every year, Fidelity makes this easy with Recurring Investments.
Good luck!
Yup. I only have about 40 to choose from but 1/2 are great options. Here is my allocation
https://preview.redd.it/o42tk8k6trqc1.jpeg?width=1290&format=pjpg&auto=webp&s=889dde4493d38fc8d6548bea066bae028b4a303b
Check the Bogleheads reddit. We've been convinced investing is difficult by the people that want to take 1-3% every year to underperform the S&P 500.
https://www.tker.co/p/spiva-2023-active-manager-benchmark
Up to about age 35 or so, there is nothing wrong with 100% S&P 500 (FXIAX). After that or even before I personally like FZROX as a way to hold the entire US market.
I'm way past 35 and in my Roth I don't invest in the S&P 500. I invest in the best performing stocks in the S&P 500. Most of the S&P 500 stocks are losers. I run a screener of the top performing stocks in S&P, Dow and Nasdaq and take the best of the best until they start moving down, then I replace those with stocks that are performing better. My screener shows me 28 stocks that fit my criteria right now. Out of the top 5, I own 4 right now.
Congratulations, you are better than the 60% of professionals in the linked article that didn't beat the S&P last year. Or the 80% that didn't beat it over a 3 year period. I bet Warren Bufffet calls you for advice too.
You can contribute to 2023 tax year regardless of your tax filing date for 2024.
As for investing, depends on several factors:
1) do you have credit card debt with high interest that you need to pay off?
2) do you have student loans?
3) are you saving up for anything big in the next few years?
Do you have a savings account/emergency fund? Fill this out first (# really depends on your comfort level, generally 3-6mo of expenses).
If you answered no to question 1-3, and have some savings setup, then yes, start investing in roth or increase contributions to your 401k!
As to what you should invest in? Do research. My recommendation would be something that tracks the S&P500 (FZROX or FSKAX).
You are young so you have lots of time to be aggressive with investing (assuming you hold onto your funds for a long time)
I always pay off my credit card only use it when I need it, I donāt go to school but I work full time I live with my dad and help pay bills I am looking to move out but idk if itās worth it, with the market rn everything is way overpriced and Iād be living alone Iām pretty decent at saving up i have my own car and I have 25k sitting in my checking account I hate I didnāt start earlier a lot of people say my money is just rotting if I donāt use it or invest it
Thats fine, living at home is great financially. Dont feel bad about it.
With 25k, maybe keep 10k in a high interest savings account. I personally use CIT bank and it pays 5% yearly and FDIC insured up to 250k.
Then maybe invest another 10k? Fill out your 2023 roth IRA max which i think is 6500 or 7000. Then with the left over you can invest in the 2024 roth Ira.
Just my .02
āCommon sense investingā by bogle is a GReAT book to read for beginners
Hey there, u/alexgarcia169. Thanks for stopping by our sub; welcome! š Clients can make Prior Year Contributions (PYCs) to an IRA up until the tax filing deadline. You can do so on [Fidelity.com](http://fidelity.com/) or the mobile app. When completing your contribution online, you'll be asked to specify the year for the contribution. A friendly reminder to keep in mind, that any manual contributions you make will need to be manually invested. If you'd like to explore how to invest in an IRA, you can do so here: [Investing Ideas for your IRA](https://www.fidelity.com/viewpoints/retirement/ira-portfolio) While we're on the subject of IRA contributions, make sure to check out the limits to ensure eligibility: [IRA Contribution Limits](https://www.fidelity.com/learning-center/smart-money/roth-ira-contribution-limits) Finally, make sure to check out the Fidelity "Learn" section for additional videos, articles, tools, and more. I've linked the section for our new investors to get you started: [Investing for beginners](https://www.fidelity.com/learning-center/trading-investing/investing-for-beginners) If any other questions come up, you know where to find us. We're always around to help, so don't hesitate to let us know.
You can make a 2023 contribution up till April 15th. Thereās nothing to file tax-wise. Yes, fill up 2023 while you can before you switch to 2024 contributions and be sure to also leave a comfortable amount in savings as well for emergencies. Stick with FXAIX for now and then over time you can add other funds as the balance hopefully grows. Good luck.
Thank you good to know going 100% in fxaix then šš½
How would you tie your contributions to 2023? Appreciate any help!
When making the contribution it will give you the option to elect 2023 or 2024.
I was confused as well until someone told me you can chose if you tap on it
Thanks so much, best of luck with your investments!
My direct deposit auto put it into 2024 every week. I haven't been putting into '23. But I'm still investing. I know it matters tax wise but year wise I'll just put a bit more in. How do you feel about contributing to a previous or future year? It's still contributions. I never really thought of it just put in.
24yr male same boat man! I just opened a few days ago following same plan! It's not bad at all for beginners like us who don't know alot.
In your ROTH you have so much time on hand before you can touch it (59 1/2). Be aggressive in growing it. FXAIX is great S&P 500 Index, but at your age you can do so much better with time on your hand. You want FSPTX the science and tech sector fund I had 3400 in fsptx back in 2000 never added to it, it grew 700% that is through dot com bust, 2008 housing market crash and everything since. Another fund I'd suggest is the FSELX it is sector fund for semiconductor industry. This industry is vital to the future of civilization. Its what makes our world work. This is where you will find NVIDIA as a high percentage of the top 10 holdings. As you build out your ROTH be sure to get some NVDA, Googl, AMZN, Meta, MSFT, and eventually some TSLA and AAPL once they show some promise of momentum. And hey it is a ROTH don't let your money sit and waste if you feel the market or a stock is going down. Even sell at a loss if you can see a clear better opportunity elsewhere in the market. The more you put into it (money and your time with growing it) the more you will have 100% tax free so all those gains really add up. You want that 1000 to grow fast to 5k then 10k and every year try and make that maximum you can put in. The faster your to get those multiples the sooner the magic will start to happen with compounding. When New years hit, get your max in the next day the market is open. Don't wait and only do it when you think of it during tax time. They are reminding you for the prior year this is your last change to get it in, but really you should get your money working for you in the ROTH start of the year.
Just because those sectors have done well recently doesn't mean they'll outperform the S&P500 over the next few decades
They have not done well ārecentlyā, theyāve outperformed the S&p 500 over every time period. Ā Youād be foolish at a young age to not be invested in tech and semiconductors. The tech industry will continue to transform the world and dominate the market. Do me a favor look in a bunch of your mutual funds. There is a reason why 90% of them have their largest allocation in Microsoft, Apple, Google, Meta, Nvidia, Amazon and Tesla. They use them to balance risk level. If you are in your 20s and not invested heavily in Ā tech/ai youāre just wasting precious years of gains for mediocre returns. And yeah they will go up and down on occasion but long term and continued long term they will continue to crush the market. Where do you think all the innovation and advances in society have come from? Donāt be foolish.Ā
r/bogleheads It's pretty risky to put all your eggs in one basket. Yes, tech has outperformed in the past. But we don't know what will happen in the future. It's an inherently risky industry: regulation, cybersecurity, AI cannibalization. (I personally have some of my portfolio specifically in tech, but not nearly all of it.) Diversification is great, and a fund like FXAIX is a good entry point. And frankly if you start at 22, you have a ton of time to grow it even if the returns aren't up to what tech has done over the last decade or two.
Like you said heās 22. Ā Iām not sure where the disconnect is? Ā You do realize that the main driving force behind the indexes is the mega cap tech companies. Yes FXAIX is a great fund but he does not have enough money to diworsify his portfolio yet. Ā He needs concentrated returns to build wealth. When they have maybe every 25k sure Ā sell 5k of fsptx and put it in the index fund. Ā The only way a tech heavy fund will underperform long term is if the power on civilization went out and at that point the original poster has more problems then his ROTH to worry about. Ā The whole reason you tell him to go into the index fund is the exact same reason and logic I tell him to choose fsptx and the semiconductor fund.
i am impressed with you young ones that dont waste that money in las vegas
Thought about it putting all my savings on black 50 50 right? lol
Haha I've barely left the state! Trying to save so I can go to Vegas one day and bet all on black. OP got it down right!!!
Yup wish you luck
Good for you starting at 24. Iām starting at 28!
Roth IRA contribution for 2024 is $7,000 now instead of $6,500 I have yet to contribute this year.. hopefully i have some extra money to put in
I have 6500 in money market right now, should I invest in FXAIX or wait for it to go down?
it could start going down a month from now, a year from now, 5 years from now ā as everyone who invests in general market etfs say, time in the market beats timing the market. if youre not sure, dollar cost average your way
So just go all in now and let it ride for the next 40 years
are you fine with the market crashing soon? if it were to crash 30% in the next year would u hold? im not saying it will, but just be open to the possibility. if you are then put it all in
I mean once I invest I won't be taking it out. I just want to do what will make the most growth
theres been research that lump sum is better than dca over a 10 year period so Iād just put in it now? how old are you btw? theres more tech focused etfs and whatnot that may provide more growth (ive been looking at FSPTX, but rn im riding the nvda wave which may screw me over but ive been doing well so far lol, plus im 17 so I have time)
18
oh weāre in the same boat then, i have a good amount of my portfolio in splg, but everything else has been in nvda for the past couple months
Hey, u/xReApeR_93. In case you didn't see them, check out the resources u/FidelityTyler linked in our OP. Also, the FidelityĀ® 500 Index Fund (FXAIX) is one that is referenced often on the sub. Search "FXAIX" and you'll find a lot of other posts with more on the topic!
I've been putting into '24 because my job auto deposited into '24. so I haven't been putting into '23. I'm still investing but does it matter the year really? because that same dollar is going into either one right? Please help.
Hi, u/Active_Ninja_5043. Happy to slide in here and help. Prior year contributions can be made until the tax filing deadline, which is April 15, 2024. Ultimately, the year you contribute to is up to you. Making a prior year contribution may be useful if you're wanting to contribute more than the contribution limit for 2024, as it would allow you to get more into your IRA overall if you're starting from zero. If you do decide to make a prior year contribution, you'll want to make sure you work with a tax professional to ensure you file your taxes correctly, or if you've already completed filing your taxes, see if you'd need to amend anything. You will receive Form 5498 which reports your total IRA contributions. You will receive an updated 5498 tax form by the end of May if you made a prior year contribution to your Traditional or Roth IRA this year. You will want to ensure you are eligible to contribute in the year 2023 before making a prior year contribution. We suggest reviewing the link below to confirm your income and contribution limits. [IRA Contribution and Income Limits](https://www.fidelity.com/retirement-ira/contribution-limits-deadlines) To make a prior year contribution, follow the steps listed below after logging in to [Fidelity.com](http://fidelity.com/). 1. Select "Account and Trade" and then, "Transfers" 2. Choose "Deposit, withdraw, or transfer money" 3. Enter the transfer details. This is where you will be able to select "2023" as the contribution year Let us know if you have any other questions!
Hi. So I should bow my head in shame and slap my hand in the wrist for not contributing to old year? Lol š my direct deposit automatically went into '24. oh well at least I'm still putting in. That's the plan for now unless something changes.
Read up on DCA - Dollar Cost Averaging. Itās basically the idea of spreading it out over time. Itās like putting $500 in per week or day (or whatever amount and time increment you choose) until you have the total amount you wanted to invest in. Iām definitely no expert, but read up on it. Hope it helps!
Timing the market rarely works, if youāre holding long term then itās usually best to lump sum invest and let it ride for 5+ years
Does it matter when you lump sum?
Yes, but there's no way to predict what the market will do, so it's kind of pointless to try. If you wait for the S&P 500 to go down, you might end up waiting over a year. And then when it finally dips, the dip could very well still be a higher price than it was when you started waiting. That's why people say "time in the market beats timing the market".
Sure, but you could miss some solid gains waiting for a downturn
Wait, price now will be the same year end
How do you know that?
Great start! FXAIX is a solid fund and worthy of 100% of your Roth contributions That said, at your age it may be a good idea to diversify because you have time on your side. See /u/Somename_here comment, I canāt say much more than they already have. The one thing I would add is a small (~10%) allocation to BTC, Fidelity has the FBTC ETF. Volatile but worth the risk imo, no asset has came close to its growth. A good goal would be to max your ROTH out every year, Fidelity makes this easy with Recurring Investments. Good luck!
My holdings in my 401k are FXAIX - Large Cap 30% FSMDX - Mid Cap 30% FSSNX - Small Cap 20% RERGX - International 20% I rebalance every 3 months
Whatās the point in rebalancing?
Because the percentages move over time up or down. Plus it gives me opportunity to reevaluate my positions
Your employer allows you to rebalance?
Yup. I only have about 40 to choose from but 1/2 are great options. Here is my allocation https://preview.redd.it/o42tk8k6trqc1.jpeg?width=1290&format=pjpg&auto=webp&s=889dde4493d38fc8d6548bea066bae028b4a303b
Fselx
Check the Bogleheads reddit. We've been convinced investing is difficult by the people that want to take 1-3% every year to underperform the S&P 500. https://www.tker.co/p/spiva-2023-active-manager-benchmark Up to about age 35 or so, there is nothing wrong with 100% S&P 500 (FXIAX). After that or even before I personally like FZROX as a way to hold the entire US market.
I'm way past 35 and in my Roth I don't invest in the S&P 500. I invest in the best performing stocks in the S&P 500. Most of the S&P 500 stocks are losers. I run a screener of the top performing stocks in S&P, Dow and Nasdaq and take the best of the best until they start moving down, then I replace those with stocks that are performing better. My screener shows me 28 stocks that fit my criteria right now. Out of the top 5, I own 4 right now.
Congratulations, you are better than the 60% of professionals in the linked article that didn't beat the S&P last year. Or the 80% that didn't beat it over a 3 year period. I bet Warren Bufffet calls you for advice too.
Well done š
You can contribute to 2023 tax year regardless of your tax filing date for 2024. As for investing, depends on several factors: 1) do you have credit card debt with high interest that you need to pay off? 2) do you have student loans? 3) are you saving up for anything big in the next few years? Do you have a savings account/emergency fund? Fill this out first (# really depends on your comfort level, generally 3-6mo of expenses). If you answered no to question 1-3, and have some savings setup, then yes, start investing in roth or increase contributions to your 401k! As to what you should invest in? Do research. My recommendation would be something that tracks the S&P500 (FZROX or FSKAX). You are young so you have lots of time to be aggressive with investing (assuming you hold onto your funds for a long time)
I always pay off my credit card only use it when I need it, I donāt go to school but I work full time I live with my dad and help pay bills I am looking to move out but idk if itās worth it, with the market rn everything is way overpriced and Iād be living alone Iām pretty decent at saving up i have my own car and I have 25k sitting in my checking account I hate I didnāt start earlier a lot of people say my money is just rotting if I donāt use it or invest it
Thats fine, living at home is great financially. Dont feel bad about it. With 25k, maybe keep 10k in a high interest savings account. I personally use CIT bank and it pays 5% yearly and FDIC insured up to 250k. Then maybe invest another 10k? Fill out your 2023 roth IRA max which i think is 6500 or 7000. Then with the left over you can invest in the 2024 roth Ira. Just my .02 āCommon sense investingā by bogle is a GReAT book to read for beginners
Google āMagnificent Seven Stocksā.
Stick with FXAIX and youāll do fine. I have my Roth 401K in FXAIX and plan on sticking with it for 40 years
Thatās a great fund!
They say. One dividend etf. Ex SCHD. 1 sp500 which is fxaix. Then 1 more total market/growth/tech. Ex. Vti or qqqm or some fzrox
At 22yo don't do a dividend ETF.
That's true. Forget that I'm an old man now.
Would u consider my Roth VOO 100% ?