21 - Just Started

[u/Striking_Platypus398]

so I’m starting out investing, I got some basic advice whenever I first asked a few days ago about investing into the S&P 500.

here’s what I’ve done so far:

I put money into VOO in the beginning and learned later after doing more of my own research that this money should be kept in a ROTH IRA until I max them out (I’m playing for the long game with these.) so I sold my current stocks and funded my ROTH IRA slightly.

I funded a total of $120 into my ROTH IRA and put it into VOO.

$100 Deposit with a 1% match: $101

$20 Deposit with a 1% match: $20.20

I bought $101 @ $622.93 a share

I bought $20.20 @ $623.39 a share

I plan to fund the ROTH with $20 every Monday and putting it into VOO until I at least have $500, and then I’ll put money into other stocks. ($160 by April 15th.)

160 + 1% match = 161.60

I plan to fund at least $100 to my ROTH every Friday starting on February 27th (for a total of $700 by April 15th.)

700 + 1% match = 707

I also plan to fund an additional $116.48 to the ROTH by this Friday (I have to move it from my cash balance on Robinhood)

I’m doing all of this in my 2025 ROTH calendar year so I expect to fund it with at least $1,106.28 by April 15th.

[u/MacroBombastic]

good luck!

[u/ClammyAF → u/[deleted]]

Fractional shares gain and lose exactly the same.

I love SCHD, but this isn't a good rationale for deviating from OP's plan.

[u/ClammyAF → u/[deleted]]

I don't love OP's plan either. Honestly, I'd suggest they just buy a target date fund or a combination of a total US fund and total exUS fund. For someone starting out, just build a broadly diversified base.

But buying whole shares isn't an issue (at least at the vast majority of brokerages).

[u/ClammyAF → u/[deleted]]

I agree that many portfolios make little sense. I'd suggest OP just buy VT or VTI/VXUS or a target date fund. Then dump every penny available into one of those three options.

And I also don't have an issue with someone getting a small percentage of exposure to a single stock if they have a reason to purchase it. But even then, I'd never allocate more than 5% to a single stock--and that's the risk OP runs in buying single sticks before they've built a base.