I'm ready to invest aggressively, what do I do next?

I’ve been lurking here and checking out the Bogleheads philosophy but wanted to simplify things. I’m 21 with a solid chunk saved in a HYSA earning 4.5% APY. I also have some money in VOO and SPY in an individual account with Fidelity, plus some in a Roth IRA with Vanguard. Should I just keep doing what I’m doing, or should I branch out? I can invest about $2k a month, and I have zero debt.

Stick with VOO, but drop SPY. They follow the same index, but VOO is cheaper to hold due to lower fees.

Sage said:
Stick with VOO, but drop SPY. They follow the same index, but VOO is cheaper to hold due to lower fees.

Should I focus more on my Roth IRA or the individual account?

Harlem said:

Sage said:
Stick with VOO, but drop SPY. They follow the same index, but VOO is cheaper to hold due to lower fees.

Should I focus more on my Roth IRA or the individual account?

Fidelity has FXAIX, which has an even lower expense ratio than VOO. But always max out your Roth IRA first for the tax benefits.

Harlem said:

Sage said:
Stick with VOO, but drop SPY. They follow the same index, but VOO is cheaper to hold due to lower fees.

Should I focus more on my Roth IRA or the individual account?

Definitely max out the Roth IRA for the tax advantages.

Sage said:
Stick with VOO, but drop SPY. They follow the same index, but VOO is cheaper to hold due to lower fees.

Why VOO over VTSAX?

Sage said:
Stick with VOO, but drop SPY. They follow the same index, but VOO is cheaper to hold due to lower fees.

Unless you’re using those SPY shares for margin trading, then maybe there’s a reason to hold both.

You’re only 21, so unless something crazy happens, you’ve got a lot of time for your money to grow. Compound interest is your best friend.

Focus on two things: increase your income and save aggressively. Then stick with simple investments like the S&P 500 (VOO, for example).

Every dollar you invest now has the potential to turn into $100 by the time you retire. Even just $13,500 invested today could become a million if the market behaves like it has historically.

You can take some risks, but you don’t need to go wild. Even with conservative investments, you’ll likely retire a millionaire.

@Kai
Where should I put that $13,500? Roth IRA?

Farley said:
@Kai
Where should I put that $13,500? Roth IRA?

I’m not from the US (I’m in Canada), but I have a lot in a tax-free account invested in VEQT, which is mostly US stocks with some Canadian and international exposure. I expect the ups and downs, but dollar-cost averaging should work out.

I’m also more focused on increasing my income and living within my means than trying to squeeze a bit more from riskier investments.

Farley said:
@Kai
Where should I put that $13,500? Roth IRA?

Both Roth and traditional accounts have their advantages. I do a mix of both.

Save aggressively and invest for the long term.

Jensen said:
Save aggressively and invest for the long term.

This is the key. People get caught up chasing returns. Just save and invest consistently, especially while you’re young.

Jensen said:
Save aggressively and invest for the long term.

You’re debt-free right now, which is huge. Staying out of debt has made a big difference for me over the years.

Head over to the personal finance forum and check out their money prioritization flowchart if you haven’t yet. It will walk you through steps like building an emergency fund, paying off high-interest debt, and prioritizing tax-advantaged accounts like 401(k) matches, IRAs, and HSAs.

After that, either in a brokerage or IRA, set up a 3-fund portfolio (Total Stock Market, Total International, and Total Bond) like the Bogleheads recommend. Since you’re young, go with a higher stock allocation.

Congrats on making smart financial choices in your 20s! I didn’t get serious about this stuff until I was in my 30s.

@Bao
Thanks! I’ll check out that flowchart.

VOO is solid. The important thing is that you don’t touch that money for at least 7-10 years. If you quit your job or need the cash for an emergency when the market’s down, you’ll regret it.

Avery said:
VOO is solid. The important thing is that you don’t touch that money for at least 7-10 years. If you quit your job or need the cash for an emergency when the market’s down, you’ll regret it.

Can I buy VOO in the EU?

@Toby
Your broker should let you buy US-based ETFs like VOO. If not, a similar ETF in the EU is CSPX, which trades on the London Stock Exchange.

@Toby
You could also go for a cheaper S&P 500 ETF like SXR8. There’s nothing magical about VOO specifically.