Best Investments to Add To Your Stock Portfolio

[james.hendrickson]

All,

I'm posting this for all the newby lurkers out there. Here are some solid assets that you could profitably considering adding to your portfolio on your millionaire journey.

$VOO - S&P 500

$QQQ - Growth

$SCHD - Dividend growth

$JEPQ - Passive income

$XLRE - Real estate

$BTC - Bitcoin

$IAUM - Gold

In full disclosure, I own the S&P 500, some units of JEPQ, and some bitcoin. I DON"T have a position in the Qs, XLRE, or IAUM.

[disneysteve]

If you're a newbie, I'd probably take all but the first 2 off the list. #2 is iffy as it's really a tech sector fund which isn't an ideal choice for someone starting out. And I'd recommend VTI over VOO as it's much more diversified.

Your title says things to add to your "stock portfolio" but the last 2 aren't stock funds so they've got nothing to do with your stock allocation.

A couple of these are focused on income which really shouldn't be your focus until you're close to or in retirement. Until then, growth should be the goal for your stock allocation.

Start with the basics - a diversified stock fund. VTI or something comparable from Fidelity or Schwab. Until your portfolio is into 6 figures, that's really all you need, and an argument can be made that even then, it's still all you need unless we want to get into a discussion of the efficient frontier.

As for playing the speculation game with crypto and precious metals, that's something you might decide to dabble in with 5% or less of your portfolio once you've built a comfortable nest egg of traditional investments but not before then.

[ua_guy]

Aren't the best investments the ones which fit an individual's risk profile and investment goals?

[disneysteve]

Aren't the best investments the ones which fit an individual's risk profile and investment goals?

Absolutely. James' list includes some solid core growth holdings, some good income-oriented holdings, and some highly speculative choices. Basically just a list of various types of investments that one has available to choose from. There's nothing here that would help someone actually select from this list.

[james.hendrickson]

Absolutely. James' list includes some solid core growth holdings, some good income-oriented holdings, and some highly speculative choices. Basically just a list of various types of investments that one has available to choose from. There's nothing here that would help someone actually select from this list.

Thats right DisneySteve, its just for people who need ideas. They can do their own research.

[disneysteve]

Thats right DisneySteve, its just for people who need ideas. They can do their own research.

That's not really how you presented it. Your title said these are the best investments to add to your stock portfolio, even though at least a couple of them aren't stocks at all. And most of them probably shouldn't be added to your portfolio because it's unlikely that all of these things are appropriate for the same individual.

If you didn't mean to actually recommend these things, you could have worded your OP better.

[cypher1]

That's probably a pretty loaded question for most of us. To keep things simple I'd recommend VTI/VTSAX/FSKAX or VOO/VFIAX/FXIAX. If to keep even simpler VT for total world funds or a target fund if there is no further interest in adding more funds or putting more thought into investments.

I'd even go a step back and ask if these recommendations are for someone that has an active interest in the stock market or more passive approach for investment strategy. If they're more focused on active investing I'd lean towards ETFs. Or index or mutual funds on the passive side.

But depending on their age and risk tolerance to hit millionaire status, I'd probably carve out more room in the portfolio to add more growth or volatile investments like James mentioned initially.

[anhtuvp]

Decent list, but half of it overlaps.
$VOO already gives you $QQQ and $XLRE exposure. $SCHD’s nice but not magic. $JEPQ trades growth for yield. $BTC’s fine if you don’t panic. Gold’s just panic insurance.

[james.hendrickson]

Decent list, but half of it overlaps.
$VOO already gives you $QQQ and $XLRE exposure. $SCHD’s nice but not magic. $JEPQ trades growth for yield. $BTC’s fine if you don’t panic. Gold’s just panic insurance.

I think the main idea is that if you are diversified ACROSS asset classes your overall return improves and your risk of asset value decline goes down. And, since gold is a precious metal that often moves independently of stocks, it makes sense to have some in your portfolio for diversification purposes.

[LivingAlmostLarge]

VTI total stock market