Key insights
- A young investor is seeking advice on deploying excess cash beyond a Roth IRA. The discussion of investing in FXAIX (Fidelity 500 Index Fund) or VTI (Vanguard Total Stock Market ETF) in a taxable brokerage account suggests a bullish, albeit small, sentiment towards equities. The desire for higher passive income implies a potential shift in asset allocation strategies among retail investors.
Currently have a job working 40 hours and I go to college, recently I learned about ROTH IRA and after my bank verifies my account through fidelity I will be maxing out my roth IRA ($7,500) on FXAIX. But would it make sense to make a brokerage account and dump a good chunk of money doing the same thing? Buying up FXAIX even though this time it’s taxable or something like VTI?
I have lots of money just sitting around and my bank is giving me trash rewards for the MMA currently making around $230 a month with 100k… so I want more rewarding passive income.