Key insights
- A 30-year-old investor is considering shifting from automated investment portfolios (Schwab Intelligent Portfolios, Fidelity Go) to a more aggressive, self-directed strategy using ETFs like VT or VOO. The investor questions whether their current risk level is too conservative given their age and financial situation. This highlights a potential trend of younger investors seeking higher returns by moving away from managed solutions, which could lead to increased flows into broad market ETFs.
30 yr old with a stable 100,000-150,000 yr income pretax. I have ~25,000 in a traditional IRA, ~60,000 in a Roth IRA both using Schwab intelligent portfolios with a moderate and not aggressive setting. Because of different jobs over the years, I also have a fidelity account with ~70,000 in a 401k, and around the same amount in my taxable individual account all in SGOV due to my HCOL situation. I also have 6 months of rent + credit card payment $ in a HYSA.
In terms of risk, it seems like intelligent portfolio for Schwab and Go for fidelity is not too risky even when the risk score is maxed out, and still keeps ~8% of my $ in cash as an investment. I have been toying with the idea of stopping the usage of these accounts, and just going all in on VT or VOO or something similar that I see on this subreddit. I am also considering dumping some of my SGOV to buy VT or VOO in my taxable account in a 60/40 split prioritizing the savings in SGOV.
And I not taking enough risk as a 30yr old in a good industry who is not buying a house anytime soon? Subjective, I know, but I’d like some feedback. It’s nice that my retirement accounts are all automated but I would get the same off hands commitment level if I just stuck to something like VT or VOO.