Key insights
- A college student is considering rebalancing their portfolio, which is heavily concentrated in AAPL after recent gains. The question is whether to diversify, max out their Roth IRA with VOO, or hold the concentrated position. The concentration in a single stock introduces risk, but the long-term investment horizon allows for potentially higher growth. The limited capital and specific circumstances make the broader market impact negligible.
I’m a 21 year old college student and have about $10k saved right now. About $3k is in my Roth IRA all in VOO, and the other $7k is in AAPL. Apple’s up around 25% since I bought a couple months ago, so now I’m kinda debating what I should do next. I’m thinking about moving more money over and maxing out my Roth for the year, but I’m also wondering if I should just keep holding Apple or make any other changes. If you were 21 and in this spot, what would you be thinking about or focusing on this year?