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For many people, retirement planning is a distant thought. That is, until the reality of time running out sets in.
This scenario is way too common: some individuals wake up late to the importance of investing, panic at the lack of time and struggle to secure their financial future.
With only 15 years to retirement and $200,000 in savings, one investor is also feeling the pressure to grow his money quickly, seeking the fastest way to boost growth over the next 15 years.
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His concerns are clear: “What would be the best portfolio to invest in to maximize growth?”
The poster also showed worry about the risks involved and asked if it was possible to carry on with this feat without paying a manager to do it.
Redditors in the r/Stocks community offered the investor plenty of advice, so let’s dive into that.
Get Into Broad-Market ETFs for Growth and Stability
The most common advice received in the thread’s comments was to invest in broad-market ETFs since these funds offer diversification and good returns, making them a favorite for long-term growth.
“If you are asking for stocks to invest in on Reddit, I would just park that money in [Vanguard S&P 500 ETF (NYSE: VOO)] for your own sake,” the first comment reads.
One Redditor mentioned a few ETFs he believes would be a good choice considering the poster’s situation.
“Depends on how much you need in retirement and your risk tolerance. With retirement money, I would recommend you play it safe and stick to ETFs rather than picking individual stocks. Some common relatively safe ETFs are VOO, [Vanguard Total Stock Market ETF (NYSE: VTI)], [Vanguard Total World Stock ETF (NYSE: VT)], [Invesco NASDAQ 100 ETF (NASDAQ: QQQM)], and [Schwab U.S. Dividend Equity ETF (NYSE: SCHD)] (this is mainly if you are looking for dividend yield),” he said.
“Put it in VOO and turn your [dividend reinvestment plan] on. Literally forget it for the next 15 years. Even better, set up an auto draft for X amount to go into it weekly/monthly,” another Reddit user said.
Several Redditors recommended combining growth-focused ETFs with dividend-paying funds for a better balance.
“A balance between growth and dividend (value) strategies is probably a responsible approach. Keeping dry powder for bear market opportunities. Beyond that, tax optimization can fine-tune and help lower the tax burden,” a comment read.
One Reddit user named a few funds that he thinks would be great options when it comes to growth.
“[Vanguard Growth ETF (NYSE: VUG)] or [Vanguard Information Technology ETF (NYSE: VGT)] is better growth-wise… I split 30/30/30 with the 3rd being VOO… putting new cash in [JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ: JEPQ)] because of the kangaroo economy we have had,” the user suggested.
A comment recommended the poster invest in two dividend-focused ETFs to generate income and then reinvest that income for the next 15 years.
“I’d go [YieldMax MSTR Option Income Strategy ETF (NYSE: MSTY)] and [YieldMax NVDA Option Income Strategy ETF (NYSE: NVDY)] at these prices. Reinvest dividends for 15 years, then live off them,” the commenter says.
Individual stocks were brought up several times in the comments, with some Redditors suggesting specific picks, which could be used to grow the money faster.
“$50,000 [Alphabet Inc. (NASDAQ: GOOG, GOOGL)], $50,000 [Meta Platforms Inc. (NASDAQ: META)], $50,000 split between [NVIDIA Corporation (NASDAQ: NVDA)]/[Advanced Micro Devices Inc. (NASDAQ: AMD)] and $50,000 in split between [Palantir Technologies Inc. (NYSE: PLTR)]/[Apple Inc. (NASDAQ: AAPL)]. All 6 should be big winners above the market over the next 10 years. It is super tech-heavy but it will have the fastest gains,” a Redditor wrote.
While the following comment includes a broad-market ETF, the user still allocated a significant portion to individual stocks.
“50% on S&P 500 / 20% on NVDA/ 20% on GOOGL/ 10% on PLTR,” it says.
“NVDA. Still has so much growth potential and somewhat of a monopoly. If you want to go with smaller cap companies look at [Super Micro Computer Inc. (NASDAQ: SMCI)],” reads another individual stock suggestion.
