Which commodities or stocks are best for IRA and 401k accounts?
Asked 4 years ago
I’m 57, and my wife is 51. We both currently have 401k, Roth IRAs and working on building a diverse income stream. I recently starting research into dividend growth funds for a trading account we opened with Fidelity. I’ve read through quite a few posts and tons of good info here. We are going to start with 5k-7k in the brokerage account. Should I select ETFs, mutual funds, or individual stocks for our investment portfolios? Which do you recommend? Thanks for the help.
Andrew Moran
Thursday, July 01, 2021
Because mutual funds can eat into your earnings, you are better off with a hybrid approach with exchange-traded funds (ETFs) and individual stocks.
ETFs can give you the power of diversity, lower fees, and a handsome monthly or quarterly dividend (good for your goal of a diverse income stream).
Stocks can be a nice addition if you have done your due diligence and are convinced that certain investments have an opportunity to grow.
If you are unsure where to begin, here are some options to consider:
Pembina Pipeline Corporation (PBA)
- 06/30: $31.77
- Dividend Yield: $0.171 per month (June 2021)
Pfizer (PFE)
- 06/30: $39.16
- Dividend Yield: $0.39 per quarter (May 2021)
Schwab U.S. Dividend Equity ETF (SCHD)
- 06/30: $75.62
- Dividend Yield: $0.54 per quarter (June 2021)
Invesco S&P 500 High Dividend Low Volatility ETF (SPHD)
- 06/30: $44.08
- Dividend Yield: $0.121 per month (June 2021)
Also, as a side note, if you are investing in individual stocks with dividends, be sure to comb through their record (payments and hikes).
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Monday, June 13, 2022
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