Should I invest in index funds or buy individual stocks for my Roth IRA?
Asked 4 years ago
In a Roth, would you do index funds, say voo or something similar, or should I actually do individual stocks? I already have a taxable account in M1 finance for dividend building, and index funds for Roth? Opinions?
Andrew Moran
Wednesday, July 14, 2021
Since this is most likely a long-term investment, you would be better off parking your Roth IRA funds in an index fund that mirrors the composition and performance of something like the S&P 500.
This is also true if you are not someone who routinely monitors the stock market. If you dollar-cost average your Roth IRA, your index investing can yield as good of a return as picking individual stocks.
Moreover, index funds can still provide you with dividends. In some cases, if you find the right exchange-traded fund (ETF), you could also earn a monthly payment.
That said, if you prefer individual stocks, some good ideas would be:
Procter & Gamble Co (PG)
- 07/13: $137.00
- Dividend Yield: 2.54%
Wendys Co (WEN)
- 07/13: $22.79
- Dividend Yield: 1.76%
Apple (AAPL)
- 07/13: $145.64
- Dividend Yield: 0.6%
Please follow our Community Guidelines
Related Articles

Best Practices and Important Principles Traders Need to Know When Buying Stocks
Shir Lapidot
April 21, 2021

All You Need to Know About the Over 25k Day-Trading Rule
Filip Dimkovski
December 23, 2024

Fortrade: A Forex and CFD Trading Platform Review
Filip Dimkovski
July 23, 2021
Related Posts
Andia Rispah Igobwa
How Many Shares per Stock Should I Buy?
Filip Dimkovski
How to Identify Good Long-Term ETFs to Invest In
Filip Dimkovski
Is Investing in Index Funds a Good Place to Start?
Filip Dimkovski
Should I Invest in Walmart and Microsoft?
Thorsten Steins
Best Investment Tips for Stock Market Beginners?
Can't find what you're looking for?
