My mother recently passed away, and I inherited two Fidelity accounts that she had. One of the accounts was her IRA account. The other was an individual investment account. After taking a look at both of them, I realized that she has a ton of money in bonds. This made sense for someone her age, but for me, I'd like to completely revamp these accounts since I'm 32 years with a much higher risk tolerance.
She also has a ton of different individual stocks (over 70 different individual stocks) that I'd like to consolidate and use mostly ETFs instead. I will post my portfolio plan of action below. My main question is, should I be focusing mainly on ETFs that are dividend driven for the IRA account? While focusing mainly on non-dividend ETFs for my investment account? I know that with IRA accounts, you do not get taxed on dividends as yearly income like you would for investment accounts. I plan on buying the following ETFs for my investment account.
50% VOO (ETF)- Vanguard 500 Index Fund – 500 largest companies.
15% VTI (ETF)- Vanguard Total Stock Market Index Fund – Overall stock market.
10% AVUV (ETF)- Avantis US Small Cap Value – US small-cap.
10% QQQ (ETF) – Invesco QQQ Trust Series 1 – Invesco QQQ – Technology, NASDAQ top 100….Apple, Google, Microsoft, ect.
10% Individual Stocks – NVDA, META, AAPL, AMZN, MCD, TSLA, SHOP, etc.
5% XXUS (ETF)- VXUS-Vanguard Total International Stock ETF – ETF with international exposure.
Should I approach my IRA account any differently? For example instead of these ETFs mentioned above, maybe get more dividend driven ETFs such as SCHD, VYM, SPYD, DGRO, etc?
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