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ROTH investments
Old 02-12-2020, 04:47 PM   #1
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ROTH investments

This is a *real* question, and not an attempt to get everyone riled up. .

I am 63, and figure I have at least 15 years before I might want to tap into my Roth accounts. Since their growth will also be tax-free, any “home run” would be especially welcome.

While recognizing the other prime rule of investing: don’t lose money, I have some of my Roth investments in the Fidelity Blue Chip Growth fund. That way, I get a piece of the current and, I hope, future tech giants. If the “blue chip” part is correct, the fund will try and make sure that their picks stay somewhat sane.

But I also have some (Roth) in the Fidelity Biotech Select fund. I have owned it in IRA accounts for many years, and it is up about 148%... but I am betting that there are things that will still come about that could blow away even the boom years of the Internet. And even the normal picks of hot biotech startups should still perform very well over the longer haul.

Does anyone else think this is reasonable?

Bood
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Old 02-12-2020, 05:20 PM   #2
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I would call it reasonable, as long as you recognize (you probably do) that biotechs are a special breed of cat. Most go belly up, but a few hit it way out of the ballpark. If you're comfortable with that, and you keep your allocation to it at a level that lets you sleep at night, I say go for it.
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Old 02-12-2020, 06:57 PM   #3
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“Indeed you are, but you are also maximizing the chances of a retirement of cat food cuisine”

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Sector bets are like that. See also the Callan quilt charts (https://www.callan.com/periodic-table/).
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Old 02-12-2020, 07:05 PM   #4
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It is .009 % of my Fidelity accounts. For the life of FBIOX, it had returned 13%... I am not recommending sector funds in general... I am more Boglehead. I still assert that the normal progress of technology, and biotechnology in particular, has the biggest potential as they unlock stem cells and find new cures for existing diseases.
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Old 02-12-2020, 07:41 PM   #5
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I take some gambles with my tiny Roth, put it all in Google back in 2012.

I was in fbiox for a while and it didn't seem to want to move. I've really cut back on my sidebets. I still have the Google position and too much Apple@$76. Not sure how many I'll continue to make.
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Old 02-12-2020, 09:26 PM   #6
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Quote:
Originally Posted by BoodaGazelle View Post
It is .009 % of my Fidelity accounts....
Are you sure? That would be a whopping $90 on a $1 million portfolio.

1,000,000 * .009/100 = 90

So why are you posting about it?
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Old 02-12-2020, 10:03 PM   #7
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