Merrill Edge is a financial platform owned by Bank of America Corp. (BAC). It is a discount broker providing access to online trading, self-directed and guided investing, brokerage, and related services. It was launched in 2010.

Bank of America, which owns Merrill Edge, had $476.1 billion in client assets across 3.9 million consumer accounts as of June 30, 2024. Merrill Edge offers more than 2,800 澳洲幸运5官方开奖结果体彩网:exchange-traded funds (ETFs) and just under 3,000 澳洲幸运5官方开奖结果体彩网:mutual funds for its customers. However, the company does not ꦏprovide its own proprietary set of fund⛎s.

Investors in the United States have access to several 澳洲幸运5官方开奖结果体彩网:tax-advantaged saving plans offered by a broad range of other financial services companies, including 401(k)s, 澳洲幸运5官方开奖结果体彩网:indi▨vidualꩲ retirement accounts (IRAs), and 澳洲幸运5官方开奖结果体彩网:Roth IRAs. The main difference between a R𓆉oth IRA and a traditionalꦇ IRA is that the former is funded with 澳洲幸运5官方开奖结果体彩网:after-tax dollars. This means that 澳洲幸运5官方开奖结果体彩网:contributions to Roth IRAs are not tax deductible, as they are with traditional IRAs. But unlike a 澳洲幸运5官方开奖结果体彩网:traditional IRA, where withdrawn funds are taxed, a Roth IRA allows investors to withdraw funds tax-free.

澳洲幸🍬运5官方开奖结果体ℱ彩网:Vanguard Total Stock Market ETF (VTI)

• Expense Ratio: 0.03% (as of Apr. 28, 2023)
• Assets Under Management: $1.7 trillion (July 31, 2024)
• One-Year Trailing Total Return: 28.05% (as of August 24, 2024)
• 12-Month Trailing (TTM) Yield: 1.34% (as of August 24, 2024)
• Inception Date: May 24, 2001

VTI is an ETF seeking to track the performance of the CRSP U.S. Total Market Index. This index includes thousands of stocks across the broad 澳洲幸运5官方开奖结果体彩网:market capitalization (market cap) spectrum.

VTI is a🌸 popular choice for a comprehensive, diversified fund that provides access to roughly 100% of the U.S. investable equity market. The fund’s managers are Gerard O’Reilly, Walter Nejman, and Michelle Louie. O’Reilly has advised the fund since 2001, Nejman since 2016, and Louie joined in 2023.

The ETF has 3,673 holdings as of July 31, 2024. These holdings are divided as follows: 67.7% are 澳洲幸运5官方开奖结果体彩网:large-cap stocks, 13.9% are midcap, 8.2% are 澳洲幸运5官方开奖结果体彩网:small-cap, 6.2% are between small-cap and midcap, and 4% are between midcap and large-cap. The average market cap within the fund is $837.8 billion.

VTI can be used to form the foundation of a Merrill Edge retirement account because it provides wide exposure to different stocks compared with similar broad-based funds at its low price point. These rival, broad-based funds include the iShares Core S&P Total U.S. Stock Market ETF (ITOT) and the Schwab U.S. Broad Market ETF (SCHB).

Investors looking for a different approach to broad stock funds may wish to target a large-cap ETF like the iShares Core S&P 500 ETF (IVV) as a primary fund. Then, investors can supplement IVV with a specific small-cap or mid-cap fund to broaden overall exposure. Another option for a large-cap fund is the BNY Mellon Large Cap Core Equity ETF (BKLC), a free large-cap fund that is on a newer proprietary index called the Solactive GBS United States 500 Index TR. BKLC has about 500 holdings, but its zero fee may make it a compelling alternative for some investors.

A broad-based equity fund like VTI provides investors with fairly strong growth opportunities, but it also carries a certain degree of risk. For those with a very low 澳洲幸运5官方开奖结果体彩网:risk tolerance or who are approaching retirement, a more income-oriented 澳洲幸运5官方开奖结果体彩网:portfolio may be a better option.

澳洲幸运5官方开奖结果体彩网:BNY Mellon Core Bond ETF (BKAG)

• Expense Ratio: 0.00%
• Assets Under Management: $1.84 billion (as of August 23, 2024)
• One-Year Trailing Total Return: 8.58% (as of August 24, 2024)
• 12-Month Trailing (TTM) Yield: 3.75% (as of August 24, 2024)
• Inception Date: April 22, 2020

BKAG is a bond ETF targeting the Bloomberg U.S. Aggregate Bond Index. This index gauges the 澳洲幸运5官方开奖结果体彩网:investment grade, U.S. do🐟llar-denominated, fixed-rate taxable bond market.

BKA💫G provides investors with broad exposure to the U.S. bond market and has a 0% expense ratio, making it highly competitive in terms of price point. Nancy G. Rogers and Gregory A. Lee manage the fund and have each served in this role for two yeꦉars.

BKAG totaled more than 4,734 holdings as of July 31, 2024. The largest portion of the holding, 43.24%, are 澳洲幸运5官方开奖结果体彩网:Treasurys, followed by 25.41% 澳洲幸运5官方开奖结果体彩网:fixed-rate 澳洲幸运5官方开奖结果体彩网:agency bonds. The remaining 31.35% of holdings are bonds or other debt 澳洲幸运5官方开奖结果体彩网:securities issued by entities operating in the following market sectors: banking, consumer noncyclical, communications, technology, energy, electric, consumer cyclical, and capital goods.

Investors often select 澳洲幸运5官方开奖结果体彩网:bond funds or 澳洲幸运5官方开奖结果体彩网:fixed-income funds because of their lower risk levels relative to 澳洲幸运5官方开奖结果体彩网:equity funds. However, bond funds typically also do not offer the same growth potential—consequently, they usually provide lower returns. Bond funds may be most appealing to investors who are risk-averse and/or potentially close to retirement. They also can be a helpful way of diversifying a portfolio. 澳洲幸运5官方开奖结果体彩网:Modern portfolio theory holds that combining a broad-based bond fund and a broad-based equity fund can offer significant 澳洲幸运5官方开奖结果体彩网:diversification to a portfolio, maximizing returns while min𒉰imizing 🔯risk.

The conventional wisdom surrounding portfolio allocation has suggested that the ideal balance is 60% stocks and 40% bonds. But there are other 澳洲幸运5官方开奖结果体彩网:allocation rules used in the induꦐstry. Some financial advisors recommend following the “100 minus your age” rule: If an investor is 30 years old, their portfolio would be composed of 70% stocks and 30% bonds. By the time they turn age 40, they would have the 60/40 portfolio.

These are general rules of thumb and should be used only as starting points. The important thing is that investors choose an asset mix that reflects their risk tolerance as well as their 澳洲幸运5官方开奖结果体彩网:investment time horizon and associated need for growth.

The Bottom Line

A Roth IRA offers investors certain tax advantages. Roth IRAs are unique in that they are funded with after-tax dollars and are not taxed when the funds are withdrawn at a later date. In short, 澳洲幸运5官方开奖结果体彩网:funds invested in a Roth IRA can grow tax free. After opening a Roth IRA, the types of investments chosen will depend on the individual investor’s risk tolerance and the amount of time and enꦿergy that they have to research various investments. Merrill Edge is one option that investors can look at when considering how toꦯ execute a retirement investment strategy.

For investors with little time and energy, one option is to allocate part of their money to a broad-based stock fund and another part to a broad-based bond fund. These large, diversified funds also may create a solid foundation for investors who do have the extra time and energy to evaluate other, 澳洲幸运5官方开奖结果体彩网:som๊etimes riskier, investment options. This may involve investments in individual companies or specific niches of the market, such as 澳洲幸运5官方开奖结果体彩网:small-cap stocks.