Wayne’s Fidelity Investments ROTH IRA

Top Ten Investments at Year End in my ROTH

A top ten list can be a great way to find the best of something. So, a top ten list of books might contain a good book to read. A top ten list of family friendly movies might be a helpful way to see imagination and creativity for some entertainment. The top ten restaurants could help you avoid the bottom ten places to eat. Therefore, this list of investments is intended to help my readers explore some investments I trust enough to include them as key building blocks in my ROTH IRA.

Two IRAs – Traditional and ROTH

Before talking about the top ten in my ROTH IRA, be aware that I have far more invested in my traditional IRA. So, for example, my top investment in my ROTH IRA is an ETF with the ticker symbol VYM. Perspective is everything. I have over $165,000 invested in VYM but no VYM in my ROTH IRA. There is no special reason for this, but be aware that the weightings of the top ten in my ROTH are not necessarily my top ten investments in all of our accounts. Furthermore, I do have shares of ABBV in my IRA, so those shares are in addition to my ABBV shares in my ROTH.

ETFs in the Top Ten

You should notice two ETFs in my top ten ROTH investments. They are SCHD and PFF. SCHD is a dividend growth ETF while PFF is purely a preferred stock ETF focused on income. My top three favorite ETFs continue to be DGRO, SCHD, and VYM. However, I have been adding to my QYLD shares in both my ROTH IRA and my traditional IRA.

Two Strategies – Dividend Growth and Covered Call Options

Before the beginning of 2021 my primary strategy was dividend growth. It is still number one because I think it is rational to want to outpace inflation, increase my buying power, and have more to give away to worthy ministries. Now that trading options is an arrow in my quiver, I have been able to trade options in my ROTH IRA. Total ROTH IRA income from options trading this year is $10,254. There are no income taxes on this income because it is in my ROTH.

Dividend Income for my ROTH IRA

In addition to the $10K in income from trading options, I have received $22,419 in dividends through November 30. Last year the full twelve months provided $20,003 in dividend income. Therefore, by doing nothing, I will receive more than $2,500 more ROTH income from dividends than I did in 2020 in my ROTH account. Total spendable cash, therefore, is over $30K, just in this one account.

But Did The Account Prosper?

The wise reader should ask, “but did the value of your account increase as well?” Just because an investor receives income from an investment doesn’t make it a good investment. You can receive income from a CD or a savings account, but that doesn’t make a CD a good investment. My one-year return on my ROTH account is currently 28.05%. The one-year return on the S&P 500 index is 27.92%. The one-year return on the DOW Jones total market index is 26.49%. The Dow Jones Industrial Average is 18.52%. Finally, the NASDAQ Composite Total Return Index is 28.20%. Did I lose value or fail to keep up with the market? No.


Not only did I gain tax-free income during 2021, I realized a gain on my investments that far exceeded inflation. Obviously, if I don’t sell any investments, I really can’t count my chickens just yet. But I do believe my strategy is working. Dividend growth, even without options trading, is the best way to go, so I won’t be changing course.