I have maxed out my Roth IRA for 2025 and am on my way to doing so for 2026. I am building savings back up into my High Yield after a life event. Now, I am trying to figure out what to invest in in my brokerage account. I have a few hundred a month that I don't mind being a little risky with if it will pay off in the long run. I like the sound of building a portfolio of ETF funds which pay a monthly dividend, but I am still learning, and know very little at this point.
I do not have the option of employer matching with a 401k. I am already 42 years old and only have about 15,000 in my ROTH, so I am trying to be smart with the money I have since I am so late to the party. Also, If I were to experience a change in my current job it is possible I would find myself unable to invest so I am trying to see how well I can do for myself for the time being.
All of my investment work so far is using Vanguard. I have $300 in my settlement fund which I was going to use to buy VOO but then I have been reading about people using ETFs with a little higher risk and getting better returns. I have a feeling I should take some risks in my brokerage account and let my Roth do its work low-risk. It seems to me that putting money in VOO to only grow as fast as my Roth is already is a waste of potential, assuming I continue to max out my Roth every year.
What really got me discouraged was hearing that once your investments in an account reach $100,000 is when real growth starts for retirement, and it would take me 12 years to deposit enough into my Roth to reach that, maybe 9 or 10 if I am getting the returns I ahve been getting. My head is swimming.
What would you do in my situation? Thank you.