I have a Roth IRA I've been maxing out over the last few years and I've been led to believe I would benefit in the long run by simplifying it. Its been open for about 8 years and I'm now 29 years old. The first thing I'll mention I'm currently in the process of transferring my account from Victory Capital (USAA) to Fidelity.
The thing about my current portfolio is, as its grown, I've invested in other funds from when I started. In the beginning it was just a general aggressive fund but I eventually funded the S&P 500 and the Nasdaq. Instead of funding those more, I would invest in other funds, and sometimes buy into other funds with the money made from the ones I invested in the first place and reinvest the dividends.
Long story short: I now have 10 funds. They are a variety of types (I have no clue what they mean) and listed as follows:
1. S&P 500 - Large Blend (Aggressive)
2. Nasdaq - Large Growth (Aggressive)
3. Precious Metals & Minerals - Equity Precious Minerals (Very Aggressive)
4. Partners Fund - Small Value (Aggressive)
5. Capital Growth - World Large Stock (Aggressive)
6. Small Cap Stock - Small Blend (Aggressive)
7. Science & Technology - Technology (Very Aggressive)
8. International Fund - Foreign Large Blend (Aggressive)
9. Emerging Markets - Diversified Emerging Markets (Aggressive)
10. Income Stock - Large Value (Aggressive)
I was told many years ago I should diversify my portfolio, and while they're all aggressive funds, not one of them is the same type... but is this too diversified? For what it's worth, they've all done pretty well, but obviously some have had greater returns than others. I'm just wondering if I'd be making a significant amount more a year in profit if I condensed this to say 5 or 6 funds when the account ends up transferred to Fidelity.
Perhaps I should analyze the ones that have done the best over the last 8 years and concentrate the money from the lower performing funds into the highest performing ones. Is there a max number of funds I shouldn't go higher than? In case it's not obvious I don't have a clue what I'm talking about. This retirement account has just been very successful, as little as I understand it, and I want to maximize its success over the next 30 years.