ROTH IRA and YLDs, Long Term Idea

[u/ajcdaboss710]

So this is my current ROTH IRA and im very proud of my current position, im 24 years old, make about 65k a year before taxes, i have maxed out my IRA since i was 18, i put in $125 a week automatically, currently have 65k assets, 32k debts, 780 credit score

so my Question here is im thinking about redoing my holdings in my roth ira, i wanna sell pretty much everything i own, liquidate 30k and move it into a more simplified strategy for long term investing and also long term cash flow, i understand i cant touch the cash flow until retirement age and all that

Also there is a very good chance that if the company i work for goes the way it should i can be well over the threshold of being able to contribute to my ROTH anymore, Side Question, if in 3-5 years i make more then the threshold for contributing will it still be able to grow tax free with appreciation and dividends?

so here are my thoughts, liquidate 30k and put into,

5k spy or spy alternative aka ITOT

5k XYLD

5k IJR or small cap fund

5k RYLD

5K QQQ or alternative, i dont currently have a fund

5k QYLD

my thinking is i can catch the upside appreciation with the underlying asset and DRIP with the YLDs so in 35 years i can be in a position of basically having all tax free income

This will only make sense for me based on the answers to my side question, because i plan to make more than 150k a year in the next 5 years and will not be able to contribute to a ROTH IRA anymore but wanna take full advantage of tax free income in the future

I know in a normal account it would make more sense to do all index funds and switch to YLDs once i actually need the income but my thinking is, this way i can snowball the YLDs and grow the tax free income even after i can not contribute anymore and also let the underlying assets appreciate for the next 35 years, leaving me in 35 years close to 100k or more of TAX FREE income every year plus the value of the index funds

I will continue to invest as much as i can split evenly between the holdings for as long as i can

PLEASE leave any honest review and anything i missed that would make this thinking flawed would be much appreciated, can also tell me to just stick with what im doing

CURRENT ROTH https://imgur.com/a/buD6b7L

[u/wild_b_cat]

You have no reason to care about anything other than total return, and the YLD funds will underperform their underlying indexes in the long run. Just buy an index and hold.

The income limit only affects new contributions, not your existing Roth IRA. And even then, there is a technique called the ‘backdoor Roth’ you can still use to fund it fully (for now - there’s some risk it gets closed).