If you’ve just converted to a Roth IRA, you might be asking: “Now what? How should I position my Roth account so it grows strategically?”
It’s a smart question. A Roth isn’t just another retirement account. It’s a unique space where gains can compound tax-free for decades. That means what you put inside it matters just as much as the decision to make the conversion.
The goal of your investment positioning in a Roth isn’t simply spreading money around. It’s about the growth potential. Because Roth withdrawals are tax-free, you want to place your highest-growth potential assets here.
This hypothetical example is for illustrative purposes only. Individual results will vary. Consult your tax advisor for personalized advice. Saying that, let’s use NVIDIA as our hypothetical example.
Over the last decade, its stock has increased by more than 10,000%, driven by its role in powering artificial intelligence (AI). If that growth had occurred inside a Roth, every dollar of appreciation could have been withdrawn tax-free.
This is why equities, growth stocks, and innovation-focused funds are prime candidates for Roth diversification.
A Sample of Industries Driving Long-Term Growth
Positioning your Roth doesn’t mean holding every sector equally. It means balancing core exposure with areas where future growth is likely strongest. Right now, the AI growth story is creating opportunities across multiple industries:
- Semiconductors & AI Hardware – GPUs, memory, and specialized chips that power AI.
- Data Centers & Cloud Infrastructure – Expanding rapidly to handle AI workloads, growing at ~30% CAGR.
- Energy & Utilities – Rising demand from AI data centers creates opportunities in both traditional and renewable energy.
- Cooling & Infrastructure – Liquid cooling, thermal management, and power delivery systems scale with AI adoption.
- Real Estate (REITs) – Specialized AI-ready facilities are a new class of mission-critical real estate.
- Telecom & Networking – Fiber, optical networking, and edge connectivity are essential for AI’s reach.
- AI-Enabled Verticals – Identify innovative companies that are looking to transform healthcare, automotive, and manufacturing.
By mixing these growth drivers with core market exposure, you can build a Roth portfolio that’s both forward-looking and resilient.
A Sample Roth Portfolio Mix (Illustrative Purposes Only)
Here’s one way to think about positioning your investments within a Roth (but remember that this information is general in nature and may not apply to your individual circumstances). Before making any investment or tax decision, including how to diversify your Roth account, you should consult with a qualified financial advisor, tax professional, or CPA who understands your specific situation.
- 40% Core AI & Tech Growth
- Semiconductors (NVIDIA, AMD, Broadcom)
- AI platforms (Microsoft, Alphabet)
- AI-focused ETFs
- 20% Enablers & Infrastructure
- Data center REITs (Equinix, Digital Realty)
- Cooling/infrastructure companies
- Telecom/fiber providers
- 20% Energy & Utilities
- Renewable energy (solar, wind, battery storage ETFs)
- Utilities serving AI-driven demand
- 15% Broad Market Diversification
- S&P 500 or total market index for balance
- 5% Alternatives / Innovation
- Healthcare AI, robotics, or next-gen thematic funds
Why This Matters
A Roth conversion isn’t the finish line; it’s the starting point. By positioning your Roth account to tilt toward innovation and long-term growth, you align your tax strategy with the sectors driving tomorrow’s economy.
You’ve already locked in today’s lower tax rates with the conversion. Now you can capture growth in industries like AI, data centers, and energy, compounding it tax-free for the rest of your life.
The Takeaway
So if you’re asking, “How should I position my Roth account?” the answer is to put your Roth dollars to work where they’ll grow the most: in growth-oriented, future-focused sectors, balanced with broad market exposure.
Your Roth IRA is prime ground for innovation, and 2025 offers a one-time opportunity to position it wisely. As always, I’m here to help.