r/RothIRA

I'm 25M and recently opened my Roth IRA. I just invested $1,500 in VOO to get started for the long term.
While looking through my dividend distribution settings on Fidelity, I saw options to either
"Reinvest in security" or "Pay to cash'
As someone tocusing on long-term compound growth, which option is best for VOO dividends in a Roth IRA?
• Is enabling DRIP (Reinvest in security) the standard way to maximize compounding over time?
• Are there any reasons someone would choose
"Pay to cash" instead?

Had a nice conversation with AI that convinced me to jump in. Didn’t realize how easy the backdoor Roth was and that I qualified to do so at all. Posting details here to see if there’s anything that I’m completely overlooking.

I already max out TSP contributions annually ($24,500) with a blend of C/S/I funds, heavier in C. So I have market exposure. (I always thought I couldn’t do this AND the backdoor Roth)

I’m planning on opening up the Roth via the backdoor this upcoming week with a plan of fully funding it $7,500 and another $7,500 in January.

I’d like to buy XLF and sell out of the money call contracts, haven’t looked at what’s out there but would be aiming for delta of 0.20-0.25. Once there’s enough money in the Roth I’d like to transition to SPY calls.

Once I’m selling more than one contract I’d ladder them. I’d also like to actually use the account for covered calls because I’ve already got the boring set and forget TSP.

25 years away from being able to collect without penalty so we’ve got time.

Thoughts?

Totally new to this at 39 years old. Have a work 401k going with matching. Would it be worth rolling portions of that in to a self directed roth ira? Have been doing homework and just wondering the best avenue to get myself going. Looking to invest in a blend of world and US based index funds and let it build. Thanks for any input!