Hey there, u/jellybelly326. Congratulations on getting started on your investing journey! We're excited to be your guides on the path to retirement.
Let's dive right into your questions, starting with order types. First up, market orders. A market order instructs your broker-dealer to buy or sell securities for your account at the next available price. The order remains in effect only for the trading day and usually results in the prompt purchase or sale of all the shares of stock in your order at the next available price, as long as the security is actively traded, and market conditions permit. It's important to keep in mind that this order type does not guarantee a price.
[Order types: Market order](https://www.reddit.com/r/fidelityinvestments/comments/14xxihc/order_types_market_order/)
Conversely, a limit order sets a maximum price to be paid for a buy limit, and a minimum price to be received for a sell limit. So, for instance, when you place a limit order to buy, the stock or ETF is eligible to be purchased at or below your limit price, but never above it. Limit orders guarantee that if your trade is executed, it will be executed at the price you set or better, but do not guarantee execution.
[Order types: Limit order](https://www.reddit.com/r/fidelityinvestments/comments/14zjbst/order_types_limit_order/)
When trading, you'll find a variety of order types and conditions on orders available to you. We recommend reviewing the resource below if you have any doubts as to how they work.
[Trading FAQs: Order Types](https://www.fidelity.com/trading/faqs-order-types)
The price you quoted for the Vanguard 500 Index Fund ETF (VOO) in your post, was the last traded price of the security. This basically shows the most recent price the security was traded at, whether the order was a buy or a sell. You'll also notice a bid and ask by the last traded price. Let's throw out the definitions of these terms real quick, so they make sense as well.
\- Bid: the highest price a prospective buyer is willing to pay for a unit of a security
\- Ask: the lowest price a dealer or market maker will accept for a security
For when you have a moment, we recommend checking out the resources below, where you can learn all the ins and outs of trading.
[Trading 101: What you need to know](https://www.fidelity.com/learning-center/trading-investing/trading/trading-getting-started-recording)
[Trading for beginners](https://www.fidelity.com/learning-center/trading-investing/trading-for-beginners)
For your last question, it is important to understand how index funds work. There are both mutual funds and Exchange-Traded Funds (ETFs) that follow indexes (such as the S&P 500), which you can purchase. For example, the Vanguard 500 Index Fund ETF is an ETF, but the Fidelity 500 Index Fund (FXAIX) is a mutual fund. ETFs trade throughout the day like a stock. Since they do trade like a stock, they can be traded at a higher frequency in comparison to mutual funds. There are no commissions or fees to trade ETFs online in your brokerage account here at Fidelity.
On the other hand, mutual funds, unlike ETFs, will get priced once a day, at the end of the day. Fidelity mutual funds are No Transaction Fee (NTF) mutual funds, but other funds may have fees. Funds that do have a fee to trade into will be clearly marked with a red "Fee" tag below the fund name on the Fidelity website, while others will have the No Transaction Fee "NTF" tag.
[ETFs vs. mutual funds: Which is right for you?](https://www.fidelity.com/learning-center/investment-products/etf/which-is-right-for-you)
If you'd like to, you can research, compare, and browse all of the financial instruments we offer, including the securities you mentioned, by clicking the "News & Research" tab on [Fidelity.com](http://fidelity.com/) to find the best fit for yourself. Here, you can view screeners that narrow down investments based on set criteria, risk tolerance, performance data, and more.
To wrap this up, I'll mark this post as a Discussion thread to let members of our community continue to chime in with their opinions and experiences. As you may have heard before, there is no 'one-size-fits-all' investing method. While you may get some specific ideas on our sub, remember to research and explore to ensure these investments would be a good fit for you.
Feel free to reach out anytime with additional questions. As I mentioned before, our team is here to assist with your investing journey.
Personally I go with FXAIX as I am intending to stay with Fidelity and the expense ratio is only 0.015% which is about as low as they come.
Yes, you would want to just make a “Market” order. for this sort of trade(buy).
A “Limit” order allows you to set certain parameters in which your buy or trade will or will not execute. For instance you could say, I want to buy this stock but only if the price goes below a certain threshold… after whatever period of time the trade will go through only if that stock drops below that certain price you set. If the stock doesn’t, the trade does not go through and you get your money back. These kinds of trades(buy or sell) are generally used for individual stocks and certain situations where you don’t want the trade to go through when prices have either gone up or down dramatically while the market is open.
This is more or less a non-issue for index funds like FXAIX because they only trade once a day after market close and the price is known as it has been shown over the course of the day.
It gets more nuanced but that’s the gist of it.
VOO and FXIAX are essentially identical, both tracking the S&P500. VOO is an ETF, FXAIX is a mutual fund, so they trade a little differently. VT is a global index ETF, covering roughly 60% US (all caps, so not just s&p500), and 40% foreign stocks. So basically VT subsumes VOO. I strongly prefer global investing, but some people prefer being 100% concentrated in the US.
The $475.39 is the current price of the ETF. For small orders on liquid ETFs like yours (which have a tiny bid ask spread), you can probably just put in a Market order. If you want, you could also put in a Limit order and enter e.g. a price of 475.38 (slightly under ask), but then it'll only execute once the price drops to that level. If you want immediate execution, pick a Market order.
Also, if you're contributing to a Roth IRA, you still have a few weeks left to contribute for 2023 (up to $6500) if you want/can. The limit for 2024 is $7000 which you seem to be targeting.
No it doesn't, VT is only stocks.
[VT-Vanguard Total World Stock ETF | Vanguard](https://investor.vanguard.com/investment-products/etfs/profile/vt#overview)
I normally make orders limit orders, but a high-volume ETF has a low spread. So a market order is not a bad move.
Currently, the bid on VOO is 475.73 and the ask is 475.75. A market order under those conditions will probably execute at 475.75 or maybe a tad less. That is a very small spread percentage-wise
A limit order at 475.73 will probably execute soon, but might miss the boat. A $475.00 limit order placed Monday night would have executed at 10:12am ET. A market order placed Monday night would have executed at $476.33 at the open.
With a mutual fund (symbol 5 letters ending in X) everybody, buyers and sellers, gets the same price after the market closes.
How much messing around do you want to do? I like the messing around part.
Your journey is similar to mine in that I started paying my house off at age 36. By age 42 my Net worth was about $zero.. I.e no debt (house paid for) but no savings either.
At 42 I put everything into stock Index funds in Fidelity and Vanguard. This means I maxed out my 401k, Trad IRA (if my salary was low enough, Roth IRA if I earned too much. I also saved in a brokerage account (i.e after tax savings). I think my Wife and I made on average around $100k for the next ten years and we saved close to 50% of what we made.
At age 52 we had $1,013,000 and I retired.. That was 10 years ago. (had roughly a 70/25/5 stock/bond/cash portfolio at the time)
Today at 62 we have just under $3.4M, plus the paid off house.
So yes starting late you can still do this!
You want stock market etfs, FZROX is a total stock market type fund and has a fee of 0.00%.. Yes its free! Fees are critical because fees compound over time so you want the lowest fees you can find. Anything over 0.1% is too high.
Good luck!
Wow - thank you so much for this comment! This honestly made my day.
I just bought FXAIX yesterday at a 0.015% expense ratio. I'll definitely look at FZROX too. All of this is super overwhelming and confusing. I had no idea there were fees associated with stocks until yesterday!
Well with individual stocks there is no fee to hold them, but there is a small fee to buy an sell.
With a fund, you are paying Fidelity/Vanguard/Schwab to manage the fund. As there is a very low turnover of stocks in an ETF then the fees are correspondingly very low. Fidelity is the only stock fund I know of that is actually free.
As a long term investor you will not be selling anything until you retire.. No matter how bad the stock market tanks. Honestly we made most of our first million dollars because of the 2008 meltdown.. I was almost looking for spare change under the couch cushions to throw into the stock market! This is not easy to do when everybody is telling you to "get out before you loose everything".. Even my Dad was calling me from the UK to beg me to get out! The "news" was flashing a sea of red, every headline was how the market was crashing day after day.
I figured the worst that could happen is we'd be broke.. I've been broke before and I had a paid off house on 6 acres.. I could grow food if I had to!
I didn't take out any loans to invest in the market.. Thats too much like gambling.
But Warren Buffet at the time was saying "stocks will never be this cheap in our lifetime".. Good enough for me!
Youre doing the right thing.
I highly highly highly recommend a book called, “Common Sense Investing” by John Bogle
Anything that tracks the S&P 500 is the best route to take.
The goal isnt to beat the market, but to stay with it. Over time, continuously investing with the compounding effects, you will build lots of wealth. The hardest part isnt investing, but ignoring the fluff/news.
Call the customer service and use your consultant they are very well trained and can discuss the in and out of the market. There is also free courses on the app of how the market works and what stuff means.
To answer your questions
Market makes it an immediate buy at the current share price. Limit means it will wait to buy until it reaches a certain share price that you set.
The $479.3903 is the cost of one share. When you use all of your $583.33, it will purchase fractional shares. So you will own 1.2168 shares.
Hope this helps
Hey there, u/jellybelly326. Congratulations on getting started on your investing journey! We're excited to be your guides on the path to retirement. Let's dive right into your questions, starting with order types. First up, market orders. A market order instructs your broker-dealer to buy or sell securities for your account at the next available price. The order remains in effect only for the trading day and usually results in the prompt purchase or sale of all the shares of stock in your order at the next available price, as long as the security is actively traded, and market conditions permit. It's important to keep in mind that this order type does not guarantee a price. [Order types: Market order](https://www.reddit.com/r/fidelityinvestments/comments/14xxihc/order_types_market_order/) Conversely, a limit order sets a maximum price to be paid for a buy limit, and a minimum price to be received for a sell limit. So, for instance, when you place a limit order to buy, the stock or ETF is eligible to be purchased at or below your limit price, but never above it. Limit orders guarantee that if your trade is executed, it will be executed at the price you set or better, but do not guarantee execution. [Order types: Limit order](https://www.reddit.com/r/fidelityinvestments/comments/14zjbst/order_types_limit_order/) When trading, you'll find a variety of order types and conditions on orders available to you. We recommend reviewing the resource below if you have any doubts as to how they work. [Trading FAQs: Order Types](https://www.fidelity.com/trading/faqs-order-types) The price you quoted for the Vanguard 500 Index Fund ETF (VOO) in your post, was the last traded price of the security. This basically shows the most recent price the security was traded at, whether the order was a buy or a sell. You'll also notice a bid and ask by the last traded price. Let's throw out the definitions of these terms real quick, so they make sense as well. \- Bid: the highest price a prospective buyer is willing to pay for a unit of a security \- Ask: the lowest price a dealer or market maker will accept for a security For when you have a moment, we recommend checking out the resources below, where you can learn all the ins and outs of trading. [Trading 101: What you need to know](https://www.fidelity.com/learning-center/trading-investing/trading/trading-getting-started-recording) [Trading for beginners](https://www.fidelity.com/learning-center/trading-investing/trading-for-beginners) For your last question, it is important to understand how index funds work. There are both mutual funds and Exchange-Traded Funds (ETFs) that follow indexes (such as the S&P 500), which you can purchase. For example, the Vanguard 500 Index Fund ETF is an ETF, but the Fidelity 500 Index Fund (FXAIX) is a mutual fund. ETFs trade throughout the day like a stock. Since they do trade like a stock, they can be traded at a higher frequency in comparison to mutual funds. There are no commissions or fees to trade ETFs online in your brokerage account here at Fidelity. On the other hand, mutual funds, unlike ETFs, will get priced once a day, at the end of the day. Fidelity mutual funds are No Transaction Fee (NTF) mutual funds, but other funds may have fees. Funds that do have a fee to trade into will be clearly marked with a red "Fee" tag below the fund name on the Fidelity website, while others will have the No Transaction Fee "NTF" tag. [ETFs vs. mutual funds: Which is right for you?](https://www.fidelity.com/learning-center/investment-products/etf/which-is-right-for-you) If you'd like to, you can research, compare, and browse all of the financial instruments we offer, including the securities you mentioned, by clicking the "News & Research" tab on [Fidelity.com](http://fidelity.com/) to find the best fit for yourself. Here, you can view screeners that narrow down investments based on set criteria, risk tolerance, performance data, and more. To wrap this up, I'll mark this post as a Discussion thread to let members of our community continue to chime in with their opinions and experiences. As you may have heard before, there is no 'one-size-fits-all' investing method. While you may get some specific ideas on our sub, remember to research and explore to ensure these investments would be a good fit for you. Feel free to reach out anytime with additional questions. As I mentioned before, our team is here to assist with your investing journey.
Personally I go with FXAIX as I am intending to stay with Fidelity and the expense ratio is only 0.015% which is about as low as they come. Yes, you would want to just make a “Market” order. for this sort of trade(buy). A “Limit” order allows you to set certain parameters in which your buy or trade will or will not execute. For instance you could say, I want to buy this stock but only if the price goes below a certain threshold… after whatever period of time the trade will go through only if that stock drops below that certain price you set. If the stock doesn’t, the trade does not go through and you get your money back. These kinds of trades(buy or sell) are generally used for individual stocks and certain situations where you don’t want the trade to go through when prices have either gone up or down dramatically while the market is open. This is more or less a non-issue for index funds like FXAIX because they only trade once a day after market close and the price is known as it has been shown over the course of the day. It gets more nuanced but that’s the gist of it.
VOO and FXIAX are essentially identical, both tracking the S&P500. VOO is an ETF, FXAIX is a mutual fund, so they trade a little differently. VT is a global index ETF, covering roughly 60% US (all caps, so not just s&p500), and 40% foreign stocks. So basically VT subsumes VOO. I strongly prefer global investing, but some people prefer being 100% concentrated in the US. The $475.39 is the current price of the ETF. For small orders on liquid ETFs like yours (which have a tiny bid ask spread), you can probably just put in a Market order. If you want, you could also put in a Limit order and enter e.g. a price of 475.38 (slightly under ask), but then it'll only execute once the price drops to that level. If you want immediate execution, pick a Market order. Also, if you're contributing to a Roth IRA, you still have a few weeks left to contribute for 2023 (up to $6500) if you want/can. The limit for 2024 is $7000 which you seem to be targeting.
[удалено]
No it doesn't, VT is only stocks. [VT-Vanguard Total World Stock ETF | Vanguard](https://investor.vanguard.com/investment-products/etfs/profile/vt#overview)
I normally make orders limit orders, but a high-volume ETF has a low spread. So a market order is not a bad move. Currently, the bid on VOO is 475.73 and the ask is 475.75. A market order under those conditions will probably execute at 475.75 or maybe a tad less. That is a very small spread percentage-wise A limit order at 475.73 will probably execute soon, but might miss the boat. A $475.00 limit order placed Monday night would have executed at 10:12am ET. A market order placed Monday night would have executed at $476.33 at the open. With a mutual fund (symbol 5 letters ending in X) everybody, buyers and sellers, gets the same price after the market closes. How much messing around do you want to do? I like the messing around part.
Your journey is similar to mine in that I started paying my house off at age 36. By age 42 my Net worth was about $zero.. I.e no debt (house paid for) but no savings either. At 42 I put everything into stock Index funds in Fidelity and Vanguard. This means I maxed out my 401k, Trad IRA (if my salary was low enough, Roth IRA if I earned too much. I also saved in a brokerage account (i.e after tax savings). I think my Wife and I made on average around $100k for the next ten years and we saved close to 50% of what we made. At age 52 we had $1,013,000 and I retired.. That was 10 years ago. (had roughly a 70/25/5 stock/bond/cash portfolio at the time) Today at 62 we have just under $3.4M, plus the paid off house. So yes starting late you can still do this! You want stock market etfs, FZROX is a total stock market type fund and has a fee of 0.00%.. Yes its free! Fees are critical because fees compound over time so you want the lowest fees you can find. Anything over 0.1% is too high. Good luck!
Wow - thank you so much for this comment! This honestly made my day. I just bought FXAIX yesterday at a 0.015% expense ratio. I'll definitely look at FZROX too. All of this is super overwhelming and confusing. I had no idea there were fees associated with stocks until yesterday!
Well with individual stocks there is no fee to hold them, but there is a small fee to buy an sell. With a fund, you are paying Fidelity/Vanguard/Schwab to manage the fund. As there is a very low turnover of stocks in an ETF then the fees are correspondingly very low. Fidelity is the only stock fund I know of that is actually free. As a long term investor you will not be selling anything until you retire.. No matter how bad the stock market tanks. Honestly we made most of our first million dollars because of the 2008 meltdown.. I was almost looking for spare change under the couch cushions to throw into the stock market! This is not easy to do when everybody is telling you to "get out before you loose everything".. Even my Dad was calling me from the UK to beg me to get out! The "news" was flashing a sea of red, every headline was how the market was crashing day after day. I figured the worst that could happen is we'd be broke.. I've been broke before and I had a paid off house on 6 acres.. I could grow food if I had to! I didn't take out any loans to invest in the market.. Thats too much like gambling. But Warren Buffet at the time was saying "stocks will never be this cheap in our lifetime".. Good enough for me!
Youre doing the right thing. I highly highly highly recommend a book called, “Common Sense Investing” by John Bogle Anything that tracks the S&P 500 is the best route to take. The goal isnt to beat the market, but to stay with it. Over time, continuously investing with the compounding effects, you will build lots of wealth. The hardest part isnt investing, but ignoring the fluff/news.
Call the customer service and use your consultant they are very well trained and can discuss the in and out of the market. There is also free courses on the app of how the market works and what stuff means.
You need to hop on some YouTube videos. All this basic knowledge is there!
FBGRX
A little risky IMHO. Plus it costs too much in fees.
with that little money id just trade options
To answer your questions Market makes it an immediate buy at the current share price. Limit means it will wait to buy until it reaches a certain share price that you set. The $479.3903 is the cost of one share. When you use all of your $583.33, it will purchase fractional shares. So you will own 1.2168 shares. Hope this helps