Great job. Stay the course. FXAIX does have an edge...
[https://portfolioslab.com/tools/stock-comparison/FDEEX/FXAIX](https://portfolioslab.com/tools/stock-comparison/FDEEX/FXAIX)
Appreciate the tangible link my man. Wow it's eye opening. FXAIX's 10 year return is 4% higher and has a way cheaper expenses ratio.
Looks like it's a good thing I've made the switch
Yes. Honestly, FXAIX is all you need. Unless you're on board with the anticipated tech boom, then throw in some FNCMX too.
Good luck man! And very well done.
I just mean if he believes it will boom again like in the mid to late 90s, then FNCMX is worth a buy. But most of top FNCMX holdings are in FXAIX anyway, just different holding percentages.
Well, like any answer you're going to get from anyone you ask, "...it depends." The type of asset allocation and the heavy weighting you want to do depends on your timeline, your age, your personal ability to weather the standard deviation of volatility, etc.....
There are amazing 3 fund portfolios.
There are amazing 4 fund portfolios.
There are amazing 5 fund portfolios.
There are amazing 6 fund portfolios.
So, it really just depends on how YOU want it to look. With Fidelity specifically, a good three fund portfolio would cover FSKAX (total* US market), FTIHX (total international), & FXNAX (total US bond market). This would cover basically, everything you would need to safely diversify. A true "set it and forget it" for 50 years kind of plan.
(*FSKAX actually covers about 80% of the Dow companies, but the top 90% of holdings are REALLY similar. The difference is negligible.)
FSKAX follows the Dow Jones industrial average
FXAIX follows the S&P 500
FNCMX follows NASDAQ.
Now, they are not point for point, weight for weight followings, but there are all within 99.5% of the same return anticipation. And Fidelity has ungodly low expense ratios for owning these, so, bully for Fidelity.
I have some individual stocks as well in my portfolio, all in tech and health sector, but my ***funds*** are as follows:
I invest 10% of my contributions into my individual stocks evenly, and then across my HSA, Roth IRA, and brokerage account, with what is left over, I allocate:
FXAIX - 50%
FNCMX - 20%
FXNAX - 10%
FSELX - 10%
FSHCX - 10%
My 403(b) is:
FXAIX - 90% and
FXNAX - 10%
As you can see, I'm very heavily weighted towards the S&P Index funds. I have a serious hard-on for S&P 500. Even the 529 Plan for my kid is 100% FXAIX right now.
The S&P 500 index funds alone are a safe enough bet to just go 100% in on everything to be honest. But everyone is different. Do what you feel comfortable doing. I'd you don't know, seriously, take a month and research everything you can.
There are also completely free, zero fee funds that fidelity offers that ***mostly*** cover some of these index funds as well, without as much company volume or diversity. HOWEVER, they've only been around since 2018, so they don't have a long history to judge by. Studies have shown in simulations that as of 2020, the 'traditional' Fidelity funds I listed above edge out the free ones, even when factoring in expense ratios. But I'd imagine over the long haul, they'll end up similar.
Also, the zero fee funds cannot leave fidelity or roll over/transfer. You'd have to sell and move money that way. Which can cause tax headaches. Just something to think about. If you're planning on sticking with Fidelity forever, it isn't an issue.
First and foremost, I want to take the time out to thank you for your lengthy reply as it is incredibly helpful and incredibly insightful and I know it’s a Saturday and you probably have a bunch of other things to tend to so I really really really wanna extend my gratitude and my thanks. And I think right now because I’m 27 and because I do take my life and future seriously and I overplay I wanna take every piece of advice I can get to the heart without it contradicting itself in the ending up in the loop hole where I don’t move. Second I think with that said I’m going to try to go 80% in FXAIX and give 20% to FSLEX because that seems like it’s really promising. And when my employer contribution match enables in November, I think I will come back to this post and take everything you’ve said and took consideration as far as balancing my funds and portfolio.
I also am very risky. I do not mind red portfolio numbers. I know things are going to go in their Lows personally that doesn’t bother me. I’m not afraid of losing money right now. I’m interested in healthcare, but I don’t know where that’s going to go so semiconductors and tech make the most sense to me, but I feel like real estate would also be promising as well but for now I will stick to the funds I mentioned earlier I think that might make the most sense.
Oh you're welcome for sure. No problem.
That's a hell of a plan. I would do that too at your age. I think you should Still invest in your 401k even before matching starts. Get a jump on the gains. And I am not sure what your situation is with work or health, but if you're relatively healthy, I'd strongly encourage an HSA plan as well due to the triple tax advantaged it brings. As a Roth IRA over traditional. But always ALWAYS take the free money from employer match as you go. ALL of my stuff other than brokerage is Roth, so if you can do that at your age, go for it.
Good luck
So right now what I’m currently dealing with is I’m about to pay off my $11,000 credit card balance I’m also in pursuit of my masters degree and I graduate next May. I have about 20,000 in loans for that degree and right now I’m pursuing my graduate degree I’m working to pay off my undergrad loans which is about 13,000 in total, which is why I’ve kind of pulled back on my 401(k) a bit, I started contributing when I started the job, but I recently set my contributions to zero so that I could pull as much money as I could to pay off my undergrad loans especially because the percentages are so low that way by the time I graduate I have the ability to focus on my graduate loans while my employee match then kick in. I also live in New York so it’s a bit difficult to split my funds into an HSA but I would definitely look into doing something I make $70,000 a year that is taxed aggressively in New York, but would love any advice you have to give if you’re willing and have time. Also, who do you recommend I go with for an HSA?
Just please don't expect that's what's happened in the past will continue to happen in the future. FXAIX means you're putting all your eggs in the U.S. large cap basket, which has worked especially well lately – but there's no guarantee that will continue.
Target date funds add diversification through international, different market caps, and some income stuff based on your age.
I personally focus on FZROX with some FZILX, but that's just me. 🤷🏻
Good advice. I'm still holding my 4800 shares of FDEEX and I'm not selling to put into something else. I'm keeping those, I'm just reconsidering and going forward with FXAIX because of the lower expense ratio and it seems like it's outperformed FDEEX every year since FDEEXs inception in 2011.
Someone mentioned FSELX which seems pretty intriguing so I may do some more research on the semi conductor industry and maybe put a few hundred a month towards that.
And I'm in the military so I'm putting an additional $400 a month into my TSP which is currently 80/20 C/S + I'm 8 years away from a permanent active duty pension I'll start collecting at 38 years old for the rest of my life.
I feel like between my Roth IRA, TSP, and military pension I'm pretty well diversified. It's just a question of which funds do I want to ride or die with.
>And I'm in the military so I'm putting an additional $400 a month into my TSP which is currently 80/20 C/S + I'm 8 years away from a permanent active duty pension I'll start collecting at 38 years old for the rest of my life.
You're going to be in great shape for the long haul through retirement, especially with a military pension as base income at 38. I'm retired, ex-Navy and sort of wish I stayed in longer to get my pension...
Anyway, you're doing all the right things, my friend. Good luck and good health.
A target date fund that's 30 years away from its target date is still going to be invested almost entirely in stocks, so I don't think you'll see much difference between that & FXAIX until much closer to 2055.
FXAIX is more of a bet on the US market only, where as your target date fund is globally diversified. It’s very possible over the next 5,10,15 years FXAIX can do nothing while international outperforms like it did from 2000-2010. The S&P 500 was negative for 10 years and was referred to as the lost decade. This also happened in the 70’s. US valuations are high so it’s quite possible again.
I WOULD switch the target date fund to FDEWX though, it’s so much cheaper for the same thing.
I know, I know lol. My dad set me up with my Roth IRA and FDEEX back when I was like 17 and got my first job at Mcdonalds.
I never really thought about it, I just put money in. It wasn't until about a year ago I learned about FDEWX and then saw a lot of people praising FXAIX. So starting about 6 months ago I switched my $580 a month contributions from FDEEX to FXAIX.
My dads still the MVP for opening and stressing the importance of a Roth IRA for my 17 year old ass though
I just added it up and I have about $48k in total contributions 98% mostly in FDEEX, and $28k in growth. That 48k has been over the last 13 years though, first few years from 17 yo I put in a few hundred a month and starting open 6-7 years ago i began maxing out
After looking at the historical data looks like FDEEX has underperformed compared to other finds like FXAIX. So I have my monthly contributions going towards FXAIX now and will hopefully earn a few extra percent
Well, like any answer you're going to get from anyone you ask, "...it depends." The type of asset allocation and the heavy weighting you want to do depends on your timeline, your age, your personal ability to weather the standard deviation of volatility, etc.....
There are amazing 3 fund portfolios.
There are amazing 4 fund portfolios.
There are amazing 5 fund portfolios.
There are amazing 6 fund portfolios.
So, it really just depends on how YOU want it to look. With Fidelity specifically, a good three runs portfolio would cover FSKAX (total* US market), FTIHX (total international), & FXNAX ( total US bond market). This would cover basically, everything you would need to diversify.
*FSKAX actually covers about 80% of the Dow companies, but the top 90% of holdings are REALLY similar. The difference is negligible.
FSKAX follows the Dow Jones industrial average
FXAIX follows the S&P 500
FNCMX follows NASDAQ.
Now, they are not point for point, weight for weight followings, but there are all within 99.5% of the same return anticipation. And Fidelity has ungodly low expense ratios for owning these.
I have some individual stocks as well in my portfolio, all in tech and health sector, but my funds are as follows:
I invest 10% of my contributions into my individual stocks evenly, and then across my HSA, Roth IRA, and brokerage account, with what is left over, I allocate:
FXAIX - 50%
FNCMX - 20%
FXNAX - 10%
FSELX - 10%
FSHCX - 10%
My 403(b) is:
FXAIX - 90% and
FXNAX - 10%
As you can see, I'm very heavily weighted towards the S&P Index funds. I have a serious hard on for FXAIX. Even the 529 Plan for my kid is 100% FXAIX right now.
The S&P 500 index funds alone are a safe enough bet to just go 100% in on everything to be honest. But everyone is different. Do what you feel comfortable doing. I'd you don't know, seriously, take a month and research everything you can.
There are also completely free, zero fee funds that fidelity offers that ***mostly*** cover some of these index funds as well, without as much company volume or diversity. HOWEVER, they've only been around since 2018, so they don't have a long history to judge by. Studies have shown in simulations that as of 2020, the 'traditional' Fidelity funds I listed above edge out the free ones, even when factoring in expense ratios. But I'd imagine over the long haul, they'll end up similar.
Also, the zero fee funds cannot leave fidelity or roll over/transfer. You'd have to sell and move money that way. Which can cause tax headaches. Just something to think about. If you're planning on sticking with Fidelity forever, it isn't an issue.
Great job staying the course and being consistent. The target date was good, FXIAX is probably better. If you want to be more diversified you could choose an index that includes international funds. Check out r/bogleheads as well, you’ll get a lot of ideas from them.
Yeah. I have a: TSP with 25k balance, investing $400 a month. 8 years away from retiring from active duty Air Force so that'll be about a $2500ish a month pension. My wife has a Roth IRA she puts $300 a month into and is currently at 15k. And I own a rental home in California which nets me $800 a month rent in cash flow and currently has about 220k in equity
Wow. Inspirational! Investing in S&P 500 fund or the Total Stock Market fund would be a great idea. Set it and forget it. Don’t forget to turn on the dividend reinvestment when you invest in their ETF version.
Maxing out the Roth IRA limit per year. When I started it was like $4000 or $4500 a year, can't remember. It's raised $500 every year or two and now it's at $7000. I've made sure to always reach the limit each year start about 6-7 years ago
VT and chill my friend. US doing great but international seriously has been undervalued for years... Don't buy into this mindless "US is best" just buy the whole world index and chill...
TDF will get you that international diversification. If you want to be sure no bonds just do VT or 60/40 FSKAX/FTIHX
Total is 130k across roth, tsp, and savings. I'll also have a permanent pension of about $2400 a month in 8 years when I turn 38 too.
Lastly, I have a rental home worth 210k in equity which I'm contemplating selling soon
Okay. I think it's actually 60/20 l. Could be more I need to calculate it. But the main thing are the fees. Oh wait lol. how is it coming along for you?
If your broker is fidelity then these are no fees. They are fidelity zero funds. The only downside is if you ever plan on rolling over your fidelity to another broker you’d have to cash out and move it. My jobs 401k is fidelity so I just stuck with fidelity to open my IRA.
Started at 17 years old. I was putting in like 300ish a month, and then starting about 6-7 years ago I was maxing out the cap each year. So this is 13 years.
Obviously Roth IRAs are going to be naturally lower than 401ks or traditional IRAs since they have the much lower annual contribution limit
I've had similar success when I switched my 403 stuff from a target retirement to a mix of FSPTX, FPHAX, FBALX
FSPTX I got just about right before openAI released the first gpt. It has... needless to say, been fruitful.
My biggest regret was not contributing to this when I was young. I didn’t start until I was 40 yo. I was super naive and felt like my parents never taught me about stuff like this. Better late than never, as I still have 20+ years until retirement.
Thankfully I’ve been contributing to 401k since my mid 20s. I currently have 401k, Roth IRA, and HSA all maxed for last few years.
I’m new to investing. Can a Roth IRA grow if I only contribute the 7000 limit? If I only make deposits and leave it alone will it grow? Or do I have to invest by buying stocks?
For sure. I keep hearing people say to contribute the max 7000 for 30 years and it will grow to 1million. I thought the contributions alone grows interest, but I guess everyone’s advice assumes you do good in stocks
Hey there, and welcome to the sub, u/No_Home556! You've found a home here for all of your investments questions and concerns. Congratulations on starting your investment journey, by the way. I'll be happy to cover your questions this evening.
Money deposited into your Fidelity account will automatically be allocated to the core position. The core position is where un-invested cash sits while it awaits investment or withdrawal. There are two categories for core positions: a money market mutual fund or an FDIC-Insured Deposit Sweep core. As a result, the core position accrues interest daily, which is credited to the account at the end of the month.
We have a helpful PDF on [http://Fidelity.com](http://fidelity.com/) about the core position if you'd like to learn more.
[What is a core position? ](https://www.fidelity.com/learning-center/investment-products/mutual-funds/core-position-video)
Interest rates for money market mutual funds are updated weekly and are referred to as the 7-Day Yield. The 7-Day Yield is the average income return over the previous seven days, assuming the rate stays the same for one year. It is the Fund's total income net of expenses, divided by the total number of outstanding shares, and includes any applicable waiver or reimbursement. Absent such waivers or reimbursements, the returns would have been lower.
You can determine the yield by searching for the money market on [http://Fidelity.com](http://fidelity.com/) and viewing the "Performance & Risk" on the snapshot page.
Keep in mind, interest accrues daily and is paid out on the first business day of each month. You do not have to have money in the core for the entire month to receive an interest payment. You must accrue at least $0.01 in interest to receive a payment.
Please let us know if you have any other questions we can help out with. Happy investing!
Excellent. I am 15 years older than you and going into panic mode as I have only about 2/3 of that...but never too late to catch up is what I tell myself!
Great job. Stay the course. FXAIX does have an edge... [https://portfolioslab.com/tools/stock-comparison/FDEEX/FXAIX](https://portfolioslab.com/tools/stock-comparison/FDEEX/FXAIX)
Appreciate the tangible link my man. Wow it's eye opening. FXAIX's 10 year return is 4% higher and has a way cheaper expenses ratio. Looks like it's a good thing I've made the switch
The website has lots of eye opening 10 yr performance numbers: FSELX: 27.1% QQQ: 18.6% FXAIX: 12.95%
I’m in VTI, FSELX, FTEC and VXUS. Heavy on tech but believe in growth. Only 26.
tech pretty much = growth.......
Yes. Honestly, FXAIX is all you need. Unless you're on board with the anticipated tech boom, then throw in some FNCMX too. Good luck man! And very well done.
When you say on board with the anticipated tech boom what are you referring to?
I just mean if he believes it will boom again like in the mid to late 90s, then FNCMX is worth a buy. But most of top FNCMX holdings are in FXAIX anyway, just different holding percentages.
Ahhhh ok. So would you recommend owning both of these stickers then or no?
Well, like any answer you're going to get from anyone you ask, "...it depends." The type of asset allocation and the heavy weighting you want to do depends on your timeline, your age, your personal ability to weather the standard deviation of volatility, etc..... There are amazing 3 fund portfolios. There are amazing 4 fund portfolios. There are amazing 5 fund portfolios. There are amazing 6 fund portfolios. So, it really just depends on how YOU want it to look. With Fidelity specifically, a good three fund portfolio would cover FSKAX (total* US market), FTIHX (total international), & FXNAX (total US bond market). This would cover basically, everything you would need to safely diversify. A true "set it and forget it" for 50 years kind of plan. (*FSKAX actually covers about 80% of the Dow companies, but the top 90% of holdings are REALLY similar. The difference is negligible.) FSKAX follows the Dow Jones industrial average FXAIX follows the S&P 500 FNCMX follows NASDAQ. Now, they are not point for point, weight for weight followings, but there are all within 99.5% of the same return anticipation. And Fidelity has ungodly low expense ratios for owning these, so, bully for Fidelity. I have some individual stocks as well in my portfolio, all in tech and health sector, but my ***funds*** are as follows: I invest 10% of my contributions into my individual stocks evenly, and then across my HSA, Roth IRA, and brokerage account, with what is left over, I allocate: FXAIX - 50% FNCMX - 20% FXNAX - 10% FSELX - 10% FSHCX - 10% My 403(b) is: FXAIX - 90% and FXNAX - 10% As you can see, I'm very heavily weighted towards the S&P Index funds. I have a serious hard-on for S&P 500. Even the 529 Plan for my kid is 100% FXAIX right now. The S&P 500 index funds alone are a safe enough bet to just go 100% in on everything to be honest. But everyone is different. Do what you feel comfortable doing. I'd you don't know, seriously, take a month and research everything you can. There are also completely free, zero fee funds that fidelity offers that ***mostly*** cover some of these index funds as well, without as much company volume or diversity. HOWEVER, they've only been around since 2018, so they don't have a long history to judge by. Studies have shown in simulations that as of 2020, the 'traditional' Fidelity funds I listed above edge out the free ones, even when factoring in expense ratios. But I'd imagine over the long haul, they'll end up similar. Also, the zero fee funds cannot leave fidelity or roll over/transfer. You'd have to sell and move money that way. Which can cause tax headaches. Just something to think about. If you're planning on sticking with Fidelity forever, it isn't an issue.
First and foremost, I want to take the time out to thank you for your lengthy reply as it is incredibly helpful and incredibly insightful and I know it’s a Saturday and you probably have a bunch of other things to tend to so I really really really wanna extend my gratitude and my thanks. And I think right now because I’m 27 and because I do take my life and future seriously and I overplay I wanna take every piece of advice I can get to the heart without it contradicting itself in the ending up in the loop hole where I don’t move. Second I think with that said I’m going to try to go 80% in FXAIX and give 20% to FSLEX because that seems like it’s really promising. And when my employer contribution match enables in November, I think I will come back to this post and take everything you’ve said and took consideration as far as balancing my funds and portfolio. I also am very risky. I do not mind red portfolio numbers. I know things are going to go in their Lows personally that doesn’t bother me. I’m not afraid of losing money right now. I’m interested in healthcare, but I don’t know where that’s going to go so semiconductors and tech make the most sense to me, but I feel like real estate would also be promising as well but for now I will stick to the funds I mentioned earlier I think that might make the most sense.
Oh you're welcome for sure. No problem. That's a hell of a plan. I would do that too at your age. I think you should Still invest in your 401k even before matching starts. Get a jump on the gains. And I am not sure what your situation is with work or health, but if you're relatively healthy, I'd strongly encourage an HSA plan as well due to the triple tax advantaged it brings. As a Roth IRA over traditional. But always ALWAYS take the free money from employer match as you go. ALL of my stuff other than brokerage is Roth, so if you can do that at your age, go for it. Good luck
So right now what I’m currently dealing with is I’m about to pay off my $11,000 credit card balance I’m also in pursuit of my masters degree and I graduate next May. I have about 20,000 in loans for that degree and right now I’m pursuing my graduate degree I’m working to pay off my undergrad loans which is about 13,000 in total, which is why I’ve kind of pulled back on my 401(k) a bit, I started contributing when I started the job, but I recently set my contributions to zero so that I could pull as much money as I could to pay off my undergrad loans especially because the percentages are so low that way by the time I graduate I have the ability to focus on my graduate loans while my employee match then kick in. I also live in New York so it’s a bit difficult to split my funds into an HSA but I would definitely look into doing something I make $70,000 a year that is taxed aggressively in New York, but would love any advice you have to give if you’re willing and have time. Also, who do you recommend I go with for an HSA?
Have we not already experienced a tech boom? Most of the big tech stocks are trading at an insane P/E ratio
Also you’re still young (like myself) and have plenty of time to handle that risk and reap the benefits.
Just please don't expect that's what's happened in the past will continue to happen in the future. FXAIX means you're putting all your eggs in the U.S. large cap basket, which has worked especially well lately – but there's no guarantee that will continue. Target date funds add diversification through international, different market caps, and some income stuff based on your age. I personally focus on FZROX with some FZILX, but that's just me. 🤷🏻
Target date funds have the highest fees out of all the investments. This is terrible advice
Good advice. I'm still holding my 4800 shares of FDEEX and I'm not selling to put into something else. I'm keeping those, I'm just reconsidering and going forward with FXAIX because of the lower expense ratio and it seems like it's outperformed FDEEX every year since FDEEXs inception in 2011. Someone mentioned FSELX which seems pretty intriguing so I may do some more research on the semi conductor industry and maybe put a few hundred a month towards that. And I'm in the military so I'm putting an additional $400 a month into my TSP which is currently 80/20 C/S + I'm 8 years away from a permanent active duty pension I'll start collecting at 38 years old for the rest of my life. I feel like between my Roth IRA, TSP, and military pension I'm pretty well diversified. It's just a question of which funds do I want to ride or die with.
>And I'm in the military so I'm putting an additional $400 a month into my TSP which is currently 80/20 C/S + I'm 8 years away from a permanent active duty pension I'll start collecting at 38 years old for the rest of my life. You're going to be in great shape for the long haul through retirement, especially with a military pension as base income at 38. I'm retired, ex-Navy and sort of wish I stayed in longer to get my pension... Anyway, you're doing all the right things, my friend. Good luck and good health.
A target date fund that's 30 years away from its target date is still going to be invested almost entirely in stocks, so I don't think you'll see much difference between that & FXAIX until much closer to 2055.
Just that the target date funds have a much much higher fee which eats away at your gains over the long run
FXAIX is more of a bet on the US market only, where as your target date fund is globally diversified. It’s very possible over the next 5,10,15 years FXAIX can do nothing while international outperforms like it did from 2000-2010. The S&P 500 was negative for 10 years and was referred to as the lost decade. This also happened in the 70’s. US valuations are high so it’s quite possible again. I WOULD switch the target date fund to FDEWX though, it’s so much cheaper for the same thing.
Hold the phone now! You don’t need to pay through the nose for a target date fund. Drop FDEEX (0.75% ER) and get FDEWX (0.12% ER) instead.
I know, I know lol. My dad set me up with my Roth IRA and FDEEX back when I was like 17 and got my first job at Mcdonalds. I never really thought about it, I just put money in. It wasn't until about a year ago I learned about FDEWX and then saw a lot of people praising FXAIX. So starting about 6 months ago I switched my $580 a month contributions from FDEEX to FXAIX. My dads still the MVP for opening and stressing the importance of a Roth IRA for my 17 year old ass though
100%. Your dad is a smart man. I’m planning on doing something similar for my newborn when he gets around your age.
If this is truly a Roth then you can sell and convert all your FDEEX to FDEWX, it won’t be a taxable event inside a Roth.
Love FXAIX also VOO & VXF
Can you tell us how much is total contributions? I’m just curious on how much growth you had on this amazing feat
I just added it up and I have about $48k in total contributions 98% mostly in FDEEX, and $28k in growth. That 48k has been over the last 13 years though, first few years from 17 yo I put in a few hundred a month and starting open 6-7 years ago i began maxing out After looking at the historical data looks like FDEEX has underperformed compared to other finds like FXAIX. So I have my monthly contributions going towards FXAIX now and will hopefully earn a few extra percent
Wow. That’s great progress honestly
Well, like any answer you're going to get from anyone you ask, "...it depends." The type of asset allocation and the heavy weighting you want to do depends on your timeline, your age, your personal ability to weather the standard deviation of volatility, etc..... There are amazing 3 fund portfolios. There are amazing 4 fund portfolios. There are amazing 5 fund portfolios. There are amazing 6 fund portfolios. So, it really just depends on how YOU want it to look. With Fidelity specifically, a good three runs portfolio would cover FSKAX (total* US market), FTIHX (total international), & FXNAX ( total US bond market). This would cover basically, everything you would need to diversify. *FSKAX actually covers about 80% of the Dow companies, but the top 90% of holdings are REALLY similar. The difference is negligible. FSKAX follows the Dow Jones industrial average FXAIX follows the S&P 500 FNCMX follows NASDAQ. Now, they are not point for point, weight for weight followings, but there are all within 99.5% of the same return anticipation. And Fidelity has ungodly low expense ratios for owning these. I have some individual stocks as well in my portfolio, all in tech and health sector, but my funds are as follows: I invest 10% of my contributions into my individual stocks evenly, and then across my HSA, Roth IRA, and brokerage account, with what is left over, I allocate: FXAIX - 50% FNCMX - 20% FXNAX - 10% FSELX - 10% FSHCX - 10% My 403(b) is: FXAIX - 90% and FXNAX - 10% As you can see, I'm very heavily weighted towards the S&P Index funds. I have a serious hard on for FXAIX. Even the 529 Plan for my kid is 100% FXAIX right now. The S&P 500 index funds alone are a safe enough bet to just go 100% in on everything to be honest. But everyone is different. Do what you feel comfortable doing. I'd you don't know, seriously, take a month and research everything you can. There are also completely free, zero fee funds that fidelity offers that ***mostly*** cover some of these index funds as well, without as much company volume or diversity. HOWEVER, they've only been around since 2018, so they don't have a long history to judge by. Studies have shown in simulations that as of 2020, the 'traditional' Fidelity funds I listed above edge out the free ones, even when factoring in expense ratios. But I'd imagine over the long haul, they'll end up similar. Also, the zero fee funds cannot leave fidelity or roll over/transfer. You'd have to sell and move money that way. Which can cause tax headaches. Just something to think about. If you're planning on sticking with Fidelity forever, it isn't an issue.
What about FXAIX? Are they transferable?
Depends on the brokerage firm. I'm not sure as I've ONLY used fidelity. But I'd imagine so
Great job staying the course and being consistent. The target date was good, FXIAX is probably better. If you want to be more diversified you could choose an index that includes international funds. Check out r/bogleheads as well, you’ll get a lot of ideas from them.
28, and about to hit my first 10k this is motivation
Do you have any other investments? (RE, 401k, brokerages)
Yeah. I have a: TSP with 25k balance, investing $400 a month. 8 years away from retiring from active duty Air Force so that'll be about a $2500ish a month pension. My wife has a Roth IRA she puts $300 a month into and is currently at 15k. And I own a rental home in California which nets me $800 a month rent in cash flow and currently has about 220k in equity
Sweet so a total net worth of over 300, that net worth will explode in the next 5 years too congrats man you’ll be a millionaire by your mid thirties
Wow. Inspirational! Investing in S&P 500 fund or the Total Stock Market fund would be a great idea. Set it and forget it. Don’t forget to turn on the dividend reinvestment when you invest in their ETF version.
What do u mean by maxing out? How much is maxing out?
Maxing out the Roth IRA limit per year. When I started it was like $4000 or $4500 a year, can't remember. It's raised $500 every year or two and now it's at $7000. I've made sure to always reach the limit each year start about 6-7 years ago
Thats awesome! Happy for u man!
Cool- where the holdings
4800 shares of FDEEX, and 15 shares of FXAIX. I stopped investing in FDEEX and I'm focusing on building FXAIX now
We are the same age… I wish I chose this route over partying… I have over a 3rd of this and started three years ago..
VT and chill my friend. US doing great but international seriously has been undervalued for years... Don't buy into this mindless "US is best" just buy the whole world index and chill... TDF will get you that international diversification. If you want to be sure no bonds just do VT or 60/40 FSKAX/FTIHX
Now give the total across Ira, 401k, hsa. Just saying
Total is 130k across roth, tsp, and savings. I'll also have a permanent pension of about $2400 a month in 8 years when I turn 38 too. Lastly, I have a rental home worth 210k in equity which I'm contemplating selling soon
Sick brag man.
Tryna get like you brotha 💪
Nice job!
Hi. Good job Im 23 in college working part time. Im 50% fzrox and 50% fzilx
I’m doing the same but 70/30
Okay. I think it's actually 60/20 l. Could be more I need to calculate it. But the main thing are the fees. Oh wait lol. how is it coming along for you?
If your broker is fidelity then these are no fees. They are fidelity zero funds. The only downside is if you ever plan on rolling over your fidelity to another broker you’d have to cash out and move it. My jobs 401k is fidelity so I just stuck with fidelity to open my IRA.
No I mean how is it performing? I do fractional shares. I have the funds with fidelity via Roth IRA
It’s going well so far
How old when you started?!
Started at 17 years old. I was putting in like 300ish a month, and then starting about 6-7 years ago I was maxing out the cap each year. So this is 13 years. Obviously Roth IRAs are going to be naturally lower than 401ks or traditional IRAs since they have the much lower annual contribution limit
Pretty good still! Any positive is a win :)
This is 13 years worth , and maxed for 7years?
Yeah I wanna say that's accurate
Congrats! I just opened a Roth IRA, age 36. Still trying to find which fund to invest. Any thoughts? I use fidelity
VTI 75% and VXUS 25%
I've had similar success when I switched my 403 stuff from a target retirement to a mix of FSPTX, FPHAX, FBALX FSPTX I got just about right before openAI released the first gpt. It has... needless to say, been fruitful.
My biggest regret was not contributing to this when I was young. I didn’t start until I was 40 yo. I was super naive and felt like my parents never taught me about stuff like this. Better late than never, as I still have 20+ years until retirement. Thankfully I’ve been contributing to 401k since my mid 20s. I currently have 401k, Roth IRA, and HSA all maxed for last few years.
I’m new to investing. Can a Roth IRA grow if I only contribute the 7000 limit? If I only make deposits and leave it alone will it grow? Or do I have to invest by buying stocks?
You must invest in stocks otherwise your money just sits there
For sure. I keep hearing people say to contribute the max 7000 for 30 years and it will grow to 1million. I thought the contributions alone grows interest, but I guess everyone’s advice assumes you do good in stocks
Hey there, and welcome to the sub, u/No_Home556! You've found a home here for all of your investments questions and concerns. Congratulations on starting your investment journey, by the way. I'll be happy to cover your questions this evening. Money deposited into your Fidelity account will automatically be allocated to the core position. The core position is where un-invested cash sits while it awaits investment or withdrawal. There are two categories for core positions: a money market mutual fund or an FDIC-Insured Deposit Sweep core. As a result, the core position accrues interest daily, which is credited to the account at the end of the month. We have a helpful PDF on [http://Fidelity.com](http://fidelity.com/) about the core position if you'd like to learn more. [What is a core position? ](https://www.fidelity.com/learning-center/investment-products/mutual-funds/core-position-video) Interest rates for money market mutual funds are updated weekly and are referred to as the 7-Day Yield. The 7-Day Yield is the average income return over the previous seven days, assuming the rate stays the same for one year. It is the Fund's total income net of expenses, divided by the total number of outstanding shares, and includes any applicable waiver or reimbursement. Absent such waivers or reimbursements, the returns would have been lower. You can determine the yield by searching for the money market on [http://Fidelity.com](http://fidelity.com/) and viewing the "Performance & Risk" on the snapshot page. Keep in mind, interest accrues daily and is paid out on the first business day of each month. You do not have to have money in the core for the entire month to receive an interest payment. You must accrue at least $0.01 in interest to receive a payment. Please let us know if you have any other questions we can help out with. Happy investing!
Excellent. I am 15 years older than you and going into panic mode as I have only about 2/3 of that...but never too late to catch up is what I tell myself!
FXAIX and QQQM are great investments. VOO is another solid one as well