FFNOX
FIDELITY FOUR-IN-ONE INDEX FUND FIDELITY FOUR-IN-ONE INDEX FUND
Mentions (24Hr)
0.00% Today
Reddit Posts
Do I need to include a small cap index / etf in my Roth?
60% of my Roth IRA is in FXAIX, but I've also started investing in FFNOX. Should I keep them split or join them?
Just put $6k in my fidelity Roth IRA can someone help me on what I should do next?
Mentions
A wealth management company and investment management company are different types of companies. As u/CT_Legacy said - a wealth management company doesn't manage ETF's. And it's a common misconception that it's the same company. OP is probably also talking about FFNOX which is a FOF (fund of funds) and the various funds are largely subadvised by other companies. The fund exists primarily for use like a low-cost SMA but without the benefit and additional expense of tax harvesting.
Fidelity takes a similar approach in FFNOX. All it's holdings are other Fidelity index funds: 41% Fidelity 500 Index Fund 10% Fidelity Extended Market Index Fund 24% Fidelity International Index Fund 10% Fidelity Emerging Markets Index Fund 7% Fidelity U.S. Bond Index Fund 5% Fidelity Long-Term Treasury Bond Index Fund 3% Fidelity International Bond Index Fund
50% FFNOX 10% SCYB 10% VGSH And 30% whatever degenerate bad decision is being hyped here.
I'm slowly buying in. A few grand here, a few grand there. My strategy is boring though. 100% FFNOX in my Roth and 100% AOA in my brokerage
Check out FFNOX for an alternative to target date funds
I have a good chunk of my IRA in FFNOX.
> And what if it doesn’t keep dropping? How long will you remain in cash while the market goes up? Is the concern that people will just forget about their investments and 2 years will go by in the green before they realize "oh crap, I never re-invested that money I set to the side"? On the locking out future gain....again I'm not investment smart so maybe I am missing something....and you can clear it up for me. I will use FFNOX as an example. I entered June 2019 at a cost basis of $44.77 with my initial investment ($44k). I have a ton of $0 cost basis with misc purchases between Dec 2019 and today. It seems these are dividends because they happen every December and April. So my AVG cost basis is $34.20. The current FFNOX price is $56.35. The high was $62. My guess is in the next 1-2 weeks, I'll see another April purchase of $0 cost basis for several thousand (most are $2000 something) These are not purchases made by me. So the dividends have lowered my average from $44 to $34 over 6 years. If I were to hypothetically sell this fund of about $72k (initial investment was $44k) into cash..., it sounds like if I hypothetically re-entered at $60, all those $0 cost basis dividends I'd no longer be benefiting from...they would still happen going forward just based on the new 'avg' cost basis of $60. As of right now, I am up $64% on this particular fund. I'm up 184% on FSELX. I'm up 46% on FBSOX.
> Yes. Probably not this year, maybe not in the next 5 years. But it eventually will. And most importantly: is your time horizon for needing this money the next 1-5 years? So can you explain to me what is the 'harm' in the following scenario. I have a rollover IRA. I haven't contributed to it in about 7 years since I started my new job, as it is just a bunch of prior 401k rollovers. October 2022 - value $64k. Feb 14 - value $108k Today: value $96k. (will be less by the end of today) So hypothetically speaking, I move all my rollover IRA funds which are mostly ETF and index funds (FFNOX, FSELX, FXAIX, and a few others) into 'cash' within Fidelity's system...and just leave it there till things maybe calm down and less chaotic. Then when it seems there is some stability, even if we have a week of 'green' and success, I then enter those funds back into my ETFs.... what exactly is the harm that has been done other than maybe missing out on a couple thousand bucks which in the long term isn't much?
As others have said...what is going on right now is a bit unprecedented and we have a 'leader' who is self sabotaging our economy for who knows why....and it sounds like the trend is the dip will continue and who knows when it will stop. I have a rollover IRA I haven't touched in years since I haven't had to roll any 401k investments in for some time. I have a Roth I actively contribute to. Most of my investments are in FFNOX, FXAIX, FSELX, FBSOX. I'm down about 12k and it will be more by the end of today. Is there anything wrong just selling what I have and moving it into CASH inside Fidelity...almost all of it are long term positions dating back years.
I don't know what to do....I get you can't 'time' the market and what is important is 'time in the market' but because we have no clue how deep these lasting impacts will go, I don't know whether to shift my investments into safer areas or just leave it alone. I'm down about 12k from the high, and most of my investments are in etf/index funds such as FFNOX, FXAIX, FBSOX, and FSELX. Most of these are in my rollover IRA which I don't contribute to anymore (I have a roth I actively manage)...I could theoretically just move it all into 'cash' inside Fidelity and let it be while things fall.
FFNOX if you want an all-in-one solution.
First of all, if he’s 53 he should not be putting it all in VOO. Reddit is an echo chamber but that is a huge risk within 15 years of retirement. Most of the people giving financial advice on this subreddit are like 23-27. The past two decades have been record breaking. But you don’t know what the future holds. He needs the total market, international and bonds. I would honestly push him in the direction of FFNOX or something similar for some basic diversity. Then just leave it alone.
Good time to look at recommended risk allocation and your risk appetite. Then rebalance to match that. Most recommendations would be adding bonds and international, which reduces single country risk. But if US soars, you will not have as great of a return. I am younger (late 30s), but I shifted my retirement from VT and VTI, to pretty much 100% VASGX or FFNOX, which increases non-US exposure and adds 15-20% bonds. Makes me sleep better at night, but I could miss some return.
So, as someone that just googled what an ABLE account is, figure I can dispell a couple misconceptions you have. First the ABLE account is just a tax advantaged account most similiar to a 401k, but also similar to a Roth IRA, HSA etc... In this instance it allows you to defer taxes, and is only available to SSI beneficiaries. As far as fund($FFNOX) selection, you've accepted a perfectly good fund that manages risk in a pretty good way without completely killing upside potential. Now getting into the weeds it is interesting how this acct affects SSI once you get to 100k, I don't know how a taxable brokerage acct affects this. But regardless, do not feel like you are being scammed. The people claiming they "lost money" likely invested into a similiar or more risky mutual fund and when it was down they like most idiots pulled their money out. Nothing about the ABLE account structure seems shady to me(its a account structure set up by the feds).
3 percent is horrible for the past 7 years. Is that really the average over that time? Or is she looking at the 3 year average? As an example, a static portfolio index fund like FFNOX , which is 15 percent bonds has averaged 9 percent over 5 years and 15 percent over the past year but the 3 year average is 3.71%, because of the dip for both stocks and bonds in 2022. You should be upfront with her that recent market returns are not typical and she easily could have lost 40k putting it in one index fund as well. She has to be comfortable with that risk. Overall, I’d agree that she should fire her money managers and invest in a self-directed account with Fidelity. That doesn’t mean seven figures should go into FXAIX though. She might want to do some research and see what stock/bond allocation she’s comfortable with.
The whole US market is already top-heavy right now. AAPL, MSFT and NVDA make up over 30 percent of VUG. That’s a lot of stock-specific risk. It’s certainly better than owning just an individual stock. But with 120k I would personally be doing something like FFNOX and then if I wanted to be risky put like $20k into VUG. But everyone has different risk-tolerance. If you are set on doing all US equities then maybe FSKAX and a small portion in VUG. I get the desire to beat the market but you’re being pretty risky with your *entire* portfolio.
Market had been sideways for quite awhile before the recent upward run. I'd still dump those funds and go with a diversified fund you can manage yourself, ie FFNOX. Plenty of SP500 in there with international and small/mid-cap exposure. Not the greatest of fees as it sits around .10%, but good for a mutual fund.
the reason I chose FFNOX was it was a 4 in 1 fund...covering multiple bases so to me it was a conservative "safe' fund instead of just going with FXAIX, and a few others to make up the various quadrants. So if I like FFNOX, I'm not sure what rebalancing with that fund would look like.
Assuming that you have an allocation already in mind, normally, it's customary to rebalance the portfolio. What that means is that - at some time in the past - you decided that your portfolio should be 75% FFNOX and 25% FSELX. If you still believe that your risk-on allocation still makes sense, you would sell/buy so that the allocation 75/25 stays the same. If you want to re-allocate more conservatively, you can add a bond or fixed income slice. But for a long-term retirement IRA - having a cash allocation may not make sense.
This is a stupid question, I know. 75% of my rollover IRA in Fidelity is in FFNOX. Essentially has grown from 43k to 65k since 2019...with me honestly not really doing much to it. It looks like twice a year shares get added (dividends?). With funds like these...does it ever make sense to take the profits and put them into cash because of the growth, or do you just leave them for years and years to come because of all the compounding interest? Does it only make sense to take profits when it comes to individual stock trades? The other main fund (12.25%) is FSELX which has grown 162% since 2020, from $4k to $10k. Same thing, twice a year shares get added (dividends?) without me doing anything.
It used to be called the Four-In-One, correct. That helps explain the symbol (FFNOX: Fidelity Four iN One + all mutual funds end with "X").
FFNOX has FXAIX inside of it, so you're doubled-up on US large company stocks.
I hope you're also reading the other comment chain of this top level comment. S&P 500 is good, but it isn't this magical thing that the person you responded to makes it seem. That going broader (which FFNOX does) can both help increase returns and reduce volatility. That it doesn't have the best expected future and didn't have the best historical long term returns. Be aware that Buffet himself does invest some internationally, but also he's rich enough that even a 99% drop still leaves him as a billionaire. He may be giving in to familiarity bias (and that could be why he recommends it: some people may need to invest in something they hear mentioned on the daily news, but those people tend to not be the ones to come to an investing subreddit, right?). Buffet is also older, and S&P 500 had over a decade before the first US total market style fund. Also from my understanding, low cost ex-US funds are comparatively new as well. Also note that a single behavioral mistake (such as panic selling due to being too heavy in equities than your risk tolerance is actually capable of handling) can more than negate the opportunity cost that the bond allocation would give up. Go look at various investment subreddits when markets crashed and you'll see countless posts where someone over estimated their risk tolerance.
>but maybe keep a bit in FXAIX in case the market shifts Shift even more towards US large caps you mean? They've had an excellent recent run, so a shift to me would mean that it would be FFNOX that benefits, since it would mean a shift towards one of the following and away from FXAIX: * US extended market * Ex-US (either developed, emerging, or both) * Bonds
>The poor OP needs some real world advice not crazy theory. Yet you cannot move beyond your theories and 100 year windows that mean jack all to us humans who work with 10-30 year windows. Real world advice? Just about every major fund provider, *including the government's own TSP,* use at least 30% (or what would reasonably round to 30%) ex-US for their target date funds. * 2022 Survey of target date funds: https://www.reddit.com/r/Bogleheads/comments/rffoe7/domestic_vs_international_percentage_within/ >Just stop and try to think for a second about who it is needs help. Can you manage that? It is a person asking about switching to a more diverse portfolio. Moving to a portfolio that eliminates the (uncompensated) single country risk they had before while picking up compensated risks (smaller caps, emerging markets). >Advising the OP to invest in a portfolio that you THINK might outperform the S&P 500 based on your MSCI EAFE (EFA I assume since you didn’t specify) given a 45% chance to outperform the S&P 500 should be criminal. 45% isn't all that far off from the 55% chance of US outperforming. Also you seem to be missing that holding both US and ex-US can produce better returns than 100% in either direction in the long run. The S&P 500 is good, but it isn't this perfect magical thing like you think it is. >The OP is a real person who is going to need to retire and he needs to maximize his chances of getting the best gains out of his investments. No body in their right mind is going to think, oh yeah I’d love to have a 45% chance to do better than the S&P 500 (not that your odds are even correct). Prove the odds aren't correct. Where is your source? What did my source get wrong? 45% is fairly often, basically a coin flip. Then there's the sequence of returns issue. You also seem to be ignoring that OP had already decided FFNOX is a better fit for them than FXAIX going forward. >Your ridiculous data is based on only 10 year periods. Well my horizon is greater than 10 years and the OP’s likely is as well. So what about 11 years? 12 years? 13 years? 15 years? 17 years? 22 years? And every window in between up to 30 years? We've had 10+ year and 30+ year and 50+ year periods where it was ex-US on top of the US. Finding examples for every duration would be annoying. There is this: https://www.ifa.com/charts/154h For fun, I clicked "20+" which brought up January 1, 2023 through October 31, 2023. The top 2 spots went to emerging small cap followed by emerging value. So there's an intermediate term where the US was the one lagging behind the leader. Also that same duration shows US large lagging US small. Then "30+" also has US large trailing emerging small caps as well as US small caps and especially small value. >Sorry theorist but a 45% chance doesn’t cut it particularly when you cannot even show me what the odds are for all the other windows. All you have is some crazy theory backed by links you are repeatedly spamming like a marketing guy trying to drive clicks to a website. You're acting like 45% is very low. It's not. >Edit: What’s worse is EFA has barely earned 9% over the last 5 years while SPY has earned 58% over that period. You are going to end up hurting people with your theories and you need to stop. Had I taken your advice 5 years ago I’d likely never be able to regain the opportunity cost. >https://www.google.com/finance/quote/EFA:NYSEARCA?comparison=NYSEARCA%3ASPY&window=5Y You can't buy past returns. Only future returns. Back testing doesn't tell you about the future. If anything, many seem to believe that the US outperformance has likely put ex-US in an even more favorable position going forward. * https://awealthofcommonsense.com/2023/05/the-case-for-international-diversification/ * https://www.morningstar.com/portfolios/experts-forecast-stock-bond-returns-2023-edition These may be wrong of course, but why are they not factoring in the things you mentioned above? At what valuation for US and valuation for ex-US (or percent of global market cap weight split) would you think things were fairly valued and returns going forward should be even (unless a surprise event comes up)? >Edit: What’s worse is EFA has barely earned 9% over the last 5 years while SPY has earned 58% over that period. You are going to end up hurting people with your theories and you need to stop. Had I taken your advice 5 years ago I’d likely never be able to regain the opportunity cost. In 2010, you'd be looking at back testing showing the US with **NEGATIVE** returns over 3 and 10 years (with 5 year as less than 1% positive for total market and less than 0.5% positive for S&P 500). That's even worse than the +9% you mention for EAFE over the last 5. So by telling someone to invest in the US in 2010 (having no knowledge of what was to come), using your exact same logic, you'd be hurting people even worse than telling them to be globally diversified now. Sorry but back testing is not a good predictor of future returns like you think it is. It doesn't tell us about the future.
I feel you. Balancing funds is tough. My instinct is to consolidate into FFNOX since it's diversified, but maybe keep a bit in FXAIX in case the market shifts. Either way, we're in this together!
>There are lots of active managers who beat the S&P 500 over specific windows of time. VLCAX is an index fund. It can actually be said that S&P 500 is actually more actively managed than VLCAX is, due to S&P having a human element (this actually caused an issue with Tesla a few years back, which may actually explain at least part of the difference: VLCAX was able to hold Tesla longer due to not having that S&P human element, by the time Tesla did enter the S&P 500 it was big enough to be a top 20 stock). >I really don’t understand your spiel here other than, “everyone should invest in Vanguard based international funds” Doesn't need to be Vanguard (I don't use Vanguard funds myself). Just that it seems the best research we have available does seem to support an ex-US position and that revenue source isn't what matters. >and go see pwlcapital.com and bogleheads Those are used to try and counter certain arguments against having ex-US holdings. >Sure enough it is even possible to avoid over diversification with a 3 fund portfolio. Did I claim it wasn’t? I’m pretty sure the point I WAS making is that over diversification leads to watered down returns. You brought up over diversification in the first place in a thread talking about FFNOX, which is essentially just the 3 fund portfolio. A fully diversified portfolio will always have under performing parts, but which posts those are will change from time to time. Even bonds have had 20 year runs where they beat stocks. >I see, so if Germany has a recession and people stop drinking as much Coke then KO won’t have a decline in revenue as a result. Gotcha. >You have some really bizarre and broken ideas about how things work. But I am going to do myself a favor here and ignore the rest of your crazy theories and bring us back to what matters. It seems you either didn't go over what those links said about the topic or failed to understand it. >I cannot slide my timeline or the OP’s timeline I don’t time travel just yet. All you have to do is imagine the table in that link has a cutoff date a few years earlier. You look at annual returns for 2018 through the end of April 2019 for example, remove them, and you get a 60+ year timeline where 70% S&P 500 + 30% MSCI ACWI would have beat a 100% S&P 500 portfolio. >We both have timelines from today until 10-30 years from now I am guessing and so does everyone else with the exception of you maybe. So you are just spamming meaningless links based on theory which does nothing more than waste everyone’s time. My kinks should help show that you can't product the future using past returns and that it can easily be better to hold a mix of US and ex-US than only US. That the US isn't always best. >The only thing which might matter is how frequently your real world index fund or funds outperform the S&P 500 over windows from 10 to 30 years. * Of rolling 10 year periods since 1970, EAFE (developed ex-US) has beat the S&P 500 over 45% of the time: https://www.tweedy.com/resources/library_docs/papers/Dichotomy%20Btwn%20US%20and%20Non-US%20Mar2022.pdf (PDF) or for the archived version: https://web.archive.org/web/20220501183228/https://www.tweedy.com/resources/library_docs/papers/Dichotomy%20Btwn%20US%20and%20Non-US%20Mar2022.pdf That's basically a coin flip. >The BRICS are in trouble due to Russia’s belligerence and China’s epic authoritarian stupidity. Heck of a thing to tell someone to invest their money in Russia or China now. Emerging markets (which at least most of those are) combined are only 10% of a global market cap weighted portfolio. Russia hasn't been tradable for over a year now I believe, even with that, 2022 (the year it happened) favored ex-US over the US. If that S is for South Africa, interestingly they've had some of the best 100+ year returns. If someone wanted to avoid emerging markets, they could go developed markets only easily enough. Or there's a few ex-US ex-China emerging funds like EMXC. >you can give me a 60%+ chance of beating the S&P 500 then I’d be interested. But it has to be significantly better because of the current state of the world and that’s the reason it needs to beat the S&P 500 60% of the time. Where is this 60% coming from? We've got developed ex-US having a history of being pretty close to a coin flip. Factor investing favors smaller caps and value. The "timeline shifting" mention was to try and help show that yes, adding ex-US could increase overall returns (not just risk adjusted) over a 60+ year timeline when compared to 100% US.
No, I'm saying if FFNOX is a better fit for you, do sell the FXAIX.
I disagree. US large caps are international now so there is little reason to seek specific exposure to the international markets. FFNOX is a fund of funds and is OVER diversified, in fact you don’t even need 500 stocks for adequate diversification. Bonds are a reasonable bet now but we do not know where the OP is in his life, if he is very young bonds will only serve to slow his growth. If the OP is old he should have more money in bonds.
but leave FXAIX where it is (i.e; don't exchange / sell to buy FFNOX?
>I realize about 60% of FXAIX I think is already in FFNOX. So should I leave things as they are and keep contributing to FFNOX separately, should I roll FXAIX into FFNOX instead? FFNOX should fully include FXAIX as over 40% of its holdings. Since there's no taxes involved in an IRA and you've recognized FFNOX is the better portfolio for you, there's not really any reason not to switch.
FFNOX is more porperly diversified across market cap weights and countries. FXAIX is US large caps only, FFNOX is large, mid, and small caps from around the world, US included. The Us isn't always the best performer, there have been and will be times where the foreign holdings of FFNOX help push it above FXAIX.
Bro, you're doing good 👍 that you care to learn by asking questions is proof of that. My post history mentions my history, but I got an extremely lucky break to put me at my spot. I'm not the average and most of the thinly veiled [brag] threads on this and other finance subs aren't the normal either. Keep after your course, you're doing good. IMHO, you still have a good decade before you need to consider going bond heavy. Your emergency fund and job are your primary cash equivalents at the moment and so tilting in equities is a smart move. FFNOX, based on your other reply, sounds like it attempts to replicate a 3-4 fund portfolio with a smattering more options. It's not bad. Though if you want to tilt away from bonds (which FFNOX holds), then do something like 40/60 FXAIX and FSKAX. If your emergency fund is in a normal savings account, move it to a high yield account paying 5% and stop leaving cash on the table. That is the single biggest improvement you could do right now ;)
> The Fidelity Multi-Asset Index Fund currently may invest in four Fidelity stock index funds (U.S. and international) and three Fidelity bond index funds (U.S. investment grade, U.S. long-term treasury, and international)) to achieve the fund's desired asset allocation. FFNOX is supposed to be a bit of a 4 fund blend or something a long those lines..so kind of a 'cover your bases' approach, at least that is my interpretation..which is why I did it because I felt like SP500 only still carried particular risk.
I've had FFNOX in my Rollover IRA for several years. I believe it used to be called a 4 fund mutual fund or something and they renamed it to the multi asset but it was supposed to cover the 4 main basis. But I began because I just felt like allocating a bit different in that Roth. > The Fidelity Multi-Asset Index Fund currently may invest in four Fidelity stock index funds (U.S. and international) and three Fidelity bond index funds (U.S. investment grade, U.S. long-term treasury, and international)) to achieve the fund's desired asset allocation. So it felt like a balance rather than me separating different fund investments. I'm investment ignorant so it was an easier path for me.
I use a 3 fund portfolio as a base for my Roth (schwab), 401k (Fidelity through TRowe Price), and HSA (also Fidelity) It's SP500, Total Market, and Bonds. I'm 28, mine tilts 50/45/5 and I only added bonds when fixed income started looking good. You can tilt it by going Total Market, Ex-US, and Bonds, which I believe is the Bogle 3 fund portfolio and is a solid choice. You also won't go wrong with just going Total Market and Bonds. For all of these, increase your bond allocation as you age to protect your assets from depreciation. When you decide to do that is based on your own risk tolerance and retirement plans. I can’t offer more than that. Anything more than this is just because you want to tilt a different way for personal reasons. All that to say, you're also likely fine with your current path. A brief search didn't return the make up of FFNOX and I'm not invested enough to go further, but it looks like it tracks similar to FXAIX, which as I said above is a good hold. Your current course is sound 👍
Why did you begin investing in FFNOX? What was your goal? FFAIX has far outperformed FFNOX.
I'm 42...for new Roth positions...any recommendations (I'm in Fidelity) if I don't go with FFNOX
No need for FXAIX as it is already fully included within FFNOX as over 40% of the weighted holdings.
One of the following * Target date INDEX funds * FFNOX * Or https://www.bogleheads.org/wiki/Three-fund\_portfolio
You’re welcome. I use Fidelity. Their target date retirement funds (make sure you choose the ones that have index in the name) are relatively cheap, I think .11% is the expense ratio (FDEWX is the ticker). AOA is an ishares all in one etf. It’s basically a balanced portfolio in one etf. It will have domestic and international equities at roughly market weight and then bonds at 20%. They have less aggressive versions of that but at your age I wouldn’t recommend them. Also if you go with fidelity I think their version of the same thing (FFNOX) is a little better. There’s honestly not much difference tho so either would be great. And if you don’t open the account at fidelity you probably can’t (or shouldn’t) use fidelity mutual funds so AOA would be fine. Any of those will do exactly what a 3 fund portfolio would do but you pay a very little bit more for the convenience. At fidelity you can use the zero funds FZROX and FXILX for two of the three fund portfolio and pay no expense fees. Until you feel more comfortable designing your own portfolio I’d probably stick with the options above or at least copy their allocations. So for example if you wanted to copy FFNOX you could have 55% FZROX, 35% FZILX, and 10 % FXNAX which is Fidelitys total bond fund. I’d also recommend checking out the bogleheads sub as it has some great info to get you started.
Does anyone make a 90/10 equities/bonds fund? Closest I can find are VASGX, AOA, and FFNOX which are 80/20 and 85/15
100% VT in taxable and 100% FFNOX in 401K (VT not an option)
Let's try this; * A single company stock - an apple * A fund - a basket of apples * A TDF or something like Vanguard's Life Strategy series or Fidelity's FFNOX - a cart with several baskets of apples
it should be .011% so yes something is amiss. If we are talking about same balanced fund thats 85/15 , [FFNOX](https://fundresearch.fidelity.com/mutual-funds/summary/31634R109#)
ROTH IRA background: been buying FFNOX as my primary index fund for my Roth IRA for a few years now. I originally chose this one as it was rated a 4/5 on the aggressive side for Roths. Question: 8.5% commission fee per buy seems high. Is it? Should I consider splitting up my annual contributions across another/more funds? Thanks if you take the time to read.
At Fidelity, you can just be lazy and buy FFNOX, it will hold both for you at your desired allocation(85/15). As for individual bonds, just know that no real bond trader (including Fidelity's bond desk) will work with you unless you are buying $1M USD or more worth of bonds. Bonds are not publicly traded, they are traded privately. Fidelity offers some bonds publicly(and many brokerages do) for off-size lots of bonds the big guys don't want to own themselves for whatever reason. Government bonds are usually publicly auctioned(US govt ones are), so those are usually a way better deal, you get the same price as the auction without all the hassle. Secondary markets(i.e. direct through Fidelity) for US govt bonds are fine, so you can avoid the hassle that is treasury direct. So if you want corporate bonds, a fund(ETF/MF) is almost certainly a better play. If you are buying US govt bonds, it doesn't really matter, you can buy them individually or let a bond manager do it for you(via a Fund). Personally I'm lazy and make the bond traders do that work.
> 1- How much should the yield be for you to start adding bonds to your portfolio? I've always had bonds in my portfolio. > What type of bonds? What about TIPS? What duration? Ideally you mix them(50/50) and duration is the duration of the liability the bonds are paying for, if you aren't sure, then intermediate term(5-10yr) is reasonable. > Do you buy bonds or bonds ETFs? Bond ETF's. Though I've gotten even lazier and just hold AOA/FFNOX/VASGX as appropriate for my 1 fund 80/20 AA whenever possible. Make other people do the hard work of managing my money for super cheap.
Proabably not a popular opinion but if you are going to be buying/building a new house some what soon I would probably use something safer like HYSA, IBONDS or Tbills for something somewhat safe. Issue with IBONDS is that you only have 10k limit per year. None of those options should have negative yields. On to topic of robo advisors and fidelity go in particular its not a horrible option, but are you adverse to using TDF index fund because I think it would be similar, and its much cheaper I think the normal fidelity index tdf fund is .12%. Index tdf fund would be equally diverse I think , fidelity also has FFNOX which is similar to aggressive growth tax deferred in fidelity go basially a 85/15 stock to bond fund , but they have more international allocation at 35% where fidelity go I think has 25%
I am also 30. I have a financial advisor with my current company. I consolidated previous 401k accounts into two Fidelity IRA’s (traditional and Roth). The company funded simple IRA is separate. He suggested FFNOX only for the IRA’s I personally oversee. Does anyone agree disagree with this? He also told me if I am looking to build my ROTH that I could rollover the traditional into Roth in small chunks to avoid one large sum tax event. My naive self thought retirement was one big fund. Is it normal to have 3 IRA accounts? I understand the money I put into my Simple IRA can be deducted from taxable income. I’m making between 65-70k.
target date funds are \~ 54/36/10 so if thats ok with you then they are great choice for IRA. If I were you I would at min have 20-25 % international. I think only going 10% international is far too little. Both vanguard and fidelity for their 2065 TR funds have about 35% into international , and VT/VTWAX vanguards world etf/fund has 40% international. Also there are some less aggressive static multi asset options as well. If you are at vanguard you have VASGX , which is around 47/31/20/2 domestic/international/bonds/cash. If you are at fidelity they have FFNOX 51/34/15. There is also AOA which is an ishares etf which is about 47/33/18/2.
Are you wanting to learn this world? Are you wanting to better understand the funds and stock you're investing in? Or, do you want to just pick something and put money in over time? For purely passive investors the general advice is to use a broad vehicle, like FFNOX, or any number of funds out there tracking multiple companies and/or bonds. How risk adverse are you? Are you trying to remain purely passive? Are you interested in learning a little bit about this world? He gave you a single fund, but that fund is filled with multiple stocks and bonds. You can see what's in this fund [here](https://www.morningstar.com/funds/xnas/ffnox/portfolio) towards the bottom of the page, under **Holdings.** There are hundreds of stock in FFNOX.
FFNOX is a mutual fund so it isn’t a single stock it’s a mix of multiple stocks and bonds. I don’t think there’s anything wrong with that fund it looks pretty well allocated, maybe more long term treasury bonds than I would want in this market but you’ll be fine long term and it depends how actively you want to manage the funds. The main thing I would do is dollar cost average the 6k over the whole year. I wouldn’t just dump all 6k in the market at once especially with how volatile things have been.
While in the Fidelity page for FFFHX you can click on the "Composition" tab to see all the holdings. For a general fund like this the important part is: * US Equities : 50.43% * Non Us Equities : 42.94 % * Bonds : 7.03 % You want to match this numbers roughly. **Note that over time thess numbers will change in favor of bonds**. I think the best option is the following (ER == Expense Ratio): **Simple:** * FZROX : 50%, ER 0.0% * FTIHX : 43%, ER 0.0% * FXNAX: 7%, ER 0.025% This will give you a Large Cap allocation extremely similar to that of the their fund. That said you will have to rebalance it yourself. **Complicated** You could look at all the listings and look at them by name on fidelity to get their equivalent bond. **Too Simple** As someone else said, FFNOX is close to the target date fund with a 50/35/15 split of assets. However, keep in mind that the target date fund will keep changing and this wouldn't be viable long term. I think you sould go with the 3 fund option if you want something simple.
Just put it in FFNOX it's the equivalent to VT with a .15 expense.
> What's the best lower-risk vehicle for holding cash with reasonable liquidity? It's VERY important that you learn a lesson here: To earn more than cash you MUST take a risk. Serious actual lose it all risk. The more risk you are willing to take, the more likely you are to beat cash. If one took the risk of robbing Fort Knox, assuming you survived the experience and got away with all the gold there, you would instantly be worth roughly the same as the richest people on the planet. The risk(s) there are obvious. The risks in $STOCK or $BOND is much less obvious, but very much real. Thankfully the risk of $STOCK is you lose some money, not your life :) It depends a lot on your risk tolerance. Cash is almost certainly the right answer for you, but you seem to want an answer that isn't cash, so here is what I tell loved ones: * Short Term < 1 year: CASH and friends. * Medium Term (say up to 5-ish years): a fixed AA fund, like FIKFX or AOK (20-30% equities, 70-80% bonds). * Long Term: "aggressive" fixed AA(AOA, FFNOX), 100% VT or a Target Date Fund(TDF). The reasoning: Cash is non-volatile, so for short term you want no risk. For medium term things, you want some growth, but mainly you want the money to be there when you need to spend it. FIKFX/AOK will likely never have more than a 10% draw down. The worst recorded historical case for this is -15% and it didn't last long. So just over-fund by 10% and you will basically always be able to meet your needs. For long term, volatility shouldn't matter or affect you, so go out hard on equities.
there's more to consider than just yield on the bonds. but it's worth noting over the past 20 years, long-term bonds have actually performed better than the US stock market. https://www.nytimes.com/2020/05/01/business/bonds-beat-stocks-over-20-years.html bonds can also potentially cushion against major drops. over the past month VOO is down 6.28%. but FFNOX, which is semi-passive and has ~15% bonds is down 5.2%. DODBX, which is actively managed and ~25% bonds is up .75%. the actively managed Vanguard Wellsely fund is ~60% bonds and is down 1%. these are not direct apples to apples comparisons, because the portfolios are slightly different for each of those options. but it still illustrates the point that bonds can smooth out a bumpy ride.
Just put it in FFNOX and don't pay advisor fee. It's a good balance of stocks and bonds.
Just put it in FFNOX and don't pay the advisor fee.
I'm in Fidelity. Just moved $30k of a roth ira from an institution into my Roth IRA at Fidelity. My rollover IRA has a bulk of my funds in FFNOX (4 in 1) and I'm debating if I just dump all 30k in my Roth at FXAIX, or do I split it up maybe $15k in FXAIX and $15k in FZROX?
I'm in Fidelity. Just moved $30k of a roth ira from an institution into my Roth IRA at Fidelity. My rollover IRA has a bulk of my funds in FFNOX (4 in 1) and I'm debating if I just dump all 30k in my Roth at FXAIX, or do I split it up maybe $15k in FXAIX and $15k in FZROX?
* .04% cash * 19.96% Long term treasuries * 80% equities The .04% cash includes all cash, including cash flow management needs(to handle daily expenses), etc. Obviously I keep *just* enough cash to meet liquidity needs. My portfolio is: * 32.00% Vanguard Total Stock Market ETF (VTI) * 16.00% Vanguard S&P Small-Cap 600 Value ETF (VIOV) or AVUV * 16.00% Vanguard FTSE All-Wld ex-US SmCp ETF (VSS) * 16.00% Vanguard FTSE Emerging Markets ETF (VWO) And the remaining 20% is TLT and cash. I keep the LTT in case there is a rush to safety in the next crash. It's a gamble, but I'm comfortable even if it doesn't pan out. If/when the market crashes big and LTT goes up, I plan on converting 100% equities again until the next market high and then I'll re-balance to 20% LTT again. Yes it's market timing, but I'm OK with that. Upon my death I've asked my heir(s) to invest in a single 80/20 fund (Examples: AOA/FFNOX) and ignore all of the above.
So as an avg investor....how exactly do I measure this? I use Fidelity.... If I go to the performance tab and open my rollover IRA, I see my RoR for 1 year as 26.88%. Though I had removed some profits previously and re-invested them in a couple things so that 26.88% is lower than what it likely would have been. My Rollover IRA is in the following * 78% of account - FFNOX (%total gain 48.76%) * 7.5% of account - FBSOX (%total gain 61.90%) * 1.62% - FCOM (%total gain 35.82%) * 1.57% - FHLC (%total gain 23.39%) * 1.08% - FNBGX (%total loss 9.24%, this is a treasury bond index though) * 8.75% - FSELX (%total gain 83.63%) * 1.49% - TSLA (%total gain 78.67%) My indexes though say S&P: 30%, DJIA - 32.13%.