FSPSX
FIDELITY INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS
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Portfolio Input! Let me know what you all think
33% SCHD, 33% FSKAX ( Fidelity US Market Index ) 33% FSPSX ( Fidelity International Market Index ) at 21 years old for standard brokerage account?
Lets end the debate: FXAIX & FSPSX or FSKAX & FTIHX?
Here are my options for Fidelity 401K. I currently have 70% FSKAX, 30% FSPSX. I should have just chosen a target date fund. Thoughts?
Started investing somewhat late, and looking for some feedback on what I've done so far.
What percentage should these be if this is my portfolio.
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I'm 25 with about 20k in hysa for emergency fund and \~100k that i'm thinking of finally putting into an individual brokerage specifically in Fidelity for long term growth. For my Roth/401k/HSA , I am doing a very basic approach of 50% into FXAIX , 35% into international stocks (FSPSX) and 15% into US Bonds. I want this individual brokerage to be more intentional and possibly more aggressive. Would appreciate any advice including how to truly diversify my portfolio and not have too much stocks in the same companies/sectors. Thanks!
I ended up buying FSPSX not VXUS
You can add some international exposure if you want but VOO and chill is good enough. I like FSPSX for international but VXUS is a popular one
65% FSKAX 5% FDGRX 24% FSPSX 6% FKEKX Rebalance each monthly and let it ride.
Yes, FPADX is emerging markets (heavy China tilt), DFEMX is also, Asia (China, Taiwan, India and Korea tilted) and some Brazil. FSPSX is an International Index and FIEUX is Europe.
VOO, GDX, FSPSX, FOCKX, DSFTX, VQNPX, some vanguard midcap as well first 3 are ira next few are 401k. I try to split based on market cap having a mix of small, mid blend funds and a large growth and large value fund. I should perhaps add more international exposure as well. Just some funds I been in for a while.
There are two issues with those fund: - first as the other person mentioned, those mutual funds have much higher fees than alternatives. Fees will eat into your returns over time. There are better options with lower fees. - second, those two fund are very similar, both focused on larger American companies. links below. The top 10 stocks in both funds are very similar: Microsoft, Amazon, Nvidia, Broadcom, Apple ... so whoever sold you these funds didn't put much thought into the process. a better portfolio would be, maybe, (1) Larger US company fund; (2) smaller US company fund; (3) international company fund. these 3 would zig and zag differently, and would compliment each other better than two that are nearly identical. so my advice is similar to the other reply: fold both of those funds into FZROX or FXAIX or FSKAX (to use Fidelity examples), and add an international fund (FZILX, FSPSX) and possibly a fund focused on smaller US companies (FSSNX) ACAAX portfolio: https://www.morningstar.com/funds/xnas/acaax/portfolio FAGAX portfolio: https://www.morningstar.com/funds/xnas/fagax/portfolio
I'm going to propose a different kind of diversification, but hopefully one that will appeal to you. You have two very high expense, high turnover, actively managed funds. I would look for options that are low expense, low turnover, passively managed funds -- the kind that you can throw money at for the long term without stressing about whether one sector is doing better than another, the brilliant manager in charge of your fund has gone to a different company, etc. This is your buy and forget about it portion of your Roth. I am assuming you are a Fidelity customer or at least somewhere that you can buy Fidelity mutual funds without a fee. So, my proposals would be FNILX or FZROX -- depending on whether you want whole US market coverage or just large caps + either FSPSX or FZILX -- depending on whether you want your international holdings to be developed markets only or to include emerging markets.
1. FNILX 65% 2. FZILX 25% (or substitute FSPSX if you aren't interested in emerging markets) 3. FZIPX 10%
A Roth IRA is a great (probably the greatest) investment vehicle for retirement. It comes with many benefits. I think the funs you listed are fine. Personally, I'd pick VTI over VOO for additional diversification. I'd do something like 70/20/10 VOO/FSPSX/VWO. In 40 years every $1,000 you invest today should grow to something like \~$30k. And since it is in a Roth IRA it will be completely tax free. Not bad. [https://www.fidelity.com/learning-center/personal-finance/retirement/nine-reasons-roth](https://www.fidelity.com/learning-center/personal-finance/retirement/nine-reasons-roth)
Just VOO alone? No FSPSX or VWO?
My first piece of advice would be to sell all of the individual stocks and sector/industry ETFs. Like others on this thread, I have learned from experience that it's a recipe for underperformance. Once you do the above, then I think the next step is to diversify. The Roth IRA is relatively easy, since you already have a couple of funds that could serve as a starting point. One potential strategy would be: \- FXAIX = 56% \- FSMDX = 14% \- FSSNX =10% \- FSPSX = 20% The taxable account is more challenging. The equity portion could follow a similar strategy to what's above, but you also say that you are looking to generate income. How much income are you looking to generate? Is what you have in SGOV providing enough income or do you need more? If you need more, then you may need to change things up. \-
Starting out, mine set me up with a 60% FXAIX, 30% FSPSX, 10% SGOV allocation. He only cost a couple hundred of dollars a year, but when I learned how to setup my own self directed account I left chase. Leaving was hard....it took a month and lots of forms to get my money back into my possession. The experience of leaving made me never want to put my money under their management again!
>100@ FXAIX 15 @ FSSNX 10 @ FSPSX Its fine. Also holding overlapping funds is not bad , as long as you realize they are overlapping. Some people think diversifying is just holding lots of funds so they sort of just start buying random tickers thinking they are diversifying But buying IVV, SPY, SPLG, VOO does not diversify you as they all hold the same underlying basket , its not going to really hurt you in any way though
Get out of debt! Why are you paying $726 a month for cars? The interest you're paying to get a bank or leasing company to finance your cars is much more than most investments will ever return. You should also develop a strategy for paying down your mortgage. This is a little trickier for two reasons: 1) mortgage interest rates aren't usually as high as car loans or leases, and 2) interest can be tax deductible. However, you want to reach retirement without having to continue making mortgage payments, so pay some extra each month on your mortgage to reduce your principal. It's a good move maxing out your Roth IRA. FXAIX is a good choice, but it is heavily weighted towards U.S. stocks. Historically, that's been good but you don't drive by looking in the rearview mirror. You might consider an index fund that tracks stocks outside of the US and Canada like FSPSX. Good that you're thinking about this. Age 44 is just in time to save enough for a comfortable retirement.
Lol, I used 50% FXAIX, 30% FSPSX, and 20% SGOV for the last 10 years. Recently got more into stocks for fun. Back when I had a financial advisor these were the ones he set me up with.
Do you think going 100% FXAIX is better than 70% FXAIX 30% FSPSX?
FSKAX and FSPSX are pretty solid choices for a Roth. No, I don’t recommend FXAIX in a brokerage, but only because it’s a mutual fund which pays capital gains, and therefore impacts taxes. Besides that it’s just an S&P500 index which is fine. I’m 47 and hold an FBTC position in a Roth that I contribute to every week. It might be one of the riskiest things I invest in but the gains have been great. I don’t know anything about the stocks you mention, generally I try to avoid individual stocks and opt for professionally managed ETFs to mitigate risk.
I like how he has FSPSX, a fidelity international fund mixed in there
I guess I will try to clarify what you are asking. What you have basically done is changing the allocation of your portfolio. Previously, I assume you were 100% o FXAIX. Now you are 96% on FXAIX and 4% on NVDIA. Given that you did not add funds to your account, in order to achieve the desired allocation you sold some of FXAIX. In principle, there is nothing wrong with selling one fund to buy something else (within an IRA account that has no tax implications). That's just the nature of re-balancing. If someone has a 70% FXAIX and 30% on FSPSX (US/Intl) due to market swings you may end up with 75% FXAIX and 25% FSPSX. This will require selling one to buy the other to achieve the desired 70%/30% allocation. So, let's say that someone you contributed $20,000 to your IRA. If at this point you decide to invest the $20,000 all into NVDIA instead of your existing funds, you will also be automatically changing the allocation of your portfolio. The more important question is what your allocation strategy is. Is it going to be 96% index funds and 4% stock pics? Then be it. Stick to it. You need to have clear what the allocation of your portfolio looks like and not change it based on market conditions or recent performance.
I personally do $300 in VOO. $250 in SCHD, and $50 in FSPSX (international mutual fund). I sold around 15000 VOO before the election so have been averaging back in slowly and just going to wait. This is for my Roth Ira. (I am not a financial advisor, all investments are subject to market loss).
FSPSX is where a large chunk of my S&P investment went (I still have a decent amount in the S&P). I moved more into bonds than I have been when I rebalanced and picked up IGOV and ISHG. I have some exposure to emerging markets in IEMG. That’s about 3/5 and the rest is in S&P or GUNR and some longer shot stocks I’ve picked up with some of my dry powder cash.
In May, I saved 82% of my income. I'm a 23-year-old guy living at home. I typically save/invest around 75% of my income each month. I contribute 10% to my 401(k), with a 3% employer match. My Roth IRA will be maxed out in September since I put $800 a month into it. I also put $500 into a brokerage account and another $600 into a savings account for a down payment fund. Starting in September, I plan to increase my 401(k) contribution to 15%. I’m fortunate to live with my aunt. My only necessary expenses are insurance (auto and medical), phone bill, gas, groceries, toiletries, and other essentials. I own a Mustang that I paid for in cash. Also, I have no student loans or any other debt. My retirement accounts I automatically invest into every paycheck. My 401(k) is 60% Fidelity 500 Index (FXAIX) and 40% Fidelity International Index (FSPSX). My Roth IRA is 60% Vanguard Total Stock Market (VTI), 30% Schwab U.S. Large-Cap Growth ETF (SCHG), and 10% Vanguard Total International Stock Index. I am still working on getting to my target percentages for my brokerage. However, my targets for my brokerage are 50% Schwab U.S. Dividend Equity ETF (SCHD), 25% Vanguard International Dividend Appreciation Index (VIGI), 20–23% Alphabet Inc. (GOOG), and 2–5% Canadian National Railway Company (CNI).
1. I would recommend more international. 60/40, 70/30, 80/20, whatever allocation you want. 2. I wouldn't hold bonds in a taxable brokerage account. It's a bit tax inefficient. 3. Yes, more international. 4. Keep the TDFs in your 401k. Just use the Fidelity Total US market, Total international, and bond market funds. FSKAX, FSPSX, and FTBFX. Consider the the ZERO fund equivalents in your tax advantaged accounts.
>I know most would opt out from investing into a TDF, but if I were to get out, only best investment is Fidelity S&P 500 (FXAIX) with expense ratio of 0.015%. Maybe add FSMDX (mid-cap; 0.025%) and TSCSX (small-cap; 0.78%)? FSPSX (International; 0.035%)? why would you get out of the TDF and then re-assemble a TDF?
You're right, I wouldn't buy RNMBY right now either, but some of the other are still well-priced, such as the others I mentioned. I bought some SAABY well after and I'm reaping benefits from them. And these companies keep signing more and more contracts... I'm attracted to the fundamentals they provide. Your suggestions are good as well, tho I wouldn't feel great about NVO. Even though I use Fidelity, I actually haven't messed with FSPSX and just have some shares of VXUS in the pocket. To be perfectly honest, until I can be convinced that US equities aren't just a meme market, I'm keeping some powder dry (4% money markets ain't bad) and the rest of my money in the inevitability war (the latter being the point in OP's context).
I get what you’re saying as far as international stocks goes, but RNMBY has 3x in the last 3 months so I don’t think it’s a good buy rn. I’m currently more bullish on NVO and LVMUY as their share prices are still depressed imo. I also like FSPSX.
If you’re starting at 18 any amount is helpful. If I were in your position I would put it in a broad index fund or ETF like VT or FSKAX/FSPSX and just chill. Getting rich quick requires luck. Getting rich slowly only requires patience. Don’t worry about picking winners, just get your fair share of market returns (which will do better than most people) and use your best advantage, which is time.
Open a Fidelity account and invest $100k between FSKAX and FSPSX. After you have $100k in the market you can begin buying and selling individual stocks. Until then you have no business trying to trade. Seriously.
I bought some recently, as well as FSPSX, to balance FXAIX somewhat during these uncertain times
Real talk - I'm a patient investor and only invest in Mutual Funds primarily maxing out my 401k & IRA. I obviously have no power over my 401k, but should I be selling my IRA or transferring funds into something specific? Right now I'm in Fidelity's 60% FXAIX, 20% FSMAX, and 20% FSPSX.
Damn, good work at 31 to be earning so much! Not sure what a 'US large cap index strategy' is, but if they put you into something like FXAIX, that's perfect. Personally, I like having at least 20% of my portfolio in non-US, so I'd add FTIHX or FSPSX (just pick one and go with it). Considering how simple your investing strategy is, you probably don't even need an advisor (and especially if they are scrapping off a 1% fee). You're gonna keep hitting standard deduction (prob for a while) so you can tax loss harvest. I personally don't bother and just DCA every week into my portfolio and call it a day. Make sure you open a Roth IRA if you don't have one already and do 'back door' conversions. That's 7K a year you can put into tax-free growth!
I jumped ship in December. Moved to REIT / Bonds / International. I did leave 5% in Total Value US but I just didn't have much confidence in the start of this administration. Now I'm gonna re-balance back in more to international less bonds but I'll wait on the US for a hot minute. Glad i did as of 3/7 YTD at least.. FSPSX +11.72% FSKAX -2.20% Just because you are pulling money out or moving it to safety for a quarter or two doesn't mean you're doing it wrong. You can get it wrong but you do you.
I was mostly in S&P index and large cap growth mutual funds (about 50/50). Recently I've moved significantly into FSPSX (best international option in my 401k), a tiny bit in bonds and GLDM. Might consider holding a tiny bit of cash and/or more bonds. But also trying to time things and get cute in recessions usually ends up with missing the bounceback and coming out worse than you would have if you just held, so I don't want to get too crazy.
Check out FSPSX year to date. I bought it a couple years ago and it’s really holding up during US draw downs.
Fidelity International Equity Index Fund and FSPSX
Aside from the overlap between VOO and VTI, as well as between FZILX and FSPSX, it looks surprisingly similar to some of the portfolios I see here on Reddit. The 20% allocation to international makes sense. The inclusion of SCHD makes it less tax efficient, but gives it a value tilt. The fixed income allocation could probably be tweaked based upon your age and investment goals.
Target fund is fine if you want bonds. If you don't want bonds then FXAIX and FSPSX.
I have my international all in FSPSX (developed countries only). I don't trust emerging markets. That's just based on gut and I could be completely wrong. But either way I don't think it will matter too much if I had put it my international allocation in FTIHX/VXUS vs. FSPSX.
Option 1 FTIHX Total International (5,089 Companies) 20% FSKAX Total US Market (3,944 Companies) 80% Option 2 FSMDX Mid Cap (812 Companies) 10% FSPSX International (744 Companies) 10% FSSNX Small Cap (1,988 Companies) 10% FXAIX S&P 500 (506 Companies) 70% Just started my 401k and Roth IRA not too long ago and chose option 2 for my 401k plan. I need help deciding whether to pick option 1 or 2 for my Roth IRA. Option 1 looks more diversified compared to option 2, but let me know what you guys think.
Roth IRA Allocations for a 22 Year Old Hi, I’m a 22 year old who is opening a Roth IRA, and plans to invest 300-400 a month until I get a higher paying job. I am doing an initial investment of $1,000 . I thought about trying the three fund method, but I am not looking to invest in bonds at this age. The current allocation % that I have came to is 75% Domestic, specifically FXAIX over a total market fund, and 20% international FSPSX. What would you all recommend doing with the last 5%, and also would you recommend different funds for the international and domestic. I am definitely okay with risk because I understand the stock market historically returns in the long run or fixes itself eventually. Would love some advice because mine is intermediary at the moment! Don’t have enough Karma to make this a post :(
This is a great allocation percentage. I have FSPSX.
That looks really good as well. Without intruding, may I ask how many years away your target for retirement is? The only reason I ask is to get an idea of your bond percentage compared to mine. I actually dropped my % down. I'm about 10-15 years out, myself. SCHD: 30% DGRO: 20% JEPI: 15% JEPQ: 10% DIVO: 10% VNQ: 10% SCHY: 5% Roth IRA: FSKAX: 70% FSPSX: 25% FXNAX: 5%
They're equally as tax efficient these days. You can pull up the distribution history of any fund or ETF on their respective sites. (Note: All of these pay dividends, which of course you pay taxes on, but capital gains are extremely rare) For example looking here: https://institutional.fidelity.com/app/tabbed/products/FIIS_SP52_DPL6.html?navId=324 FXAIX - 0% FSPSX - 0% FXNAX - 0%
Late 30s. This is the core of my portfolio, I also trade options (70% of those gains goes into my Dividend Portfolio and 30% back into plays. Aiming for "I have the finances to retire when I want" in 10 years. | **Portfolio** | **ETF/Fund** | **Percentage** | |---------------------|---------------|----------------| | **Dividend Portfolio** | SCHD | 30% | | | DGRO | 25% | | | JEPI | 15% | | | JEPQ | 10% | | | DIVO | 10% | | | SCHY | 10% | | | VNQ | 10% | | **Roth IRA** | FSKAX | 60% | | | FSPSX | 25% | | | FXNAX | 15% |
>I'm honestly not sure how to decide what to invest in between the Roth IRA and brokerage. Both are intended for retirement See the /r/personalfinance Prime Directive: https://reddit.com/r/personalfinance/w/commontopics >I've been looking into some Fidelity funds (FSPSX, FDIVX, FMCSX, FSSNX, FXAIX, FTIHX, FSKAX) but when it comes to making a decision, I'm a bit lost. Many of these have overlap, both with each other and the SWPPX you hold. Are you aware of that and is it intentional? Here's one example of a simple but very diversified portfolio: https://www.bogleheads.org/wiki/Three-fund_portfolio The bonds are the part that adjust risk level. More bonds equals less risk. In trading that, you should find that the 3 fund is more of a concept that you should cover 3 main categories: US stocks, ex-US stocks, and bonds. I can design a portfolio with anywhere from 1 to 7 funds and stay true to the 3 fund concept. >I read something about avoiding fee free funds The Fidelity Zero funds? They're perfectly fine inside an IRA, it is taxable accounts where you wouldn't want to hold them. >Fidelity funds all have a minimum 1k purchase They shouldn't have a minimum, or something insanely low like $1. Are you considering buying Fidelity funds in a non-Fidelity account? Don't do that. With mutual funds, you'll typically want to use the funds with the same "brand" as your brokerage. This doesn't matter for ETFs, just mutual funds.
My rollover from my previous employer is mostly in FZROX with some FSPSX and FNILX mixed in. Just gonna let it sit there and grow as I also contribute to a separate Roth
If it's not in a Roth don't use the zero fee accounts. They're actually not really 0 and they can't be moved out of Fidelity. Just do FXAIX and FSPSX. Sane stuff and still rock bottom fees. And yes 0.79% is a rip off. You'll be doing it for like 0.03% soon!
I use FSPSX, but the returns seem almost identical. FFALX has an insane fee though, so I would look at cheaper options (like FSPSX). Remember you can't control returns, but you can control fees.
There are a lot of funds and such you can choose. I personally follow a boggle head method and split it between 3 funds, us stock, international stock, and bonds. The 3 I picked are VOO, FSPSX, GOVT. It's not the best blend and I plan on splitting it more next year but that's where I have it now.
I'd just mimic the 2060 target date fund with your own mix of index funds and rebalance once a year to take advance of the lower fees. Your plan probably offers a bond fund with a lower expense ratio as well. So something like 77% FXAIX SPY index fund, 20% FSPSX for international exposure, and 3% FXNAX Bond fund... If your plan is administered by TRowe price they might have their own version of those funds with lower expenses. That Fidelity 500 Index Fund has a pretty high expense ratio too. It's only .015% through my 401k. It may be worth doing a bit of research and reaching out to whoever selects your 401k's investments to see if you can get it changed. I think y'all are getting hosed.
If I was you, I'd go with a simple 3-fund portfolio for now. Of those funds, I'd hold FSKAX, FSPSX, and FIPDX at something like a 80%/15%/5% to match the allocation it looks like you're going for, but the allocation is really up to you. That would be a really good starter portfolio until (if ever) you decide you want to actively invest in particular stocks or sectors of the economy--which, to be clear, you don't ever have to do. For most investors, a simple, passive portfolio is the best choice. That said, IMO, you can do a little bit better. The one thing in your control is fees, so best to minimize them. So you could do a similar portfolio but swap out those funds for Fidelity's cheapest corresponding funds--FZROX (total domestic market), FZILX (international), and FXNAX (domestic bonds). The first two are 0% expense ratios compared to the 0.015% and 0.035% options you have, and the bond fund is 0.025% instead of the 0.05% expense ratio your bond fund charges. And, again, I'd hold FZROX/FZILX/FXNAX in an 80/15/5 ratio if you like that allocation you went with in your original post. But, to be clear, that's really nit-picky. The variance in the overall performance of the funds is going to swamp the expense ratio differences such that there's no real way to tell what the "better" picks would be in the long run. But, since the expense ratios you pay is something in your control, picking similar funds with lower ERs is generally going to work in your favor.
FXIAX is a S&P 500 fund and FSKAX is total domestic market fund. There's a huge overlap between the two funds--holding them both is largely redundant unless you have some compelling reason to want to weigh larger-cap stocks (the S&P) more heavily than the broad market. Personally, I'd just pick one of the two (FSKAX would be my pick, but both are going to be largely the same). FSPSX at 20% is fine. Some people think it's worthwhile to hold an international index, some don't, but there's nothing wrong with it one-way or the other. Same deal with FIPDX--I'd personally hold a regular bond fund instead of the inflation-protected variety, but there's no real big con to having 5% in a bond fund overall. FSRNX is a head scratcher for a basic investor. Unless you have some reason to really like real estate, there's no real reason to hold it. Again, it's pretty redundant to your total domestic market fund (Real estate is part of the total market--almost 3% of your FSKAX holdings are real estate already) unless you have some reason to want to weigh real estate more heavily than the broader market.
>I know there’s some overlap bc I essentially have VTI with two stocks but I invested in the S&p500 first and later decided I wanted some more market exposure so I got FSMAX. If you want market cap weight, since this is an IRA, there's no issue moving FXAIX & FSMAX to just FSKAX or FZROX. >FSPSX Is there a reason you only want developed markets? FTIHX, FZILX, or even FSGGX would all include developed + emerging in one.
>FSPSX - international - 0.035% Be aware that this is basically developed market large (maybe mid as well) caps only. FTIHX, FSGGX, or FZILX are all developed + emerging and at 0.06% or less ER. Or there's FPADX if you want emerging but would rather add a fund to do so than change (such as if this is a taxable account).
Although the S&P 500 is pretty well diversified, a lot of the index funds out there for it, are pretty heavy in the top 10 holdings, sometimes upwards of 30-35%+. I'm in FXAIX, and their top 10 is 35.7%. (I'm not really complaining, because the fund is doing fantastically well, but still...) I have a multi-index fund strategy in place, where I have a large, mid and small cap low-cost index fund. S&P 500 is my large cap. I also have a low-cost International fund, because a lot of "Total Market" funds have very minimal International company exposure. Here's my 4 base tickers with expense ratios: FXAIX - large - 0.015% FSMDX - mid - 0.025% FSSNX - small - 0.025% FSPSX - international - 0.035% Small price to pay to have multiple dividends per year, but much more diversity.
yes great idea. i personally do 75% 25% FXAIX:FSPSX and have had great success over the last 10 years. You could do the same in the taxable account with 75%:25% VOO (or VTI):VXUS
Current auto-investment allocation is as follows. FXAIX S&P500 75% FSMDX mid-cap 8% FSSNX small cap 9% FSPSX international 8% Plan to rebalance yearly.
Current auto-investment allocation is as follows. FXAIX S&P500 75% FSMDX mid-cap 8% FSSNX small cap 9% FSPSX international 8% Plan to rebalance yearly.
For long-term investing with minimal effort, a low-cost index fund is an excellent choice. Investing in an S&P 500 index fund, like Vanguard S&P 500 ETF (VOO), Fidelity 500 Index Fund (FXAIX), or Schwab S&P 500 Index Fund (SWPPX), offers broad diversification and strong historical returns. If you want broader exposure, consider a total stock market index fund, such as Vanguard Total Stock Market ETF (VTI) or Fidelity Total Market Index Fund (FSKAX). These funds cover small, mid, and large-cap stocks across the U.S. market. For global diversification, an international index fund like Vanguard Total International Stock ETF (VXUS) or Fidelity International Index Fund (FSPSX) can be beneficial. These options provide solid growth potential over the long term with minimal maintenance.
If you want Fidelity, then I would recommend FSPSX or FTIHX. If you want Vanguard, then I would recommend VEU, VXUS, or VEA
I put mine in FSELX, FSPSX and FXAIX. FSELX has done very well.
Following the advice of many, I decided now is the time to start investing outside of retirement savings. I'm midway through my 30s, and was only able to establish a 401k through Fidelity two years ago. Currently around \~50k saved there. Employer match is discretionary, I contribute 13%. I make too much for a tax deduction on an IRA, so I decided I might as well open a Robinhood account, and plan on making small, but weekly recurring buys. I'm wondering what you all think of the following distributions across my 401k and taxable brokerage account, and overall investment strategy. I'm okay with only holding stock rather than bonds, and don't think I'll be investing in anything other than ETFs. Am I diversified enough? Too risk-averse? Brokerage: * 40% VTI * 40% SPY * 10% VGT * 10% SMH 401k: * 60% FSKAX * 30% FSPSX * 10% FSSNX Apologies if any terminology is off—obviously a relative newcomer to investing in general, and every decision I've made thus far has been largely due to r/Bogleheads and this subreddit. Appreciate any insight you may have!
I am in my mid-20s, and thanks to this community, I recently started getting more serious about managing my finances. A couple of weeks ago, all my cash was sitting in a 5% high-yield cash account. From my research in the communities, here is what I found I need to do: 1. Max out my 401k (contributing per paycheck and aim to max ASAP) 2. Max out my IRA (Done) 3. Max out my HSA (contributing per paycheck and aim to max ASAP) 4. Have 4 months of emergency fund in a cash account 5. Open a taxable brokerage account and invest the rest of my cash The distribution of my funds is as follows with mostly sitting in cash right now: * 26% in 401k (I am increasing my contribution to my 401k so I can max it out) * 5% in IRA (This is the first year I started to contribute to an IRA) * \~1% in HSA account (Just started contributing to this account; the amount is insignificant) * 11% in a taxable brokerage account (I am planning to move \~45% of my cash to this investment account) * 57% sitting in a 5% high-yield cash account. All my investment accounts are with Fidelity and here is how it is broken down: * 401K: 90% in FXAIX and 10% FSPSX * IRA: 90% FSKAX and 10% FTIHX * Taxable brokerage account: 100% VTI * Cash: Sitting in a 5% high-yield account (WealthFront) I calculated my emergency fund for 4 months, and with my current spending, I only need to keep \~10% of my cash. I have no debt. Some questions I have are: 1. How is my general portfolio looking? I want to be on the riskier side of investments for growth since I am currently in my mid-20s and have no plans or need to withdraw within the next 10+ years. 1. Are the funds I chose smart? What other funds should I look into (i.e. high dividend stock like SCHD)? 2. When I move \~45% of my cash into my taxable account, should I continue to buy 100% VTI 1. Should I also have some in VXUS (\~10%) and VOO? 3. I have only heard of terms like tax-loss harvesting/wash sale. I don't think this is something I need to worry about with my holdings in my taxable account right? I don't plan on selling these any time soon Thanks all!
>So you think that they're under valued or are you just saying that because of their return the past few years? >Does it make sense to you to discriminate between stocks for no other reason than what exchange they trade on? I've actually been buying the individual stocks I like in a brokerage account, mostly Apple and Microsoft. I took a look at QQQM again and it seems like the majority of their largest holdings are in stocks I would buy individually. So it got my thinking why not just buy QQQM vs individual stocks to lower the risks and diversify even with the overlap. The only thing I am a little hesitant on is the higher expense ratio. >Be aware that you have zero exposure to emerging markets (which may be a compensated risk you're missing out on) and are extremely tilted towards the US. Damn thanks for pointing this out... for some reason I thought it's included in FSPSX, I'll have to review my 401k options to re-balance. It's been years. Yeah I am aware that it's definitely US heavy but I also find that other markets react to US markets or at least trends similarly.
>but I feel like it's too conservative and I am missing out on some growth stocks. Long term tends to favor value, not growth. And small over large (QQQ being large). >and start buying QQQM instead? I really like the stocks that QQQM holds. So you think that they're under valued or are you just saying that because of their return the past few years? Does it make sense to you to discriminate between stocks for no other reason than what exchange they trade on? >FZROX and QQQM in Roth IRA, too much overlap? Very likely, yes. The vast majority of QQQ should be inside FZROX >For context my 401k is in 80% FXAIX, 20% FSPSX >Roth 100% FZROX Be aware that you have zero exposure to emerging markets (which may be a compensated risk you're missing out on) and are extremely tilted towards the US. You should look at all accounts intended for the same use as if they were one large one and apply your target ratios to that.
Since I can't decide, for different reasons I have FTIHX, FENI, FSPSX, FSGGX and FZILX in different accounts. I also rotate them out for tax loss harvesting reasons sometimes.
If you want to mix things up, adding some international stocks could be a good move. Funds like VXUS or FSPSX can give you exposure to companies outside the US and spread your risk around the globe. Another solid option is a bond fund. They’re not as exciting as stocks, but they provide some stability and regular income. Check out something like FXNAX to balance things out. REITs are also worth considering. VNQ or FRESX are decent picks.
I'm of the opinion that a Roth IRA can be slightly more aggressive. FZROX and FZILX is great, so is FSKAX and FTIHX as a base. As for the 401k, my complaint is that it goes way too conservative around retirement. That's a bit out for you, so either route would be fine for now. If you go FXAIX and FSPSX, you'll have to figure out your own glidepath into fixed income assets at some point.
100% FXAIX is fine for someone your age IMO. But if you wanted to throw in some International you can do 80% FXAIX and 20% FZILX or FSPSX. I wouldn't worry about bonds for 20 years or so. Just my opinion.
I think international exposure is important. Consider buying an international index fund. Fidelity has one called FSPSX and vanguard has one called VXUS
You dont really need bonds for maybe another 15yrs. Get rid of the bonds in your wife's account and make it 75/25 or 80/20 VTI and VXUS. With your 401k you can do the same using the 4 equity funds 50% FXAIX, 15% FSMDX, 10% FSSNX, 25% FSPSX. Alot of people that use the TDFs will select one that instead of 2045 be more aggressive and go with say 2055 or higher.
Why not swap FXAIX to FSKAX to cover S&P 500 + US extended in one and change FSPSX to FTIHX to cover both developed and Emerging?
Roth IRA Portfolio Start Up Hello, My husband and I just created our first retirement account in fidelity. A Roth IRA. We contributed the $6500 for 2023 and are doing the full for 2024 as well. I am 30 and my husband is 32. Is this an appropriate strategy for both of us for our portfolio. We figure to not get any bonds now as we are still fairly young. Me 80% FSKAX 20% FTIHX Him 70% FXAIX 20% FSPSX 10% FSSNX I know for him he could also swap it out with the zero fee ones but regardless it is not a huge difference there. Should we do anything drastically different or should we have the same exact portfolio. First time doing any sort of investment so we want to make sure we are on the right track with our initial $13,500 each and not doing anything stupid. Thank you so much
I inherited some money after my grandmother died which has been actively managed by an advisor in a brokerage that she set up. I'm about to fire him because I'm not impressed with him, nor his childish and defensive response when I raised concerns, but I'd love further input here on what might be guiding his choices. Will delete after I get some answers, since I don't like to broadcast my net worth online, but I would really appreciate if someone has time to read and weigh in. I'm 31 years old, recently married, with a pre-tax household income of $300k in 2023. My wife and I save as aggressively as possible in pursuit of FIRE. This is a rough breakdown of the assets I personally control with my wife: \- $55k in Fidelity split 80/20 between VOO and FSPSX \- $25k in SPAXXX (Fidelity cash position) \- $80k in a HYSA \- $20k in our 401ks (I know we currently underutilize retirement accounts - it's all a work in progress) In short, we're doing well but I also think our assets are very conservatively allocated right now. I expressed to my advisor in May 2023 that I felt comfortable assuming greater risk and wanted him to lead the way shifting to a more stock-heavy portfolio with the assets under his control. I only started earning a good living and learning about investing in mid 2022, so I was hopeful that my advisor could be a guide who I could watch and learn from as I continued my own steady DCA approach with weekly investments in VOO and FSPSX. Instead, he completely ignored my request, and I've been really disappointed at how the past several months have shaken out. From February 2023 to February 2024, the account he controls grew by only 6%, basically flatlining in late 2023/early 2024 when my own brokerage shot up along with the S&P 500. It is only now that I'm really crunching the numbers and feeling pretty angry about what has happened. Right now, the account with him is worth around $200k and the assets are split as follows: \- $30k in equities \- $45k in money market funds \- $125k in various "other assets" which I understand to be balanced funds. I didn't know what these were, but upon researching them, they seem to be bond-heavy and geared at retirees, not high earners in their early 30s who have years to ride out the ups and downs of the market. When I asked my advisor about why he'd done this and expressed my disappointment, he became very defensive and frankly rude, suggesting that I was simply arrogant and "reacting to the bull market." To the contrary, I've committed to a steady DCA strategy based on the "Boglehead" approach and the FIRE movement, and I think it's absurd that right now, I only have about 20% of my assets in stocks at age 31. It's not like I'm buying individual stocks or making crazy bets while day trading – I've never heard anyone say that VOO is a risky investment, even for someone with far less liquid cash than us, so I honestly couldn't believe that my advisor was lobbing such a criticism at me! My advisor expressed a desire to drop me as a client and I will be transferring my funds out asap, hopefully today. But I'm still just rattled and worried I'm missing something here as someone pretty new to investing. I have tried my best to learn everything I can, and to make conservative but savvy choices while understanding the potential risk and reward of each decision I make. Is there any good reason for what my advisor has done, or is he just a lazy asshole who never really respected me or cared about what I wanted? How do I rebalance my portfolio now while minimizing capital gains taxes?
I was in the same boat as you in the beginning of 2022, thought I should spread out my 401K more and revamp it. Turns out digging around the company 401k most of the options listed (20 to choose from) were all super high fee target date funds, bonds, and some "ARDXXXXXX funds, which most were still comprised of VFIAX, which is what I settled on, 80% that, 10% Midcap(FSMDX), and 10% international (FSPSX) has been working well so far!
Read an article on MorningStar that almost all target date funds have had lower returns due their allocation in international stocks. Here's 5yr growth of some of the funds in your list. VEIRX +6,431.03 |+64.31% ODIIX +7,812.81 |+78.13% FXAIX +10,100.97 |+101.01% - clear winner FSPSX +3,975.19 |+39.75%
Both are large blend international mutual funds from Fidelity which are managed by Geode Capital. FSPSX benchmarks against MSCI Europe, Australasia, and Far East Index. So that means that the fund composition is largely developed markets. FTIHX benchmarks against MSCI All Country World index (ex US). So that means that it has an allocation to emerging markets. FSPSX is mostly passive and I believe the turnover is lower so expense ratio is also lower than FTIHX. As far as which is better - it depends on whether you want exposure to emerging markets.
Currently I follow a three fund portfolio minus the bond fund, I will allocated to bonds when I am closer to retirement. [https://www.bogleheads.org/wiki/Three-fund\_portfolio](https://www.bogleheads.org/wiki/Three-fund_portfolio) Personally, I would take advantage of the Zero funds (0% expense ratios): [https://www.fidelity.com/mutual-funds/investing-ideas/index-funds](https://www.fidelity.com/mutual-funds/investing-ideas/index-funds) Fidelity ZERO Total Market Index Fund (FZROX) Like an S&P 500 index fund plus small and mid cap stocks. Fidelity ZERO International Index Fund (FZILX) This includes emerging markets and FSPSX doesn't. I also overweight the U.S. but not as much, I would do 70% FZROX and 30% FZILX Currently the market cap by weight is roughly 60% U.S. and 40% international.
Your approach to investing in a Roth IRA, alongside your employer's Thrift Savings Plan (TSP), is a solid strategy for building long-term wealth, especially considering your age and the benefits of starting early. Let's break down your investment choices and strategy: 1. **Roth IRA and TSP Combination**: Utilizing both a Roth IRA and a TSP is an excellent way to diversify your tax advantages. The Roth IRA contributions are made with after-tax dollars, meaning withdrawals in retirement are tax-free. On the other hand, contributions to the TSP (assuming it's the traditional version) are pre-tax and reduce your taxable income now, but withdrawals will be taxed in retirement. This combination allows you to hedge against future tax rate uncertainties. 2. **Contributing to Get Employer Match**: Adjusting your contributions to ensure you receive the full employer match in your TSP is a wise move. The employer match is essentially free money and an instant return on your investment. 3. **Investment Choices**: * **FXAIX (Fidelity 500 Index Fund)**: This fund invests in large-cap U.S. stocks, mirroring the S&P 500 index. It's a solid choice for core domestic equity exposure, offering diversification across the top U.S. companies. It's known for its low expense ratio, which is crucial for long-term growth, as lower costs mean more of your money stays invested. * **FSPSX (Fidelity International Index Fund)**: Adding international exposure to your portfolio is a good strategy for diversification. This fund provides access to large-cap stocks across developed and emerging markets outside of the U.S. International stocks can offer growth opportunities in different economic cycles and hedge against domestic market volatility. 4. **80/20 Allocation**: Your decision to allocate 80% to U.S. stocks and 20% to international stocks is a common and reasonable approach. It leans towards a growth-oriented portfolio, fitting for someone your age, given the long time horizon you have until retirement.
Assuming you are going all stock, this seems reasonable and keeps it simple: - 80% VFIAX - 20% FSPSX
If open a brokerage account at fidelity and invest 50/50 in FSKAX and FSPSX.
>Traditional 401K - 100% FXAIX The S&P 500 is large US companies, and in reality it's dominated by a handful of mega-large companies. It's extremely concentrated right now. So I'd add at least 2 additional funds: something with smaller US companies, and something with international companies. There are periods of time that smaller company stocks, and/or international stocks, will perform better than the S&P 500. FSSNX and FSPSX would be good compliments to FXAIX, maybe 10-20% each and the rest in the S&P 500.
Lose the bonds all together. You are way too young with far too many years of income to be invested in bonds right now. Simply 50/50 International and Domestic broad market index is the best bet. Don't take my word for it, listen to the last Rational Reminder podcast with Scott Cederburg and his incredible new paper on lifecycle asset allocation. Basically the status quo of 60/40 or target dates under perform 100% stock allocation even through retirement. tldr: 50% FSKAX and 50% FSPSX and that's it.
Currently I follow a three fund portfolio minus the bond fund, I will allocate to bonds when I am closer to retirement. https://www.bogleheads.org/wiki/Three-fund\_portfolio Topic of bonds: [https://www.bogleheads.org/forum/viewtopic.php?t=328019](https://www.bogleheads.org/forum/viewtopic.php?t=328019) Topic of international: [https://www.reddit.com/r/Bogleheads/comments/r3jdhi/as\_a\_us\_based\_investor\_what\_percentage\_of\_your/](https://www.reddit.com/r/Bogleheads/comments/r3jdhi/as_a_us_based_investor_what_percentage_of_your/) The important thing is to follow an asset allocation strategy and stick with it. I would also avoid performance chasing. When I was younger I wasted a lot of time picking investments thinking this would make me rich, instead I learned that I should have focused more on improving my income and increasing my contribution rate. Your greatest wealth building tool is your income. The more money you earn the more money you can invest and reach your goals even sooner, it's as simple as that. [https://www.getrichslowly.org/building-wealth/](https://www.getrichslowly.org/building-wealth/) You will always find "better" portfolios out there, the main thing is to pick one and stick with it: [https://www.whitecoatinvestor.com/150-portfolios-better-than-yours/](https://www.whitecoatinvestor.com/150-portfolios-better-than-yours/) > fidelity with 25% spilt between FSKAX, FSPSX, FSSNX, FXAIX What made you pick this allocation, is it the Dave Ramsey portfolio? ​ FSKAX is a total u.s. market index fund that included the S&P 500 stocks and small and mid cap stocks, I would drop FSSNX and FXAIX. Instead of FSPSX I would used a Total International Index Fund like FTIHX, FSPSX does not include emerging markets and FTIHX does include them. I would use caution with advice that tells you to drop your international allocation, this is an indication that the advice is coming from someone with recency bias. If this was my portfolio, it would look like this: 70% FSKAX 30% FTIHX
Yes, I would stop buying FSPSX. You can keep your position in FSPSX. Just don't continue adding to it. Let it stew around a year and see what happens. Their is no indication that international stocks will out perform US stocks anytime soon.
Should I do some more research and get more diversity in my portfolio and drop FSPSX?
I’m 21, I have $5500 invested in fidelity with 25% spilt between FSKAX, FSPSX, FSSNX, FXAIX. I contribute about 200-300 dollars a month. Just wondering on everyone’s opinions on my portfolio and what I can do to improve?
OP use FXAIX instead of VOO since you have fidelity. You don’t need VTI as performance between S&P and total market are similar. If you do, use FSKAX(vti equivalent) Schd is good and can be paired with DGRO for dividend synergy. Switch your international fund to FSPSX for large cap international exposure. Also, instead of QQQ go with QQQM since it has a lower expense ratio and has basically the same gains as the former.
27 y/o looking for 401k advice. For the past 3 years, I've been putting 100% of my 401k contributions into American Funds 2060 Target Date Retirement Fund (RDKTX). However, looking at the past few years of returns compared to Index Funds, I'm kind of disappointed. Below are the returns compared to FXAIX: RDKTX: +8.78% 1 yr, +4.61% 3 yr, +7.03% 5 yr FXAIX: +13.83% 1 yr, +9.74% 3 yr, +12.5% 5 yr FSPSX: +10.19% 1 yr, +4.04% 3 yr, +6.12% 5 yr I'm aware that Target Date Funds are meant to be safer overall, but I feel like I'm screwing myself over by not investing more aggressively early in my career. Especially when factoring in Exp ratios (for RDKTX, it's 0.73%). At this point, is it advisable to exchange my current investments in RDKTX into an 80/20 mix of FXAIX and FSPSX, then change all my future contributions to this allocation as well? Or am I overreacting?
Go take a look at the chart for QQQ from 1/1/2000 to 1/1/2010. How would you feel if the next 10 years looked like that? IMO, and the source is an old buy who retired on his terms, you have to start with what your objective is. For the Roth that is obvious, and I suggest a broad market index fund. FSKAX would be one. Perhaps 70% FSKAX and 30% FSPSX so you have some international exposure. Your money outside the Roth depends on what you are going to use it for and when. Right now, perhaps park it in the money market account (Fidelity's default is a good one) while you think about your objective. Long term (10+ years) is easy [stock index funds], short term is easy [cash/CDs]. in-between is tough and involves decisions about risks. Good move going from Robinhood to Fidelity. Best of luck.
Seems reasonable. Although I'd prefer FTIHX over FSPSX due to being more diversified.
>Could also add one for Emerging Markets Or just change FSPSX out for FTIHX or FSGGX.
I'd dump the tax incurring SCHD. A typical Fidelity three-fund portfolio would look like this: FSKAX FIDELITY TOTAL MARKET FUND 50% FSPSX FIDELITY INTL INDEX 30% FXNAX FIDELITY US BOND INDEX 20% Or you can do 70/20/10 or 60/20/20 or whatever split you prefer. Could also add one for Emerging Markets and one for REITS if you want a 4 or 5 fund portfolio. You can read more here: [https://www.bogleheads.org/wiki/Three-fund\_portfolio](https://www.bogleheads.org/wiki/Three-fund_portfolio)
I did 40% into FXAIX, 15% into FSSNX(small cap), FSMDX(mid cap), FSPSX(international index), and FDKVX (2060 target date). How does that allocation sound?
If using FSPSX, consider adding FPADX for emerging coverage.