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Looking for some feedback on my planned portfolio as I start investing into my Roth at 35 years old
Moving from professional management to self-management
3 Fund Portfolio for Roth IRA & Traditional IRA
IF you invest some of your money in BOND FUNDS are you getting scared they now go down along with stocks
Mentions
I personally recommend investing in a diversified bond fund (I have FTBFX) rather than the 10 year specifically. This will give you a lovely bouquet with many different types of bonds. An analogy is, for a stock investor, I recommend a stock index fund (such as the S&P500) as opposed to going "all in" on one specific company's stock.
Yup. FSKAX, FZILX, FTBFX. Disclaimer I’m only in the first two (total market, international) I’m not a good enough boglehead to care about bonds yet.
Option C is the simplest honestly. How long do you have until your desired retirement age? If you are within about 8 years, you may want to consider a bond fund of some kind (FTBFX comes to mind) in some amount as well. Depends on your risk tolerance, you want to be careful of sequence of returns risk as you approach your desired retirement date.
Straightforward advice is HYSA, or a money market fund if you're willing to mess with a brokerage account. If the downpayment is large and you're in a high state income tax state, a t-bill fund's dividends will be exempt from that tax so may be worth it. If you've got a decade to work on this, you've got enough time to deal with turbulence. I might do an FSKAX / FTBFX combo starting at 80/20 and gliding to less equity via new contributions as the timeline approaches.
For a basic IRA, the usual recommendation is a simple intermediate bond fund like FXNAX, FTBFX or FTHRX to use Fidelity examples. Short-term bonds are more stable (almost like a savings account or money market) but have less potential for capital appreciation. Long-term bonds are much more volatile due to interest rate fluctuations. Intermediate term bonds are the sweet spot, for this purpose. on the page for any Fidelity bond fund, click on "composition". Scroll down to "Fixed Income Style Map" and you'll see a 3 x 3 box. Top to bottom boxes measures average the credit quality of the bonds in the fund. Left to right boxes measure the interest rate sensitivity (basically short to long-term). For an IRA, you want to find bonds that are in the middle to top boxes for credit quality, and in the "moderate" range for interest rate sensitivity. https://fundresearch.fidelity.com/mutual-funds/composition/316146356
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.
You did not lose 37% or 13% on FTBFX. It's returned -1.37% over the past six months. The most you could have lost in 2025 is -2.50%.
Thanks for the info. That helps. It is FTBFX. A few months ago I dumped everything to cash and CD ladders except assets I thought were safe. I was really wrong about that fund-lost something like 13%. I guess I'm looking for the right time to pull out. Again, I appreciate the explanation.
Why would a well-diversified 401k be down by 30%? You do realize the bond market is up YTD, don't you? E.g. look at the YTD returns of FTBFX
I am more or less split even on these: FTBFX - Fidelity Total bond FXNAX - Fidelity US Total Bond FIPDX - Fidelity Inflation-protected Bond FBIIX - Fidelity International bond fund PULS - Pgim Ultra Short Bond ETF USIG - iShares Broad USD Investment Grade Corporate Bond And slowly loading into: NATO or EUAD - European Defense Fund ETFs These are getting hot so it's a bit dangerous. I've been badly burned with sector funds before, but this one is a lock. It's a total lock, boss. 100% guarantee /s If the US stock market gives, everything across the board will go red everywhere, so I am very cautious with ANY equity until that happens.
If you don’t like Treasury Direct, you could buy bonds and Treasuries from Fidelity. I just had a call with an advisor today about the bond market because I’m pretty clueless about fixed income investing. He recommended FTBFX and FBND as 2 solid fund options.
Yeah walk into a fidelity branch. They'll tell you to put 80% into FXAIX and 20% into FTBFX and charge you for their insight.
There are plenty of bond ETFs and mutual funds. I recently did some research on Fidelity products because I was exiting another Fidelity product. FTBFX - Fidelity Total Bond Fund -- Mostly US Treasury notes, bonds, and cash FSHBX - Fidelity Short-Term Bond -- Mostly US Treasury notes, bonds, cash, and some other misc bonds/notes short-term FTABX - Fidelity Tax-Free Bond -- Municipal bonds I don't know squat about bonds. I'll let the fund managers figure it out for me.
just do 100% VOO or FXAIX (lower fees mutual fund with same returns as VOO) invest consistantly every week, possibly with a recurring investment set up through fidelity so you don't even have to think about forgetting it. last step is in 20-30 years, progressively add bond exposure through FTBFX (fidelity total bond fund) as you get close to retiring.
Most bond fund’s returns over the past several years are crappy because we were at super low rates for a long time, and when rates moved up, values went down, hurting total returns. But look at the current distribution rates - it’s a much better starting point to start investing, and if the Fed eases rates as most expect, you’ll get a decent distribution rate plus capital gains as the net asset value of the shares increase. FTBFX is a good core holding to check out. The point of a bond fund is to provide some diversification and less volatility, it’s not to provide high growth.
ETFS (50% FTBFX 50% FXNAX). I am in my 30s. It was all about timing the market peak and parking somewhere safe. Additionally the FED is going to drop rates and that typically increases bind prices.
FFIJX is a retirement date fund, which overlaps heavily with FSKAX. It's typically a better idea to do some mix of FSKAX, FTIHX (international fund) and their bond fund (FTBFX). Bonds are optional, since you're young, but it's a good idea to do a 70/30 or 80/20 split of FSKAX and FTIHX.
For stocks all you need is FXAIX, not FBGRX. Keep it simple and lowest cost expense ratio. FTBFX depending on age - if young 100% FXAIX is fine. 120 - age for % of portfolio allocated to bond fund is one metric though I probably won't ever exceed 20% personally. Teach her about dollar cost averaging and to train yourself not to get scared when the market drops. That's when everything is going on sale. This may be a helpful resource for her: https://www.bogleheads.org/wiki/Bogleheads%C2%AE_investment_philosophy
> FBGRX (Blue chip growth-fidelity) I would definitely not do this one. It's got almost a 0.5 ER and it's just concentrating you in stocks you already hold in FXAIX. It's exposing you to concentration risk, which you can't expect to be compensated for in the long term. The way to avoid concentration risk is to diversify and to just do total stock market index funds. FSKAX or FZROX for US stocks and FTIHX or FZILX for international stocks. Anywhere from 60/40 to 80/20 for the equities portion of your portfolio. But yeah, assuming she's got both FXAIX and FBGRX in her portfolio it means a *huge* percentage of her wealth would be tied up in just a small handful of companies in the same country and in the same economic sector... which seems like a bad idea for a risk averse person! > FTBFX (Total Bond Fund-fidelity) There's a cheaper version of this one: FXNAX. But honestly, I'd skip both and go for FUAMX and/or FNBGX. Both FXNAX and FTBFX hold a lot of corporate bonds which are riskier than US treasuries and are also pretty highly correlated with the stock market (as in, corporations tend to default on their loans when the stock market crashes). So US treasury bonds are a safer hedge.
Buy bonds! As the rate goes down the value of your bond goes up because it’s earning a higher interest rate. If you don’t want to buy bonds yourself invest in a bond fund. I like Fidelity Total Bond Fund FTBFX. It’s a fairly conservative intermediate term bond fund.
Right, but again, if you're looking for a hedge against the market, you're not necessarily looking for something that moves counter to it. You could just be wanting something that moves less, which to me is what bonds do. Taking your FTBFX you mentioned, looking back at when the market declined in '20, from 03/06/2020 to 03/19/2020 FTBFX declined about 9.6% with the market. Meanwhile VOO declined 19.3% over that same time period. So as a hedge, holding FTBFX would have allowed a portion of your investments to have retained more of their value over that period, than if you have been entirely invested in the market.
For example, used to invest in FTBFX fidelity bond fund. If the market went down, FTBFX would go up..not a great amount but still somewhat counter. And vice-versa though either way the delta wasn't that much..was relatively stable.
>Would adding bond (FTBFX) be a good investment right now? Or, once I've decided that my equity will be slashed to 50% or lower (via asset allocation) as I approach retirement? Bonds adjust risk level, determine when you want to start adjusting your risk level from 100% stock (many people actually can't handle it in their 20s really) and add from there. >So, in this slightly down market, I could just put in my full $35k toward FSKAX and FTIHX? Markets can change quickly. Don't wait to "buy the dip": https://rationalreminder.ca/podcast/144
>Everything in there already and as close as you can safely afford towards the annual limit going forward. **Be sure to consider adding bonds or some other safer asset at some point.** Would adding bond (FTBFX) be a good investment right now? Or, once I've decided that my equity will be slashed to 50% or lower (via asset allocation) as I approach retirement? >As much as you can as soon as you can. So, in this slightly down market, I could just put in my full $35k toward FSKAX and FTIHX? What would be a moderately aggressive approach in this case?
Depends on the fund. VMFXX (0.11%) is lower ER than SPAXX(0.42%) FSKAX (0.01%) is lower ER than VTSAX (0.04%) VBTLX (0.05%) is lower than FTBFX (0.45%) In reality these differences are pretty much budget dust.
It sounds like you've chosen a diversified trio of funds covering U.S. equities, international equities, and bonds. Diversification, as you probably know, is key to managing risk. FSKAX provides broad exposure to the U.S. stock market, which has historically been a strong performer over the long term. FTIHX offers international diversification, which can be beneficial to hedge against any potential U.S. market downturns and to tap into growth in emerging markets and other economies. FTBFX introduces bonds into your portfolio, which can provide stability and act as a buffer during stock market volatility. For a long-term retirement portfolio, this mix can be a solid foundation. However, the specific allocation between these funds should be based on your risk tolerance, time horizon, and financial goals. As always, it's wise to consult with a financial advisor to tailor your investments to your unique situation. Best of luck
More I look at it, FSKAX & FTIHX is what I'll invest in for both Roth IRA and Traditional IRA. Lastly, when should the Total Bond Market Index Fund (FTBFX) come into play? Should I invest into now at low allocation and become more conservative and put more towards it as retirement age nears?
Only FTBFX, and options on FTBFX, is substantially identical to FTBFX. Other bond funds are fine to switch into.
Gotcha. I have some FBND and some FTBFX because going entirely FXAIX seemed scary and [someone I trust told me to diversify my bonds](https://m.media-amazon.com/images/M/MV5BMTQ1NzMwMTg2OF5BMl5BanBnXkFtZTgwMjE4Nzc3MjE@._V1_.jpg)
I would use CD ladder with the high interest rates we have now. If you want to let’s someone else do the driving but an intermediate bond fund. I like FTBFX. Bonds are much more complicated than stocks so read up on them before you buy individual bonds. I am not a fan of total market bond funds because the returns can be calculated. They are not purchased for growth like stocks.
I have both individual bonds and bond funds. One of my holdings, FTBFX (Fidelity total bond fund) has distributions that are called dividends, but they’re non-qualified dividends for tax purposes. The individual bonds payouts are classified as interest.
Build a ladder based portfolio based on time horizon. 0-1 years = cash and equivalent 1-2 or 3 years good credit bonds (AGG is a bond ETF I liked, or FTBFX) 2-3 years plus diversified stock portfolio; can’t go wrong with a broad market ETF (SPY, VTI, etc.). My opinion is that you get some core broad market ETFs and sprinkle in some companies you’d like to buy and hold for 5 years. The base being stable, the individual stock picks add risk but keep you engaged
80% of FZROX is FNILX, so replace FNILX with FZROX. Below is an allocation suggestion: - 70% allocation FZROX - 10% FSDIX - 10% FTBFX - 10% FSRNX
Do I have sufficient diversification in my Roth IRA? Any suggestions? Fidelity is saying I need to invest in more foreign stock. I have mainly funds/ETFs. My positions are the following: ​ CBRE FNCMX FSKAX FTBFX FTEC FTEC IVV QQQ RYU XLRE
Thanks. I currently hold positions in FCPVX, FIGFX, FLCEX, and FNCMX. I also have a bond fund (FTBFX) but I only have about $500 in there.
Hi all, I thought I'd post since I feel like I'm pretty confused with my Roth IRA. I started adding money to it when I was 23 and didn't realize it was supposed to invest manually in things until about two years ago, I'm 28 now. Medium risk is fine, no debt, I make around 115k so retiring early could be nice but for now I'm assuming that's not going to happen. I have 4k in FOCPX 2k in FTBFX 3k in PBLAX and 4K in VTSAX. 3K unallocated. I honestly just chose these based off a few articles & guides and my personal finance app tells me I'm slightly over-concentrated on tech, but in good shape? A lot of the threads I've been reading, folks just invest in 1-2 funds, including VTI. I don't have that and was wondering if I should funnel the rest there?
Hammering; 50% VT 40% FSKAX 10% FTBFX
Regardless of the reason, the drop in the price of total bond funds like FTBFX or AGG or BND is worse than any time in their history. Close to a 10% decrease in price.
There are minor differences, but from a high level: (Vanguard on left, Fidelity on right) VOO = FXAIX VTI = FZROX BND = FTBFX
2Y * AGG +2 * BND +1.14 * FTBFX +5.32 so no, you are wrong.
>But for the last few years bond funds have done poorly and I have noticed that daily losses and volatility in conservative Bond Funds (like AGG, BND, and FTBFX) have increased substantially. over the last 5 years * AGG +21% * BND +22% * FTBFX +31% its almost if you dont even bother checking actual data.
I don't understand why this inverse correlation idea is so persistent. [Portfolio Visualizer](https://www.portfoliovisualizer.com/asset-correlations?s=y&symbols=SPY+BND&timePeriod=2&tradingDays=60&months=36) says the correlation coefficient between SPY and BND (3 year windows, since 2007) is 0.07. They're uncorrelated, not anticorrelated. And, actually, these corp-heavy bond funds all have somewhat positive correlation with SPY and VT. FTBFX has around a 0.5 coefficient, even. Government bonds would be slightly negative. TLT, SHV, SHY are all around -0.3 to SPY. I have a UPRO+TMF portfolio. Right now TMF is -3.7% for the day. No, it doesn't feel good, but neither would changing that portfolio.
What are people’s thoughts on this portfolio? 40% - FSKAX (total market index fund) 20% - VOOV (S&P 500 value fund) 10% - FTIHX (international tots market fund) 5% - SOFI 2.5% - BRK/B 2.5% - KO 10% - FTBFX (Total bond fund) 10% - I bonds
FTBFX. Basically using it as a “high yields” savings investment with a relative level of safety since predominantly composed of US federal government and treasury notes/bonds
Correct. FTBFX is 45 basis points whereas FXNAX is 2.5 basis points. I think FTBFX is actively managed and that's what you'd be paying for.
I have a taxable brokerage account that invests in Municipal bond ETF funds such as MUB (broad US market exposure, investment grade) and HYD (broad US exposure, High Yield, 75% below BBB). I previously invested in a total bond fund (FTBFX) and considered BND and BNDX ETFs, but none of those were ideal for a taxable account.
I have two bond funds in my traditional IRA. FCBFX has returned 8.45% total for me, and FTBFX has returned 8.66%. They're both on the lower end of returns for all my investments, but combined only make up about 6% of my IRA. If you're old then 40% bonds sounds reasonable.
My dad wants to invest a few thousand dollars. He's roughly a decade or so away from retirement and is finally looking to throw himself into the stock market and dabble in crypto. His goal is a combination of retirement (he already has a sizable 401K) and play money. His risk profile is fairly moderate. I was thinking he should keep it simple with stocks and buy index funds: 60% FXAIX (Fidelity 500 index), 30% FTBFX (Fidelity Total Bond), and 10% FSPSX (Fidelity international). And with the remaining chunk, he should purchase BTC and ETH. Thoughts and suggetions?
I own a number of balanced mutual funds and during dividend periods the fund drops an equal amount to the dividend even if 40% of the fund is in bonds. I question this because if I own a bond fund (like FTBFX) the payment of the dividend won't impact the share price.
If you're collecting bond types, it looks like FTBFX is benchmarked against the BbgBarc US Universal index (https://assets.bbhub.io/professional/sites/27/US-Universal-Index.pdf), which includes US treasurys, investment grade and high yield corporate bonds, agency and some CMBS, and emerging market USD bonds. Aside from munis, it doesn't have bonds with equity-like features like preferred stocks PFE, inflation-linked bonds (SCHP, also series-I bonds from treasury direct are good), CLOs (SRLN, ECC), local-currency foreign bonds, bonds with less than one year to maturity (JPST), and floating rate bonds. If you just want the best diversification from equities, I would recommend focusing on long term treasurys.
My spouse and I recently rolled over our old 401ks into an Rollover IRA. We’re both early 40s. Aggressive, since a bit behind. My allocation 65% FSKAX 95% FTIHX 2.5% FTBFX 2.5% FREL I plan to increase the bonds and REIT by a percentage every other year. I still need to focus on growth at least 10-15 years. She doesn’t want a custom plan like what I’ve done, but I can’t convince her about the high fees of Target Date Funds and now is not the time to go heavy on bonds. Are there any other Fidelity Funds, that folks recommend?
Thanks for the recommendation. I saw this a bit late and ended up going with FTBFX. I only did 5%. I’m still willing to ride the waves for 15 years before starting to dial back. I’ll keep that bond fund in my back pocket.