Reddit Posts
Would it be a bad idea investing in the same investments in a Roth IRA and a regular brokerage account?
What if you want a financial advisor... just not right now?
Okay Portfolio Going Into 2024? [23 YOLD Looking for long term investments]
Max out my Roth IRA at the beginning of 2024 or pay off my car loan first?
What is best fund to invest in SP500? (FXAIX, VOO, etc)
What’s the difference between FXAIX and FNILX?
Portfolio Input! Let me know what you all think
Do I need to include a small cap index / etf in my Roth?
Swapping my 401k from a target date fund to FXAIX
Should I “set it and forget it” with VTI or FXAIX?
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 opened a Roth IRA and a Brokerage account with Fidelity at 20yo, what's the next step?
Are passively managed mutual funds as tax efficient as ETFs?
What if you stop contributing to one of your IRAs?
Lets end the debate: FXAIX & FSPSX or FSKAX & FTIHX?
Is FXAIX purchase price based on the updated price at the end of previous day?
App to research stocks and etfs + history of said securities?
Should I change up my current distribution on my 401(k)?
How does the compound interest strategy work when purchasing basic mutual funds that track the S&P500?
Are there any tools available to help avoid wash-sale rules when doing tax loss harvesting and investing in a new position?
Money never seem to go up. Am I investing correctly?
Investment strategy for a 5-10 year goal. Thoughts?
Good idea to invest in multiple s&p500s in one roth IRA?
Good Fidelity fund for someone who will retire in 7 years.
I just turned 17 and have made around 15000 dollars working as a server. This is mostly saved. Any recommendations investing?
My Roth IRA performance is lagging over the years and needs a tune up - your opinions and ideas; a discussion
Does VOO rebalance stocks for the shares I already own over time?
Looking for tips on a short term lump sum investment
If I'm starting to pay attention to asset allocation, should I ditch target date funds entirely?
Is FXAIX worth the low expense ratio? Or am I better off with a vanguard fund?
How is everyone splitting their ETF/Mutual/Index funds?
Would selling a mutual fund then buying an ETF that tracks the same index trigger a wash sale?
Please be honest.. Are my 401k Management Fees That Bad Compared to Average? 0.70% Total Annual Operating Expenses ($7.00 per $1000).
Advice on my prospective investment selections for HSA, Roth IRA.
Want to Roll Over Current Index Funds into FZROX/FZILX - Thoughts?
Thoughts on this Breakout of Fidelity funds? - Goal is fairly aggressive growth
Thoughts on this Breakout of Fidelity funds? - Goal is fairly aggressive growth
Mentions
The vast majority (90+%) of my account is stashed away in FXAIX (SP500 index for fidelity) and the remaining 10% is a mixture of cash and my own individual stock picks. This strategy might help you out. This way, the majority of your money is tied up in "safe" investments while you can play around with the remaining money. When your individual picks are doing well, you can sell some and buy more indexes and vice versa. Investors with the most success will be the ones who can most effectively remove their emotions from the investing.
The TSP C fund tracks the S&P 500 index and the Fidelity equivalent is the Fidelity 500 Index fund ($FXAIX). The TSP S fund tracks the Dow Jones U.S. Completion Total Stock Market Index and the Fidelity equivalent is the Fidelity Extended Market Index fund ($FSMAX). The TSP I fund tracks the MSCI EAFE index and the Fidelity equivalent is the Fidelity ZERO International Index Fund ($FZILX) or the Fidelity Total International Index Fund ($FTIHX). The TSP F fund tracks the Bloomberg U.S. Aggregate Bond Index and the Fidelity equivalent is the Fidelity U.S. Bond Index Fund ($FXNAX).
Easiest fund to replicate. FXAIX is the fidelity equivalent mutual fund. VOO and IVV are popular ETFs.
I would go with FXAIX due to the lower expense ratio. FXAIX received a 5 star rating on Morningstar while VTI which I'm surprised received only a 3 star rating on Morningstar. Not sure why.
Not 100% correct VTI is a ETF. FXAIX is a mutual funds. for both you are taxed on the dividends you receive. Both have a 1% dividned yield so not much in yearly taxes. Occatkionally ETF and mutual funds will have captialgains. ETFs have a way of absorbing capital gains. Mutual funds have to pay out the capital gains distribution. Captial gains distributions don't occur every year for FXAIX. I think the last time TXaix had one if was about 4 years ago. Like dividends you are taxed on captial gains distributions. Otherwise beyond that the two funds are very similar both are growth funds TI invest in the total US market while FXAIX invest in the S&P500. And both have fund expenses. with for both are very low.
VOO is the parallel ETF to FXAIX, not VTI. ETFs are more tax-efficient than mutual funds. There would be no reason to choose FXAIX over VOO in a taxable account. Whether you want VTI or VOO is a different question.
You’re mixing up the questions here. 1. Why are people saying VTI is better in a taxable account 2. Why is FXAIX doing better in 2025 3. Which one am I better off #1. This is a tax issue not a performance issue. VTI is an etf so you get taxed when you sell. The other one is a fund you get taxed at the end of the year for the activities they did during the year #2 why performance difference. 2 different funds. One is all cap including small and mid cap. One is large cap only. #3 which one is better. No answer for you on this one. “Which one is better from a tax perspective?” Then it’s the ETF.
> I keep seeing people say that for a taxable account VTI is better than FXAIX Who says that, and why? What's the justification? They are different in several respects; ETF versus mutual fund, and total domestic market versus S&P 500.
I'm not a financial advisor. But if I were you I'd take 3 months of expenses and keep that in an HYSA (So like $2k) and invest the rest into VOO, FXAIX (if using Fidelity) or similar. If you can continue to invest $1000 a month in that account, in 20 years it should theoretically be worth about $500k.
Set yourself up a Fidelity account. They have an expense free S&P ETF called the FXAIX. They facilitate automatic deposits It's got a great app.
Always maximize your pre-tax contributions to your legal limit. FXAIX would be great for 401k, but it should not be your only ETF. You should be shooting for $2m in 401k. Your Roth is to cover your time from retirement until you claim social security.
I'd say it matters who you invest with. If you are at Fidelity, then you would be better off with FXAIX or he'll, even FNILX. What investment firm are you using?
I understand wanting a bit more access outside retirement accounts, but FXAIX is great!
With a 10% return you would need to invest $1250 a month or $625 a check if you got paid bi-weekly for the next 20 years. It sounds like a lot but if you use a 401k and it’s pre-tax then you won’t see a $625 cut in your paycheck. You will need to stick with growth mutual funds and so FXAIX for s&p500 exposure to 507 top companies and VXUS for international. You could add a mid or small cap fund also. I would do 80% into fXAIX and 20% into VXUS. If you are 40 then you could retire at 60 by being disciplined to this or if you’re 45 then you can retire at 65. 1 million pays between 40k to 60k depending on the dividend funds chosen at retirement. You will be able to draw this every year without draining your 1 million. On top of that you will have social security. This salary might sound nice in today’s money but in 20 years it will not be the same. You will need 1 million to retire.
FXAIX is a perfectly good fund. What do you want to invest in beyond that? Tell us the other fund options also, you may have something good that you don't realize. Also, we need to know if your company has a match or if you do an IRA? If no match then you should max your IRA first. You'll have the same control in the IRA as you would in a taxable account, but should never use a taxable account when you have tax deferred space available.
I'm not an investment advisor. But in my opinion if you want a "set it and forget it" investment look at Fidelity's FXAIX fund. It is simply a S&P 500 index fund. Extremely low fees. Since 1957 the S&P 500 index has returned 10.4% average annually. This also provide diversification.
"Diversification" means spreading out your investments between more companies/sectors. VFAIX (and other S&P500 funds) are already diversified between the hundreds of companies in the S&P500. Adding VGT or something similar wouldn't change much, for example you can look at the top holdings of both FXAIX (NVDA, APPL, MSFT, AMZN, & AVGO) and compare it to VGT (NVDA, APPL, MSFT, AVGO, & PLTR) and you'll see a lot of similarities... so it wouldn't add any diversification.
1) FXAIX is a fine fund (S&P500) for domestic US equities, which should be the largest portion of your retirement investments. It also has a low expense ratio. 2) Keeping up with multi 401k's (Roth & Traditional) is likely not worth the tax advantage of just focusing on one along with your Roth IRA (e.g. put as much into your Traditional 401k as you can, plus max out your Roth IRA). 3) Tax-advantaged space (whether it is Traditional 401k, Roth 401k, or IRA) are *always* better than taxable brokerage accounts tax-wise.
The S&P 500 index is already tech heavy due to recent performance. Adding something like VGT isn't really diversification, so much, as you becoming even more overweight in tech. If you want to truly diversify away from FXAIX, then you need to be adding things like international, small and mid cap, and bonds. You didn't post your 401k selection, but a lotof 401k plans offer these funds within the 401k.
I don't think other funds will give you a big enough advantage over FXAIX (if any. Beating the S&P 500 isn't easy without taking outsized risk) to cover the taxes you're choosing to pay. And if you're taking on more additional risk with something like levered ETFs, you should probably exclude that account from your retirement planning. As others have mentioned, if you have a Roth 401k available to you, you should max that and drop the regular 401k for maximum benefit in retirement. The guarantee that you won't pay taxes on the growth is much better than your suspicion that's you're losing a few points by not having sector ETFs available.
So, you'd need to be confident you can beat the returns on FXAIX over the next 20 or years, to the extent that that outperformance would cover the taxes you're choosing to pay on gains.
If there were huge net outflows from the mutual fund, it could incur capital gains distributions which are taxable. ETFs have a redemption mechanism to avoid that. It's very unlikely for FXAIX.
What type of account will this be in? Taxable account then use the ETF. No forced capital gains and can be transferred to other brokers without issue if you decide to move it. With the mutual fund the new broker may not allow you to use FXAIX and would force you to sell everything prior to transfer. If you are talking tax deferred account (IRA, HSA, etc) then FXAIX is fine. You can sell and switch funds whenever you want without any tax worries.
Yeah the main thing is FXAIX only trades at market close while IVV you can buy/sell anytime during market hours. For long term buy and hold that doesn't really matter though - just set up auto investing with FXAIX and forget about it
Why is FXAIX (0.58%) and VOO (0.89%) return so different today? I am not tracking on dividends or capital gains that I'm aware of
They’re basically the same bet (S&P 500). The ETF or mutual fund wrapper is a minor difference. FXAIX (mutual fund) \* Lower ER (0.015% vs IVV \~0.03%) \* Great for set-and-forget: automatic investing, exact dollar amounts \* Trades once/day at NAV (less “messing with it”) IVV (ETF) \* Often a bit more tax-efficient in a taxable account (ETF structure tends to avoid capital-gains distributions) \* Trades intraday, has bid/ask spread (tiny cost, but real) \* More portable if you switch brokerages If you want to have more details gave a look at this comparison , got my partial insights from there [https://pinklion.xyz/tools/etf-compare/FXAIX/IVV](https://pinklion.xyz/tools/etf-compare/FXAIX/IVV) **Rule of thumb** **\* IRA/401k/Roth:** pick **FXAIX** (cheaper + easy automation). **\* Taxable brokerage:** **IVV** can be slightly better for taxes/portability; difference is usually small if you just buy/hold. Either is totally fine long-term the bigger driver is staying invested.
For growth index funds taxes will be generated by capital gains distributions, dividends, and when you sell shares of the funds. Capital gains distributions and dividends generate tax every year. ETF only have dividends which are typically reinvested by investors. ETFs have a way of absorbing capital gains distributions. Mutuala funds pay out capital gains distributions and dividend. You should reinvest all of that. But you will still pay a tax on both Capital gains distribution are sporadic and not predictable. Some years FXAIX has no CG distributions, other years small ones, and rarely big ones. So in genral FXAIX will probably generate higher taxes. But that won't be an issue in retirment account. only in a taxable account. But the tax hit in a taxable account son't be significant until you have about 1 million invested in FXAIX.
FXAIX is a little cheaper and the performance is updated after the bell. IVV is an ETF so you see everything in real time. I prefer FXAIX a little more.
FXAIX: Lower expense ratio and very easy to automate, making it a strong choice for long-term, hands-off investing—especially in retirement accounts or if you plan to stay with Fidelity.IVV: Slightly more tax-efficient by structure, tradable intraday, and easier to move between brokerages—better suited for taxable accounts or investors who want flexibility.
You are confusing a few terms. They are both index funds, and both following the same index (S&P 500). FXAIX is a mutual fund while IVV is an ETF. There are some differences with the ETF and mutual fund distinction but in a practical sense it makes very little difference. The two funds should perform extremely similar before expenses and FXAIX is .015 basis point cheaper of an expense ratio.
I have FXAIX a fidelity mutual fund. It invests in the S&P500 index. Fidelity has a good list of mutual funds but my understanding is you have to be a fidelity customer to access them and some have zero fees.
Solid choice! FXAIX has been pretty reliale. I’m all about that long-term growth too, can’t beat compounding.
I own 4 stocks and 3 funds. C, ASTS, GOOG, RITM FZILX, FXAIX, SCHD
If you were interested in setting up a position in something like SCHD, I'd keep it small. In a 2 fund portfolio absolutely no higher than 20% and even that's pushing it. At 26 you're going to benefit more from growth funds. SCHG, VOO, FXAIX - whatever. They pay dividends themselves and you'll get better total return. Once you get closer to your 40's that's when I might start considering shifting to either open a position in something like SCHD to begin accumulation or increasing portfolio share by x% annually.
Why open fidelity and buy vanguard? Why not just open Vanguard? Or buy the fidelity equivalent FXAIX?
Because "invest in the sp500" is too vague for people. They go, "which fund?done one have a better expense ratio? I'm at charles Schwab, does that matter?". It's easier to just tell them to invest in a fund. VOO is a lot easier to type than FXAIX. Doesn't even matter which one you choose, it's just easier to remember the name of VOO.
Is there a reason why so many people on here suggest VOO instead of saying something like "an S&P500 ETF"? If youre with Fidelity they have FXAIX which run with half the expense ratio compared to VOO (miniscule difference at the end of the day). I dont mean to knock the advice since I DCA into FXAIX every paycheck, just curious why we generally recommend one investment product over the others or even just saying "invest in an S&P500 ETF."
Hello everyone! I am currently debating what to do for my investment portfolio in 2026, and am debating between 2 options. Sorry for the long post. To get this out of the way - yes, I expect a significant market downturn in 2026. Yes, I definitely also think it is very possible for there to be significant gains as well. I’m not trying to debate this point here, though it is fascinating it has been asked and debated a million times and nobody knows the answer. Instead I am looking for feedback on my thought process which I have outlined below. Are there any big flaws here? What have I not considered? Am I a raging idiot for forgetting something important? Probably. Thanks a lot for taking a look and any feedback! **General plan** * 10-20% immediate shift to HYSA (assuming 20% hereafter for simplicity) * Currently \~66% VTI, 7% VXUS, rest individual stocks. * Rebalance portfolio to even more heavily focus low-risk ETFs, deprioritize individual holdings, potentially increase VXUS(?) **Debate:** * **Note:** I previously harvested gains in 2024, and rebought on Dec 30th, so my window to harvest gains in 2025 is about as short as it can be * *Option A) Harvest all gains Dec 31st, immediately rebuy 80%* * Locks in 100% of gains, also minimizes advantageous sale opportunities through 2026 due to short term capital gains * *Option B) Harvest only 20% gains* Dec 31st * Maintains option to ladder sell further through 2026, keeping LTCG rates **Other Considerations:** * I do have a \~6 month emergency fund in a HYSA. * Assuming no layoff, I am putting money monthly into a retirement account that is 100% FXAIX. I plan no changes for this account. * I expect to make more $ in 2026 than 2025, and am right around the 0-15% transition income for long term capital gains (after factoring in all income sources and standard deduction). * This would indicate that harvesting all gains would be good to do this year. * However, layoffs are currently abundant and while I feel no personal current warning signs, I do not assume to be immune here. A layoff in the first half or even 3rd quarter of the year would strongly incentivize harvesting gains during the 2026 year instead.
With FXAIX having a lower expense ratio than VOO (0.015% vs 0.03%) wouldn't FXAIX be a better choice?
FXAIX also pays quarterly dividends. FNILX doesn't. Mostly annual, so FXAIX might be better is held in a Roth and it also earns dividends. FNILX is only annual most years.
You are splitting hairs over a rounding error. FXAIX charges 0.015% (about $1.50 per $10,000 invested), while FNILX is free, and the performance difference is negligible because FNILX is essentially a “store brand” S&P 500 that saves Fidelity the licensing fee. The only actual downside is that FNILX is proprietary, meaning you cannot transfer it to another broker without selling it first. Since this is a Roth IRA, selling isn’t a taxable event, but it is still a hassle if you ever leave Fidelity, so just pick one and move on.
I'd say FXAIX and chill automate it so that you won't have to keep going back to it over and over but be sure to have the money whenever you set it to automate.
The longest return period for FNILX on morningstar is 5 years. The 5 year return for FNILX is 14.58% The 5 year return for FXAIX is 14.91% They both consist of almost the same investments.
FXAIX and FNILX both track the S&P 500, so before fees their performance should be almost identical, and the tiny expense ratio differences only matter very slightly over long periods. Short-term return charts can look different depending on the exact date range and whether dividends are included, which is why you’re seeing conflicting claims.
>The SP500 index funds need to buy roughly 16 million shares (approx. $7B) by Dec 19. **They can't buy yet**, so arb desks will be buying Monday to warehousefor them. Does he mean these guys are buying by Dec 19th? * VOO * IVV * SPY * FXAIX * SWPPX * VFIAX But they can't buy it yet? Can someone or u/dowgy demystify this? Thanks
I use Fidelity, so that's the same as FXAIX, right? I am ~75% FXAIX, my shares in FSELX have grown to be the other 25
Roth IRA: FXAIX, SCHG, VXUS, GLDM Brokerage: Mix of individual stocks including Google and NVDA, Coca Cola but will eventually just DCA into VTI, VXUS and QQQM after maxing out my IRA
If it makes you feel any better, if you had just invested that 75k in a standard S&P index fund like FXAIX, you'd probably have almost $140k today.
SMH etf (semiconductors), INTC (Intel), SHLD (defense sector etf), SCHG - all in my brokerage. FXAIX - retirement Good amount in crypto (BTC, ETH, XRP)
I would go with CLOZ 8% and FXAIX (45% in each and 10% span. FXAIX is a fidelity S&P500 fund with a lower share price. CLOZ is a dividend fund. The dividend can be placed in with your cash Don't use dividend reinvesting. I believe SPAXX is a money market fund which is were the cash would be. Eventually the dividends will be enough to continuously refill your money market account. And if you want you can move the dividend out of the money market account to FXAIX or CLOZ.
FXAIX - 90% and FTIHX - 10% in my Roth S&P500 - 85% and small/mid cap - 15% in 401k
401k is just VOO, VEA, VWO. IRA is FXAIX/FZILX/AVUV/RPV/AVDV/DFIV
Again, you are paying 29x higher fees for nearly identical exposure, not “higher weight.” Again, JLGMX and FXAIX have a 99% correlation, meaning they move in lockstep. If tech crashes, both crash. Your HELOC plan is reckless: 1. HELOC rates are variable and currently ~8-10%. You need consistent 12%+ returns just to break even after taxes and inflation. 2. Borrowing to buy volatile assets (crypto/stocks) during a crash maximizes ruin risk. If your “unlikely 0.1%” scenario hits (job loss + market crash), you face foreclosure, not just portfolio losses. 3. “Borrowing someone else’s money” as a backup plan is not a strategy; it is a hope. I would ditch the HELOC idea entirely and sell JLGMX in your 401k and move it to FXAIX to stop wasting fees. Diversify with new contributions, not debt.
FSKAX has a 99% correlation with FXAIX, so you already own the S&P 500. I keep beating a dead horse here, but adding JLGMX isn’t diversification; it is paying 29x higher fees (0.44% vs 0.015%) to overweight the exact same top stocks (Nvidia, Microsoft) you already hold in FSKAX. [Standardized data shows the S&P 500 beating JLGMX year-to-date](https://portfolioslab.com/tools/stock-comparison/JLGMX/FXAIX). As for the HELOC: claiming you can service debt with zero income (no job + no tenants) is mathematically impossible. If you have the cash reserves to cover that nightmare scenario, you should just invest the cash and skip the loan entirely.
I can't buy stocks with my retirement account though. So I can't buy NVDA, MSFT, AMZN, etc. and can only buy FXAIX or JLGMX. I already have $230k in FSKAX so don't want to buy more of FXAIX. Where are you getting the 15.8% and 18.1% returns at? I just logged into my retirement account and am showing the opposite. I also don't own the $750,000 in stock yet -- right now I just have $230k FSKAX and $70k JLGMX so it diversifies it right now. I could always convert the $70k back to FXAIX next year once I own some of the other stocks/crypto. If the stock market crashes a 2nd time and crypto crashes a 2nd time and I lose my job and the real estate market crashes and I can't get a new job and all of my tenants move out (combination of 6 worst case scenario) then I'll still be able to pay back the HELOC. I'm not concerned about this scenario but I did take it into account. Also if there is a recession then the variable rate of the HELOC would lower.
You’re missing that JLGMX is just a 0.44% fee wrapper for the same tech stocks you already own individually (NVDA, MSFT, AMZN). You are paying 29x more in fees than FXAIX to double down on concentration risk, and it is currently underperforming the S&P 500 year-to-date (15.8% vs 18.1%). Your HELOC plan has a fatal flaw: it assumes you will keep your job during the recession that crashes the market. If your salary vanishes while your portfolio tanks, the bank forecloses. That is not a strategy; it is a coin flip with your house.
I'm seeing with dividends for JLGMX 17.33% average over 5 years and 15.26% for FXAIX. Average for 10 years shows 19.11% for JLGMX and 14.62% for FXAIX. The return rates on Google don't show the dividends so FXAIX looks like the better buy. Even with 0.44% expenses, JLGMX still has higher returns. Am I missing anything? I'm not using the HELOC to stabilize my portfolio but to increase the risk/return. I would only buy if the market already crashes. So it would have to crash a 2nd time after I already buy into the crash. Worst case scenario, it crashes twice, I hold, and it never recovers after 10 years -- so I just pay it off quickly with my salary. Even at 4% of my portfolio, I could make a few hundred thousand from the crypto moonshots if one pays off.
You are still “speedrunning foreclosure” because JLGMX’s expense ratio (0.44%) is 29x higher than FXAIX (0.015%), and over the last year, JLGMX underperformed FXAIX significantly (15.81% vs 18.13%). You are paying more for less. A HELOC is a callable loan secured by your home; using it to “stabilize” a portfolio is financial suicide because if the market crashes, your home equity evaporates while the bank demands repayment. I would immediately liquidate the HELOC debt and stop trading 401k funds based on past returns. I'd move JLGMX back to FXAIX to stop bleeding fees. "Crypto moonshots” are gambling, not investing. If they are 4% of your portfolio, they are negligible for growth but high for mental distraction. Focus on the 96%.
I don't have many choices for mutual funds in my 401k. I had FXAIX and traded it for JLGMX since it had the highest return amount. I started with 100% FSKAX before any research and am trading some of it in from my non-retirement account for other stock and crypto as they dip. Crypto moonshots are only about 4% of my total portfolio which I can DCA from my salary. The HELOC funds would be mostly for the stable stocks IF they crash. If you could make one change what would it be?
If this is in your taxable account, don’t sell. Just ride it out. I’ve got both FXAIX and VOO in mine because I couldn’t figure out at first if I wanted to go the mutual fund route or ETFs - ended up going the SCHG route but I don’t want any capital gains (however small at this time) on sales just so I can redistribute into the same kind of investment. Just moving forward put your money into your fund of choice and, maybe in a year or two, rebalance with the old stuff into the new.
First things first you should be in FXAIX instead of VTI. Expense ratio is lower.
Your allocation is solid and well-diversified, but I'd suggest some tweaks: Consider reducing AGNC exposure - high-yield REITs often come with higher risk and can underperform during rate hikes. Maybe cut to 5% and spread that 5% across more diverse dividend aristocrats. For home buying goals, make sure you have a separate shorter-term, less volatile allocation if you're planning to buy within 5-7 years. SPYM/FXAIX as your core is smart. The mid/small cap exposure adds growth potential. With your age (28), you could potentially reduce bonds to 0-3% and increase equity exposure unless you need that stability for specific near-term goals. r/Bogleheads might be worth checking out for more low-cost index investing advice!
Honestly, keeping most of your money in FXAIX is solid for long-term growth, but since you’re young, it’s also a great time to explore the business side. I’ve been working with an ecom agency, and it’s helping me generate a pretty good income, way more hands-on learning and upside than just leaving it in the market. Even a small side project now can pay off big later.
You do not need a financial advisor. If you really want to bounce ideas around, ask any of the many widely available LLMs and cross reference their answers. If your returns aren’t beating the S&P500, then just invest in the S&P500. If you are on Fidelity, consider FXAIX or FSKAX for something more diversified. Put every dollar you have in that fund and forget about it. If you want to get more involved, then read up on stuff and adjust things accordingly. Many will recommend VT, or VOO, or their equivalents in Fidelity. You really can’t go wrong with a diversified fund. You are young so you shouldn’t really need to worry about bonds etc. You are literally lighting that 1% on fire. It is a total waste of money.
That plan was my original thought as well. I'm not anti-dividend as some people in these threads (I have SCHD/SCHY in my IRA, an income fund in my 401k, and my taxable is almost all individual dividend stocks), but rather the specifc REIT and sector fund you selected as why I would put that 20% into FXAIX combined with you being mostly risk adverse.
Hi - do you think you could give a personalized answer (I know you kind of already did) for my answers to some of your statements? Also thank you very much for this response! 1. Don’t plan on needing money anytime soon - very lucky that I have parents who can cover me in any emergencies. 2. Okay - I will focus on FXAIX. Some other comments have recommended similar things. 3. Thanks for the ratio - that is helpful for me when planning what to do. Do you have any SMALL amount of extremely high risk companies/stocks? Like 1-3% of your portfolio? Finally - any chance you could give me an almost exact estimate if your portfolio? Like what % you have invested in each fund / index, etc.? Thanks so much - your comment is really helpful and I really appreciate you taking the time to do this.
Thanks for the advice! Is there any chance you could give a rough % for each of them then? From what you’ve said: \~1-2% high risk, basically gambling speculative stock (crypto, single small companies, etc.) \~15% international (should this be total world index?) \~70-73% ETFs and high quality companies (should this be about 65% ETF, like FXAIX, while \~8% is split between the biggest companies? Like Nvidia, Apple, etc.?) Is this what you would recommend? Thanks again.
\> *I think I want to save what I have right now primarily for retirement instead of for a house or other large payment, since I know time in the market is the most important aspect of investing.* This means you may not want to put everything into the market then, especially if these goals are short term. Not sure how old you are, but I imagine that might be a ways off (5+ years). If you think you will NEED some of this money sooner, you might want to consider putting some of it into a money market or treasury fund (something like SGOV for example). \>*Should I increase the % of my balance in FXAIX, since it is a long term investment? Or should I take more risks since I am still very young?* All equities is PLENTY risk, and you just fine in going all equities when you are so young. I wouldn't worry about gold/silver etc. I would honestly go all FXAIX/similar and......... \>*Last thing - should I invest outside of the U.S. too?* Absolutely. The US has done very well recently, but that wasn't always the case, and we can't predict the future. My personal preference is \~75% in a total US market fund (I use FSKAX) and \~25% in an Ex-US fund (I use FTIHX). The standard recommendation is anywhere from 80/20 to 60/40 for US vs ExUS. Everything else you mentioned... day trading, REITs, individual stocks, commodities, etc. I wouldn't worry about any of those. They offer significantly more risk with less expected payoffs, so not worth it IMO. Because you have such a long runway in front of you due to your age, your best bet is to just invest in board market index funds and be consistently contributing over time. Do this, and live below your means, you will have millions in retirement even on an average salary.
It's too much REITs. 5% or even 10% ok, there's some kind of noncorrelation to the market there which makes it arguably a good choice. 20% is too much. And you have no international which is a problem. I'd like something closer to 50% FXAIX, 30% FTIHX (or FZILX), 10% VNQ, 15% small/midcap (don't sleep on international small caps either), 5% bonds.
7k roth in FXAIX and the rest in a brokerage in VOO
It doesn't make sense to me, but I'm the sort of person who gets ticked off if anyone suggests touching my money, let alone me paying them to mess with it. If I were in her/your shoes I would transfer the Roth IRA to Fidelity, replace GFFFX with GARP (better performance, lower expenses) and NFFFX with a combination of VYMI and either FXAIX, FNILX, or SPYM. Of course, I don't know what the current allocation is in your daughter's portfolio, but here's a quick backtest to show what it might look like when compared to GARP + VYMI + FXAIX -- and this doesn't even take into account the AUM fee being siphoned out of your daughter's money. [https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=1NPb1B2eUs5EdCQZx0bwIm](https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=1NPb1B2eUs5EdCQZx0bwIm)
As others have said, it might be a PITA to do it for $50. My suggestion would be to have them open either a taxable brokerage account or possibly a Roth IRA (assuming they are working) at Fidelity. Give them the $50 cash/check and teach them about investing. While you “ don’t have not have much experience”, having the retirement account at provides some of that knowledge. Fidelity is a popular discount brokerage and would allow the recipient to buy fractional shares. So, they could invest in an index fund like FXAIX or possibly a stock like Apple (APPL). The latter is selling for about $278/share today, so $50 would buy ~18% of one share. Perhaps this would encourage them to invest themselves.
Target Date retirement funds are way too conservative imo, being too heavily invested in bonds and only adding more bonds to the mix as it gets closer to the target date. If you have the ability, you're better off putting at least half of your funds into an S&P index (FXAIX) and then a mix of other indices. Personally I like FSELX (semis) and FBGRX (blue chips) for growth and a smaller mix of funds like FSAGX (gold) and FLCOX (large cap value) for a little more diversity and defensiveness.
First of all congratulations on having $4000 as a teenager, and the desire to invest in your future. That is a huge start, and most teenagers don’t have either of those. Second of all (you don’t mention a job so I’m just assuming you don’t have one, sorry if I am wrong) your NUMBER ONE priority now should be finding a career path that will make you plenty of money. Find a path to $100k per year in the next 10 years. It sounds like a lot, but $100k per year by 2035 will be something like $70k per year now (rough inflation math). To expand on the second point - your main way of keeping and generating wealth for the next 25 years is going to be your job. So get a great education in something that will make you money and give you opportunity to get a raise maybe every other year. I know that sounds counter intuitive because we’re in a “stock” subreddit, but your stocks can’t snowball and make lots of money if you don’t have good money coming in. Again, this is a slow ramp up, so set yourself up now by getting a low paying job and getting an education that will lead to a higher paying job. Third, ALWAYS pay yourself first from your paycheck. Meaning when you get your paycheck, the first thing you do is separate 8% and make sure that goes somewhere where you do not touch it for the next 40 years. When you get a real job, always ask if they have a 401k plan, which you can set to automatically invest that 8% (before it gets taxed!) in something safe. Here are your safe investment options! VT - this is a simple total world ETF. FXAIX - if you are using fidelity just use this Open a ROTH IRA as soon as you can and invest at least $1000 per year into it, better if you can do $3000. The funds I listed above can be in both your 401k or your Roth. What is more important than all of this is your commitment to SAVING for your future. People fret over their mix of funds, their bonds, their ability to generate another 0.01% in Money Market accounts, but that doesn’t matter. You have TIME on your side which is the most powerful force. You have to use that time to your advantage and commit to good SAVING habits. At least 8% of every paycheck, put it away and do not touch it. The reward is worth it. When you are near retirement age you’ll have at least a couple million. **For all of the assumptions above I am assuming you are 18 years old now. **I am also just throwing out hard numbers like 8% savings to make it easy for you and simple. You can get away with 5% savings or 10% savings but you need to pick something and stick with it. **If you don’t know how to set up bank accounts, 401k accounts, Roth accounts, there are plenty of YouTube videos for this. I like to do everything in Schwab. **Do not invest in Vanguard Mutual Funds if you aren’t on the vanguard website. There can be $75 charges per trade. Just google that for more info.
If you have fidelity. Invest in FXAIX. If not on fidelity, then invest in VOO. Both are technically the same and safer than confusing stocks that you looked up.
All I do so far is reoccurring contributions into FXAIX and FTIHX. I'm also in the process of rolling over my ROTH IRA, but it hasn't moved over yet so I can't invest it.
I'm invested in large passive index funds. I would sell, for example, VOO and buy SPY or FXAIX within 1-2 days, as soon as funds are available. I would sell all my lots that have losses, and buy SPY/FXAIX with that many, until it has been > 30 days, then switch back to VOO. No day trading, I want to be invested in the same (or similar stock) long term, and just harvest losses, if there is a point, as I don't have any gains, and shouldn't get any in the near future. But I don't have any gains now, and I doubt I will have some gains for quite some time, as I want to hold long term. This is why I wonder if tax loss harvesting would actually be useful.
I'm invested in large index funds. I would sell, for example, VOO and buy SPY or FXAIX within 1-2 days, as soon as funds are available. I would sell all my lots that have losses, and buy SPY/FXAIX with that many, until it has been > 30 days, then switch back to VOO. No day trading, I want to be invested in the same (or similar stock) long term, and just harvest losses, if there is a point, as I don't have any gains, and shouldn't get any in the near future.
FSPGX and FXAIX are dominated by the same mega-large US companies. I'd do just the S&P 500. I'd do either the mid cap index, or the mid-cap value, but not both. very long-term mid cap value has been an exceptionally good investment but that might mean 10+ years of disappointment. I'd boost the international allocation closer to 30% or more.
> I'm thinking I can be more conservative with my Regular 401k with a TDF and more aggressive or take on more risk with my Roth 401k with S&P 500 (FXAIX) and maybe a small-cap. But again, why? Why do you think a traditional 401k should be more conservative than a Roth?
I guess both can be used for aggressive investing -- depending on your retirement goals and tolerance for risk. Again, I'm 40 and can take on some volatility. My company's investment options aren't the greatest (Who's isn't?), but I'm thinking I can be more conservative with my Regular 401k with a TDF and more aggressive or take on more risk with my Roth 401k with S&P 500 (FXAIX) and maybe a small-cap.
**I’m a freshman in college, with about $6,500 in my account – what should I do to maximize my savings?** **I’m a freshman in college, and I’ve been working since I was 14, but for the first time in my life, I don’t have a steady income.** I’ve saved up money over the years, and most of it has just been sitting in my Fidelity account earning interest. Now that I am on my own and thinking more about the future, I want to start building an actual investing plan instead of letting my random positions sit here. I also have a few individual stocks I bought earlier, including NVDA, but my portfolio definitely isn’t balanced. I want to take my investing seriously, but I don’t know the best way to diversify without giving up potential gains. In my current portfolio, I have 0.061 shares of CRWD, 4.549 shares of FSPGX, 5.058 shares of FXAIX, 0.944 shares of META, 0.117 shares of MSFT, 19.006 shares of NVDA, 1.5 shares of SYM, and 0.797 shares of VOO. In total, my portfolio is up about 122% in 4 years. If anyone has any suggestions on how a younger investor should be thinking about diversification, long-term strategy, or even what mistakes to avoid early on, I would really appreciate it.
And put the money in an S&P 500 INDEX fund with reinvested dividends (like FXAIX, or the etf VOO).
You don't need a Fidelity equivalent. You can buy VXUS at Fidelity. FXAIX is Mutual Fund equivalent to a VOO (ETF S&P 500 index) I am a 20yr Fid customer.
Not to make u feel worse but to educate others on investing and not gambling. If u would have just invested $175K in a lo cost S&P index fund like FXAIX u would have $403K today. Which would be around $3.2 million 21 years from now if the S&P just gives u historically average returns. That’s the power of boring investing and compounding returns! And I know there’s individuals on here that have made a million dollars in literally no time. However, for every one of them there r 99 others that have lost it all or drastically underperformed the market. JMO. OPPs! Not an opinion. Facts!
What's the Fidelity equivalent? I'm all in on FXAIX right now
S&P there are many equally good funds. VOO, SPLG, FXAIX, they will all have the same performance. Pick the one with the lowest expense ratio. Same goes for international index. VXUS, FZILX, FTIHX, whatever is low fee, passively managed, and includes everything. Value funds look into Avantis and Dimensional. Dimensional invented small cap indexing and Avantis was founded by former Dimensional managers and both use similar metrics and philosophies. For a deep dive into small/large value funds comparisons check out [this article](https://www.paulmerriman.com/best-in-class-etf-recommendations-2025) and the attached video.
I was big on index funds until I came to the realization- I’ve got a ton of money in FXAIX- and fidelity gets every voting option for that index fund. Sure it’s a lower expense ratio than many other investment vehicles- but with index funds, 3 companies could run the world economy! You think it makes sense to just sell my index fund shares and invest directly in the market at the percentages FXAIX or the like is vested? “Take back the vote?”
Here are the funds that I’m holding in my employer 401k… JLGMX - Large Cap Growth - 45% FXAIX - SP500 - 35% FSMAX - Mid Caps - 10% RERGX- Europe - 7% SPAXX - Money Market/Dry Powder - 3%
Hey there, 36 yo here with what's probably a dumb question, but seeking reassurance before I start making some shifts in my investments. Currently have \~$125K in my Fidelity Roth IRA, weighted 95% to FXAIX and 5% to FTIHX. I want to get myself a bit better balanced between US and International. **I recently read that you can essentially "rebalance" in your Roth IRA at any time without any fees or tax implications. Is this true?** Looking to get myself to 85% FXAIX and 15% FTIHX ASAP in Roth IRA, and will go ahead and move the money from one mutual fund to another if this sounds like a sound plan. Thanks in advance!
please get rid of your cds you could've been making over twice the amount in FXAIX and especially being the same age as me, these are our best years to begin the compound growth. your stunting your opportunity with jokes the bank offers.
When I (and most people say “VOO” casually in this context, we typically mean “The S&P 500” generally. VOO or SPY or IVV or a mutual fund like VFIAX, it really doesn’t matter - if you’re wanting to own the S&P. If you have a Vanguard account you can just set your bank to auto deposit $100 or $1,000 or $5,000 or whatever each paycheck into your account and set it to auto purchase whatever you like. If you want it to buy a specific dollar amount every paycheck, you’ll be buying fractional shares so you’ll want to do mutual funds or do an automatic investment plan. If you’re having trouble setting this up, call your broker. If you have a Fidelity account you’ll want to do FXAIX or whatever depending on what broker you use. Even better, do this in your 401(k) as a starting point for matching funds if that’s an option through work. Your 401(k) may or may not have a direct version of VOO but you can find other broad market index funds, almost certainly, in your plan.
If you need to have spending money in less than 2 years SPAXX for short term treasury bills. It’s fluid and you can get access to your money in a short time (slowest part is transferring back to a bank). Longer term saving I would recommend low cost index funds like FXAIX or FSKAX. Those are S&P500 and total US stock market. I would avoid gold/crypto/art as they do not generate wealth or grow like companies do. Best served checking out the flow chart in personal finance sub and bogelheads.
Remember the yearly contributions limits. In my opinion, drop JEPI and QQQ and put it into FXAIX and VTIAX evenly as you can easily change it in a Roth when you need income (QQQ is just nonsensical). Also, unless for some odd reason you have 2 separate roths, you may be charged to buy mutual funds from other brokerages so if with Fidelity, I’d get FTIHX for intl.
The good news is that you're 19 and starting a ROTH, plenty of time for growth. You can keep it in VOO/VXUS or look into some other funds like SCHG (growth), QQQM (NASDAQ exposure), or research other funds. I have a Fidelity ROTH and have FXAIX, QQQM, SCHG, VXUS and some growth stock. Just research the funds you're interested in that have low fees and proven track records.
I’d use a more well established platform such as Fidelity or Vanguard. Both free to start and have great apps for convenience. That’s an excellent plan, if you start young and invest in index funds (think FXAIX, VOO, VTIX) you’ll be setting yourself up for a nice retirement when it comes. I would just voice caution on getting too antsy and investing in individual stocks. You can get lucky and rich off the right one, or go broke.
Remove SCHD, young people don't need dividends unless there's a large sum of money you can invest in. Dividends are immediate income and not growth focused. VTI and FXAIX are overlapped for the SandP500. 40% VTI, 30% VXUS, 20% QQQM.