FXAIX

j_son997

Sounds like a good plan to me. But if she is planning on investing in FXAIX, it's important to know that it offers much less diversification, and therefore more exposure to certain sectors than it had in the past. The Magnificent 7 companies (Nvidia, Alphabet, Microsoft, Apple, Tesla, Amazon, and Meta) now make up a significant portion (over 1/3) of the S&P 500's total market capitalization. Basically, the index is much more dependent on the performance of the tech sector than it was in the past, and that isn't necessarily a bad thing if she wants more exposure to the tech sector specifically, but it also raises questions about how many coins you really want in one hat. If you want to diversify more while still maintaining broad stock market coverage, any of the small to mid-cap funds (like the S&P 400 and 600) would be good, as they have much smaller concentrations of stocks that could be deemed 'highly speculative assets'. While the S&P 400 and 600 have delivered slightly smaller returns compared to the S&P 500 (CAGR of \~12% for the S&P 400 and 600, compared to \~13% for the S&P 500), they are significantly more diversified and would suffer less if, for say, a tech downturn were to occur and cause significant losses in that industry. Honestly, though, just try to diversify. If she's planning on retiring in 2055 (I'm assuming that's what the Fidelity 2055 fund is), you have the advantage of time, so you can afford to be a bit more risky with your investments and turn out fine by the time it comes to retire.

Used-Air-2688

Your plan sounds reasonable overall. A few thoughts: * If the mutual funds are expensive, underperforming, or overly conservative, moving to low-cost funds like FXAIX is a solid step. * Maxing the 401(k) and Roth IRA is usually a great use of the money, especially since she's eligible for a Roth IRA. * A \~$3k tax bill to improve a long-term investment strategy isn't a major concern. * DCA over a year is fine if it helps her stay comfortable, though historically investing sooner tends to outperform gradual investing. The only thing I'd question is holding both FXAIX and a target-date fund like FDEWX. The target-date fund already contains a diversified mix of U.S. stocks, international stocks, and bonds, so pairing it with FXAIX increases U.S. large-cap exposure. That's not necessarily wrong, but make sure it's intentional. Overall: no debt, emergency fund in place, maxing tax-advantaged accounts, and moving from costly proprietary funds to low-cost index investing is a very sensible plan.

Training-Calendar539

Seems mostly fine, just don’t skip the boring checks. First thing I’d confirm is whether the Principal funds are in a taxable account or a retirement account. If taxable, selling may trigger gains. If IRA/401k, make sure it’s handled as a direct transfer or rollover so you don’t accidentally create a tax mess. Using brokerage cash to help cover expenses while maxing the 401k and Roth IRA is a pretty normal way to move money into tax-advantaged accounts over time. I’d just watch the FXAIX + FDEWX combo. FDEWX already owns U.S. stocks, so adding FXAIX just tilts the portfolio more toward U.S. large caps. Nothing wrong with that, just know that’s what you’re doing. Also, target-date funds can be a little clunky in taxable accounts because of rebalancing/distributions. Usually worth thinking about before parking them there. Overall, not crazy. I’d just double-check account type, taxes, overlap, and allocation before hitting sell. Not financial/tax advice.

Eazy12345678

setup ROTH IRA. invest in VOO or FXAIX. you can take out contributions if you need to just no gains

thisisjustascreename

The portion of my portfolio that I care about tracking against the S&P is in FXAIX, fidelity's calculator says it's about $35 behind the index over the last 5 years. *My* picks make up less than 1% of my money, and they've done... poorly.

Atravellingsheep

In all seriousness. I highly recommend taking that money and outting it into FXAIX instead.

sheepebike9000

I think it's FXAIX (just wanted to clarify in case anyone is looking for it, it's easy to misspell!)

PortalWhovian

0.015% for FXAIX

Every_Cress

So voo and smh in taxable account? Any other better options ? I will have FXAIX in my Roth next year

Neuromancer2112

Ah ok. Personally, I don’t put mutual funds into taxable accounts - if they ever distribute capital gains, it’s much less tax efficient than ETFs. I’d have FXAIX in Roth, and if you want S&P 500 in taxable also, VOO is a good low-cost option. If you want to have a bit of Semiconductor exposure, SMH has been an absolute monster - since it’s sector-specific, though, I’d limit it to max about 5-10% of your total portfolio.

GaylrdFocker

Because it's a taxable account. FXAIX may have capital gains every year that are forced, and if they ever want to switch brokers they may be required to sell FXAIX before they do it.

HaiKarate

Either is fine, they're pretty much the same. The difference is that you don't get real time updates on mutual funds like FXAIX, nor can you trade during the day. Trades on mutual funds are executed at the end of the day. But if you are long term buy and hold, then neither of those should really matter.

EtherCJ

FXAIX is 0.015% : [https://fundresearch.fidelity.com/mutual-funds/fees-and-prices/315911750](https://fundresearch.fidelity.com/mutual-funds/fees-and-prices/315911750)

LuciusQ2020

FXAIX costs 0.73% a year while VOO is 0.03%. Huge difference.

DrScitt

If you’re in Fidelity, you likely want to get FXAIX instead. Probably cheaper fees.

InvestingNerd2020

Apps: Either Fidelity or Charles Schwab. Investing recommendations for "set it and for get it": An S&P 500 fund. Fidelity: FXAIX or SPYM (ETF) Charles Schwab: SWPPX or SPYM (ETF). If you are not working, open a taxable brokerage account and invest into ETF SPYM. ETFs are better for taxable brokerage accounts due to tax efficienct nature of their setup. Invest about $2,000 of the $7,000. Keep the other $5k in a HYSA of 3% or higher. If you are working, even part time, put $2000 in a Roth IRA instead. With Fidelity, invest into FXAIX. With Charles Schwab invest into SWPPX. Do the same with the $5k remaining (into a HYSA). Typical order of investing operation: 401k/403B company plan match > 3 moths worth emergency fund in a HYSA with 3% or higher yield > Roth IRA if you have a job > taxable brokerage last with ETFs.

backfire10z

Annual tax? Do you mean fund fees/expense ratio? VOO has those too, and they’re higher than FXAIX. FXAIX: 0.015% VOO: 0.03% (2x) It’s a pretty negligible difference.

Darby_Crash75

One more question. Doesn't FXAIX have the possibility of anual tax where VOO doesn't?

jeussbsisn

Hello everyone I’m 19m and I just maxed out my Roth IRA for the year with some savings. I’m planning on doing a 70/30 split with FXAIX and VT, do you think it would be a better idea to buy in smaller chunks though out the year or all at once right now?

AdamOtaku

No issue with that at all and FXAIX is fine too! Then you can add to it with income to capture any dips without worrying about timing Since you'll have a lot of cash outside that $150K if there's any dramatic downturns you can also just re-add from that pile

Darby_Crash75

I was thinking 150k in FXAIX. Think its too high to buy in now? Wait for a dip or jump in? Not the type to stress i understand its long term 10-15 years

Darby_Crash75

That's the vanguard right? I invest through fidelity was thinking like 150k into FXAIX?

1967C10

Do you have any debt? If so I'd recommend to pay all of it off first (other than the mortgage) then put 50% of what's left into a low cost index fund that tracks the S&P500 (FXAIX etc) , 25% in a HYSA, and 25% or less into a fun/lifestyle account for home/car/vacation or single/fun stocks you're passionate about (10% max)

SavageDabber6969

I am 25 in the US, living on the West Coast. I have no debt and still live with my parents. Car is paid off and I don’t pay rent. Income before tax is \~200k annually. I max my 401k contributions and with my income I am also able to contribute 5k to an individual Fidelity account monthly. I’ve currently been going all-in on FDKLX. After reading some Reddit threads on here, I’m under the impression I might be a little too conservative and should probably swap to FXAIX/rebalance how much I’m putting into FDKLX. The only time I would ever touch this money is for a house down payment, but that likely wouldn’t be for 5-10 years. I don’t mind rebalancing and revisiting this every year but I’d prefer to not have to manage it every month (although I still log in monthly just to monitor my progress). Should I just continue with FDKLX or should I put some money into FXAIX?

CarnageAsada-

I’m all in on FDKLX 80%/FTIHX 20% and a dash of FXAIX soooo diversify ?

SlySelea

That's what I keep telling myself. Skeptical though. I'm 70% FXAIX so I tell myself I will have a piece of it that way

yoddbo

Honestly just cash. Ive been slowly increasing my FXAIX position, but swing trading has been wildy profitable for me the last 3/4 months with how predictable Trump is. Namely ONDS, GOOG, RDDT, ASTS. I have shares im long on for all of them but been consistently moving shares for easy money. Pretty sure im retarded but its been working really well for me. Although taxes gonna fuck me it feels like free money for now.

jmardoxie

Isn’t FXAIX a mutual fund and not an ETF like VOO.

GolfLiftPlayPool

As far as I can tell FXAIX is a great ETF...its like VOO for half the price

Neuromancer2112

FXAIX is transferable - it's the Zero fund version (FNILX) that wouldn't be transferable. Roth IRA is better for mutual funds specifically (FXAIX), because if they distribute capital gains (nothing recent, but it could happen in the future), then that's a taxable event in a taxable account. ETFs are more tax efficient to put into taxable. I have FXAIX in my Roth and work retirement accounts, VOO in taxable.

Ok_Seaworthiness5149

The 100-age rule is pretty outdated at this point. Most people have shifted to 110 or 120 minus age because life expectancy is longer and you need growth to outlast a 30 year retirement. At 20 years old that formula says 0% bonds which is probably right honestly. FXAIX is just the S&P 500 so you're getting 500 large cap US companies, low expense ratio, straightforward. FXNAX is the total US bond market which means you're holding a mix of government and corporate bonds across different maturities. They do completely different things in a portfolio — FXAIX grows aggressively over long periods but drops hard in recessions, FXNAX is stable but barely beats inflation in the current rate environment. The real question is what the bonds are actually doing in your portfolio. If you're young and just want stability during crashes, a small allocation makes sense psychologically even if it costs you returns. If you're older and actually need the income or capital preservation, FXNAX is solid. Holding bonds right now just because the rule says so without knowing why is probably the worst reason to do it.

hymie-the-robot

FXNAX has duration of about six years, making it vulnerable to increasing yields. plus, longer bonds used to have a low correlation to equities, but these days they are more highly correlated, meaning you can no longer depend on them to protect you when markets stumble. if you look at a graph covering 2022, FXAIX went down, and so did FXNAX. so the bonds failed to do their job.

cuddlyviola_7

FXAIX is basically all growth/stock market risk, while FXNAX is the “stability” part with bonds that smooths out the ride. The old 100-age rule is just a rough guide now, not something you have to follow strictly. Most people going 100% FXAIX are just taking more risk for higher long-term returns, but it comes with bigger ups and downs.

Careful-Jeweler7053

My (Fidelity) plan is to rebalance my net between FSKAX (exposed to SpaceX) and FXAIX (not exposed until SpaceX has been ion the exchange for 12 months and has had 4 consecutive quarters of profitability). I am currently 85% FSKAX (more stocks, hitherto less volatility. Moving that to 50%. I'm worried but I do not want to chase phantoms. This seems a good compromise.

Lusus_Nature

Why not FXAIX?

Lusus_Nature

Why not FXAIX?

booobReviewer

Your logic is sound and a common approach. The reasoning breaks down cleanly: FXAIX in Roth IRA: Since you can sell and rebuy inside the Roth without tax consequences, Fidelity house-brand funds work fine here. The 0.015% ER vs VOO's 0.03% saves you ~$60/year on $400K — not life-changing but correct. VOO in taxable: You're right that portability matters. If you ever leave Fidelity, you can transfer VOO in-kind (ACATS) to any broker and keep your cost basis. FXAIX would have to be liquidated. One note — at a $420K 401k with Merrill, check if they offer in-plan Roth rollovers or mega backdoor Roth. That's often the highest-leverage strategy for someone at your savings level.

EPPAnalyze

Tranquillo, è un problema super comune che capita a un sacco di gente. Il motivo per cui sei bloccato è che FXAIX è un fondo comune d'investimento proprietario di Fidelity e non un classico ETF, quindi la tua nuova piattaforma non ha proprio gli strumenti tecnici per ospitarlo nel suo catalogo. La buona notizia è che, trattandosi di un Roth IRA, hai un enorme vantaggio fiscale che puoi sfruttare a tuo favore. Dentro questo tipo di conto puoi vendere e comprare tutti gli asset che vuoi senza attivare nessuna penale e senza dover pagare tasse sulle plusvalenze. Il modo più semplice per aggirare il blocco è fare una mossa in tre passaggi direttamente dall'app o dal sito. Per prima cosa, vendi le tue quote di FXAIX rimanendo sempre dentro Fidelity, in modo da convertire tutto il valore in liquidità sul tuo saldo. Subito dopo, vai sulla tua nuova piattaforma e avvia la richiesta di trasferimento specificando che sposterai il conto sotto forma di contanti e non come titoli. Una volta che i soldi sono arrivati sani e salvi sul nuovo broker, ti basterà usarli per ricomprare un ETF equivalente che traccia lo S&P 500, come ad esempio VOO di Vanguard o IVV di iShares. Gli ETF si comportano esattamente come il fondo che avevi prima, hanno costi di gestione ridicoli e, soprattutto, sono scambiati universalmente, quindi se in futuro vorrai cambiare di nuovo piattaforma non avrai mai più questo problema. Ci vorrà qualche giorno per completare i passaggi, ma è l'unico modo pulito e a costo zero per uscirne.

EPPAnalyze

Ciao! Tranquillo, è un problema super comune. Il motivo è che **FXAIX** è un fondo comune d'investimento proprietario di Fidelity, non un ETF, quindi la nuova piattaforma non può "ospitarlo" così com'è. Visto che ti trovi all'interno di un **Roth IRA**, hai un enorme vantaggio: puoi vendere e comprare asset dentro il conto senza pagare tasse sulle plusvalenze e senza alcuna penale. Per aggirare il blocco, fai così: 1. **Vendi FXAIX direttamente dentro Fidelity:** Converti le tue quote di FXAIX in liquidità (Cash/Core Position). Ripeto, trattandosi di un Roth IRA, questa operazione non genera eventi fiscali (no tasse). 2. **Avvia il trasferimento (ACATS) come "Cash":** Chiedi al tuo nuovo broker di avviare il trasferimento del Roth IRA specificando che trasferirai il saldo in contanti. 3. **Ricompra sul nuovo broker:** Una volta che i soldi arrivano sulla nuova piattaforma, usali per comprare un ETF equivalente sullo S&P 500 (ad esempio **VOO** di Vanguard o **IVV** di iShares). Gli ETF si muovono esattamente come FXAIX, hanno costi di gestione bassissimi e te li accettano ovunque se in futuro vorrai cambiare ancora broker. Ci vorrà qualche giorno per liquidare il fondo e completare il trasferimento, ma è l'unico modo pulito e a costo zero per farlo!

Consistent_Fix999

If your new brokerage doesn’t offer FXAIX, you’ll need to sell it before transferring. There’s no penalty for doing this since you’re simply moving your funds to a new brokerage.

potatogun

FXAIX is a mutual fund. Mutual funds availability is highly variable at different brokers. As others said, sell it and re initiate the ACATS transfer. You'll be out of the market for a few days. Alternatively you can sell the Fidelity fund and then buy an equivalent SP500 ETF or total US market fund and then initiate the transfer.

inwardcalm

FXAIX is proprietary so it gets liquidated to cash before a transfer out of Fidelity. It’s not a taxable event because Roth IRA.

EtherCJ

Sell FXAIX

DoinIt4DaShorteez

No reason not to use VOO for both. FXAIX is a mutual fund which means your order gets executed after the close at whatever the closing prices of all the stocks in the underlying index are. VOO you can buy and sell with instant execution during market hours. You may not make very many transactions, but being able to do them during market hours is worth the 0.015% difference in expense ratio. It's also possible you might want to transfer your Roth somewhere else at some point, to some brokerage that doesn't support FXAIX although I think most will support it. People on this sub sweat expense ratios WAYYYYY too much.

InvestingNerd2020

FXAIX to save on expense ratio and to reduce panic selling temptation in a Roth IRA. Because ETF are too easy to sell, people tend to panic sell more than index mutual funds. Treat index mutual funds like a marriage in an IRA.

EdgeInformal8264

retirement put it all in FXAIX , taxable brokerage dollars after retirement is maxed out in addition to the emergency fund goes into VOO

SpaceDaphne

That’s exactly how I’d do it. FXAIX in tax-advantaged accounts and VOO in taxable. The ER difference is negligible, but portability matters in a brokerage account.

Apart-Selection5680

This is easy. You don’t need one. Max your 401K (pick index funds that track the S&P 500 or the Total US Stock market). Max your HSA (if health plan option available through work). Max your IRA. Accumulate RSU, don’t sell, reinvest dividend (if you think it’s a great company that is growth). Open a brokerage account either in Vanguard or Fidelity. Once you max all the above, invest remaining money every week in VOO or VTI, VUG, and VXUS ETFs if Vanguard or FXAIX, FSPGX, FSPSX if Fidelity (Ratio 50:30:20). That’s it, don’t worry about individual stocks. If you need more input feel free to DM me.

Machine8851

Yes or you could just go FXAIX in a brokerage as well. Another good Fidelity fund is FSELX

Dstein99

I wouldn’t be concerned about such a small difference expense ratio, the holdings aren’t 100% identical so VOO could easily accidentally outperform FXAIX by 0.015%. The bigger difference is that FXAIX is a mutual fund and VOO is an etf, if that matters to you choose whichever you prefer, if it doesn’t, I wouldn’t be concerned about which one you choose. Fwiw I prefer etfs because like you mention they’re easier to transfer, I don’t own mutual funds so I don’t know about this but I have heard about mutual funds having taxable capital gains distributions, and an etf lets you monitor the price intraday rather than needing to wait until market closes to reprice.

InvestingNerd2020

SapceX will still be in target date funds. Since most people just blindly accept the company 401k/403b plans, Elon will still get his money. Just not S&P 500 funds, small cap, nor international. It's a great time to invest into a S&P 500 fund. FXAIX, SWPPX, VFIAX, VOO, IVV, SPY, or SPYM.

InvestingNerd2020

Only if the investing platform doesn't offer index mutual funds or a taxable brokerage account (ETFs are better there). Examples: SoFi, Robinhood, M1 Finance, and Webull. For a Roth IRA with Fidelity or Charles Schwab: Either Fidelity's FXAIX or Schwab's SWPPX. With the stock market crashing, it is a great time to buy if you plan on retiring in 20+ years.

0llie0llie

Has anyone in here heard or read about the new ETF called the Fitzgerald Must-Have Portfolio (FITZ)? Suze Orman was promoting it and my dad is interested, but when I looked it up and saw it JUST launched I got immediately skeptical. It went down a bit in value since the launch but I think that is partially bad timing. I’ve been trying to encourage him to invest in regular index funds like FXAIX. Curious what others here think of it.

sillygoosez

FXAIX or SWPPX, imo, is even better for compulsive gamblers. The money doesn't settle immediately so they're forced to take an entire day to think over their choices. I personally use mutual funds to avoid the impulse to buy high risk stocks. It's really helped me concentrate on passive long-term investing.

sillygoosez

This might be a good strategy, but since you're on Fidelity I would instead put money into FXAIX. Mutual funds, as everyone knows, don't allow investors to sell immediately. Since they normally take a day to settle, it would force you to get rid of that gambling habit slowly but surely. You wouldn't get that impulse to sell large gains and instead purchase more risky assets like individual stocks or crypto. Just a thought. I wish you all the best my friend. You got this.

circadiggmigration

Maybe what this place needs is some boomer FXAIX energy. https://imgur.com/a/k8V6qYo

InvestingNerd2020

SPYM in a taxable brokerage account due to the lowest expense ratio of an S&P 500 ETF. Either FXAIX or SWPPX in an 401k, IRA, or Health Saving Account (HSA). Low expense ratio and being an index mutual fund it psychologically reduce a panic selling temptation. Fidelity uses FXAIX. Chares Schwab uses SWPPX.

DistributionBroad173

Most of us did nor start investing until our 30s. Our 20s we were figuring life out and buying stuff, then, we got serious with marriage and thinking about buying a house. I opened my only IRA in 1983, and I invested in the wrong thing, not once, but twice. Meaning, my principle was about all I had after a few years of investing it, no growth. In your 30s you have 30 years ahead of you, you will be fine. Invest in the VFIAX or FXAIX, reinvest all dividends, reinvest all capital gains, you will be more than fine.

14mmwrench

Now sell all, pay off that card, and put the 17k in to VOO or FXAIX or something.  Then try to do it again with that 1k you are left to play with.

tbombadilllo

Early 40s here. $1.1M in 401k between the wife and me. $200k in brokerage in VTI and FXAIX. House will be paid off in 7 years but with 2.5% interest rate. The hardest thing for us to do right now is stay patient. Cannot tell you how often I want to sell the FXAIX position and put it into tech. The wife wants to sell the position and remodel the house. I keep using AI to project retirement strategy and know that if we literally do nothing, we can retire easily at 58 with a large travel budget. That's where we're at, just do nothing. Especially don't do anything stupid, and we've made it. So of course I'm lurking in this fucking sub...

Ahamadrayasbaboon

Yeah, I’m all in FXAIX in my 401k. I’m not changing that, and I’m not changing my taxable or IRA. I do hold a lot of SPMO and SPHQ in my self-managed accounts, in part because those are harder for trash to sneak into. 

FDLC84

Finally a person with common sense… I have seen people saying they are withdrawing their 401k!?!? The propaganda has gotten so bad they are going to get fucked so hard in taxes and fees trying to avoid something that would be insignificant even if you are 100% in an index that will hold SpaceX. I get it, people hate Elon Musk but for fucks sake don’t hate him so much that will literally be willing to fuck up your own well being to avoid an insignificant % of money. I have fidelity for my 401k. All in FXAIX, FSMAX, FXPSX because I don’t have the ZERO funds in the 401k. As options there is a bunch of managed accounts and bonds.

Sufficient_Habit5091

Keep in mind even those with an option to FXAIX or similar have a target retirement date fund. They're not sophisticated enough to realize they're buying something they probably don't want.

willscuba4food

Ah, I have FXAIX but I also have blended stuff as an option. Getting my money out of a 401K and into an IRA is just another good reason to find a new job.

Eazy12345678

if you buy and hold you make money. its that simple VOO FXAIX. 10-20 years is going to make money

shantired

The limit for zero tax is 250K if you’re unmarried and living in the same house for 5 years, which is your case. No taxes on 160K and 9 years. Here’s one way to invest: 35K in HYSA 85K in VOO or SPY or FXAIX (all are very similar). This is basically investing in pure American capitalism. 40K in BND or equivalent. This is a bond fund that you can use to buy more stocks or funds when the market is down (remember the adage: you make money when there’s blood on the streets). I would suggest that you put all your money into a HYSA right now and then invest about 10-20% every month into the 2 funds to dollar cost average (DCA).

According-Dinner6190

Thank you for your insight, sir. This is what I'm in the mix between and upped the international as what you said. 80% FZROX 20% FZILX Or 70% FXAIX 15% AVUV 15% FZILX

Cruian

>Right now, my Roth IRA holds: Dollar amounts turned into percentages are far more useful than number of shares. >I know some people will point out that FZROX already contains most of the companies in the S&P 500, so there is overlap with FXAIX. It should be basically all, not just most. >However, I've noticed that FXAIX has consistently outperformed FZROX within my portfolio, which is why I'm considering giving it a larger allocation. Recent history (roughly 2010 through now) has largely favored large caps over small, but longer term may paint a different picture: Factor investing starting points: * https://www.investopedia.com/terms/f/factor-investing.asp * https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/fidelity/fidelity-overview-of-factor-investing.pdf (PDF) * https://www.cbsnews.com/news/the-black-hole-of-investing/ Notice these all favor small over large. These can show recent-ish history that small caps can indeed over perform large for years at a time: * https://www.callan.com/wp-content/uploads/2018/01/Callan-PeriodicTbl_KeyInd_2018.pdf (PDF) or https://www.callan.com/wp-content/uploads/2020/01/Classic-Periodic-Table.pdf (PDF) or the archived versions if those don't work: http://web.archive.org/web/20201212205954/https://www.callan.com/wp-content/uploads/2018/01/Callan-PeriodicTbl_KeyInd_2018.pdf (PDF) & http://web.archive.org/web/20201205183933/https://www.callan.com/wp-content/uploads/2020/01/Classic-Periodic-Table.pdf (PDF) (Archived copies from Archive.org's Wayback Machine) While small may be the favored end of the size factor, even favored factors can go long periods (15+ years isn't unheard of) out of the spotlight.

CEO_of_SOXL

FXAIX and chill

AzIsHotYo

I’m sitting on cash (other than retirement being in FXAIX) bc I want to buy a house next year but maaaaan.

External-Conflict500

You didn’t state anything about the account or what you plan for the money. If it were mine at 45 and retiring at 62 it would be 70% FXAIX and 30% FNCMX

Muted-Jackrabbit

SCHB already contains almost all of FXAIX, my goal here was diversifying. Good call, FXAIX was definitely involved in my decision. I thought about throwing 10k in FGBRX and may still do it. Thanks boss

This-Grape-5149

I would add FXAIX Sp500 and maybe a growth fund. Those other funds haven’t returned a ton historically. Depends how aggressive you want to be. Biggest thing is to set the auto investments on and you’ll be ok

Far-Doctor3527

TLDR: VT and chill Hello, responding here because I am also unhappy that my passive funds will buy SpaceX. I have decided to not take any action regarding the SpaceX IPO, and accepting that my funds will buy it even though this IPO seems like an obvious grift. I am not trying to convince you to take action or not take action, just explaining my reasoning because this IPO has made me worry about my portfolio and maybe this will be helpful to you in your own decision. First let's understand what types of funds could be affected by the IPO: \- Total world market funds (VT and the like). These track the total world's equities market, which is roughly $154 trillion in market cap. \- Total US market funds (FSKAX, FZEROX, VTI, VTSAX, and the like). These track the total US equities market, which is roughly $77 trillion in market cap. \- S&P 500 funds (FXAIX, VOO, and the like). These track the largest 500 companies in the US by market cap, which total to about $62 trillion. Note that this is about 80% of the total market. \- S&P 100 funds / Mega cap funds (FGRTX, QQQ, and the like). These track roughly the top 100 companies in the US, totaling roughly $55 trillion. Note that this is roughly 70% of the total market, and roughly 89% of the S&P 500 \- Large cap funds (FNILX, FSPGX, and the like). These are functionally equivalent to the S&P 500 so I will not add anything here, they may be slightly larger or smaller percent of the total market than the S&P 500 depending on holdings. \- Mid cap, small cap, and international funds: unaffected The first thing you want to think about is: what are you invested in? You don't have to go super granular but most passive investors have their investments in some version of the above funds. Are you more of a total market person, or more S&P 100? It doesn't matter which one you are, but take a look at your portfolio and understand what you are invested in. Now let's assume SpaceX does IPO at $2 trillion and let's look at how the SpaceX IPO affects the broad categories: \- Total World Market Funds: 2 / 154 = 1.2% of the total world market \- Total US Market Funds: 2 / 77 = 2.6% of the total US market \- S&P 500 and other large caps: 2 / 62 = 3.2% of the S&P 500 \- S&P 100 and other mega caps: 2 / 55 = 3.6% of the S&P 100 Now let's assume that the worst case happens: SpaceX IPOs at 2 trillion, and then the price goes literally to 0. If you are mostly in total market funds, your portfolio would go down by 2.6%. If you are mostly in large cap funds, your portfolio would go down by 3.2%. If you are mostly in mega caps, your portfolio would go down by 3.6%. But let's be realistic, even with this IPO likely being an Elon grift, do we really think this is going to 0? I don't. Maybe it loses 50% of its price, maybe 80%, I don't know. But it's a real company with real revenue (though small revenue compared to its huge valuation), so it's not going to 0. I'm not going to redo all the calcs but just for example, assuming it goes down by 50% and you are mostly in S&P 500 funds, your portfolio would go down by 1.6%. But here is the biggest consideration: 100% of SpaceX is not going to be publicly tradable. We don't know exactly what the percent it is going to be but likely only like 5%. This means that the indexes will only track 5% of SpaceX's market cap. So assuming SpaceX IPOs at 2 trillion and goes down by 50% and you are mostly in S&P 500 funds, your portfolio would go down by (2 \* .05)/62 = .16%. To be clear, this is like a fifth of a percent, which is inconsequential, the market moves more than this on a daily basis. Another point: I don't know what is going to happen in the future: I don't know if SpaceX's price will actually shoot up for whatever reason, so as an uninformed person, I think actively shorting SpaceX is not a good idea. Remember the famous quote "the market can remain irrational longer than you can remain solvent". I am a regular person and don't have any privileged information about what is going on with SpaceX so I think shorting it would be equally risky to shorting any other company that doesn't have a high-profile controversial figurehead as Elon Musk, which is something I wouldn't do (and likely something other passive investors wouldn't do either). At the end of the day, passive investors get to benefit from all of the companies in the market without having to do the work of researching and understanding each business, and making bets about which one will go up or down. We have benefitted from all the other great businesses that have continued to skyrocket without having to use a second of time to evaluate them. If you want to take action against the SpaceX IPO that is totally ok, but you could be introducing complexity to your portfolio, and spending your valuable time thinking about how to hedge against something that will impact your portfolio less than regular daily market fluctuations. Again, not trying to convince you one way or another, and to reiterate, I am not happy that I will be buying into this IPO passively because I do think it is a grift, but by looking at the actual numbers I have decided that this is not consequential. So to summarize all of this information, even though I am more of a Fidelity stan than Vanguard, "VT and chill".

tank_panzer

It depends. In my 401k I only have a few options. I sold FXAIX and bought FSMAX

HaiKarate

Unfortunately, because of the size of the offering, SpaceX will be added to the S&P 500 in six months to a year. So it's unavoidable to anyone holding SPY/VOO/FXAIX etc, for the long term.

lvnv891

mutual funds are >>>> etf's for long term investing FSPGX or FXAIX and just throw in whatever dollar amount, is easier than buying ETF's

sellputsthencalls

Since you're using this r/options community, I presume you want to get 6%/yr using an option strategy. By the way, if you simply buy SPY (the S&P 500 ETF) or FXAIX (Fidelity's S&P 500 fund), which has averaged 15%/yr over the last 10 yrs, your chances of 6%/yr are quite good. But because the S&P 500 lost 18% in '22 & 4% in '18, you may be uncomfortable with that risk. Here's an option idea: Use SPY, @ $742 today (5/21/26). Place $75K in a brokerage account's MMF. In a year, $75K @ 6% will provide you with $4,500, your target. That's a $375/mon target. I use Fidelity. Its SPAXX MMF has a 7-day yield of 3.23%; times $75K = $2,422 a year or $202/mon. Fidelity (& some other brokerages) pays MMF interest on the reserve that's held for CSPs (cash secured puts). Sell 1 SPY CSP, expiring on 6/18/26 (28 days), with a $685 strike price. For the one month commitment, you'll receive a $1.74 premium = $174. That $174 CSP premium + the $202 MMF interest (3.23% on the $68,500 CSP reserve & the remaining $6,500 in the SPAXX MMF) totals $376 for the month, satisfying your 1st month towards the 1 year target of $4,500 or 6%. Fidelity's probability calculator says that this CSP has a 2% assignment chance/98% expire worthless chance. If it expires worthless, sell a similar CSP for the next month. If you get assigned to buy 100 SPY @ $685, your $68,500 CSP reserve will cover it & your remaining $6,500 in MMF will continue paying some interest. You can then sell a CC (covered call) versus SPY, always aiming to generate $375/mon in premium + MMF interest.

okieboat

I've maxed my 401k and now plowing money into my personal fidelity account. So far only FXAIX. Might look at some of these others.

paragonx29

FXAIX would be ok for FZROX. Very small ER as opposed to zero. The former carries a bit of small cap whereas FXAIX is straight S&P 500.

okieboat

Legit question, why not FXAIX?

InvestingNerd2020

Noo! Don't fall for the trap of buying multiple individual stocks. Even experts who devote 50 hours per week still cannot beat the S&P 500 90% of the time. Stick with VOO or FXAIX in a Fidelity Roth IRA. Both follow the S&P 500 index, but FXAIX is less expensive (expense ratio of 0.015% vs 0.03%). Good idea of using SPAXX for a savings account in their taxable brokerage account. Also, make sure you have a good business checking account. Capital One is nice, but only 1 location to deposit cash (Atlanta). Chase might bet the best option if you need more locations to deposit cash.

Aggressive_Deer_7072

Honestly after the Roth IRA, a taxable brokerage account probably makes way more sense than letting 100k sit there barely doing anything. A lot of people just keep an emergency chunk in cash then start averaging into stuff like VTI/FXAIX over time instead of trying to perfectly time the market. 230/month on 100k is kinda painful honestly lol.

External-Conflict500

I’m adding at least 3k a year in FXAIX in my granddaughter’s account. She is 4

Junior_Gap3756

Regarding your question: FXAIX (S&P 500) and VTI (Total Market) have a 0.99 correlation. In a taxable account, the real conversation isn't just about which one to buy, but **Tax-Loss Harvesting** and **Asset Location**. Since you're looking for more 'rewarding passive income,' you need to ensure your tax drag doesn't eat up your yields

JigWig

I don’t gamble at all. No options. Some individual stocks, but mostly just FXAIX. Happy to answer whatever questions people have. OP asked for others to share their growth, and I shared mine.

harrison_wintergreen

>1) Is holding onto the cash waiting for market down turns a good strategy or is it just better to just throw it at what I am already investing in? the second strategy is more successful about 60% of the time, but we don't know until after the fact which strategy is better. >2) Does it matter if I am investing only into etfs and bonds rather than mutual funds. Would it be more wise to invest into mutual funds or does it really not matter? ETFs and mutual funds are very similar, with the main difference being treatment for tax purposes (ETFs are better in a taxable investing account), and ETFs trade all day but mutual funds only trade at the end of the day. VOO is an ETF and FXAIX are a mutual fund, but they are practically identical in both tracking the S&P 500 which is larger US company stocks. either one is fine. >3) Are there any other etfs or mutual funds I should add to my portfolio for steady long term growth? I am not a super high risk taker I just want something that is known to grow a very good decent amount over long periods of time. nobody knows for certain what will perform best in the future, be skeptical of anyone who says otherwise. which is why you want to be fairly well diversified and not too concentrated in what's hot or trendy at the moment. >4) Is there any other strategies I am missing out on that I could tap into right now that would that would really help my future self out down the road? pick a reasonable plan, save 10% or more of income into retirement accounts, automate it and forget about it. don't follow the news, don't check your investing accounts more than about 4x a year. >I think my diversification is pretty decent. that's a very solid plan, but I would reconsider the 10% cash. 10% bonds is fine, even for younger people, because bonds stabilize things a bit and beat stocks something like 15% of 10-year periods. but not sure the cash is a good idea.

Various_Couple_764

in the 1990s mutual funds often had much higher expenses than the NEW ETF that were just coming out back then. There is also a small tax difference. So people recommended using ETFs. However today Most muturnal funds have cut there expenses now the ETF advantage is very small or zero. for example VOO and AXAIX are both S&P500 index funds. FXAIX is a mural fund with 0.15% expense. VOO is a ETF version with 0.3% expenses. In this case FXAIX is the better choice.

BadMofoWallet

I place bets myself but I’m not a dumbass and have boring ass shit in half my portfolio mostly FXAIX and some blue chip shit I’ve been holding forever

External-Conflict500

Don’t buy stocks if you don’t know what you are doing. Create a Roth IRA and fund it annually and then invest in FXAIX - an S&P 500 Index fund. You won’t see great changes until you accumulate a lot of investment. The market will go down but it then comes back strong.

mtnbikeut

Stock Market is like real estate. Values will go up and down over time but if you buy wisely, you will most likely end up ahead. Buying stock in a company is like buying a small part of a house. It goes up in value when the company continues to go up in revenue (other things factor as well but for simple sake this as basic as it gets) because it creates demand for the shares. For the most part, stick to ETF's when you are first starting out and stick to ETFs that track the S&P 500. Look at VOO or FXAIX and create a recurring plan to invest in that. This is primarily what your 401k will do.

EasttoWest9

Yeah that was going to be my other point - meant to bring that up. Saw that in another sub once: "Is where you are putting proceeds going to grow as much as the holding?" Probably not, I was going to put it in FXAIX or QQQM. Some growth there but definitely safer. 15% to SGOV.

thatDudeBehindU

I am new to investing, I'm 26 and want to be slightly aggressive now while I'm young but I dont want to be stupid. I had asked AI a bunch of financial questions and im not one to rely on AI alone, I wanted to bring its idea here to real people to confirm or deny if this is a good strategy. The strategy is as follows Roth IRA: 50% FSPGX 50% FISVX Individual: 40% FXAIX 30% FISVX 30% FDTX End of every year, 10k in FXAIX I would like to have a set it and forget it mentality to avoid emotional selling with anything TOO risky. But again, im young, so I would love to be slightly aggressive. Anything I should change before I do this strategy? Anything im overlooking? Is this considered slightly, highly, or not at all aggressive?

DEbayPirate

I’ve done steps 1-5 but put it into a traditional IRA (FXAIX) contributing 7k and 7.5K the past two years. I am a young single guy but made more than 150,000k so wasn’t sure if I could do the Roth. Now some have mentioned about a backdoor, can I still do that as step 6? Seems like you know lots about this stuff and couldn’t get a clear answer on the internet.

zZDKVZz

Go to a brokerage and open account then transfer money from bank to account, buy index fund, then continue contribute each paycheck/month until yearly maximum contribution. In other word: 30 minutes process 1. Go to fidelity 2. Register account 3. Transfer money from bank 4. Wait for money settle 5. Buy VOO or FXAIX ticker. Also make sure to go into account settings to have any divident automatically reinvest into the same funds. Continue contribute and let it compound interests overtime. "Compound interest is the most powerful force in the universe"

EvilZero86

Now put it all in a S&P 500 fund. I could recommend fidelity FXAIX and let it sit. It’ll compound interest easily to $10million within 10-11 years without all the risk you are taking now.

AustinDamsel

I’d buy FXAIX over VOO.

Schmergenheimer

Needless to say I was pretty happy with my decision to use that one to pay bills rather than my BAC or FXAIX

Beneficial_Toe_6050

Depends on your age. Depends on how you feel about RKLB and its future. At the start I had about 300 shares with an average of 6$. Overtime I’ve sold, bought back, and invested money elsewhere. Today, I trimmed my RKLB position and invested that money into AUR and VXUS. Between AUR and RKLB, I want to keep them below 20% of my portfolio. FXAIX is the backbone of my portfolio which is 75%

ChinaWetMarketLover

You could ask an LLM like ChatGPT or Claude but I got you. The reason is because VOO is an ETF. Similar to a stock, the ETF price changes throughout trading hours. FXAIX is a mutual fund. The price only changes once per day, and it happens ~an hour after market close. That’s why you see the discrepancy. FXAIX hasn’t updated its price today. Youre looking at yesterday’s price.