FXNAX

therealjerseytom

In my short-term account: I have a rolling ladder of 8-week treasury bills as my emergency fund, rather than a high-yield savings account. Current yields are right around 4%. Alternatively an ETF like SGOV isn't going to be far off that, or even a money market position. I do the bills so that money is "locked up" and spoken for, whereas my money market position is un-invested / discretionary. That is supplemented by a broad bond index (e.g. FXNAX, AGG, BND...), and increasingly municipal bonds both in index form (MUB) and some individual in-state bond holdings. That account is also supplemented by some defensive-sector equity (utilities, consumer staples) and dividend-focused equity ETF's in modest measure. Whether taxable or tax-exempt bonds make more sense for you depends on your tax bracket.

SnS2500

\> My goal is to reduce exposure to AI-driven U.S. tech stocks \> I used AI to help sort through this information Hopefully that irony of the latter will get you to reconsider the former. If you are uncomfortable with the current economy get SGOV. IF the S&P500 does poorly for an extended time, so will basically everything else. For example, FXNAX is still a loser for the past five years.

UGeNMhzN001

There’s a couple things here that might need a closer look. The taxable account is a good move but that bond allocation (especially FXNAX in taxable) could end up quietly drgging you down with taxes, ouch. Also, retiring at 62 with healthcare costs and no mention of how you'll covr the gap to Medicare? That’s a big question mark and potential pain point. Have you actually run the nubers on how much you'll need monthly in retirement and where exactly that’s gonna come from beween 62 and, say, 70?

therealjerseytom

Sure! Overall it's a 30/70 split between equities and fixed income. My base defensive layer is the emergency fund, which I split up in rolling treasury bills with one maturing every week. Alternatively you could do SGOV, which yields a little less, but the T-bills are so easy I figure why not squeeze the most out of them. Substantial amount of municipal bonds via a national, low-expense ratio ETF, MUB. I also have in-state municipals in MSNCX, even though the expense ratio is brutal, and some individual in-state bonds laddered over the next few years. I'd be all in on individual bonds if not for the fact they're not call protected. FXNAX rounds things out with some other bond sectors. I do have a position of ANGL in this account, which I think I'll move to my higher-risk portfolio. For equities I have a substantial chunk in defensive sectors that tend to outperform the broader market during recessions - consumer staples (VDC) and utilities (XLU). The utilities position I think may have some additional upside if electric demand increases in the future by means of data centers, electric vehicles, etc. Then I also have some dividend-oriented (and sub-1.0 beta) positions of HDV and SCHD. The goal of that equity blend is to lean heavily into defensive sectors and avoid economically sensitive sectors like tech and consumer cyclicals.

gottemgottemgottem

[https://www.fidelity.com/mutual-funds/fidelity-funds/overview](https://www.fidelity.com/mutual-funds/fidelity-funds/overview) List of all fidelity funds. Go to section "index" (passively managed, low fees) Key funds: [FZROX](https://fundresearch.fidelity.com/mutual-funds/summary/31635T708) (zero fee/expense total market fund) [FZILX](https://fundresearch.fidelity.com/mutual-funds/summary/31635T609) (zero fee/expense international fund) FXNAX (US Bond market fund) Pick a ratio of these three, I do 60% FZROX 40% FZILX as I am young and not retiring soon. (This means I am 100% in stocks, but 70% of my stocks are US stocks and 30% are international stocks)

bienpaolo

Trying to hedge against all those market curveballs is smart, but sometimes juggling too many bond funds can just make things messier and hardr to track, not safer. FXNAX does have corporate and MBS expsure that can act kinda like stocks when things get shaky, but switching into VGIT and VGLT might leave you expsed to interest rate risk if rates suddenly jump, which could hurt your portfolio just as bad. Plus, TIPS help with inflation but don’t protct against all scenarios. have you thought about how much risk you’re actually willing to stomch if the market tanks, or are you mostly trying to avoid losses at all costs?

xiongchiamiov

The most common options are a total market fund (FXNAX) or mid-term US Treasuries (FUAMX). There are a lot more good options because of the way bonds differ from stocks, but those would be your simplest ones.

therealjerseytom

Depends what you're trying to achieve. I have positions in T-bills (SGOV would be the closest match), VCLT, TLT, ANGL, FXNAX, MUB, and some individual in-state municipal bonds. > I know of only a few that are worth investing maybe 5% of someones portfolio in. Is that to say, in your view, for *anyone* regardless of their age or investment goal time horizon, you can only imagine at most, 5% allocation into bonds?

ILoveKombucha

If you are new to investing (or even if you aren't new), you should be really careful about picking individual stocks. The vast majority of your portfolio should be in broad, well diversified index funds - things that track either the entire US stock market (VTI, FSKAX, etc), or that track the S&P 500 (VOO, FXAIX, etc). You would also do well to consider investing in a very broad international stock fund (basically holding all the stocks of the world, something like VXUS, or FTIHX, etc.). And finally, you should consider whether or not holding any bonds in a bond fund (like BND, FXNAX, FUMBX, etc) makes sense for you, based on age and risk level. You should consider buying individual stocks in the same way you would consider gambling. I'd recommend no more than 5-10% of your total portfolio for "gambling" (stock picking). Folks who try to pick winners (as you are trying to do) are (far) more likely to underperform the market than to outperform it. There are people who do outperform the market by picking individual stocks, but these are usually folks who know a lot about what they are doing. It's not easy to do consistently, and a lot of people (similar to gamblers) tend to focus on their winning picks, and downplay their losing picks. Stick to index funds until you have a very solid grasp of what you are doing (judging by your comments in this thread, you don't!), and even then... stick to index funds (IMO).

harrison_wintergreen

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

Machine8851

I would dump FXNAX, and add FBTC and IAUM

MaxSmith5

That's a solid, classic 60/40 portfolio, and the Fidelity funds your AI suggested are excellent, low-cost choices for it. To add a layer of perspective, be aware that the S&P 500 is currently at historically high valuations and is heavily concentrated in a handful of large companies. For a long-term investor this isn't necessarily a dealbreaker, but it's the main risk to understand with the 60% allocation. Similarly, on the bond side, trackers like FXNAX can still lose value if interest rates rise, so they may not provide the same downside protection they have in the past. Your biggest source of 'safety' with this strategy will be your own discipline and having a long time horizon to ride out any downturns without panic selling.

Alienware15rr3

Yeah, what this means is usually 60% sp500 and 40% in an overall bond tracker such as agg/bnd.. I asked grok and it said the following: S&P 500 Index Fund: Fidelity 500 Index Fund (FXAIX) Tracks the S&P 500, covering large-cap U.S. stocks. Aggregate Bond Index Fund: Fidelity U.S. Bond Index Fund (FXNAX) Tracks the Bloomberg U.S. Aggregate Bond Index, including investment-grade U.S. bonds (Treasuries, corporate bonds, mortgage-backed securities).

Ok_Assignment4100

For my respective retirement investment accounts currently: 401k has Vanguard TDF 2065 and Roth IRA has FSKAX, FTIHX and FXNAX. My 401k plan doesn't have great options aside from Fidelity's S&P 500 (FXAIX), so just opted for TDF for it's diversification. Thoughts?

greytoc

Make sure you understand duration if you plan to use an intermediate duration fund like FXNAX - This is the recommended primer - [https://www.pimco.com/resources/education/everything-you-need-to-know-about-bonds](https://www.pimco.com/resources/education/everything-you-need-to-know-about-bonds) and here - [https://www.pimco.com/us/en/resources/education/understanding-duration](https://www.pimco.com/us/en/resources/education/understanding-duration) For your timeframe the average duration of FXNAX is fine.

Ok_Assignment4100

I plan to retire mid-60s (Late 60s if I need to grow my portfolio slightly). So in 15 years. How much should I allocate to FXNAX in this case?

Ok_Assignment4100

In my case, what would be a good time to add FXNAX?

Ok_Assignment4100

*Puts 5% into FXNAX*

max_strength_placebo

>Just got rid of FXNAX as I don’t want to tap into that yet as I’m in my early 40s. about that... https://www.nytimes.com/2020/05/01/business/bonds-beat-stocks-over-20-years.html

Ok_Assignment4100

Thanks for the suggestion. For context, I'm still relatively young at 40 (Haha) and really just started investing last year. At this time, I have my allocation as 60% (FSKAX), 30% (FTIHX) and now 10% (FXNAX). Plan to retire in another 25-30 years, if that helps.

Accurate-Photo-7871

I’m looking for thoughts on my investment strategy as I age. Any feedback is appreciated!  I’m thirty now and investing this portfolio:  VOO — 15%  SCHG — 35% AVUV - 25%  FTIHX - 20% SCHH - 5% At 40:  VOO — 20%  SCHG — 25% AVUV - 20%  FTIHX - 20% SCHH - 5% FXNAX - 10% At 50: VOO — 15%  SCHD - 20%  AVUV - 20%  FTIHX - 25% FXNAX - 20% At 55:  VOO — 10%  SCHD - 20%  AVUV - 15%  FTIHX - 20% FXNAX - 35% At 60:  VOO — 10%  SCHD - 20%  AVUV - 10%  FTIHX - 20% FXNAX - 40%

WaffleHouseFighter

Play it safer with: Vanguard Target-Date Funds, pick your retirement year. They handle diversification for you and get more conservative over time. S&P 500 Index FXAIXor Dividend Stocks VDIGX– Big, stable companies hold up better. Bonds FXNAX or VIPIX– Boring but reliable when markets freak out. Skip or go light on small caps, international stocks, and energy, they’re rollercoasters right now. But that’s just my option from my anxiety riddled brain.

Eli_eve

My three largest positions are with FZROX, FXNAX, and FZILX - so pretty heavy on the high market cap companies due to how total market funds work. I supposed I could rebalance some stuff into FXIPX for more exposure to companies ranked 500 through 2500 by cap but never saw a reason for that.

Joanne819

Did I make a bad investment decision? Advice quick, please? I have never invested/bought stocks as I felt like I never knew enough. I heard about the giant dip and that it was the right time to buy. Unfortunately I heard AFTER things already went back up. But I asked a friend who does well financially and invests if it was a good idea (as in not neutral but smart) to still buy and they said yes. I didn't want to miss out further. So at like 11:30 (CT) last night... I took 10k from savings and purchased: * FSKAX (Fidelity Total Market Index Fund) $6,000 * AMZN $500 * NVDA $500 And my plan is today to buy: * FUAMX (Fidelity Intermediate Treasury Bond Index Fund) $1,000 * Or should I actually buy FXNAX (Fidelity U.S. Bond Index Fund) * FIVFX (Fidelity International Capital Appreciation Fund) $1,000 * Or should I actually buy FTIHX (Fidelity International Index Fund) **Did I make a mistake doing this, as in did I miss my time? I'm hearing there was an historic increase in the market, but I imagine that is specifically in relation to the huge dip, so it's not like I'm making a dumb timing decision given I missed things earlier? Should I cancel anything before the market opens since the three I purchased are still in pending status?** **I haven't purchased the FUAMX or FIVFX. Should I hold off? And if not, are those the right ones, or should I do the alternatives listed (FXNAX and FTIHX)?** My other friend said he thinks I should do 7k FSKAX, 1500 FTIHX, and 1500 FXNAX "because you already have exposure to AMZN and NVDA in FSKAX, and it only makes sense to buy individual stocks if you can pick a winner. In order to pick a winner, I simply ask myself, am I Warren Buffet? This portfolio puts you at 85% equity and 15% bonds." I clearly don't know a lot and am going to take a lot of time going forward to learn but for right now... Give me your honest feedback and advice please?

LanguageLoose157

Are those FXNAX? Something U.S. bonds?

Amb688

I (45M) am DCA bi-weekly into FSKAX/FTIHX/FXNAX in a Fidelity taxable account after maxing out 401K and Roth IRA. I have some positions with Ameriprise that I used to have them managed and I'm unable to move them to my Fidelity account: GIRMX (3.5K) / GSINX (19K) / PRXXX (43K). Question is should I let them be or should I liquidate them and buy the 3 funds mentioned above?

Amb688

I (45M) am DCA bi-weekly into FSKAX/FTIHX/FXNAX in a Fidelity taxable account after maxing out 401K and Roth IRA. I have some positions with Ameriprise that I used to have them managed and I'm unable to move them to my Fidelity account: || || |GIRMX|3537| |GSINX|19559| |PRCXX|43681| Question is should I let them be or should I liquidate them and buy the 3 funds mentioned above?

caca-casa

Overseas, bonds (I’m split between FIPDX & FXNAX), and frankly for me… cash (a HYSA). This is one of those rare times in history where hoarding a pile of cash is a solid stance. You’re liquid and rates remain high. I, for one, will be watching to see how long this goes on and whether the ripples will end up affecting the housing market to my fucked over millennial benefit. There is just as good a chance it won’t. Stagflation is a nasty SOB.

KnightsOfFire08

As a fidelity user, **FSKAX**, **FSPGX**, and **FXAIX** are all amazing, broad, medium risk, and the majority of my steady growth strategy portfolio. I have been looking into "riskier" options like **FDIS**, **FSTA**, **FTEC,** **ONEQ****,** and **FHLC** because I trust those markets will consistently grow. The ups and downs of those "riskier" funds will be more significant than the S&P 500 but less fluctuation than a single stock. In addition, those MSCI funds are not dependent on the US total economy, but focused on specific dominant sectors in the US economy. If you have a low risk tolerance, looking at bond funds like FXNAX would be perfect to lean into as you get closer to retirement! I hope this helped out!

therealjerseytom

> Is that just saying this is the price of FXNAX if I immediately took the dividend and reinvested it myself? Or is it saying that it would automatically use my dividends to buy more FXNAX and that I somehow need to tell it whether I want it to just give me the dividend or to automatically reinvest it? Yes... and yes. 🙂 In your account/portfolio, can you choose what you want to do with dividends and capital gains distributions. You can either have the $$ deposited into your core account, or have it automatically reinvested.

MaxTheSquirrel

Thanks. I do see that monthly dividend payout, but the description says: "It also shows the price of shares purchased in the fund if the dividends were used for that purpose." Is that just saying this is the price of FXNAX if I immediately took the dividend and reinvested it myself? Or is it saying that it would automatically use my dividends to buy more FXNAX and that I somehow need to tell it whether I want it to just give me the dividend or to automatically reinvest it?

rep3t3

They pay you a monthly dividend FXNAX is a fund made up thousands of bonds all maturing and getting coupon amounts at various times and values so the coupons stay within the fund

big-papito

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.

ckouf96

I’m early in my career, married, and have a kid. The only retirement account I have right now is a 401k that I contribute to monthly, enough to get my full match. On the side, I also have a Fidelity account that I invest in biweekly and I do a 50/30/20 split in FSKAX/FTIHX/FXNAX. Learning more about retirement investing it seems I should open a Roth IRA and contribute to that before I contribute to my above fidelity approach, is that a correct assumption? Do you all like Fidelity as a Roth IRA provider? How should I direct my Roth IRA to be invested? My company has financial advisors who work at Merrill but I don’t think there’s any benefit to using them over my own platform. Should I also consider a 529 for my child’s future education?

Russiax36

So basically FZROX is nearly identical to FSKAX with the added benefit of no management fees? So it could be beneficial to move my investments from FSKAX to FZROX rather than add FZROX as my 3rd index fund along side FSKAX/FXAIX. In regard to the FZROX/FZILX/FXNAX, I will do some more research into these. I have attached a imgur link to the main post of a screenshot of my current positions and all time unrealized gains.

xiongchiamiov

[Dividends are irrelevant](https://www.investopedia.com/terms/d/dividendirrelevance.asp). FSKAX (total US market) is a replacement for FXAIX (US large cap). FZROX is effectively the same thing but without the management fees. It's a good choice in a tax-advantaged account like an IRA because you'll have to sell it if you ever transfer the account to a different broker. Without a reason to do something different, it makes a lot of sense to run a [three-fund portfolio](https://www.bogleheads.org/wiki/Three-fund_portfolio) with FZROX, FZILX, and FXNAX. Or pick the passively-managed Fidelity target fund and let them do it for you.

KoodGarma

**Kudos to you for starting your investing journey early!** First, look up [Bogleheads Getting Started](https://www.bogleheads.org/wiki/Getting_started), that's where I started learning a ton. Second, think about lump sum what you've got to start with, outside of funding an ongoing savings account (e.g., 10%) per paycheck, having an emergency fund in a reputable HYSA w/ easy transfer fund options (e.g., 3.75% at Discover Online Savings) with enough saved to cover at least 3-6 months of living expenses, and then DCA what you can afford to invest (e.g., 10%) per paycheck going forward. Following is a tax-efficient, low-maintenance investment allocation recommendation based on your age and using Fidelity-based low/no cost fund options (can differ based on your brokerage). Feel free to chat me up if specific questions Best of luck! \> Taxable = 70% US (FSKAX) / 30% EX-US (FTIHX) <or> if you prefer ETFs 70% US (VTI) / 30% EX-US (VXUS) \> Roth IRA = 70% US (FZROX) / 30% EX-US (FZILX) \> Trad IRA = 60% US (FZROX) / 30% EX-US (FZILX) / 10% Bond (FXNAX) \> HSA (if avail) = 70% US (FZROX) / 30% EX-US (FZILX)

feelingsupersonic

I'm not an investing genius but if I had to give criticism, you seem to be overweight on tech stocks. I would also ask if you have considered a small amount (maybe 10-20% of this) toward international stocks, and maybe 10% toward bonds. Not as lucrative, but it would hedge against a big tech drop. Especially given that you are investing 50% of your income, it comes down to your risk tolerance. For reference I'm similar to you - early 30s, single, but medium cost of living area and a house that's mostly paid off. I am putting closer to 25% of my income into these below bins. These are approximate values, recurring investments. - 60% total US stock market (FZROX, similar to VTI) - 10% total international stocks (FZILX) - 10% total US bonds (FXNAX) - 5% precious metal fund (FSAGX) - 5% each into small / mid cap (FSSNX / FMDGX) - 5% into real estate (FSRNX) - The last 5% is discretionary, individual stocks. Right now energy stocks seem like a good buy, maybe some defense as well. Smarter investors than me will probably be able to point out how I could improve so, so I am also open for criticism. The main thing I was going for was avoiding overlap between the funds, so I can re-balance it if needed with little fuss.

Torkzilla

VGSH VGIT VGLT (short int long bonds) SPIB SPHY (corporate int and high yield bonds) VMBS (mortgage backed securities) My bond allocation is divided evenly between all six. They all pay every month. Some perform better in certain conditions than others. I like the outlook of all of them and plan to hold them all indefinitely. In my 401k I have just FXNAX (Fidelity MF AGG / BND equivalent) because no other real bond choices.

McKnuckle_Brewery

FXAIX for stock and FXNAX for bonds, easy peasy.

behopeyandabide

That looks really good as well. Without intruding, may I ask how many years away your target for retirement is? The only reason I ask is to get an idea of your bond percentage compared to mine. I actually dropped my % down. I'm about 10-15 years out, myself. SCHD: 30% DGRO: 20% JEPI: 15% JEPQ: 10% DIVO: 10% VNQ: 10% SCHY: 5% Roth IRA: FSKAX: 70% FSPSX: 25% FXNAX: 5%

karigar555999

Mine is very similar. Except I have 3 Fund portfolio on my Core position \-50% VTI (Expense Ratio 0.03%) \-40% SCHG (Expense Ratio 0.04%) \-10% SCHD (Expense Ratio 0.06%) ROTH IRA: \-70% IVV (S&P 500) \-20% FXNAX (US Bond Index Fund) \-10%SCHD (Dividend Fund) Beginner investor. Learning it from YouTube University.

jumanjititan

Hello, Reddit! I am a 19-year-old who started working full-time at the beginning of this year and decided to focus on improving my finances. I began investing my money in early October and wanted to share my progress with you all. I’d love to hear your opinions and get some constructive criticism. I’ve learned a lot from reading other posts on this subreddit, and I personally think I’m on the right track. However, I’m eager to gain more knowledge and continue improving. So far, my current goal is to prioritize maxing out my Roth IRA every year. Once that’s done, I’ll shift my focus to investing in ETFs on Robinhood. In my Roth IRA, I currently have around $6,000, which I’ve allocated as follows: FXAIX - 60%, FSPTX - 20%, FTIHX - 10%, and FXNAX - 10%. I think this split is fairly good, but I’m open to suggestions for improvement. On Robinhood, I have about $3,500 invested, split between VOO, VTI, and GLD. I also learned that having an emergency fund is an important step, so I set aside $10,000 in a 12-month flexible CD.. This is my progress so far, and I plan to continue growing my portfolio by investing around $500–$1,000 from my $1,500–$1,700 bi-weekly paycheck.

helpwithsong2024

They're equally as tax efficient these days. You can pull up the distribution history of any fund or ETF on their respective sites. (Note: All of these pay dividends, which of course you pay taxes on, but capital gains are extremely rare) For example looking here: https://institutional.fidelity.com/app/tabbed/products/FIIS_SP52_DPL6.html?navId=324 FXAIX - 0% FSPSX - 0% FXNAX - 0%

Jmzg19

# ROTH IRA Portfolio Questions. I (21M) recently did some research while also getting some feedback, and decided to do this method: (Right now I have 100% invested in FXAIX) **60% U.S. Stocks Right now I have FXAIX-> Instead do this one: (FSKAX)** **30% International Stocks (FTIHX)** **10% Bonds (FXNAX)** What do you guys think? I had someone else tell me I should not do International Stocks because of Geopolitical risks, Currency fluctuation, and other risks.

CraftyRice

:') lucky to be in a spot where 6300 is 2% of my taxable investment accounts. And fair enough, I think Im just being caught in the massive gains with my tech stocks / index funds and want to maximize all my asset gains. And looking at FXNAX performance its been historically meh even at the highs. Think the takeaway is to try a different bond etf / index fund based on other comments

kronco

\>> 6300$ in FXNAX, which i've lost a whopping 5.34$ Does this include dividends that were paid? Did you set it to buy more shares with the dividends as the dividends are paid out? At your age, I'd be no more then 10% bonds. And you should be wary of long duration bonds given you just recently started wading into the bond pool. A long, deep read at this link (the topic is funds vs. individual bonds but it covers the idea of how long and how you hold them to get the expected return): [https://www.bogleheads.org/wiki/Individual\_bonds\_vs\_a\_bond\_fund](https://www.bogleheads.org/wiki/Individual_bonds_vs_a_bond_fund) "If interest rates rise after purchasing a bond fund, the NAV of the fund falls, which hurts you. However, the dividends that the bond fund throws off can now be reinvested at a higher rate. *The duration is the length of time that an investor needs to hold the fund for the increased yields to compensate for the decrease in NAV. In that sense, duration represents the length of time it would take for the total value of the fund, with dividends reinvested, to be worth exactly what it would have been worth had interest rates not risen.* So, you should always hold bond funds with a duration equal to or shorter than the expected need for your money (note that holding the duration shorter than your need for the money leaves you exposed to the risk of lower returns if interest rates fall)." So, if FXNAX has a duration of 6 years and a yield to maturity of 4.5%, if held for 6 years and the dividends were reinvested, the total return should be close to 4.5% around the six year mark. The article further notes: "In real life, people *should* hold bond funds (*high grade, short or intermediate term,* and a mix of nominal and inflation-adjusted), and just ignore the NAV. All that matters is total return, and if you hold the fund longer than the duration, your total return will be just fine." Make sure you understand duration.

CraftyRice

thanks for the tips -- frankly bought FXNAX without understanding what it actually indexed on and will consider just reinvesting into these bond funds

AICHEngineer

Id hold bonds but not FXNAX. I dont want a bond index with all these short duration bonds or corporate bonds. All i want in my portfolio is an allocation to very long term treasury bonds, like EDV or GOVZ or ZROZ. Heres an example of 100% VTI vs 90/10 VTI/ZROZ. ZROZ IS ~25yr average duration treasury bonds. Rebalanced between stocks and bonds annually. https://testfol.io/?d=eJy1kOFLwzAQxf%2BVcCAoFtYJCus3RQRBUbYpOhnlbK41LkvmNd0oo%2F%2B71xbn5nfzKce7vPd72UJh%2FTvaR2RclpBsoQzIIdUYCBKACMjpvalX12ghGcZyIkD9mRqXWwzGO0hytCVFkGH5kVu%2FgST%2BHdKc6Ut8XgnZ1uLG3lrjinRjnG53L%2BImgpXnkHtrvOC8bcHhss2WtCP1NFGT4LOFukdeUBAH49ZUhmuzNlpA5UXgSuKZpBO6jG7%2BJAaTLYh75%2F4u6vP0djoWcUWckQtdtWYegWYspEAT7ShG8WAYtxjBB7QHMGqg7rwr1JQJy4prdeUFSB2fnZ%2BqmpWuuPuhEzX%2BYdPq0rkKbQf2P0VGHfxOn40fZi%2BHRfd7zptvDvavkg%3D%3D You slightly outperform the market and have a materially better risk adjusted return since your max drawdown and volatility is lower. Long treasury bonds spike when markets crash, so you sell high on bonds and buy low on stocks. Rebalancing alpha.

behopeyandabide

Late 30s. This is the core of my portfolio, I also trade options (70% of those gains goes into my Dividend Portfolio and 30% back into plays. Aiming for "I have the finances to retire when I want" in 10 years. | **Portfolio** | **ETF/Fund** | **Percentage** | |---------------------|---------------|----------------| | **Dividend Portfolio** | SCHD | 30% | | | DGRO | 25% | | | JEPI | 15% | | | JEPQ | 10% | | | DIVO | 10% | | | SCHY | 10% | | | VNQ | 10% | | **Roth IRA** | FSKAX | 60% | | | FSPSX | 25% | | | FXNAX | 15% |

Torkzilla

I have FXNAX in my 401k as my bond allocation. I don’t know how you would strategize around it because it’s basically every type of bond imaginable. You aren’t going to “time the market” on something that sprawling. It’s a set and forget option for people who do not want to think about various types of bonds in specific accounts.

BiblicalElder

I recommend creating a simple benchmark that reflects your goals, age, and risk tolerance. Mine is FFTWX (2025 target date fund), S&P 500 Total Return (can get this at Yahoo Finance), and FXNAX (Bloomberg US aggregate bond fund). It is important for me to have accurate estimates for the yield from FFTWX and FXNAX, and not just use the price levels which ignore the additional respective dividend and interest streams from the funds. Then try to beat your benchmark in 2 ways: higher returns lower volatility (standard deviation) of returns I invest in dividend stocks, but I am closer to retirement. I would hold less cash and more aggressive growth stocks in my 20s and 30s. I am overweight cash and US midcaps, underweight international stocks and bonds, relative to the experts.

crazybutthole

If you make an account at fidelity - make a rollover IRA and transfer all the money into it. After you create the account just call fidelity customer support and explain that you want to transfer all the funds into your fidelity IRA. They will do the majority of the work and your total time "wasted" will be about 20-30 minutes. The funds should be in your fidelity account in about 14-21 days in most cases Once the funds are transferred into the fidelity account - just split the money evenly amongst low cost index funds I didn't see your age but I assume you are around 40? If I were 40 and following this plan - I would just buy 30% VOO (sp500) 30% VTI (total us market index) 30% QQQ (NASDAQ 100) 10% FXNAX (fidelity US bonds fund) If you want international exposure - you could go with VT or VXUS. I have several IRAs and brokerage accounts and my accounts are all setuo basically just like this and are up 29-32% since January. If you are younger you might go with nearer to zero bond funds. If you are closer to retirement maybe you do slightly more bonds. Your results may vary. Not a certified financial advisor - all investing includes a certain degree of risk. I wish you best of luck.

CosmicSpiral

You mean FXNAX? I'm more optimistic on bonds in the corporate space.

ParkingLotChamp

Yeah, after researching, i want to do: 60% FZROX 30% FZILX 10% FXNAX Or should I just have 0% in bonds for now? I am late 20s.

adequate_aura

That's just the overview I'm able to see. Contributions are typically into 3 funds, FSKAX, FTIHX, and FXNAX and done on a 50/30/20 split. Still very new, and like previously stated, only had a little to contribute between creating the IRA and now. With opportunity to start contributing more I wanted to somewhat confirm I'm on the right path and seeing the +15% YTD to the S&P +23% kind of fueled a bit of doubt there.

Alternative_Jacket_9

Adding bonds to your portfolio is a smart move, especially as you get closer to needing the money. While FXAIX is a solid core holding, diversifying with bonds will help reduce overall volatility. For simplicity, the Fidelity Freedom 2035 fund is a good option. It automatically adjusts the bond allocation as you approach retirement, so you don't have to worry about rebalancing yourself. Plus, it keeps everything under the Fidelity umbrella, which is convenient. If you want more control, consider FXNAX (Fidelity U.S. Bond Index Fund) for broad bond exposure. It's low-cost and tracks the U.S. bond market well. Remember, at 15 years out, you still have time for growth, so don't go too heavy on bonds just yet. The Freedom 2035 fund will handle this balance for you, which is why it's a solid choice for your situation.

SableyeFan

I'd go with: FZROX FZILX FXNAX Less gross fees are better. There's also a target date retirement option if you just want to put everything into one thing.

HIKEROBBY

Thoughts for a new investor: So I've read the personal finance wiki and flow chart, which I find to be very good. [https://www.reddit.com/r/personalfinance/wiki/commontopics/](https://www.reddit.com/r/personalfinance/wiki/commontopics/) As a 40yo newish investor, generally saving for retirement and wealth, w a high risk tolerance, I have made some minor mistakes, I am curious how others feel... I lost a lot of money buying Redfin at its peak, palladium, a clean energy ETF ICLN, and Gigacloud. I now realize buying individual stocks is not a game and getting stupid stock picks from motley fool or whoever else just makes me a fool. Only market ETFs for me from here on out. Other learning recently: I bought some three month CDs as an Emergency Fund when they mature. I also bought some one month auto-rolling treasury bills. But I am now realizing that both of those essentially could have been replicated by a MMA like my core position SPAXX or the safety of a Bond ETF like FXNAX or BND. Why do people even invest in T-Bills if MMAs are invested in the same thing anyway? Other thoughts... I once thought I would play around with options trading but then discovered there are ETFs that do the same thing for me, run by experts like IYLD JEPI JEPQ QYLD etc. (any recs?) Same thing with real estate investing, seems like certain REITs take away the need to be a landlord or buy homes as investments. It seems like there is there an ETF for essentially every financial product out there. So why do people trade options, buy houses, or T-bills? Any advice to make things easier than buying random CDs and T-bills? Just stick it in a MMA? And follow the boggleheads advice about basic 4-fund portfolios? Should I even buy a home or just rent and throw it into the market? That's a lot of questions but I'm curious about others perspectives.

Intrepid_Ad9487

Hello, I'm trying to start investing in a Roth IRA I have in fidelity, I wasn't sure what to go for. I was thinking of doing a 3 fund portfolio: 60% VTI / 30% VXUS / 10% BND, but wasn't sure if I need to use the fidelity equivalent to these 3: 60% FZROX / 30% FZILIX / 10% FXNAX

GlobalWater2902

First Post on Reddit Ever. I am 31 YO, Own a home and I have a 170k in an account managed by Empower (Formerly Personal Capital). I chose them a few years ago as I used their tool to budget and track net worth. My advisor has left and the new one doesn't really talk to me much. This account is last on my savings priority list after 401k, ESPP , IRA, & HSA contributions and due to that I not contribute to it often. They perform Tax Loss Harvesting and charge a 0.79% fee. For the first time I am considering liquidating the portfolio (comprised of individual stocks) to Fidelity (where everything else is) and managing this myself to avoid paying a fee. This money could be used for a few things in the future including: 1) Buying a new home or other real estate (3-5 year timeline) 2) Added savings for retirement that I will not touch for a while I have consulted a CPA and I understanding that i'll have about a $6k\~ tax hit when I liquidate the Empwoer Portfolio. I'm thinking the following allocation: * **75% Stocks** * 60% US Stocks: Fidelity ZERO Total Market Index Fund (FZROX) * 15% International Stocks: Fidelity ZERO International Index Fund (FZILX) * **25% Bonds** * Fidelity U.S. Bond Index Fund (FXNAX) Is their anything obvious I am missing here?

Svechnifuckoff

I'd just mimic the 2060 target date fund with your own mix of index funds and rebalance once a year to take advance of the lower fees. Your plan probably offers a bond fund with a lower expense ratio as well. So something like 77% FXAIX SPY index fund, 20% FSPSX for international exposure, and 3% FXNAX Bond fund... If your plan is administered by TRowe price they might have their own version of those funds with lower expenses. That Fidelity 500 Index Fund has a pretty high expense ratio too. It's only .015% through my 401k. It may be worth doing a bit of research and reaching out to whoever selects your 401k's investments to see if you can get it changed. I think y'all are getting hosed.

throwawayainteasy

If I was you, I'd go with a simple 3-fund portfolio for now. Of those funds, I'd hold FSKAX, FSPSX, and FIPDX at something like a 80%/15%/5% to match the allocation it looks like you're going for, but the allocation is really up to you. That would be a really good starter portfolio until (if ever) you decide you want to actively invest in particular stocks or sectors of the economy--which, to be clear, you don't ever have to do. For most investors, a simple, passive portfolio is the best choice. That said, IMO, you can do a little bit better. The one thing in your control is fees, so best to minimize them. So you could do a similar portfolio but swap out those funds for Fidelity's cheapest corresponding funds--FZROX (total domestic market), FZILX (international), and FXNAX (domestic bonds). The first two are 0% expense ratios compared to the 0.015% and 0.035% options you have, and the bond fund is 0.025% instead of the 0.05% expense ratio your bond fund charges. And, again, I'd hold FZROX/FZILX/FXNAX in an 80/15/5 ratio if you like that allocation you went with in your original post. But, to be clear, that's really nit-picky. The variance in the overall performance of the funds is going to swamp the expense ratio differences such that there's no real way to tell what the "better" picks would be in the long run. But, since the expense ratios you pay is something in your control, picking similar funds with lower ERs is generally going to work in your favor.

cyrusglasses

Hey guys I couldn't post any thread since i dont have enough karma but can anybody check my stocks! Im 20 yearls old male (college student) and just started investing. PS I currently work part time and will be using these money to invest. Can somebody tell me if these stocks are good at investing in my age? To be more precise I will be investing on; 75-85% on FSKAX and FXAIX 15-25% on FTIHX and VXUS 1-5% on FXNAX Thank you guys :)

cyrusglasses

Hey guys I couldn't post any thread since i dont have enough karma but can anybody check my stocks! Im 20 yearls old male (college student) and just started investing. PS I currently work part time and will be using these money to invest. Can somebody tell me if these stocks are good at investing in my age? To be more precise I will be investing on; 75-85% on FSKAX and FXAIX 15-25% on FTIHX and VXUS 1-5% on FXNAX Thank you guys :)

Advanced-Wrap77

Thoughts on investing portfolio as of right now, 18M. To provide some context, I am starting my first year of community college. At $19 per hour, I work around thirty hours a week PT. This year, I plan to fully maximize my Roth IRA. Putting Monthly \~$560 into Roth and $250 into TBA, saving the majority rest of my pay in my HYSA. TBA: 20% VXUS | 80% VTI Roth IRA: 36% FZILX, 10% FXNAX, and 54% FZROX

harrison_wintergreen

bonds got slaughtered the last few years, so the recent returns don't tell you much. and ditto to make sure you're looking at a total return chart, not just a price chart that you see on Google. for example, if you look at the 'performance' tab on FXNAX for the Fidelity page: https://fundresearch.fidelity.com/mutual-funds/performance-and-risk/316146356 ...you'll see that fund is negative over the last 3 years, but positive over the last 5 and 10 year periods, and for the life of the fund back to 1990. >What is the point of the bond fund in the Roth IRA? over the long-term: - (a) bonds and stocks *tend* to move inversely. not always, not every year. but long-term, and more often than not, bonds will move up when stocks move down, and vice versa. this will reduce volatility in your portfolio. - (b) bonds can perform better than stocks for longer periods of time than you might be aware. for example, bonds beat the S&P 500 from 2000 to 2020. .com/2020/05/01/business/bonds-beat-stocks-over-20-years.html

remmy623

For FXNAX you could compare FIGB, but it'll be higher expense ratio. Out of curiosity - if you like the funds why are you trying to find ETF versions?

kiwimancy

https://www.pimco.com/us/en/resources/education/everything-you-need-to-know-about-bonds Target date funds already have bonds, increasing with age. You could invest 100% in those rather than 80%. You don't need to baby sit bond funds like those. They are constantly turning over their portfolio, selling bonds that get close to maturity (or below the maturity cutoff in the case of FNBGX) to buy fresh bonds. Yes they are usually safer than FXAIX in the sense that they have lower volatility year to year. Though, long term bonds like FNBGX can have pretty high volatility similar to stocks. Short term have the lowest volatility. FXNAX is a good choice if you aren't sure what to pick, it has the broadest mix.

r3ddi7-n3w

I am now in a position where the existing portfolio and my withdrawal rate of 4% seem to have achieved a good balance, while being retired for three years. Part of this is due to LCOL and frugality, and part to use of FXAIX, but with which I am willing to part ways, considering it as high risk, moving forward. If the rest of portfolio is distributed in two target date funds (2030 and 2035), making up 80% of my existing IRA & Roth portfolio, what would be a good option for the rest of FXAIX replacement, for a more conservative approach? I looked at Fidelity's options (FXNAX, FUMBX, FUAMX, FNSOX, FNBGX, etc.), but I am overwhelmed and unfamiliar with the mechanics of such investment options (do they need "baby sitting", i.e. action on maturity, where applicable, or ongoing adjustments), are they really safer than FXAIX, etc. ?!? Fidelity (bond?!?) funds would be a preference, as this is where my IRA and Roth are, and hope for some lower admin costs.

Frosty-Ad5877

turning 21 soon: 12k individual portfolio 40% VOO 30% QQQ 10% TQQQ 5% RSG (republic service group) 5% TM (toyota) 5% META 5% NVDA 14k Roth IRA 80% VOO 12.5% FZROX (total market mutual fund 0% fee) 5% FZILX (international market 0 fee) 2.5% FXNAX (bond) 18.3k in HYSA at 5.21% APR

Frosty-Ad5877

turning 21 soon: 12k individual portfolio 40% VOO 30% QQQ 10% TQQQ 5% RSG (republic service group) 5% TM (toyota) 5% META 5% NVDA 14k Roth IRA 80% VOO 12.5% FZROX (total market mutual fund 0% fee) 5% FZILX (international market 0 fee) 2.5% FXNAX (bond) 18.3k in HYSA at 5.21% APR

alcoholisthedevil

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.

Cute_Win_4651

I’m only FSKAX (VTI), FTIHX(VXUS), FXNAX(BND), 70%, 20%, 10% and adding (1) share of SCHD per week

lw1785

I think selling your espp makes sense...too much of your investments tied to the company also paying your livelihood. With FSKAX, FYIHX and FXNAX you have a functioning 3 fund portfolio. You could stick with that mix in whatever ratio if comfortable to you (I'm in your age range and like 75 US/20 Int/5 Bond...but yours could look different). I'm curious on the FDIS investment...is that a segment you have a particular reason for investing more in over total market?

the_un-human

38yo, employed ($100k/yr), 5-10 yr plan. Hoping to get some insight into how to reallocate and diversify my current investments. My portfolio is currently as follows (% of Account is noted) * FDIS (13%) * FSKAX (24%) * FTIHX (12%) * FXNAX (10%) * ESPP - Healthcare (40%) I'd like to sell about half of the ESPP (long term capital) and reinvest, either into one of my current investments or something new. FSKAX has been performing well, but I dont know if I should diversify more or if that would be ok. Thank you in advance

Handbrake

I used to hold contra almost exclusively. Now 10% bonds (FXNAX), 30% contra (FCNTX) and 60% total market (FSKAX)

jakobm50

Hello, I'm 21M in the US focused on long-term retirement savings. My time horizon is within the next 25-30 years, and I am willing to take on more risks than usual. My current portfolio includes: * **Individual Brokerage ($10k):** 40% SCHG, 30% XMMO, 30% AVUV * **Roth IRA ($8k, this year maxed out):** 65% FZROX, 25% FZILX, 10% FXNAX In my Roth IRA, I follow a three-fund portfolio for simplicity and diversity, while in my brokerage account, I've chosen ETFs for broader market exposure across large-cap, mid-cap, and small-cap stocks. I'm a student that works part time for the university. I've budgeted well, have no student loans/other debt, emergency fund built. I am also able to contribute monthly (maybe even weekly) to these investments as well. I am seeking feedback on whether my aggressive growth strategy and sector diversification are on track for my goals. I feel as if I am not diversified enough within my assets. Any honest advice would be appreciated!

Dgb_iii

I do both, my ROTH IRA is a target date fund (FDEWX.) Then I use the allocation of that to build a 3 fund portfolio in my taxable brokerage account (55% FSKAX, 35% FTIHX, and 10% FXNAX.)

Wide-Bee7783

Some kind of domestic bond index. FXNAX for example.

518nomad

Your asset allocation should always be done across your entire portfolio, not just one account. So when considering your target allocation you should be looking at your 401k, your Roth IRA, and any other accounts such as a taxable brokerage account. The goal is to implement a cohesive allocation across all those accounts. Once you decide on an asset allocation, then you need to decide on asset location: This is where you choose the account in which you place a particular investment. As a general rule, for example, you want to maximize the growth of your Roth accounts. So, placing equities there and placing any slower growing holdings like bonds in your tax-deferred accounts (the 401k) is a good rule of thumb. The target date fund you identified seems great. The other two are poorly diversified and expensive. Both funds are extremely overweight in US large-cap tech and roughly 55% of your holdings across those two funds will be Microsoft, Apple, Alphabet, Meta, Nvidia, and a few other tech stocks. If you insist on buying those two funds because you want a speculative play on BigTech, then I would suggest limiting them (combined) to no more than 10% of your overall portfolio, meaning your total balance across all accounts. Reserve the remaining 90% of your portfolio to properly diversified investments. This could be FFIJX or a set of total market index funds like FSKAX, FTIHX, and FXNAX. Suggested reading: “A Random Walk Down Wall Street” by Burton Malkiel and “All About Asset Allocation” by Rick Ferri.

ClemPFarmer

No common reason to hold both BND and FXNAX since they are nearly identical. BND would perform better in a taxable account.

ClemPFarmer

FXNAX. It’s a total bond fund with an expense ratio of 0.025%. Another option, especially for a taxable account account is Vanguard’s ETF, BND.

Cute_Win_4651

What about FSPGX(Russell 1000 growth), SCHD, FTIHX( international index), FXNAX (bonds)

Cute_Win_4651

What about FSPGX(Russell 1000 growth), SCHD, FTIHX( international index), FXNAX (bonds)

throwawayinvestacct

To whatever extent you *do* hold bonds, do you hold them in a general Total Bond Market fund like BND or FXNAX or do you use intermediate-term Treasury funds like VGIT or FUAMX? Or do you do something else entirely (an active bond fund, buying individual bonds, etc)?

criswaffletrader

If you want to mix things up, adding some international stocks could be a good move. Funds like VXUS or FSPSX can give you exposure to companies outside the US and spread your risk around the globe. Another solid option is a bond fund. They’re not as exciting as stocks, but they provide some stability and regular income. Check out something like FXNAX to balance things out. REITs are also worth considering. VNQ or FRESX are decent picks.

andybmcc

You could spin your own 3 fund wit FSKAX, FTIHX and FXNAX.

the_leviathan711

> 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.

MammothConscious2261

Hi! I need to choose funds for my new 401k plan. I wanted something like Fidelity’s SPAXX money market that has been paying 5% for about a year now because in early February, I’ll liquid to buy company stock. Unfortunately, there’s no money markets to choose. I don’t know much about how to read yield/returns on bond or capital preservation funds. My goal is capital preservation but I’m not sure that the Putnam Stable Value Fund is truly the best choice. Is that what you would choose? Bond choices: FXNAX Fidelity US Bond Index PIMIX PIMCO Income Institutional VIIGX Vanguard Intermediate-Term Treasury Index Institutional VTAPX Vanguard Short-Term Inflation Protected Sec Index Admiral Capital Preservation: PSVF15 Putnam Stable Value Fund 15bps

tsundoku_all

36 year old American. I have my Fidelity Roth IRA split between FXNAX, FZILX, and FZROX (aiming towards 20/16/64, respectively). I get no retirement savings through my work. On years I’m able to contribute beyond the Roth max, should I mirror these investments in a taxable brokerage account? Or should I just pile everything into something like VOO?

tsundoku_all

I have my Fidelity Roth IRA split between FXNAX, FZILX, and FZROX (aiming towards 20/16/64, respectively). I get no retirement savings through my work. On years I’m able to contribute beyond the Roth max, should I mirror these investments in a taxable brokerage account? Or should I just pile everything into something like VOO?

Cruian

They had a typo, they meant FXNAX, not FXAIX.

Cruian

>Fxaix Is already fully included within FSKAX, there's almost never reason to hold both. Did you mean FXNAX?

kiwimancy

It's the main US bond index. It holds a mix of US treasurys, agency backed mortgages, and investment grade corporate bonds. I don't know what you mean by "pin my portfolio to this". If you want your portfolio to contain it, buy AGG or BND or SPAB or SCHZ or PBND or FXNAX or ...

Thisisanewday

FXNAX expense is 0.03, yield is 3.06 Sprxx expense is 0.42 it's 7 day yield is 5.03 Can I compare the 7 day yield to the FXNAX yield? Is it apples to apples?

hesuskhristo

For what it's worth, FXNAX is 92% US bonds. I just happened to be looking at it now to remember why it was 5% of my 401K, lol.

carrythen0thing

If you want to stick with Fidelity funds, there are Fidelity U.S. Bond Index (FXNAX) and Fidelity International Bond Index (FBIIX)

MattsFinanceThrowdow

>I’m 27; 3 fund portfolio or 2 fund 2-Fund - at most. Thoughts below. **1) FXNAX (Fidelity U.S. Bond Index Fund)** You're too young for bonds. **2) FZILX (Fidelity ZERO International Index Fund)** There is a school of thought that if you are broadly-invested in the US stock market, you have de facto international exposure. Both Warren Buffet and Jack Bogle share this view, FWIW. I think you could do 100% FZROX and be OK. It's also extremely simple. I myself would not get the Fidelity Zero funds, but that is a separate discussion. There's nothing *wrong* with them that I know about; i just don't like the idea of them.

Low_Network59

There's no reason for you to own FXNAX or SCHD at 22. Especially in a tax exempt account like a Roth IRA. You want growth, the highest growth possible, not income.