FZROX
FIDELITY ZERO TOTAL MARKET INDEX FUND
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Any reason not to swap to a cheaper index fund within my ROTH IRA?
Okay Portfolio Going Into 2024? [23 YOLD Looking for long term investments]
Can't buy FZROX on 401k account (This fund is closed to new investors)
Should a Roth IRA make use of a Large Cap Growth fund in your 20s?
Best aggressive investment strategy/fund type (long-time horizon)
The "average" returns of an index fund aren't average at all
Should I invest in VTI or FZROX as my choice of etf?
36 years old - $1.35MM Net Worth - How would you optimize my wealth?
I just turned 17 and have made around 15000 dollars working as a server. This is mostly saved. Any recommendations investing?
Fidelity's Limited Automatic Investing Options vs Having More Accounts
30 y.o what can I do to better my "portfolio" for retirement
Early 40's, Recent Windfall, heavy on annuities - Looking for advice on the below
Why is FZROX $14.60 and FSKAX $115.64 if they track the same index?
Want to Roll Over Current Index Funds into FZROX/FZILX - Thoughts?
Thoughts on this Breakout of Fidelity funds? - Goal is fairly aggressive growth
Thoughts on this Breakout of Fidelity funds? - Goal is fairly aggressive growth
3-Fund Portfolio Comparison: Vanguard, Schwab, Fidelity
What is exactly meant when people say "IRA grows tax free"?
Advice for an overwhelmed 18-year-old! (Roth IRA's and more!)
Does it make sense to hold the lower ticker price of two similar funds in order to capitalize on greater dividends?
Are fidelity Zero funds really a good deal? There’s gotta be some hidden costs, right?
Portfolio suggestions for Roth that I can no longer contribute to
Could Fidelity be hiding the fees of its zero ER funds?
My Fidelity brokerage is invested in FZROX. Should I liquidate all of it?
What's the point of a bond fund if the NAV still fluctuates so much? (versus owning individual bonds)
Holding FXAIX and FZROX in my taxable brokerage. Any point in adding or switching to VOO/VTI?
How to divide my Fidelity zero index funds?
Using Fidelity Zero expense ratio mutual funds as a cash like position for trading
Help with Benchmarking Portfolio Against S&P 500 factoring in Dividends (SPY vs SPXTR)
Should I see my FZROX shares and put them into its equivalent ETF instead?
Mentions
There's three relevant kinds of fees. - Expense ratio: mutual funds/ETFs charge a continuous fee on the money you invest in the fund. This is listed in the fund's prospectus and other materials. "Index funds" are mutual funds or ETFs which simply track a 3rd party list of assets and generally charge low fees or nearly zero expenses. Actively managed funds generally charge higher expense ratios like 0.5%-1%. This is the kind of fee that TRP is talking about. - Advisor management fees: advisors charge a fee on the money you invest with them. (They then generally invest your money in a portfolio of mutual funds which have their own fees.) Commonly human advisors charge around 1% of your assets per year, lower if you have a Lot of money. This is the kind of fee EJ is talking about. Some firms offer more limited automated advisor services which charge around 0.25% of assets. - Commissions: self service brokers may charge fees when you purchase a stock/bond/ETF/mutual fund/etc. Most brokers in the US do not charge commissions any more on most common assets, but they still sometimes charge on options or mutual funds which aren't on their NTF list. This is likely the kind of fee Fidelity/Vanguard is talking about with "no fee". You can get a brokerage account with Fidelity and invest it in various mutual funds or other assets of your choosing. There wouldn't be an advisor fee (unless you sign up for an advisor) or commissions. You can keep fund expenses low with index funds. In fact, Fidelity (the fund management arm) runs a few funds with an expense ratio of zero (e.g. FZROX).
I use Fidelity and my set up is a TDF (Vanguard 2055) for my employer retirement account. Roth IRA 70% FZROX 30% FZILX Brokerage 75%VTI 10% VXUS 10% VGT 5% Random stocks I’ve held for some time. Besides the radon single stocks everything is set up to automatically invest on a weekly/monthly basis.
I have my house fund spilt between USFR & FZROX. USFR for return & tax benefits and FZROX for diversification and ideally returns. I’m in a weird spot where I am either going to buy something this summer/ fall or stick for another two years.
I use a TDF (also the Vanguard 2055) for my employer retirement account. So in my Roth IRA and brokerage accounts I don’t hold any bonds. My setup Roth IRA 70% FZROX 30% FZILX Brokerage 75%VTI 10% VXUS 10% VGT 5% Random stocks I’ve held for some time
Yeah that's fair, I've bought FZROX since it's inception but the FSKAX was all bought before it existed. Never bothered to exchange it because the difference in cost is so tiny. But yeah the 0.03% is $30 per 100k invested. Just really not anything to waste time thinking about imo and definitely doesn't put any dent in the 4k+ bonus over 5 years.
In a Fidelity account - you probably should compare VTI to FZROX and not FSKAX. It's more of a 0.03% difference which is probably negligible.
I have a UGMA for each kid, both have FZROX in there, both have almost the same amount of money. Usually extra B-day money and chores, but we put $100 a month in each account on auto. Figure 18-21 ( state depending) we can talk about it then, and hopefully roll it into a more serious life account to set them up for their future.
It was FZROX the index fund I put a buy in overnight at 17.90 and then the price shot up the next day.
I also have a some funds I acquired that I am putting into the market. What I’ve chosen to do is max last years Roth IRA, max this years Roth IRA, set aside 2025 Roth IRA max (in HYSA), then with the remaining funds I am DCA 1/2 of it weekly over the next 12 months, and the other remaining 1/2 I’m holding to lump sum a potential drop in the market. Will the market drop? I don’t know. Will I lose money doing it this way? Who knows, but I’m hopeful to see some drop between Fed rate cuts and the election. I also feel I have pretty good exposure maxing both IRA accounts right away and DCA + adding weekly with paycheck. My setup Roth IRA 70% FZROX 30% FZILX Brokerage 75%VTI 10% VXUS 10% VGT 5% Random stocks I’ve held for some time
38, USA Not a whole lot of time on my hands working, married, 2 kids. Have a 401K through work, with employer match at 5%, currently contributing 7%. Have 2 UGMA's for kids contributing $100 a month to each, only holding FZROX in there. I have a taxable account, with only ITOT in it, contributing $200 a month to that, while $200 stays in the SPAXX account for "just in case". have a HSA through work also, contribute $200 a month to that as well. My Roth is where I am iffy on, have been contributing full amount for the last 5 years. But have moved what's in the Roth around here or there. My question is, the Roth currently holds SCHD, FDEWX which is a target date fund, and FSKAX. Is it worth while to keep this target date fund in there? or just move all that into FSKAX which has out performed the target date fund for quite a while now. Both have almost the same amount contributed, while FSKAX has "grown" about $4000 more over the course of a few years. I try to keep everything "set it and forget it" and just check on each every other month. Just not sure if its worth the growth to keep the target date there, and move that money into FSKAX or not. Any info/help would be greatly appreciated.
Well, each of those funds will have almost identical performance, as they track the exact same index. FZROX and FXAIX are both mutual funds. Main differences are that FZROX has no fees or expenses, so you don't pay anything to buy, own, or sell the shares. FXAIX will have a very small fee attached to it, but it's insignificant in the grand scheme of things honestly. Another difference is FXAIX will pay your Dividends monthly, whereas FZROX pays annually. So you'll wait longer on FZROX but the total payout will be the equal, unless you reinvest the monthly Dividends of FXAIX, in which case you'll earn incrementally more from your Dividends compounding.
FZROX and FXAIX are both S&P 500 funds offered by Fidelity. FZROX has 0 expenses, as in 0.00% but is only offered through Fidelity directly.
You can look at FZROX and FNILX. Both has good returns with zero expense ratio.
Just to correct you, FZROX is a total market large blend index fund. The alternative ETF version would be ITOT. VT is a total world ETF, and in my opinion, it cannot have the same return as those two and is very likely not to. By the way, I like VT's strategy for those who prefer to have less exposure to the top 30 stocks within the composition with very little risk and consistency of returns
>From what I'm tracking, the FDKLX is outperforming the S&P500 Where are you tracking that? What time period? I just use FZROX/FZILX in my Roth IRA. Dont care how they are doing short term just buy every January.
Google doesn't account for captial returns/dividends. What you posted is a chart of total returns which is more important info to have. Yes, PRWAX did much better than the SPX in that time. Getting 2x total returns above the SPX isn't *that* rare over the course of a several years. Certain growth tech-focused funds did fantastically over that time period. Look at Fidelity's Select Tech fund (FSPTX). It handily beat PRWAX and SPX. Of course, there is some concentration risk so PRWAX could significantly underperform in the future. PRWAX seems to be a fine fund overall. Best to have it in a tax-sheltered account (401k/457b). I personally like diversification and have almost entirely VTI in my brokerage account and FZROX in my 401k.
VOO is a good option. Before you put any money into Robinhood or any other regular retail brokerage though you should be maxing the tax advantaged accounts. If your job gives you a 401k they'll have a provider preselected but I like Fidelity for my IRA because of their 0 fee funds (like FZROX). Check out r/personalfinance, r/Bogleheads, r/Fire, those are the places to get real financial advice. This place is fun to shitpost in and there's always the enticing posts where someone gets lucky but let's be real, most of us here are losing money. It's basically a casino. It can be fun to gamble but you should think of every wsb-type play as putting money on the roulette table and budget accordingly.
Real financial advice for you though little bro, max your tax advantaged accounts (401k, IRA) and put it into a total market index fund litke VTSAX or FZROX and you'll be golden and have a shot at retiring early. That 6k you lost would be worth 90k in 40 years with a 7% average annual return
ok but if i did it now wouldn’t it also be taxable? my money is already in FZROX. that’s actually my original question.
You could sell, yes - but that would be a taxable event. And it would mean taking your money out of the market a few days while you transfer. For a few pennies more though you can have VTI instead of FZROX which would allow you to transfer without selling.
Yeah, as the other commenter mentions, FZROX (assuming a typo in your post) has no portability since it's a Fidelity proprietary product. If you want a globally diversified portfolio at Fidelity, you can either buy VT (one-and-done ETF) or [use this portfolio builder](https://www.diyfi.co/investing/what-to-buy.html#portfolio-builder). The difference between mutual funds and ETFs won't be substantial; small differences, particularly in terms of how they trade, but nothing worth thinking too hard on if you're a buy-and-hold investor. But before you invest in a taxable account, make sure you're following the [investing order of operations](https://www.diyfi.co/investing/investing-order-of-operations.html).
> I read recently that it is better to hold ETFs in a taxable account because there are no tax liabilities until liquidation. That's not necessarily true, ETFs spit out dividends too. But theoretically an ETF will be a bit more tax efficient than a mutual fund. The real issue with holding FZROX in a taxable account is that it has no portability. You can't ever move it to a different brokerage without selling it.
How come FNILX in HSA vs Roth IRA? I just added some funds to FNILX myself in my Roth IRA. Just wondering if I'm better off with FZROX for that. Also do you have any input on FXAIX and FSKAX?
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?
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?
I got tired of screwing around and just decided to go all in with FZROX for my Roth IRA three years ago.
Good call out. The makeup of the fund is very similar. FZROX are newer funds on the block- and so far it doesn't quite have the same performance as FXAIX. If FXAIX does 0.1% better than FZROX then the 0.015% fee is worth it IMHO. Additionally, for me I already have FXAIX and it's fantastic. The 0.015% is negligible fee on a large sum over several decades. On $1 mil for ten years it's only less than 3K. Not saying I have a mil, but the overhead for expenses isn't worth the tax burden for me to sell shares I purchased before FZROX was a thing. But I'd say go for it!
With $100k, you can invest in something very safe, like a broad total stock market index (VTSAX or FZROX are good options). For example, in the last 5 years VTSAX has returned 14.24%/year and FZROX has returned 14.42%/year on average. If those averages continue, your $100k invested at age 29 would grow to about... * $195k by age 35 * $745k by age 45 * $2.8 million by age 55 * $10.8 million by age 65 Now granted, the market has been very good the last 5 years and it's unlikely to increase at that rate for decades, but this shows you how having this much invested early can set your retirement by itself. If the market returns closer to average, say 8.25%/year on average like VTSAX has over its entire life, your $100k invested at age 29 would grow to about... * $148k by age 35 * $328k by age 45 * $725k by age 55 * $1.6 million by age 65 While certainly not as much of the riches in the previous example, but definitely still a large amount by age 65... perhaps enough to retire off of.
Why not FZROX for the 0% expense ratio?
Hard to beat the zero fees on FZROX and FZILX
Just dump it all in VTSAX or FZROX if you are with Fidelity and call it a day
I think I got confused at some point during my research. If I had FZROX in a taxable account and wanted to move to a new brokerage, that is when I would have sell my shares and pay capital gains taxes? Thank you very much!
Wouldn’t I have to sell FZROX at fidelity before transferring since they are the only ones that offer it?
If I am holding FZROX in a rollover IRA at Fidelity, am I able to sell my shares and move to another brokerage without having to pay capital gains tax? I’m leaning towards no from what I’ve read, but I wanted to confirm. Thank you!
I’m 22. $20k. I stopped picking stocks because I’ve been bag holding Tesla since 2021. I allocate my disposable income like so. Roth IRA: FZROX (Similar to VTI) - 40% QQQM - 30% FBTC - 20% FZILX (Similar to VXUS) - 10% Individual: QQQM - 30% Bitcoin - 25% Ethereum - 25% SMH - 20% SMH will probably change one day but QQQ forever.
If I am holding FZROX in a rollover IRA at Fidelity, am I able to sell my shares and move to Schwab without having to pay capital gains tax? I’m leaning towards no from what I’ve read, but I wanted to confirm. Thank you!
Direct indexing, no thanks. Even low cost fidelity is 0.40% management fee. Their own FSKAX is 0.02%. FZROX is 0%. Like for like assets in a portfolio will lag performance just because of the ER. And yes heartbeat trades is because of a loophole that’s been around since 1968. BTW all ETFs use this also. It’s not going away given the $10T+ in AUM within ETFs. Extremely low probability
I've been in the process of buying FZROX and FZILX as my low risk, and FZELX and single stocks as my high risk. I understand what you're saying though. It brings me a lot of peace that I can buy and sell while learning all this am unlimited number of times in a Roth without complicating my taxes now though.
>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.
MF they also list the top 10 companies even though other companies in that fund, but rarely will you lose any money in a fund, less risk and most are very low price for each. I only have fidelity ones so no transaction fee, just that minimal expense ratio per every $1k. They have 4 total zero ones too. I checked performance for the ones I got before I actually got them. Fidelity has thousands of funds. Funds are something you buy for long term, not short term. You can get them and let them ride, rarely need to monitor them. Put different ones on a watchlist to compare them, that's what I did to compare them. So far FCNTX and FZROX have the higher gain, FZROX is one of the total zero accounts
FZROX is fine in a tax advantaged account; but less than ideal in a taxable/brokerage account. FSKAX is more appropriate from a tax management standpoint (i.e., you don't have to liquidate it if you decide to change brokerages)
FZROX is my preference. Vanguard and Schwab are great too if you prefer them of Fidelity.
Would FZROX and FXAIS be a good mix for a first time investor in the Roth IRA? I have been reading a lot lately about AI and the Healthcare field and feel I would also like to invest with a lot of those companies. On an IRA is it best to just keep it simple? I hear about trying to do an 80/20 or something like that. Is what I have started with a good combination or should I look into something else?
Hi, I’m 25 and brand new to investing. I work in restaurants and don’t have a clear future career so I want to set myself up as much as possible now. I have an emergency fund of about 5 months. I’ve just opened and maxed a Roth IRA with 80/20 FZROX and FZILX. The next thing I want to do is prepare for big expenses in the mid term 10-12 years. I don’t have a set amount but in 10-12 years I’m hoping to have a more steady career and I’d like to be in a position to make a down payment on a house. How should I invest now for that? A Vanguard ETF? Mutual fund? HYSA? Bonds? Thanks for any help I can get.
As far as I can tell there is no fee on Fidelity. I believe they just use it as a sort of loss leader to get you into their other products. Personally I just buy FZROX which has a 0% expense ratio so I'm not really looking to try this out, but it does seem to be possible to do this manually with fractional shares and avoid any fees
2.5% for what? VTI is .03% and FZROX is free.
\>The individual stocks would have the advantage of no fees when compared to the index fund. ​ go look at the expense ratio on something like FZROX and come back.
The fees on index funds are negligible or even zero (FZROX). Stocks are not free. Your time is worth money and bid ask spread adds up over time. You should invest in at least 50-100 stocks and make sure you avoid biases like buying just interesting or hot stocks. Stay up to date on all those stocks, be prepared to divest in response to changing conditions, deploy new cash across 50+ stocks, rebalance periodically, engage in TLH, avoid creating wash sales, etc. In the end you likely will have similar or worse performance compared to an index fund. However yes in theory you could do it. For most people buying an index fund is easier.
Why so light on ex-US? at 5%, you're not getting much of any benefit. Common current recommendations would be closer to 40% of stock. Why not merge FNILX + FZIPX into FZROX? FSRNX may already by covered by FNILX/FZIPX or FZROX. SCHD and FSPGX are covered by FZROX/FNILX and maybe FZIPX. Why SCHD? Why FSPGX? >I want to be aggressive for future growth. Be sure you aren't mistaking performance chasing with being aggressive or thinking that recent past is a good predictor for how the future will play out (this is especially relevant to the large growth tilt and massive under weight on ex-US).
"Time in the market beats timing the market." Just buy ITOT/FZROX/VTI with money as you earn it. Dollar cost averaging in as you go is the correct approach.
Is adding FNCMX worthwhile, considering I have FZROX? I followed your advice for 2023 and split into the three previously mentioned ETFs, but am considering adding FNCMX to the Roth portfolio for 2024.
FZROX - Largely identical, 0 expense ratio, only available to fidelity customers.
Hi Everyone, My wife and I have an additional 50k or so and want to invest this soon, however, I'm not sure what to choose. I'm definitely a novice when it comes to this. I'm not sure if I should just invest to what I already have below, or choose a different fund like ONEQ or something. Or if my investments need to be diversified better. Main goal would be long term growth, but I could also be persuaded to choose something more volatile with possible quicker growth, looking at all options. We are 30 with a newborn and have no debts outside of a low interest mortgage and car payment. Current household income is 110k to 150k depending on if the wife works or not. I have an additional 50k set aside in HYSA for emergencies, future IVF costs and a nest egg for bills while the wife stays home from work for a bit. Any suggestions are appreciated. Current Investments Roth IRA FZROX 20K FXAIX 10K 401K FZROX 20K Thank you,
FZROX is fine. I’d put it all there.
I use fidelity and really like FZROX
I have my whole HSA in FZROX. Love it so much.
FZROX because I use Fidelity. Hopefully I never have to leave Fidelity either
I’m pretty sure the average Robinhood guy transfers the entire checking account into Robinhood then buys 0dte spy calls. In all seriousness, just set up a recurring investment into VOO until you’ve learned a bit more. This is the S&P 500 ETF. An even better strategy would be to open a fidelity account and do a recurring investment into FZROX, an ETF for the total market with zero expense ratio. There is also FNILX which is a large cap fund that gives similar returns to S&P 500 funds. This isn’t critical though. VOO’s expense ratio is 0.03% so it’s already extremely low.
I'm looking to clean up my Roth IRA portfolio. Here's what I currently have: 28% in FSKAX, 36% in FXAIX and 36% in FZROX. I realize I have some redundancy in here because FSKAX and FZROX are both Total Market. I didn't really know what I was doing when I first set up my account couple years ago. I'm planning on adding my max contributions in a couple weeks. Would it be okay to turn my portfolio into something like 30% FZROX 70% FXAIX? I'm not really looking for anything safe, but I'd also like to keep it to 2-3 choices in my portfolio.
No reason at all. I might do 75% FZROX and 25% FZILX.
FZROX is fine. Only real issue that I know if is holding it in a taxable since it can't be transferred out without selling. I'm an international guy myself but even I think 50% international is probably a bit heavy though. If you're down with FZROX, any reason you're avoiding FZILX for your ex-US allocation?
If you believe in the three fund portfolio: total, international, bonds would be something like FZROX/FZILX/FXNAX. You could go some combination of large cap and mid/small cap: FNILX/FZIPX Or just VTI AND CHILL: FZROX
I'd go total market. FSKAX has about 1200 more holdings and follows the Dow Jones total market. FZROX is an in-house Fidelity index. The difference in fees and performance is going to be negligible. Just pick one. I hold FSKAX.
In an IRA FZROX would be perfect. The issue with their zero funds is if you wanted to change brokers you can’t take it with you, so you would have to sell. In a taxable account this could incur a lot in taxes. In an IRA it isn’t relevant.
I was saying you still have time to max your 6,500 in 2023 for your Roth and 7000 for 2024 I would do that first. It all looks good but personal opinion (with a grain of salt)was basically saying you are a little too much tech/large cap for my taste. I would like to less see VUG more small cap and 25-30% international overall Swap FSAKAX and FTIHX for FZROX and FZILX respectively if you are at fidelity anyway . VXUS gets you a foreign tax credit in a brokerage if you overweight it there but that’s not a big deal but is nice to know.
Have you maxed out your 2023 Roth contributions? You can still contribute up to 6,500 in your Roth for 2023 if you do it before the tax deadline and 7,000 for 2024 take advantage of tax advantaged space first. Over all I like the portfolio- This is my opinion so take it with a grain of salt. I think 33% VUG is to high you are overweight large cap/tech stocks I would like a little more small cap (AVUV) and get international to at least 25-30% Swap FSKAX and FTHIX for FZROX and FZILX respectively if you are at Fidelity. VXUS can get you a foreign tax credit in the brokerage so that’s the best place for it but not a big deal.
I’m with Fidelity and looking to invest in their index funds. Can some one explain why I would choose FXAIX or FSKAX when they offer zero expense ratio alternatives like FNLIX and FZROX? Is there a reason to go with one group over the other?
I don’t see any need to. The funds are already about as diversified as you can get, and you’re also diversifying across asset classes by having some bond exposure. Pretty much anything else you might get would overlap with those and probably make you more concentrated. Like if you got FNILX you’d just be adding more US large caps, which are already covered in FZROX. Your current setup is a good example of what Bogleheads call a [lazy portfolio](https://www.bogleheads.org/wiki/Three-fund_portfolio). It’s super low-maintenance because you can just deposit money periodically and let the market do its thing, checking up on it as little as once a year.
36 year old American. 2022 was the first year I was able to invest in a Roth IRA. I chose to split my maxed IRA between 3 Index Funds (FXNAX, FZILX, FZROX). If I'm able to contribute for 2023, should I split again between those three funds, or diversify? What kind of holdings should I look into?
Hmm either listen or don't. Are your current positions gaining a lot? I don't have an Advisor which most ppl prob don't and just do what they feel is good for them. If it's supposed to help you, but selling everything sounds odd. It's best to have more mutual funds than stocks since certain ones pay out more than others like FCNTX and FZROX I get the most gains
FZROX and FZILX That's what I hold in my BrokerageLink account.
TL;DR: Reached $100k invested within 3-4 years Here’s the breakdown: 2014: - started new job when I only had $1k in a 401k from my previous job. - started off with low % contributions into my new job’s 401k (vested immediately), - company stock ESPP (purchased quarterly with discount) - also got annual stock awards starting with a hiring bonus - fyi, each year’s award would vest over 5 years - ended 2014 with just over $10k total invested 2015: - continued ESPP and 401k in 2015 - ended 2014 with just over $32k invested 2016: - continued ESPP and 401k in 2016 - ended 2016 with just over $76k invested 2017: - continued ESPP and 401k in 2017 PLUS also started investing in some index funds and sector ETFs too - ended 2017 with just over $147k invested Summary So I had surpassed $100k invested from early 2014 to some time in 2017. Additional Info: 2017 was also the first year that I had started to increase my % contributions until I had slowly maxed out EVERYTHING by end of 2019. And then 2020 was the first full year that I had it all maxed out. Things I maxed out: - 401k pretax - 401k after tax, with in plan Roth conversions - IRA (started with Roth but recharacterized to Traditional after surpassing income limit) - HSA - ESPP I also continued to receive annual stock awards of company shares each year + additional shares from special stock awards as well. … a few more answers: - How old were you? 40 years old - Did you start from $0? Almost. I had $1k from my previous job that I rolled over into my new 401k. - Did you get any help from family / inheritance? No help from family, no inheritance. My wife and I actually are the ones who’ve helped family over decades, including siblings and still help our parents financially. - How much did you save each year? See above breakdown. - What did you invest in? The 401k was just in a target date fund at the time. Later in 2021-2022, I redirected new 401k contributions into a more aggressive fund. The company stock was just my employer’s shares obviously. The index funds and sector ETFs I started with were: - total stock market (FZROX) - healthcare (FHLC) - tech (ONEQ)
TL;DR: Reached $100k invested within 3-4 years Here’s the breakdown: ### 2014: - started new job with only $1k in a 401k from my previous job. - low % contributions into my new job’s 401k (vested immediately), - company stock ESPP (purchased quarterly with discount) - also got annual stock awards starting with a hiring bonus - each year’s award would vest over 5 years) - ended 2014 with just over $10k total invested ### 2015: - continued ESPP and 401k in 2015 - ended 2014 with just over $32k invested ### 2016: - continued ESPP and 401k in 2016 - ended 2016 with just over $76k invested ### 2017: - continued ESPP and 401k in 2017 PLUS also started investing in some index funds and sector ETFs too - ended 2017 with just over $147k invested ### Summary So I had surpassed $100k invested from early 2014 to some time in 2017. ### Additional Info; 2017 was also the first year that I had started to increase my % contributions until I had slowly maxed out EVERYTHING by end of 2019. And then 2020 was the first full year that I had it all maxed out. Things I maxed out: - 401k pretax - 401k after tax, with in plan Roth conversions - IRA (started with Roth but recharacterized to Traditional after surpassing income limit) - HSA - ESPP I also continued to receive annual stock awards of company shares each year + additional shares from special stock awards as well. … a few more answers: - How old were you? 40 years old - Did you start from $0? Almost. I had $1k from my previous job that I rolled over into my new 401k. - Did you get any help from family / inheritance? No help from family, no inheritance. My wife and I actually are the ones who’ve helped family over decades, including siblings and still help our parents financially. - How much did you save each year? See above breakdown. - What did you invest in? The 401k was just in a target date fund at the time. Later in 2021-2022, I redirected new 401k contributions into a more aggressive fund. The company stock was just my employer’s shares obviously. The index funds and sector ETFs I started with were: - total stock market (FZROX) - healthcare (FHLC) - tech (ONEQ)
Do you have emergency savings? Keep that first, start a Roth IRA and contribute a certain percentage of what you have into an index fund like FZROX
I'm a relatively new investor. I've been diligently contributing to my IRA account, but only recently found out that my contributions were going into money market funds and not into any of the various mutual funds that were rolled into from previous company 401Ks in-like mutual funds (Thanks to reading Ramit Sethi's book highlighting the importance of paying attention to your IRA investments). I made sure to put my contributions into mutual funds in my IRA account and consolidated all of them to a target-date fund and a growth fund that appeared to be performing well (FDGRX). FDGRX has an P/E of 0.72, which isn't too bad, but isn't great either. I was thinking of moving this to another similarly performing fund (FSPGX), with a much more affordable P/E of 0.035. However, after looking at [this post about zero-P/E mutual funds](https://www.reddit.com/r/investing/comments/10zwehe/are_fidelity_zero_funds_really_a_good_deal_theres/?utm_source=share&utm_medium=web2x&context=3), it looks like a better strategy is to consider investing in zero P/E funds (such as FZROX or FNILX) in the IRA and perhaps investing in FDGRX or FSPGX in a brokerage account. I thought to post to ask if the general school of thought is to have mutual funds with the lowest or no P/E-ratios in tax advantaged accounts and better to have mutual funds with higher (but still acceptably low) P/E-ratios in brokerage accounts. Just looking to see if this is the right basic principle to consider as a factor when choosing mutual funds between a tax advantaged account and a brokerage account.
> Currently, my Roth IRA consists of FZROX and FZILX, split 60/40. That's good. Keep doing that. You can rebalance though if you want.
FZROX is one of Fidelities ways of hooking new fish, and then hoping to sell other products to them that do have expenses. So long as you stick with the FZROX and say no to all the other stuff they pitch, you win.
yeah but FZROX isn’t portable outside of Fidelity… ope, here we go with what we discuss in r/bogleheads
That was exactly my point. Some people buy VTSAX/VTI/FZROX and some people don't because they believe they can beat the market. The second group of people will always exist.
I'm in ITOT...simply because I started before FZROX was a thing, and also before you could get Vanguard funds through Fidelity without trading fees.
Some of us use Fidelity and buy FZROX.
I would say open a brokerage account, invest in something like ITOT or FZROX. Check with your tax advisor about the exact amount but a certain amount of dividends and capital gains for children are tax-free. So every year or two, You could make sure to cash out some capital gains within that limit and in effect get tax-free growth. Just reinvest right away, for this reason I might pick a day to do it on a day where the market is clearly dropping slowly, to minimize the risk that you will have to buy it back at a higher price (there's never a zero risk of that). Once your child is old enough, keep good track of any money earned through mowing, neighbor's lawns etc and start a Roth IRA. This could be used for education later, but if it isn't needed for that it can sit there for a retirement.
Yup. Seems to be some debate about adding some international but I think this is the move. IRA, HSA etc I am a fan of FZROX.
About to set up an auto transfer into FZROX for 3k per month for 6 months
The market is hitting new highs all the time, FZROX
Why only 4k for 23? Just max it out while you can, there's no reason not to go with the full $6500. Just leaves you more room for this year's contributions. Fidelity's good, and if you go with them you have access to their zero funds (US total market = FZROX int'l total market = FZILX) which is the path that I would recommend, especially as a beginner. A composition of 70% FZROX 30% FZILX is what I've gone with. There's a lot more risk when you venture into individual stock picks, I'd avoid doing that with your retirement funds at least until you feel confident in your ability to perform due diligence and analysis.
1. Fidelity, Vanguard, Schwab - all about the same. If you already have an account with one of them, just open one at the same one. Otherwise you could maybe look up videos of the interface and decide which you like best or pick at random. 2. For the most growth, you’d have to be able to tell the future. Buying a mutual fund or ETF in the S&P is generally considered a great option. Individual stocks aren’t a great plan when planning for the long-term. You could get lucky and score big, but you could also easily lose it or not grow at all - it’s just more risky. 3. In Vanguard, VTI or VTSAX are great options. For Fidelity, FZROX. Just put it all in one of those and don’t touch it (don’t even look at it if you don’t need to). You can search those funds in this sub and see what others say, get other ideas for other funds. 4. Nope, fees are in the expense ratio, so you want a fund with low ERs. If your income for 2023 was $4k and that’s why you chose $4k for the 2023 contribution, great. If your income was higher, may want to designate $6.5k for 2023 and $3.5k for 2024 so if you happen to come into extra money later, you could still put in another $3.5k.
I was curious what % of my portfolio (total stock market FZROX) was NVDA. I couldn’t believe the top 10 stocks was almost 30% of my portfolio. Everything is fine.
I am thinking bonds + FZROX + FZILX
Buying a bunch of random ETFs is likely a poor strategy. How about just buy FXAIX (or even better FZROX/FSKAX). Stop trying to beat the market and just own the market. Randomly lurching from one hot trend to the next and tracking your investments daily and adjusting them is just a good way to piss money away. Instead of buying a large, mid, and small cap ETF = total market why not just buy a total market ETF (FZROX) and own the whole market. If this is a taxable brokerage account I would use FSKAX instead (the Fidelity ZERO funds like FZROX are not transferable).
I’m sure there are a few reasons, but I googled it and : FXAIX - Volatility Comparison. Fidelity ZERO Total Market Index Fund (FZROX) has a higher volatility of 3.64% compared to Fidelity 500 Index Fund (FXAIX) at 3.37%. This indicates that FZROX's price experiences larger fluctuations and is considered to be riskier than FXAIX based on this measure.
No problem. Using the steps in the link above, if you already have a fully funded emergency fund and paid off all your high interest debt, I would look into a Roth IRA. I don't like Dave Ramsey's investment advice, but I do like his view on emergency funds: [https://youtu.be/fVToMS2Q3XQ?si=nV1GSJbukH\_ekMqw](https://youtu.be/fVToMS2Q3XQ?si=nV1GSJbukH_ekMqw) You still have until April 14, 2024 to fund a Roth IRA for the 2023 year, after that you can also fund your Roth IRA for 2024. In order to fund a Roth IRA for any year, you would need to had EARNED INCOME (from a job for example) for the corresponding year. Investopedia has a good article on Roth IRA's, just search: Investopedia Roth IRA Rule. In addition the Roth IRA has income limits, which depend upon your tax filing status. If I was opening a Roth IRA, I would simply open one with Fidelity and invest in: 70% FZROX (similar to VTI but with ZERO expense ratio) 30% FZILX (international index. International stocks have lagged U.S. stocks for a long time but who knows what will happen in the future. Personally I consider international stocks to be on clearance compared to U.S. stocks.) [https://www.fidelity.com/mutual-funds/investing-ideas/index-funds](https://www.fidelity.com/mutual-funds/investing-ideas/index-funds) The above two funds include the S&P 500 stocks plus mid and small cap stocks, international stocks, growth and value stocks, dividend stocks, etc). All you would need to focus on is pumping in more money and adding bonds when you are closer to retirement. When I was younger I wasted a lot of time picking investments thinking this would make me rich, instead I learned that I should have focused more on improving my income and increasing my contribution rate. Consistently investing on a schedule is where you really see your portfolio growing, investing every once in a while doesn't usually lead to success. Your greatest wealth building tool is your income. The more money you earn the more money you can invest and reach your goals even sooner, it's as simple as that. https://www.getrichslowly.org/building-wealth/
Do not contribute additional money to the Rollover IRA, Rollover IRA's have similar protections from creditors as 401k's, things get a little more complicated if you add additional money. If you want you can open a separate IRA, have you looked into a Roth IRA? Money management tips: [https://www.reddit.com/r/personalfinance/wiki/commontopics/](https://www.reddit.com/r/personalfinance/wiki/commontopics/) Also, Fidelity has a nice set of zero funds such as FZROX and FZILX. https://www.fidelity.com/mutual-funds/investing-ideas/index-funds
I would echo this - I also do custodial accounts (brothers kids), and with Fidelity's FZROX (0% expense ratio, $0 minimum), every dollar over the time period is amazing. Basically all their Christmas gifts get invested - and its hard to beat the S&P500.
Lol no - just kept up with FZROX Up to 340k in my investment accounts at 30 Thanks for necro-ing the thread
If you scroll up - you can find links to the Getting Started section of the wiki and the recommended reading list. FXAIX and the Fidelity ZERO funds like FZROX and FNILX are fine choices for long term investing. Just bear in mind that long term usually refers to 7 to 10 years or more.