Personal Investments • Personal Investment Advice

I am looking to ask a few questions to make sure I am not making any obvious mistakes in my personal investment program.

This is what my 401k options look like:

Name - Ticker (if Available) - Asset Class - Category - Plan Specific - Gross Expense Ratio
FID FDM IDX 2040 IPR - FFIZX - Blended Investment - N/A - No - 0.08%


Lastly, I have the following sort of tertiary questions:

• What do I do with what I already have in my 401k and traditional brokerage? <- sell what you already own, and use the proceeds to buy what you want.

Welcome to the forum.
You've got some excellent books picked out in your reading list.

I think you're over-complicating your investments by using too many funds.

I'd suggest you use this fund in your 401k.
FID FDM IDX 2040 IPR - FFIZX - Blended Investment - N/A - No - 0.08%

FFIZX contains more bonds and international stock than desired, but you can make up for those two small issues by buying nothing but The Fidelity Total US Market Index Fund (FSKAX) in your taxable account. There is no benefit to trying to mimic the entire market by purchasing individual funds for small, mid, large, etc.

This will solve a number of problems related to rebalancing your portfolio and keeping your income taxes simple and straightforward.

If your future plans come to fruition, and you're married with kids in several years, you won't want to be spending time on investing, rebalancing, etc. Keep it simple and free up time for other things.

Regards,

Thanks for response retired@50. If I may ask, is there a particular reason you would suggest the FID FDM IDX 2040 IPR - FFZIX over FID FDM IDX 2060 IPR - FFLEX or FID FDM IDX 2065 IPR - FFIKX for someone in their late 20's (28 in particular)? Or should I take one of those two (closer to my expected retirement age).

A second follow up question pertains to not mimicking the entire market by purchasing individual funds for small/medium/large. Is the wisdom to avoid this if you do not have to (and I do not have to if I take one of the target date funds)? If so, can you explain why one should avoid it? Just for ease of rebalancing?

I am definitely looking for as simple a path forward as I can achieve between my 401k and Traditional Brokerage, ideally doing something like the strategy of Total US Stock Market, Total International Market, and Total Bond Market.

Since your plan offers Fidelity Freedom Index funds, go with one of those matching your anticipated retirement year and call it a day. Low-cost investing really is that simple. Now you just have to decide what to do with all the time you saved!

Thanks 02nz. Would you agree with the thought of just going with FSKAX in my traditional brokerage (selling what I have and putting it into that as well) to complement this Target Date Fund in my 401k?

Thank you

Statistics: Posted by ajamest — Wed Dec 13, 2023 11:26 pm — Replies 6 — Views 642

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