What Fidelity funds do you use in your 3 fund portfolio?

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RDHlooking4FIRE
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What Fidelity funds do you use in your 3 fund portfolio?

Post by RDHlooking4FIRE » Mon Mar 20, 2017 10:25 am

What Fidelity funds do you use in your 3 fund portfolio? All the recommendation I have seen for the 3 fund portfolio have been in Vangard funds.

For total stock market I have 10K to invest (currently in s&p500 index etf)
For total international market I would start with 2.5K
For bonds I would either wait till next year or start with 2.5k

Also, looking for info on how to rebalance a taxable account. Is there tax implications for selling something with capital gains and buying a new fund? Currently my balances are still very low so I don't think it would be much of a problem, but just looking to learn for the future. What is the best way to handle this, and how often to rebalance?

NYC_Guy
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Re: What Fidelity funds do you use in your 3 fund portfolio?

Post by NYC_Guy » Mon Mar 20, 2017 10:30 am

https://www.bogleheads.org/wiki/Fidelity

US total equity: FSTVX or ITOT if ETF
Intl (ex-US) total equity: FTIPX or IXUS if ETF (I still use VXUS though)
US total bond: FSITX (but really depends on fixed income attributes you desire)

Rebalance within your tax-advantaged plans. View all of your investments as a single portfolio. Whether you tax effect for TIRA or Trad 401(k) balances is your choice.

I rebalance every quarter. But any periodic approach is fine. Just stay consistent.

RDHlooking4FIRE
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Re: What Fidelity funds do you use in your 3 fund portfolio?

Post by RDHlooking4FIRE » Mon Mar 20, 2017 10:54 am

NYC_Guy wrote:https://www.bogleheads.org/wiki/Fidelity


Rebalance within your tax-advantaged plans. View all of your investments as a single portfolio. Whether you tax effect for TIRA or Trad 401(k) balances is your choice.
Thanks for the info. What is "tax effect for TIRA or Trad 401(k)"

I have a ROTH and a taxable at fidelity, not 401K. To rebalance do you just sell what you have and buy different funds, even in a taxable account?

Rainmaker41
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Re: What Fidelity funds do you use in your 3 fund portfolio?

Post by Rainmaker41 » Mon Mar 20, 2017 11:36 am

RDHlooking4FIRE wrote: Thanks for the info. What is "tax effect for TIRA or Trad 401(k)"
This means that you might assume you only 'own' 75% (or whatever factor you determine to use to account for future taxes on withdrawals) of your pre-tax account balances. So, when calculating asset allocation, you would say that $4,000 in pre-tax is worth $3,000 in Roth.

If you had solely $3k total stock in Roth, and $4k in total bond in pre-tax, you could say that you were either 43% or 50% allocated to stock. Some people here do that, others don't.

See this wiki entry:

https://www.bogleheads.org/wiki/Tax-adj ... allocation
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WallStreetPhysician
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Re: What Fidelity funds do you use in your 3 fund portfolio?

Post by WallStreetPhysician » Mon Mar 20, 2017 1:48 pm

For an investor who would frequent blogs and forums such as Bogleheads, At Fidelity, the index funds I prefer for a three-fund portfolio are:

FSTVX: Fidelity® Total Market Index Fund - Premium Class (Expense Ratio 0.045%)
FSIIX: Fidelity® International Index Fund - Investor Class (Expense Ratio 0.19%)
FBIDX: Fidelity® U.S. Bond Index Fund - Investor Class (Expense Ratio 0.15%)

Some investors who prefer small cap international or emerging markets exposure will choose FTIGX: Fidelity® Total International Index Fund - Premium Class (Expense Ratio 0.18%) as their international fund.

There are capital gains or tax implications if you were to switch from your current investments to these funds. I would re-balance on an annual basis, but opinions vary.
Last edited by WallStreetPhysician on Thu Apr 06, 2017 3:52 pm, edited 1 time in total.

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BeBH65
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Re: What Fidelity funds do you use in your 3 fund portfolio?

Post by BeBH65 » Mon Mar 20, 2017 2:17 pm

Hello,

The wiki page on the 3-fund portfolio shows some Other_than_Vanguard funds.

It is best to consider your investment across all accounts; taxable and tax-advantaged.

Rebalancing:
- I understand that you are at the beginning of your investment career. Hence you can use your contribution to rebalance, by each time buying the fund that is lowest.
- otherwise, exchanging funds in tax advantaged account does not incur any taxation.

Regards,
BeBH65. (only an investment enthusiast, not a financial adviser, perform your due diligence).

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Earl Lemongrab
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Re: What Fidelity funds do you use in your 3 fund portfolio?

Post by Earl Lemongrab » Mon Mar 20, 2017 4:56 pm

Outside of my 401(k), I only use ETFs. Great ERs, great flexibility. Most of the time if I'm at Fidelity that means iShares products. Then I can move them later for transfer bonus purposes.
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Re: What Fidelity funds do you use in your 3 fund portfolio?

Post by oldcomputerguy » Mon Mar 20, 2017 5:28 pm

FSTVX Total Stock Market Premium Class
FTIPX Total International Stock Market Premium Class
FSITX U.S. Bond Index Premium Class

If you don't have enough to put the required minimum amounts ($10,000 each) into each of these Premium funds, Fidelity has Investor-class equivalents for each (FSTMX, FTIGX, FBIDX respectively) which require minimum investment of $2,500 each.
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Jack FFR1846
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Re: What Fidelity funds do you use in your 3 fund portfolio?

Post by Jack FFR1846 » Mon Mar 20, 2017 5:42 pm

I would put everything into FSTVX Total Stock Market Premium Class.

When your total portfolio reaches $100k, expand to bond and international.
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mongstradamus
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Re: What Fidelity funds do you use in your 3 fund portfolio?

Post by mongstradamus » Mon Mar 20, 2017 8:16 pm

Is there a consensus what to do if you want to avoid MBS in your bond holdings, would an etf like GVI be ok or are there better options out there. I was looking at something similar to BIV,vanguard intermediate term bond index. .

RDHlooking4FIRE
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Re: What Fidelity funds do you use in your 3 fund portfolio?

Post by RDHlooking4FIRE » Mon Mar 20, 2017 8:35 pm

Jack FFR1846 wrote:I would put everything into FSTVX Total Stock Market Premium Class.

When your total portfolio reaches $100k, expand to bond and international.
I like this idea. I can't afford premium shares if i use all 3 funds now.

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Taylor Larimore
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Re: What Fidelity funds do you use in your 3 fund portfolio?

Post by Taylor Larimore » Mon Mar 20, 2017 8:44 pm

mongstradamus wrote:Is there a consensus what to do if you want to avoid MBS in your bond holdings, would an etf like GVI be ok or are there better options out there. I was looking at something similar to BIV,vanguard intermediate term bond index. .
mongstradamus:

Diversification is good. Why would you want to avoid MBS (Mortgage Backed Securities) in your bond holdings?

Over the past 10 years Vanguard GNMA fund outperformed Total Bond Market (which holds MBS).

Best wishes.
Taylor
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FriedFire
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Re: What Fidelity funds do you use in your 3 fund portfolio?

Post by FriedFire » Tue Nov 28, 2017 3:12 pm

I currently hold the following in my 3-Fund Portfolio:

FSTVX Total Stock Market Premium Class (tax-deferred account)
FSIVX International Stock Market Premium Class (taxable account)
FSITX U.S. Bond Index Premium Class (tax-deferred account)

I noticed that most recommendations point to the Total Int'l FTIPX (0.10% ER) instead of FSIVX (0.06% ER) which is what I'm currently holding. I have 3 options going forward:

1- Continue to invest in FSIVX to keep ER low
2- Direct all new contributions to FTIPX for increased international diversity but at a slightly higher ER
3- Sell FSIVX and reinvest in FTIPX to simplify holdings but pay taxes incurred by the sale

investor997
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Re: What Fidelity funds do you use in your 3 fund portfolio?

Post by investor997 » Tue Nov 28, 2017 3:39 pm

I opened my account with Fidelity not long ago so I'm using FTIPX in my portfolio. I can't comment directly on why FTIPX is newly recommended over FSIVX, but I will mention FTIPX has a 90-day holding period with a 1% early redemption fee. Something to consider.

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Re: What Fidelity funds do you use in your 3 fund portfolio?

Post by brad.clarkston » Tue Nov 28, 2017 3:43 pm

FriedFire wrote:
Tue Nov 28, 2017 3:12 pm
I currently hold the following in my 3-Fund Portfolio:

FSTVX Total Stock Market Premium Class (tax-deferred account)
FSIVX International Stock Market Premium Class (taxable account)
FSITX U.S. Bond Index Premium Class (tax-deferred account)

I noticed that most recommendations point to the Total Int'l FTIPX (0.10% ER) instead of FSIVX (0.06% ER) which is what I'm currently holding. I have 3 options going forward:

1- Continue to invest in FSIVX to keep ER low
2- Direct all new contributions to FTIPX for increased international diversity but at a slightly higher ER
3- Sell FSIVX and reinvest in FTIPX to simplify holdings but pay taxes incurred by the sale
I wouldn't bother changing it out keep FSIVX it was the standard choice up until recently.
FTIPX is new and has just a smidgen of small cap in it but it's not enough to do any real tilting so no point if you already have the other.

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Re: What Fidelity funds do you use in your 3 fund portfolio?

Post by oldcomputerguy » Tue Nov 28, 2017 3:46 pm

investor997 wrote:
Tue Nov 28, 2017 3:39 pm
I opened my account with Fidelity not long ago so I'm using FTIPX in my portfolio. I can't comment directly on why FTIPX is newly recommended over FSIVX, but I will mention FTIPX has a 90-day holding period with a 1% early redemption fee. Something to consider.
Those who favor FTIPX over FSIVX likely do so because FTIPX includes more mid- and small-cap as well as emerging markets. FSIVX is almost all large-cap, and only has less than a half-percent emerging markets.
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FriedFire
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Re: What Fidelity funds do you use in your 3 fund portfolio?

Post by FriedFire » Tue Nov 28, 2017 4:05 pm

investor997 wrote:
Tue Nov 28, 2017 3:39 pm
FTIPX has a 90-day holding period with a 1% early redemption fee. Something to consider.
That's good to know. I hadn't noticed that when I was comparing the two funds.
brad.clarkston wrote:
Tue Nov 28, 2017 3:43 pm
I wouldn't bother changing it out keep FSIVX it was the standard choice up until recently.
FTIPX is new and has just a smidgen of small cap in it but it's not enough to do any real tilting so no point if you already have the other.
oldcomputerguy wrote:
Tue Nov 28, 2017 3:46 pm
Those who favor FTIPX over FSIVX likely do so because FTIPX includes more mid- and small-cap as well as emerging markets. FSIVX is almost all large-cap, and only has less than a half-percent emerging markets.
I'm fairly new to BH so was not aware that FSIVX was the standard choice until recently. And it sounds like the added complexity is not worth it (at least for me) just to get negligible exposure (not a real tilt) to small cap and emerging markets.

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Re: What Fidelity funds do you use in your 3 fund portfolio?

Post by abner kravitz » Tue Nov 28, 2017 4:26 pm

ITOT - Total US Market
IXUS - International Stock
AGG - Total Bond

They are ishares ETFs

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