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

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
RDHlooking4FIRE
Posts: 39
Joined: Tue Mar 14, 2017 11:27 am

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

Postby 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
Posts: 119
Joined: Fri Mar 10, 2017 2:23 pm
Location: New York

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

Postby 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
Posts: 39
Joined: Tue Mar 14, 2017 11:27 am

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

Postby 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
Posts: 355
Joined: Tue Apr 26, 2016 11:34 am

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

Postby 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
My username is not about money, but is my old online gaming username. I can't say that I make a great deal of money; I just hate spending it. Marrying the most loving woman in the world October 2017.

User avatar
WallStreetPhysician
Posts: 94
Joined: Tue Jan 17, 2017 12:09 pm
Contact:

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

Postby 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.

User avatar
BeBH65
Posts: 773
Joined: Sat Jul 04, 2015 7:28 am

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

Postby 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).

User avatar
Earl Lemongrab
Posts: 1992
Joined: Tue Jun 10, 2014 1:14 am

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

Postby 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.
This week's fortune cookie: "You will enjoy doing something spontaneous this weekend." Apparently that meant working on a dead PC, but I didn't enjoy that much.

User avatar
oldcomputerguy
Posts: 1408
Joined: Sun Nov 22, 2015 6:50 am
Location: In the middle of five acres of woods

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

Postby 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.
Anybody know why there's a 20-pound frozen turkey up in the light grid?

Jack FFR1846
Posts: 4943
Joined: Tue Dec 31, 2013 7:05 am

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

Postby 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.
Bogle: Smart Beta is stupid

mongstradamus
Posts: 82
Joined: Mon Nov 04, 2013 11:46 pm

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

Postby 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
Posts: 39
Joined: Tue Mar 14, 2017 11:27 am

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

Postby 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.

User avatar
Taylor Larimore
Advisory Board
Posts: 25527
Joined: Tue Feb 27, 2007 8:09 pm
Location: Miami FL

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

Postby 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
"Simplicity is the master key to financial success." -- Jack Bogle


Return to “Investing - Help with Personal Investments”

Who is online

Users browsing this forum: aristotelian, bigred77, Derby, KidneyMD, Meaty, Outafter20, patrick013, Tabbycat and 102 guests