Help - 3 fund @ Fidelity

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aseldon
Posts: 3
Joined: Thu Apr 20, 2017 3:16 pm

Help - 3 fund @ Fidelity

Postby aseldon » Thu Apr 20, 2017 3:22 pm

Hello all,

I have been digging through the posts on this site to try and find out which 3 funds to choose for my 401k through Fidelity. Can someone help point me in the right direction if I am wrong? Thanks in advance.

Using my best judgement I have narrowed it down to the following 3:
Vanguard Developed Markets Index Fund ER 0.07%
Vanguard Institutional Index Fund Institutional ER 0.04%
Vanguard Total Bond Market Index Fund ER 0.05%

List of all available:
American Funds EuroPacific Growth Fund® Class R-6 (RERGX) ER 0.5%
AMG TimesSquare Mid Cap Growth Fund Class Z (TMDIX) ER 1.04%
Conestoga Small Cap Institutional Class (CCALX) ER 1.1%
Dodge & Cox International Stock Fund (DODFX) ER 0.64%
Loomis Sayles Core Plus Fixed Income Unitized Fund ER 0.32%
Neuberger Berman High Income Bond Fund Class R6 (NRHIX) ER 0.62%
T. Rowe Price Equity Income Trust (Class A) ER 0.50%
T. Rowe Price Growth Stock Trust B ER 0.45%
T. Rowe Price Retirement 2010 Trust (Class B) ER 0.49%
T. Rowe Price Retirement 2020 Trust (Class B) ER 0.49%
T. Rowe Price Retirement 2030 Trust (Class B) ER 0.49%
T. Rowe Price Retirement 2040 Trust (Class B) ER 0.49%
T. Rowe Price Retirement 2050 Trust (Class B) ER 0.49%
T. Rowe Price Retirement 2060 Trust (Class B) ER 49%
T. Rowe Price Stable Value Common Trust Fund N ER 0.20%
T. Rowe Price U.S. Mid-Cap Value Equity Trust (Class D) ER 0.64%
Vanguard Developed Markets Index Fund Institutional Shares (VTMNX) ER 0.07%
Vanguard Extended Market Index Fund Institutional Shares (VIEIX) ER 0.07%
Vanguard Inflation-Protected Securities Fund Institutional Shares (VIPIX) ER 0.07%
Vanguard Institutional Index Fund Institutional Shares (VINIX) ER 0.04%
Vanguard Total Bond Market Index Fund Institutional Shares (VBTIX) ER 0.05%
William Blair Small Cap Value Fund Class I (BVDIX) ER 1.24%
Last edited by aseldon on Thu Apr 20, 2017 4:06 pm, edited 1 time in total.

bloom2708
Posts: 1711
Joined: Wed Apr 02, 2014 2:08 pm
Location: Fargo, ND

Re: Help - 3 fund @ Fidelity

Postby bloom2708 » Thu Apr 20, 2017 3:48 pm

Welcome.

Can you edit your post and add the Expense Ratios of each fund? That will help.

Vanguard Institutional Index Fund Institutional
Vanguard Total Bond Market Index Fund

Are logical choices. The international fund might or might not be a good fit depending on ER.

You could hold International in your Roth (example) if you have a lower cost, Total International Stock index fund.
Last edited by bloom2708 on Thu Apr 20, 2017 3:50 pm, edited 1 time in total.
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retiredjg
Posts: 28547
Joined: Thu Jan 10, 2008 12:56 pm

Re: Help - 3 fund @ Fidelity

Postby retiredjg » Thu Apr 20, 2017 3:49 pm

aseldon wrote:Using my best judgement I have narrowed it down to the following 3:
Vanguard Developed Markets Index Fund
Vanguard Institutional Index Fund Institutional
Vanguard Total Bond Market Index Fund

Good job! This is not the entire 3 fund portfolio, but it is close enough and definitely will do.

If you want total stock, add some Vanguard Extended Market Index Fund Institutional Shares (VIEIX) to the Institutional Index (500 Index) in a ratio of roughly 80% 500 index and 20% Extended Market.

If you want a total international, you could hold an emerging markets index in an IRA.

If you prefer to just use the 401k, forget emerging markets and call it good.

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runner9
Posts: 1911
Joined: Tue Aug 02, 2011 8:49 pm
Location: Ohio

Re: Help - 3 fund @ Fidelity

Postby runner9 » Thu Apr 20, 2017 3:51 pm

So you have a 401k at Fidelity with no access to Fidelity funds?

aseldon
Posts: 3
Joined: Thu Apr 20, 2017 3:16 pm

Re: Help - 3 fund @ Fidelity

Postby aseldon » Thu Apr 20, 2017 4:07 pm

Updated original post with Expense Ratios.

This 401k was originally held at T-Rowe price until a few years ago when my company switched to Fidelity, that may be why I don't have access to Fidelity funds.

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oldcomputerguy
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Re: Help - 3 fund @ Fidelity

Postby oldcomputerguy » Thu Apr 20, 2017 4:12 pm

aseldon wrote:Updated original post with Expense Ratios.

This 401k was originally held at T-Rowe price until a few years ago when my company switched to Fidelity, that may be why I don't have access to Fidelity funds.


That's surprising. There were a couple of times in my working career where our company changed 401k providers, and in each case the existing investments were liquidated and re-invested into "the most closely-matching" fund options in the new plan. We were never given the opportunity of bringing existing investments over in-kind.
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retiredjg
Posts: 28547
Joined: Thu Jan 10, 2008 12:56 pm

Re: Help - 3 fund @ Fidelity

Postby retiredjg » Thu Apr 20, 2017 4:15 pm

We've frequently seen Vanguard funds in Fidelity 401k plans in the past. They usually have some Fidelity actively managed funds available too. And I think brokerage links as well.

If you have a free brokerage link (to Fido's other funds), they have an international fund that would be more complete than the Vanguard fund. Not sure I'd pay an annual fee to use it though.

aseldon
Posts: 3
Joined: Thu Apr 20, 2017 3:16 pm

Re: Help - 3 fund @ Fidelity

Postby aseldon » Thu Apr 20, 2017 4:40 pm

retiredjg wrote:
aseldon wrote:Using my best judgement I have narrowed it down to the following 3:
Vanguard Developed Markets Index Fund
Vanguard Institutional Index Fund Institutional
Vanguard Total Bond Market Index Fund

Good job! This is not the entire 3 fund portfolio, but it is close enough and definitely will do.

If you want total stock, add some Vanguard Extended Market Index Fund Institutional Shares (VIEIX) to the Institutional Index (500 Index) in a ratio of roughly 80% 500 index and 20% Extended Market.

If you want a total international, you could hold an emerging markets index in an IRA.

If you prefer to just use the 401k, forget emerging markets and call it good.


Thanks for the advice! If I am understanding you correctly how I should setup the 401k is as follows:
Vanguard Developed Markets Index Fund - 33%
Vanguard Institutional Index Fund/Vanguard Extended Market Index Fund International - 34% (27%/7%)
Vanguard Total Bond Market Index Fund - 33%

retiredjg
Posts: 28547
Joined: Thu Jan 10, 2008 12:56 pm

Re: Help - 3 fund @ Fidelity

Postby retiredjg » Thu Apr 20, 2017 5:22 pm

Yes....if you are looking for about 64% stock and 33% bonds. The 3 fund portfolio can be divided up any way you want - it does not have to be 64% stock and 33% bonds. And it is not always 1/3rd and 1/3rd and 1/3rd.


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