Which fidelity funds?

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Sam1
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Which fidelity funds?

Post by Sam1 » Fri Apr 13, 2018 6:00 pm

We are investing between 5-7k per month. We just started this recently as we finished paying for my spouse’s law school.

So far I’ve been investing 2.5k in various fidelity funds.

Anyone have any recommendations going forward? What should my next two Fidelity funds be that I invest in?

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Lemonaid56
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Location: Maine

Re: Which fidelity funds?

Post by Lemonaid56 » Fri Apr 13, 2018 6:20 pm

You should probably give more information on your situation. What are you currently invested in and what have you decided on as your AA? Are all your other needs met , such as emergency fund, debt paid off, 401k or similar IRA funded and such.
Typically we are investing in index funds through Fido- US Total index FSTVX, Int'l Total FSIVX and a bond fund FSTIX. You would invest in these using your Assest Allocation as a guide.

Sam1
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Re: Which fidelity funds?

Post by Sam1 » Fri Apr 13, 2018 6:27 pm

Yes I’m good on an emergency fund and we max out retirement

Although emergency fund is small because I don’t really believe in them. Instead I believe in keeping fixed costs low. One spouse has a VERY secure job and we can easily live on one income which is what we do. We have life insurance, disability etc. we have the monthly cashlow to easily pay for repairs on a car, new AC etc. anything north of 10k should be from an event that triggers our homeowners insurance. we also have wealthy parents. I figure an emergency large enough to actually need a large emergency fund would be so catastrophic that we’d be screwed anyway. For example - a nuclear attack on our city, massive lawsuit, etc.

No I haven’t decided on asset allocation.

I’d have to pull up my account but we’ve just randomly chosen a few of the Fidelity funds based on the return and expenses. Last month we chose FBGRX for example.

Sam1
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Re: Which fidelity funds?

Post by Sam1 » Fri Apr 13, 2018 6:27 pm

Forgot to add no debt besides the mortgage.

tibbitts
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Re: Which fidelity funds?

Post by tibbitts » Fri Apr 13, 2018 6:42 pm

Operating in an almost complete vacuum of information: Fidelity Floating Rate High Income.

epictetus
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Re: Which fidelity funds?

Post by epictetus » Fri Apr 13, 2018 7:02 pm

would encourage you to pause now, do some reading/research, and get a plan in place.

the mutual fund buying should be the last step in the process.
Focus on what you can control

Sam1
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Joined: Mon Apr 09, 2018 7:24 am

Re: Which fidelity funds?

Post by Sam1 » Fri Apr 13, 2018 7:04 pm

epictetus wrote:
Fri Apr 13, 2018 7:02 pm
would encourage you to pause now, do some reading/research, and get a plan in place.

the mutual fund buying should be the last step in the process.
A plan for what exactly??

What process?

I already know when I plan on retiring and this money isn’t for retirement. I simply try and live on one paycheck and we have $5-7k to invest each month so I’m open to suggestions.

johnsmithsf
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Re: Which fidelity funds?

Post by johnsmithsf » Fri Apr 13, 2018 8:22 pm

Sam1 wrote:
Fri Apr 13, 2018 7:04 pm
epictetus wrote:
Fri Apr 13, 2018 7:02 pm
would encourage you to pause now, do some reading/research, and get a plan in place.

the mutual fund buying should be the last step in the process.
A plan for what exactly??

What process?

I already know when I plan on retiring and this money isn’t for retirement. I simply try and live on one paycheck and we have $5-7k to invest each month so I’m open to suggestions.
As this appears to be a Fidelity Taxable account, avoid mutual funds due to their higher tax cost ratio (i.e. future taxes).

Just buy commission-free index ishares ETFs from Fidelity (https://www.fidelity.com/etfs/ishares). You can start with 60% ITOT (Core S&P Total U.S. Stock Market) and 40% AGG (Core U.S. Aggregate Bond) for now and adjust (or tilt) your portfolio in future when you know more about your risk tolerance level. Don't sell anything until you retire and just use incoming funds for annual rebalancing.

Sam1
Posts: 58
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Re: Which fidelity funds?

Post by Sam1 » Fri Apr 13, 2018 8:27 pm

johnsmithsf wrote:
Fri Apr 13, 2018 8:22 pm
Sam1 wrote:
Fri Apr 13, 2018 7:04 pm
epictetus wrote:
Fri Apr 13, 2018 7:02 pm
would encourage you to pause now, do some reading/research, and get a plan in place.

the mutual fund buying should be the last step in the process.
A plan for what exactly??

What process?

I already know when I plan on retiring and this money isn’t for retirement. I simply try and live on one paycheck and we have $5-7k to invest each month so I’m open to suggestions.
As this appears to be a Fidelity Taxable account, avoid mutual funds due to their higher tax cost ratio (i.e. future taxes).

Just buy commission-free index ishares ETFs from Fidelity (https://www.fidelity.com/etfs/ishares). You can start with 60% ITOT (Core S&P Total U.S. Stock Market) and 40% AGG (Core U.S. Aggregate Bond) for now and adjust (or tilt) your portfolio in future when you know more about your risk tolerance level. Don't sell anything until you retire and just use incoming funds for annual rebalancing.
Thank tou

Stacking_Benjamins
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Re: Which fidelity funds?

Post by Stacking_Benjamins » Fri Apr 13, 2018 9:01 pm

Sam1 wrote:
Fri Apr 13, 2018 6:27 pm
Yes I’m good on an emergency fund and we max out retirement

Although emergency fund is small because I don’t really believe in them. Instead I believe in keeping fixed costs low. One spouse has a VERY secure job and we can easily live on one income which is what we do. We have life insurance, disability etc. we have the monthly cashlow to easily pay for repairs on a car, new AC etc. anything north of 10k should be from an event that triggers our homeowners insurance. we also have wealthy parents. I figure an emergency large enough to actually need a large emergency fund would be so catastrophic that we’d be screwed anyway. For example - a nuclear attack on our city, massive lawsuit, etc.

No I haven’t decided on asset allocation.

I’d have to pull up my account but we’ve just randomly chosen a few of the Fidelity funds based on the return and expenses. Last month we chose FBGRX for example.
I would agree that you would be screwed if there was a nuclear attack on your city. :P

jpsc
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Re: Which fidelity funds?

Post by jpsc » Fri Apr 13, 2018 9:51 pm

I would look at the expense per fidelity funds - Some funds has low maintenance fee - most index fund should be under 0.10%

Chip
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Re: Which fidelity funds?

Post by Chip » Sat Apr 14, 2018 4:34 am

Sam1 wrote:
Fri Apr 13, 2018 7:04 pm
A plan for what exactly??

What process?
A plan for how you're going to save, invest and ultimately spend that money. Try this link:

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

epictetus
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Re: Which fidelity funds?

Post by epictetus » Sat Apr 14, 2018 9:56 am

it sounds like you are in wonderful shape to do taxable investing since you are keeping expenses low, being able to live on one income, etc.

I would encourage you to figure out your asset allocation.

Re: buying various mutual funds- unless you are consciously tilting to small cap stocks or value stocks would encourage you to stay with the broad index funds. buying up a collection of various funds does not necessarily help with diversification, may produce a lot of overlap, and will likely be higher cost both in regard to expense ratios and turnover rates in taxable account.

there has been some discussion on the board re: Fidelity's total stock market index fund not being very good for taxable investing compared to Vanguard's total stock market index fund, Vanguard's total stock market ETF or Fidelity's total stock market ETF.
Focus on what you can control

BoglePablo
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Re: Which fidelity funds?

Post by BoglePablo » Sat Apr 14, 2018 10:12 am

johnsmithsf wrote:
Fri Apr 13, 2018 8:22 pm

As this appears to be a Fidelity Taxable account, avoid mutual funds due to their higher tax cost ratio (i.e. future taxes).

Just buy commission-free index ishares ETFs from Fidelity (https://www.fidelity.com/etfs/ishares). You can start with 60% ITOT (Core S&P Total U.S. Stock Market) and 40% AGG (Core U.S. Aggregate Bond) for now and adjust (or tilt) your portfolio in future when you know more about your risk tolerance level. Don't sell anything until you retire and just use incoming funds for annual rebalancing.
Hi johnsmitsf, can you elaborate on this point?
ie favor ETFs over mutual funds in a taxable account
Are taxes on sales of mutual fund assets typically higher than sales of ETF shares?

I am not familiar with the pros/cons of mutual funds vs ETFs. I've always only bought mutual fund shares, and never explored ETFs when they became common

thanks for your insight

Sam1
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Re: Which fidelity funds?

Post by Sam1 » Sat Apr 14, 2018 10:46 am

Chip wrote:
Sat Apr 14, 2018 4:34 am
Sam1 wrote:
Fri Apr 13, 2018 7:04 pm
A plan for what exactly??

What process?
A plan for how you're going to save, invest and ultimately spend that money. Try this link:

https://www.bogleheads.org/wiki/Getting_started
I already know how I’m going to save. I have between 5-7k going into my brokerage account each month.

I know I’ll invest in index funds but need to find out which ones

I don’t want to figure out how I’ll spend the money. I just want to know I have it in case I need it. We possibly have two large inheritances coming our way as one set of parents are worth over $7 million and another in the $4-5 million range. This makes it hard to plan because we could end up with a windfall or end up with nothing.

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ruralavalon
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Location: Illinois

Re: Which fidelity funds?

Post by ruralavalon » Sat Apr 14, 2018 10:50 am

Sam1 wrote:
Fri Apr 13, 2018 6:00 pm
We are investing between 5-7k per month. We just started this recently as we finished paying for my spouse’s law school.

So far I’ve been investing 2.5k in various fidelity funds.

Anyone have any recommendations going forward? What should my next two Fidelity funds be that I invest in?
Sam1 wrote:
Fri Apr 13, 2018 6:27 pm
Yes I’m good on an emergency fund and we max out retirement

Although emergency fund is small because I don’t really believe in them. Instead I believe in keeping fixed costs low. One spouse has a VERY secure job and we can easily live on one income which is what we do. We have life insurance, disability etc. we have the monthly cashlow to easily pay for repairs on a car, new AC etc. anything north of 10k should be from an event that triggers our homeowners insurance. we also have wealthy parents. I figure an emergency large enough to actually need a large emergency fund would be so catastrophic that we’d be screwed anyway. For example - a nuclear attack on our city, massive lawsuit, etc.

No I haven’t decided on asset allocation.

I’d have to pull up my account but we’ve just randomly chosen a few of the Fidelity funds based on the return and expenses. Last month we chose FBGRX for example.
Sam1 wrote:
Fri Apr 13, 2018 6:27 pm
Forgot to add no debt besides the mortgage.
Contributions on paying off the student debt :) . It's good see that you are debt free, other than your mortgage note.

I agree that a large emergency fund probably unnecessary in your situation.

. . . . .

More information is necessary in order to make and concrete suggestions for you to consider.

What is your age? Do you have any dependents? How would you describe your risk tolerance?

What is the interest rate on your mortgage note?

What is your tax bracket, both federal and state? What is your tax filing status?

Is there a work-based account (like a 401k, 403b, 457, TSP) offered at your job, and if so is there an employer match offered? What funds are you using, and what other funds are offered in that plan? Please give fund names, tickers and expense ratios.

Do you have any other accounts like IRAs? If so what funds are you using? Please give fund names, tickers and expense ratios.

It's usually best to coordinate investments amount all of the accounts.

Please simply add this to your original post using the edit button (the pencil icon near the upper right corner of your post), it helps a lot if all of your information is in one place.

Please see the post "asking portfolio questions" for information needed and format.

. . . . .

In general I favor a some portfolio using very diversified total market type index funds with low expense ratios. Fidelity offers some good index funds you could consider.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

Sam1
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Re: Which fidelity funds?

Post by Sam1 » Sat Apr 14, 2018 10:58 am

Ok here’s more info.

Never had any student loans. Paid law school tuition each semester by writing a check.

Here are our retirement contributions annually:

401k #1 - 18,500
Match - ~14k
Defined pension - 18k (rolls into 401k if I leave employer)

401k #2 - 18,500
Match - 10k

One job receives a large number of options every year that vest in increments.

We owe $520k on our mortgage with a 4.0 % rate.

We don’t have an IRA as I’ve never had an income low enough to have one.

anil686
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Re: Which fidelity funds?

Post by anil686 » Sat Apr 14, 2018 10:59 am

If you are using automatic investments every month- mutual funds can be more useful because they can be scheduled monthly with purchases from your bank account. One piece of advice is schedule your automatic investments after the typical dividend dates so you avoid buying the dividend.

Fidelity has tax efficient total market index funds with low ERs to use. It is true that the tax efficiency is slightly better with the iShares equivalent but the automation and simplicty of setting it up and forgetting it may be a decent offset. Normally, you only want to have tax efficient index funds in the taxable account - that would be keeping bonds in the tax deferred -

Here are a couple of links (IMHO) to help -

https://www.bogleheads.org/wiki/Tax-eff ... _placement

https://www.bogleheads.org/wiki/Three-fund_portfolio. — check out the Fidelity mutual fund selection listed below

Also check out how to do a Backdoor Roth IRA mechanics - you already pay taxes on this money and then it can be tax free into the future (at least at this time)...

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

Hope it helps you...

Sam1
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Re: Which fidelity funds?

Post by Sam1 » Sat Apr 14, 2018 11:01 am

ruralavalon wrote:
Sat Apr 14, 2018 10:50 am
Sam1 wrote:
Fri Apr 13, 2018 6:00 pm
We are investing between 5-7k per month. We just started this recently as we finished paying for my spouse’s law school.

So far I’ve been investing 2.5k in various fidelity funds.

Anyone have any recommendations going forward? What should my next two Fidelity funds be that I invest in?
Sam1 wrote:
Fri Apr 13, 2018 6:27 pm
Yes I’m good on an emergency fund and we max out retirement

Although emergency fund is small because I don’t really believe in them. Instead I believe in keeping fixed costs low. One spouse has a VERY secure job and we can easily live on one income which is what we do. We have life insurance, disability etc. we have the monthly cashlow to easily pay for repairs on a car, new AC etc. anything north of 10k should be from an event that triggers our homeowners insurance. we also have wealthy parents. I figure an emergency large enough to actually need a large emergency fund would be so catastrophic that we’d be screwed anyway. For example - a nuclear attack on our city, massive lawsuit, etc.

No I haven’t decided on asset allocation.

I’d have to pull up my account but we’ve just randomly chosen a few of the Fidelity funds based on the return and expenses. Last month we chose FBGRX for example.
Sam1 wrote:
Fri Apr 13, 2018 6:27 pm
Forgot to add no debt besides the mortgage.
Contributions on paying off the student debt :) . It's good see that you are debt free, other than your mortgage note.

I agree that a large emergency fund probably unnecessary in your situation.

. . . . .

More information is necessary in order to make and concrete suggestions for you to consider.

What is your age? Do you have any dependents? How would you describe your risk tolerance?

What is the interest rate on your mortgage note?

What is your tax bracket, both federal and state? What is your tax filing status?

Is there a work-based account (like a 401k, 403b, 457, TSP) offered at your job, and if so is there an employer match offered? What funds are you using, and what other funds are offered in that plan? Please give fund names, tickers and expense ratios.

Do you have any other accounts like IRAs? If so what funds are you using? Please give fund names, tickers and expense ratios.

It's usually best to coordinate investments amount all of the accounts.

Please simply add this to your original post using the edit button (the pencil icon near the upper right corner of your post), it helps a lot if all of your information is in one place.

Please see the post "asking portfolio questions" for information needed and format.

. . . . .

In general I favor a some portfolio using very diversified total market type index funds with low expense ratios. Fidelity offers some good index funds you could consider.
Just read the last part of your request. I will try and find some other Internet forums on investing in index funds. I’m simply trying to find ideas of good Fidelity funds to invest in. Reporting my 401k holdings and the other information you require would take an entire day.

Does anyone have any suggestions as to how to find and some decent funds to invest in? Like I mentioned earlier, I have 5-7k post tax to invest each month. I’m the highest tax bracket and have one dependent. HHI is 425k. We contribute over 85k towards retirement every year and the 5-7k will be in a private brokerage account.

Sam1
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Re: Which fidelity funds?

Post by Sam1 » Sat Apr 14, 2018 11:02 am

Also to clarify - the 5-7k is monthly not annually!

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BL
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Re: Which fidelity funds?

Post by BL » Sat Apr 14, 2018 11:26 am

See the 3-fund portfolio page in Wiki; farther down it has some recommended Fidelity funds and ETFs.
Simple, low-ER, and diversified index funds is the way to go. Avoid a collection: it may not be tax-efficient or low-ER, and may be costly (Capital Gains) to simplify later.
https://www.bogleheads.org/wiki/Three-fund_portfolio
Tax-free municipal bonds make sense if you want bonds in your taxable accounts.

At 4% paying off mortgage might be a smart move, especially if you don't gain much with itemizing under new tax laws.

The Boglehead book on investing would be a good basic book to read. Jane Bryant Quinn is also one of my favorite advisers over the years: Making the most of your money.

Edited to add:
Here is Wiki page on Fidelity funds:
https://www.bogleheads.org/wiki/Fidelity

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ruralavalon
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Re: Which fidelity funds?

Post by ruralavalon » Sat Apr 14, 2018 12:08 pm

Sam1 wrote:Just read the last part of your request. I will try and find some other Internet forums on investing in index funds. I’m simply trying to find ideas of good Fidelity funds to invest in. Reporting my 401k holdings and the other information you require would take an entire day.
No, it won't take all day. Please see this for format: "Asking Portfolio Questions". You can simply add this to your original post using the edit button (the pencil icon near the upper right corner of your post), it helps a lot if all of your information is in one place.

Fund selection is literally the last step in investment planning.

The requested information is important, and will help see the entire picture. It is often better to treat all accounts together as a single unified portfolio, rather than view each account separately.

Select just one or two of the better funds (most diversified + lower expense ratio) in the work-based account (401k, 403b, 457, TSP etc.), where the choices offered are limited. Then complete the rest of the asset allocation using the nearly unlimited or choices available in a taxable account or any IRAs. This approach lets you avoid having to use sub-par funds often found in work-based accounts like 401ks.

What low expense bond funds are offered in each 401k? Please give fund names, tickers and expense ratios.

Because you are in the highest tax bracket, you will likely want a tax-exempt bond fund, so may also (or instead) want a taxable account at Vanguard. Fidelity does not offer any tax-exempt bond index funds. Vanguard offers several different tax-exempt bond index funds, including state specific funds.

To what state do you pay your income taxes?

Sam1 wrote:Does anyone have any suggestions as to how to find and some decent funds to invest in? Like I mentioned earlier, I have 5-7k post tax to invest each month. I’m the highest tax bracket and have one dependent. HHI is 425k. We contribute over 85k towards retirement every year and the 5-7k will be in a private brokerage account.
In selecting funds strive for a combination of broad diversification (to reduce risk) and low expense ratios (to increase your net gain). To simply and easily achieve those two goals I suggest choosing funds to simulate the very well diversified, low expense ratio "three-fund portfolio". Wiki article "Three-fund portfolio". Forum discussion, "The Three-Fund Portfolio".

At Vanguard examples of very tax-efficient stock index funds include Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04% and Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) ER 0.11%. Both are very tax-efficient. Wiki article "Tax-efficient fund placement". Those funds are also well suited to any type of account. Both are very diversified with very low expense ratios.

In a taxable account at Fidelity, consider these stock index funds:
Fidelity Total Market Index Fund Premium Class (FSTVX) ER 0.035%; and
Fidelity Total International Index Fund Premium Class (FTIPX) ER 0.10%.
Wiki article, "Fidelity". Those funds are also well suited to any type of account. Both are very diversified with very low expense ratios.

Being in the highest tax bracket, you will likely want a tax-exempt bond fund. You will find good choices at Vanguard, so will probably want a taxable account at Vanguard.
Last edited by ruralavalon on Sat Apr 14, 2018 2:50 pm, edited 8 times in total.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

johnsmithsf
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Re: Which fidelity funds?

Post by johnsmithsf » Sat Apr 14, 2018 1:04 pm

BoglePablo wrote:
Sat Apr 14, 2018 10:12 am
johnsmithsf wrote:
Fri Apr 13, 2018 8:22 pm

As this appears to be a Fidelity Taxable account, avoid mutual funds due to their higher tax cost ratio (i.e. future taxes).

Just buy commission-free index ishares ETFs from Fidelity (https://www.fidelity.com/etfs/ishares). You can start with 60% ITOT (Core S&P Total U.S. Stock Market) and 40% AGG (Core U.S. Aggregate Bond) for now and adjust (or tilt) your portfolio in future when you know more about your risk tolerance level. Don't sell anything until you retire and just use incoming funds for annual rebalancing.
Hi johnsmitsf, can you elaborate on this point?
ie favor ETFs over mutual funds in a taxable account
Are taxes on sales of mutual fund assets typically higher than sales of ETF shares?

I am not familiar with the pros/cons of mutual funds vs ETFs. I've always only bought mutual fund shares, and never explored ETFs when they became common

thanks for your insight
There are two types of "ongoing" annual expenses in Mutual funds and ETFs 1) Overt (Expense Ratio) 2) Hidden (Tax Cost Ratio. You will pay it every year with your taxes. You will get a tax form from your broker). Ideally in a taxable account your fund or ETF should have the lowest combination of "Expense Ratio + Tax Cost Ratio". Expense Ratio is disclosed upfront. For Tax cost Ratio you can go to (http://performance.morningstar.com/fund ... ture=en-US) to compare various Tax cost ratios.

ETFs enjoy a more favorable tax treatment than mutual funds due to their unique structure. Mutual funds create and redeem shares with in-kind transactions that are not considered sales. As a result, they do not create taxable events. However, when you sell an ETF, the trade triggers a taxable event.

- You will notice that Non-Vanguard index mutual funds have a much higher Tax cost ratio when compared with ETFs or Vanguard Mutual funds even if they happen to follow the same index (VTSAX Vanguard Total Stock Market Index Fund Admiral Shares vs FSTVX Fidelity Total Market Index Fund Premium Class vs ITOT iShares S&P 1500 Index Fund (ETF). Vanguard is able to keep its tax cost ratio low as its mutual funds are very similar to ETFs and they have a patent on it so no one can copy them.

- You will also notice that a fund CLASS with a higher expense ratio will have a lower tax cost ratio, when compared with a the fund class with a lower expense ratio. (FSTMX vs FSTVX or VFINX vs VFIAX). This is just a trick. Full tax cost ratio sometimes get hidden by the higher expense ratio.

Therefore, in a taxable account, always buy either a Vanguard Mutual Fund, or an ETF.

For ETFs always buy the most liquid (lowest bid-ask spread, largest assets) index ETFs. Also they must be purchased during market hours as bid-ask spread increases at the time of market opening and close. Here is a list of largest ETFs

http://www.etf.com/channels/equity-etfs
http://www.etf.com/channels/bond-etfs

Only two Fidelity index funds have a tax cost ratio which is comparable to index ETFs
1) FUSVX Fidelity® 500 Index Fund - Premium Class
2) Fidelity® U.S. Bond Index Fund Premium Class FSITX

Low tax cost ratio of FUSVX Fidelity® 500 Index Fund - Premium Class is probably just a mirage as it will likely go up (due to capital gains) when the fund starts to see some massive outflows.

Quoting
Precisely that has happened at Schwab 1000 (compare tax cost ratio of SNXFX and SCHB), which has been dishing out fairly fat cap gains for four years. A capital gain distribution is less likely in an ETF but not impossible. An ETF may have to distribute a taxable gain if the index it follows is updated, the fund is not capitalization-weighted or the fund holds discount bonds. But then, mutual fund versions of the same portfolios are sure to have a worse problem. Broad, cap-weighted stock index ETFs almost never have significant cap gain payouts.
https://www.forbes.com/sites/baldwin/20 ... dc348d5f57

Chip
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Re: Which fidelity funds?

Post by Chip » Sat Apr 14, 2018 1:55 pm

Sam1 wrote:
Sat Apr 14, 2018 10:46 am
I already know how I’m going to save. I have between 5-7k going into my brokerage account each month.

I know I’ll invest in index funds but need to find out which ones

I don’t want to figure out how I’ll spend the money. I just want to know I have it in case I need it. We possibly have two large inheritances coming our way as one set of parents are worth over $7 million and another in the $4-5 million range. This makes it hard to plan because we could end up with a windfall or end up with nothing.
Do you want to invest in international index funds in your taxable account? US total market funds? Small cap value funds? There are a multitude of options at Fidelity when you consider that nearly the entire universe of low cost ETFs is available to you there.

That's why you're getting pushback when you say "Just tell me some index funds".

But if you only want to consider Fidelity-branded open-end index funds, here's a list:

https://www.fidelity.com/mutual-funds/i ... ndex-funds

Many are not appropriate for a taxable account for a high tax bracket investor.

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tainted-meat
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Re: Which fidelity funds?

Post by tainted-meat » Sat Apr 14, 2018 2:05 pm

FFNOX (Fidelity Four-in-One Index Fund) is a great utility option that includes domestic & international stock with a bond allocation.

Sam1
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Re: Which fidelity funds?

Post by Sam1 » Sat Apr 14, 2018 4:42 pm

tainted-meat wrote:
Sat Apr 14, 2018 2:05 pm
FFNOX (Fidelity Four-in-One Index Fund) is a great utility option that includes domestic & international stock with a bond allocation.
Thank you!

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ruralavalon
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Re: Which fidelity funds?

Post by ruralavalon » Sat Apr 14, 2018 6:20 pm

Sam1 wrote:
Sat Apr 14, 2018 4:42 pm
tainted-meat wrote:
Sat Apr 14, 2018 2:05 pm
FFNOX (Fidelity Four-in-One Index Fund) is a great utility option that includes domestic & international stock with a bond allocation.
Thank you!
This is a balanced fund which contains a bond allocation, not very tax-effient in a taxable account. Wiki article "Tax-efficient fund placement".
Bogleheads' wiki wrote:If you have a balanced fund in a taxable account, you cannot sell only the bonds (to hold bonds in a different account, or to hold fewer bonds, or to hold a different type of bonds); you have to sell the whole fund, which can result in realizing a capital gain.

In a taxable account, the bond dividends will get taxed at ordinary income rates; in addition, the investor loses the option to harvest losses of individual asset classes. The more efficient strategy is to own the individual asset classes in separate funds and in their most tax-efficient locations.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

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tainted-meat
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Location: Kentucky

Re: Which fidelity funds?

Post by tainted-meat » Sat Apr 14, 2018 6:25 pm

ruralavalon wrote:
Sat Apr 14, 2018 6:20 pm
Sam1 wrote:
Sat Apr 14, 2018 4:42 pm
tainted-meat wrote:
Sat Apr 14, 2018 2:05 pm
FFNOX (Fidelity Four-in-One Index Fund) is a great utility option that includes domestic & international stock with a bond allocation.
Thank you!
This is a balanced fund which contains a bond allocation, not very tax-effient in a taxable account. Wiki article "Tax-efficient fund placement".
Bogleheads' wiki wrote:If you have a balanced fund in a taxable account, you cannot sell only the bonds (to hold bonds in a different account, or to hold fewer bonds, or to hold a different type of bonds); you have to sell the whole fund, which can result in realizing a capital gain.

In a taxable account, the bond dividends will get taxed at ordinary income rates; in addition, the investor loses the option to harvest losses of individual asset classes. The more efficient strategy is to own the individual asset classes in separate funds and in their most tax-efficient locations.
Good point ruralavalon. I missed the portion where this is going to a taxable account. :happy FFNOX is good for tax deferred but not taxable.

blessed
Posts: 39
Joined: Mon Feb 27, 2017 9:55 pm

Re: Which fidelity funds?

Post by blessed » Sat Apr 14, 2018 6:40 pm

Sam1 wrote:
Fri Apr 13, 2018 6:00 pm
We are investing between 5-7k per month. We just started this recently as we finished paying for my spouse’s law school.

So far I’ve been investing 2.5k in various fidelity funds.

Anyone have any recommendations going forward? What should my next two Fidelity funds be that I invest in?
I use ETFs ITOT (total US market) and IXUS (total international) in my taxable brokerage account. You could also use mutual funds FSTVX for total US and FSIVX for int'l if you want to do "hands-free" automatic investments. It only takes me two minutes per month to go in and buy ETF shares so I'm good with that.

I don't do bonds in taxable.

Sam1
Posts: 58
Joined: Mon Apr 09, 2018 7:24 am

Re: Which fidelity funds?

Post by Sam1 » Sun Apr 15, 2018 2:15 pm

blessed wrote:
Sat Apr 14, 2018 6:40 pm
Sam1 wrote:
Fri Apr 13, 2018 6:00 pm
We are investing between 5-7k per month. We just started this recently as we finished paying for my spouse’s law school.

So far I’ve been investing 2.5k in various fidelity funds.

Anyone have any recommendations going forward? What should my next two Fidelity funds be that I invest in?
I use ETFs ITOT (total US market) and IXUS (total international) in my taxable brokerage account. You could also use mutual funds FSTVX for total US and FSIVX for int'l if you want to do "hands-free" automatic investments. It only takes me two minutes per month to go in and buy ETF shares so I'm good with that.

I don't do bonds in taxable.
Awesome thanks!

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