Moving within Fidelity

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
moneywise3
Posts: 385
Joined: Mon Nov 22, 2010 6:54 pm

Moving within Fidelity

Post by moneywise3 » Wed Aug 15, 2018 5:40 pm

So after so many moving "to" fidelity threads, this one is moving within Fidelity. I have a Rollover IRA at Fidelity that's invested in 500-index (FUSVX) and Internaltional index funds (FSIVX). Given the new ZERO index funds, it seems like a no brainer to switch. Since it is IRA, there should be no tax implications. I would like inputs on what factors I should consider?

The savings is not huge in terms of dollars per year. But it could compound to a decent amount, given am not planning to use the funds for another 20-30 years.

delamer
Posts: 6267
Joined: Tue Feb 08, 2011 6:13 pm

Re: Moving within Fidelity

Post by delamer » Wed Aug 15, 2018 6:35 pm

Presumably you have a desired asset allocation for your retirement accounts.

Do any of the zero cost funds fit your allocation needs?

User avatar
ruralavalon
Posts: 14071
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: Moving within Fidelity

Post by ruralavalon » Wed Aug 15, 2018 6:44 pm

moneywise3 wrote:
Wed Aug 15, 2018 5:40 pm
So after so many moving "to" fidelity threads, this one is moving within Fidelity. I have a Rollover IRA at Fidelity that's invested in 500-index (FUSVX) and Internaltional index funds (FSIVX). Given the new ZERO index funds, it seems like a no brainer to switch. Since it is IRA, there should be no tax implications. I would like inputs on what factors I should consider?

The savings is not huge in terms of dollars per year. But it could compound to a decent amount, given am not planning to use the funds for another 20-30 years.
I don't see any reason that you shouldn't try the new Fidelity ZERO funds, since this is a tax-advantged account and is already at Fidelity.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

moneywise3
Posts: 385
Joined: Mon Nov 22, 2010 6:54 pm

Re: Moving within Fidelity

Post by moneywise3 » Thu Aug 16, 2018 5:00 pm

delamer wrote:
Wed Aug 15, 2018 6:35 pm
Presumably you have a desired asset allocation for your retirement accounts.

Do any of the zero cost funds fit your allocation needs?
Yes my AA is worked out. It'll be a same category transition for my funds.

moneywise3
Posts: 385
Joined: Mon Nov 22, 2010 6:54 pm

Re: Moving within Fidelity

Post by moneywise3 » Thu Aug 16, 2018 5:00 pm

ruralavalon wrote:
Wed Aug 15, 2018 6:44 pm
I don't see any reason that you shouldn't try the new Fidelity ZERO funds, since this is a tax-advantged account and is already at Fidelity.
Thanks

dpm321
Posts: 61
Joined: Sun Mar 04, 2012 6:04 pm

Re: Moving within Fidelity

Post by dpm321 » Thu Aug 16, 2018 5:06 pm

May matter, may not but these new funds do not have any track records. As I understand it they are not being run by Fido staff but by a contracted firm. I'm staying out of them until they have some performance to measure.

CppCoder
Posts: 841
Joined: Sat Jan 23, 2016 9:16 pm

Re: Moving within Fidelity

Post by CppCoder » Thu Aug 16, 2018 7:07 pm

FSIVX is EAFE indexed. I believe it is large cap and developed markets only. Fidelity has other international funds that include mid cap, small cap, and emerging markets. The international zero fund does not have exposure to small cap stocks, but does have exposure to emerging markets. If you want a more total market exposure, you may wish to consider FTIPX at a 0.06% ER. If you don't want exposure to emerging markets, you should probably not consider the zero fund.

Minty
Posts: 164
Joined: Sun Mar 24, 2013 3:19 pm
Location: NorCal

Re: Moving within Fidelity

Post by Minty » Thu Aug 16, 2018 7:38 pm

I'm tempted, but I'm going to wait until there are results. These new proprietary indices may do great, but it is also possible that they will underperform existing Fidelity funds by more than the difference in ER. I also worry a tiny bit about the effectiveness of sampling methods in a smaller fund, although that may be me not understanding the power of the method.
Core Four with nominal bonds and TIPS.

Jablean
Posts: 250
Joined: Sat Jun 02, 2018 2:38 pm

Re: Moving within Fidelity

Post by Jablean » Thu Aug 16, 2018 9:15 pm

I've got a couple accounts that I can play with it in as I have some inherited IRAs as well as my own. So I opened identical amounts of the old total and the new zero total. We'll see in a year how they compare. Didn't think about doing the same with international but still could.

moneywise3
Posts: 385
Joined: Mon Nov 22, 2010 6:54 pm

Re: Moving within Fidelity

Post by moneywise3 » Fri Aug 17, 2018 10:39 am

Thank you all. I'm switching and if it turns out I missed something, I'll switch back. It's in an IRA, so no tax implications.

dcdowden
Posts: 113
Joined: Sun Sep 28, 2014 11:42 am

Re: Moving within Fidelity

Post by dcdowden » Fri Aug 17, 2018 11:29 am

We met with our Fidelity adviser this week and we decided to give the new zero funds a try, so I basically exchanged our VTI and VXUS ETF holdings for the new zero ER funds. Only issue so far is that the new funds show up as 'unclassified assets' when I look at my new asset allocation on Personal Capital or even at Fidelity. I presume that will get updated soon.

moneywise3
Posts: 385
Joined: Mon Nov 22, 2010 6:54 pm

Re: Moving within Fidelity

Post by moneywise3 » Sat Aug 18, 2018 11:43 am

dcdowden wrote:
Fri Aug 17, 2018 11:29 am
We met with our Fidelity adviser this week and we decided to give the new zero funds a try, so I basically exchanged our VTI and VXUS ETF holdings for the new zero ER funds. Only issue so far is that the new funds show up as 'unclassified assets' when I look at my new asset allocation on Personal Capital or even at Fidelity. I presume that will get updated soon.
It shows up if you go to fidelity website and see the fund description

PFInterest
Posts: 2541
Joined: Sun Jan 08, 2017 12:25 pm

Re: Moving within Fidelity

Post by PFInterest » Sat Aug 18, 2018 11:46 am

moneywise3 wrote:
Wed Aug 15, 2018 5:40 pm
So after so many moving "to" fidelity threads, this one is moving within Fidelity. I have a Rollover IRA at Fidelity that's invested in 500-index (FUSVX) and Internaltional index funds (FSIVX). Given the new ZERO index funds, it seems like a no brainer to switch. Since it is IRA, there should be no tax implications. I would like inputs on what factors I should consider?

The savings is not huge in terms of dollars per year. But it could compound to a decent amount, given am not planning to use the funds for another 20-30 years.
that sounds fine. you are actually moving towards (probably) better funds (why were you in a an s&p and developed markets fund anyways? TLH?)

Post Reply