Starting Fidelity Roth IRA

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aker
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Starting Fidelity Roth IRA

Post by aker » Sat Sep 22, 2018 10:59 am

Hello all,

I am late to this party but have opened and funded my Fidelity Roth IRA with my maximum contribution for 2018. Next year I plan to also max my contribution. With that said, I am lost from this point on. I plan to do a lot of reading and educate myself, but I also wanted to say hello here and gather some suggestions as to what my first steps should be.

From my initial light reading I see people recommending placing a lot into the FSTVX fund but as I will not be at the $10,000 minimum until next year, what should I do with the money in the meantime that is in the account?

Aside from that question, any sites or books that you would all recommend that will help me would be very appreciated. I will answer any questions that may help your suggestions as well.

Thank you!

yaynick
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Joined: Sun Aug 19, 2018 12:29 pm

Re: Starting Fidelity Roth IRA

Post by yaynick » Sat Sep 22, 2018 11:29 am

FSTVX no longer has a minimum to invest. FZROX is a similar FIdelity fund that has no minimum to invest (and no expense ratio).

If FSTVX is your goal, just invest.

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Phineas J. Whoopee
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Re: Starting Fidelity Roth IRA

Post by Phineas J. Whoopee » Sat Sep 22, 2018 1:10 pm

yaynick wrote:
Sat Sep 22, 2018 11:29 am
FSTVX no longer has a minimum to invest. FZROX is a similar FIdelity fund that has no minimum to invest (and no expense ratio).

If FSTVX is your goal, just invest.
I believe that takes effect in early November. It isn't an investing issue, just a matter of helping OP with realistic expectations.

PJW

yaynick
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Re: Starting Fidelity Roth IRA

Post by yaynick » Sat Sep 22, 2018 1:43 pm

Phineas J. Whoopee wrote:
Sat Sep 22, 2018 1:10 pm
yaynick wrote:
Sat Sep 22, 2018 11:29 am
FSTVX no longer has a minimum to invest. FZROX is a similar FIdelity fund that has no minimum to invest (and no expense ratio).

If FSTVX is your goal, just invest.
I believe that takes effect in early November. It isn't an investing issue, just a matter of helping OP with realistic expectations.

PJW
The minimum has already been lowered. The consolidation is just the combining of the funds (under 1 ticker).

https://fundresearch.fidelity.com/mutua ... /315911800

Edit: Just placed a trade for $1 of FSTVX. I do not own FSTVX anywhere.

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Phineas J. Whoopee
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Re: Starting Fidelity Roth IRA

Post by Phineas J. Whoopee » Sat Sep 22, 2018 2:15 pm

yaynick wrote:
Sat Sep 22, 2018 1:43 pm
Phineas J. Whoopee wrote:
Sat Sep 22, 2018 1:10 pm
yaynick wrote:
Sat Sep 22, 2018 11:29 am
FSTVX no longer has a minimum to invest. FZROX is a similar FIdelity fund that has no minimum to invest (and no expense ratio).

If FSTVX is your goal, just invest.
I believe that takes effect in early November. It isn't an investing issue, just a matter of helping OP with realistic expectations.

PJW
As far as I can tell the minimum has already been lowered. The consolidation is just the combining of the funds (under 1 ticker).

https://fundresearch.fidelity.com/mutua ... /315911800
Fair enough, then.

PJW

aker
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Re: Starting Fidelity Roth IRA

Post by aker » Sat Sep 22, 2018 2:51 pm

Thank you for the info about FSTVX. How does one even make a decision as to where to put their money? There seems to be a never ending amount of funds to choose from.

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Duckie
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Re: Starting Fidelity Roth IRA

Post by Duckie » Sat Sep 22, 2018 6:48 pm

aker wrote:How does one even make a decision as to where to put their money? There seems to be a never ending amount of funds to choose from.
Bogleheads recommend the Three-fund portfolio spread across all retirement accounts. At Fidelity, FSTVX (soon to be consolidated and renamed FSKAX) is one of the three.

aker
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Re: Starting Fidelity Roth IRA

Post by aker » Sat Sep 22, 2018 6:55 pm

Duckie wrote:
Sat Sep 22, 2018 6:48 pm
aker wrote:How does one even make a decision as to where to put their money? There seems to be a never ending amount of funds to choose from.
Bogleheads recommend the Three-fund portfolio spread across all retirement accounts. At Fidelity, FSTVX (soon to be consolidated and renamed FSKAX) is one of the three.
Thank you so much. This stuff is super overwhelming and I know it’s been asked countless times. I’m not well versed in this and I deeply appreciate the advice.

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AtlasShrugged?
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Re: Starting Fidelity Roth IRA

Post by AtlasShrugged? » Sat Sep 22, 2018 8:43 pm

aker....I have my Roth at Fidelity. The website is extremely friendly, easy to use, and the customer service is outstanding.

Three fund portfolio. Equal proportions of FSTVX, FTIPX, and FSITX. And you are done.
“If you don't know, the thing to do is not to get scared, but to learn.”

jmanter
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Re: Starting Fidelity Roth IRA

Post by jmanter » Sat Sep 22, 2018 8:53 pm

You can't go wrong with FSTVX, FTIPX, and FSITX in your Roth. 1/3 of each is probably fine, but your balance is going to depend on you, your age and retirement projections, and your risk tolerance. This questionnaire got me started when I was first considering such things: https://personal.vanguard.com/us/FundsInvQuestionnaire

I think others have suggested reading this page: https://www.bogleheads.org/wiki/Three-fund_portfolio

You could also sub FZROX for FSTVX for a slightly lower fee, but it's pretty negligible. Same goes for subbing FZILX for FTIPX. Very small changes in expenses and the newer ones (with the Z) don't have much history yet.

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darkhorse346
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Re: Starting Fidelity Roth IRA

Post by darkhorse346 » Sun Sep 23, 2018 7:18 am

Duckie wrote:
Sat Sep 22, 2018 6:48 pm
aker wrote:How does one even make a decision as to where to put their money? There seems to be a never ending amount of funds to choose from.
Bogleheads recommend the Three-fund portfolio spread across all retirement accounts. At Fidelity, FSTVX (soon to be consolidated and renamed FSKAX) is one of the three.
+1

OP, do you have any other retirement accounts, investments, etc? You will get a more complete suggestion if you provide more information.

Absent this information, yes, a three fund portfolio, using the total market funds listed, could be a simple and effective strategy.

BTW, I really like Fidelity for a three fund portfolio. You get rock-bottom, low costs and good customer service, website, tools, etc. Just stay away from the expensive items on the menu.

aker
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Re: Starting Fidelity Roth IRA

Post by aker » Sun Sep 23, 2018 11:24 am

darkhorse346 wrote:
Sun Sep 23, 2018 7:18 am
OP, do you have any other retirement accounts, investments, etc? You will get a more complete suggestion if you provide more information.
Sadly, this is it so far. My job doesn't offer any 401k matching and as I'm starting so late I am thinking I may need to be a bit more aggressive in all of this.

ExitStageLeft
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Re: Starting Fidelity Roth IRA

Post by ExitStageLeft » Sun Sep 23, 2018 11:54 am

aker wrote:
Sun Sep 23, 2018 11:24 am
darkhorse346 wrote:
Sun Sep 23, 2018 7:18 am
OP, do you have any other retirement accounts, investments, etc? You will get a more complete suggestion if you provide more information.
Sadly, this is it so far. My job doesn't offer any 401k matching and as I'm starting so late I am thinking I may need to be a bit more aggressive in all of this.
Welcome to the forum. You are right to be thinking far ahead. Assuming you want to have a comparable lifestyle when you retire, a useful rule of thumb at this stage is to build up a portfolio of at least 25 times your current living expenses. Another useful rule of thumb is to be saving 15% of your income per year to reach that goal.

This calculator at networthify.com doesn't take into account things like pensions, social security, etc. but it does highlight the importance of increasing your savings rate:

https://networthify.com/calculator/earl ... awalRate=4

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Duckie
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Re: Starting Fidelity Roth IRA

Post by Duckie » Sun Sep 23, 2018 2:45 pm

aker wrote:My job doesn't offer any 401k matching and as I'm starting so late I am thinking I may need to be a bit more aggressive in all of this.
Just because there is no matching doesn't mean you shouldn't contribute. What are the options? List the fund names, ticker symbols if available, and plan expense ratios (not retail rates).

mervinj7
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Re: Starting Fidelity Roth IRA

Post by mervinj7 » Mon Sep 24, 2018 11:56 am

aker, the wiki has info on how to ask Portfolio questions. That will help the other posters look at your overall investment picture and give you more targeted advice (e.g. target asset allocation, fund placement).

https://www.bogleheads.org/wiki/Asking_ ... _questions

If you want specific advise on Fidelity funds for your Roth IRA, check out:
https://www.bogleheads.org/wiki/Fidelity

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