Sanity check on investments

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Topic Author
flyermw
Posts: 5
Joined: Tue Jan 15, 2019 11:53 pm

Sanity check on investments

Post by flyermw »

Hello,

I'm a long time follower of this website and have been practicing the Boglehead approach to investing for a while.

I recently inherited an IRA and opened up an Inherited IRA at Fidelity. Based on the advice given on this forum, I have invested between three different funds:

50%: Fidelity 500 Index Fund (FSAIX)
30%: Fidelity International Index Fund (FSPSX)
20%: Fidelity U.S. Bond Index Fund (FXNX)

I am still about 25 years from retiring, so the purpose of this account is to grow the money with a moderate amount of risk. I am also new to the Bond Index fund world and was wondering if you would have any better Bond Index Funds to invest in,

Thank you ahead of time for any advice!
bloom2708
Posts: 9861
Joined: Wed Apr 02, 2014 2:08 pm

Re: Sanity check on investments

Post by bloom2708 »

Looks good to me.

The 3 fund portfolio would (typically) have you use the Fidelity Total US Market index fund (~3,600 stocks) vs. the S&P 500 index.

But, the returns are very similar and many use the S&P 500 index for a substitute for the Total US market.

In an IRA there is no penalty for switching/exchanging, but there really is no need to change. Stay the course!

I assume you are taking an annual RMD from the Inherited IRA? Just keep on top of that so you don't pay the big penalty.
dbr
Posts: 46181
Joined: Sun Mar 04, 2007 8:50 am

Re: Sanity check on investments

Post by dbr »

Check the expense ratios on those funds to be sure they are the lowest cost Fidelity funds of those types. I don't know that information off the back of my hand.
UpperNwGuy
Posts: 9479
Joined: Sun Oct 08, 2017 7:16 pm

Re: Sanity check on investments

Post by UpperNwGuy »

Looks good to me!
Topic Author
flyermw
Posts: 5
Joined: Tue Jan 15, 2019 11:53 pm

Re: Sanity check on investments

Post by flyermw »

bloom2708 wrote: Fri Jan 18, 2019 8:24 am Looks good to me.

The 3 fund portfolio would (typically) have you use the Fidelity Total US Market index fund (~3,600 stocks) vs. the S&P 500 index.

But, the returns are very similar and many use the S&P 500 index for a substitute for the Total US market.

In an IRA there is no penalty for switching/exchanging, but there really is no need to change. Stay the course!

I assume you are taking an annual RMD from the Inherited IRA? Just keep on top of that so you don't pay the big penalty.
Great, thank you for the sanity check and advice! I spoke with a Fidelity advisor and he was able to sign me up for an automatic RMA. Again, I really appreciate the help!
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