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!
Sanity check on investments
Re: Sanity check on investments
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.
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.
Re: Sanity check on investments
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.
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Re: Sanity check on investments
Looks good to me!
Re: Sanity check on investments
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!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.