401(k) now at Fidelity--need to pick options

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Topic Author
Mountinfan
Posts: 5
Joined: Sat Apr 06, 2019 8:44 am

401(k) now at Fidelity--need to pick options

Post by Mountinfan » Sat Apr 06, 2019 9:19 am

Hi Would appreciate suggestions on fund allocation. Thanks.
Emergency funds: Three to six months of expenses --have it.
Debt: Indicate if you have any debt (credit card, school loans, car loans, mortgage) and the interest rate you are paying on each loan.
Yes--have mortgage debt of $350,000
Tax Filing Status:
Married--no other dependents
Tax Rate: 24% Federal, 5.25% State
State of Residence: NC
Age: 65--will work to 70
Desired Asset allocation: 80% stocks / 20% bonds
Desired International allocation: 15% of stocks



Please provide a hint as to the size of your current total portfolio (as in high four-figures, mid five-figures, low six-figures, etc.) What might be appropriate for a very large portfolio might not be appropriate for a new investor. 401k is $430,000 and contributing max each year split between roth and regular. Self-directed IRA $400000 real estate investments Other portfolio is 200,000 non-qualified Other investment real estate: net equity $300,000



Current retirement assets

Taxable
45% KO
45% GE
10% AFLAC

His 401k
100& FSKAX .015% Expense
Company match? No

Now all 401(k) in FID TOTAL MKT IDX


.

Contributions

New annual Contributions
$19,000 his 401k (also specify any employer matching contributions)
$0 her 403b (also specify any employer matching contributions)
$6500his IRA/Roth IRA Keogh from board fees
$0 her IRA/Roth IRA
$0taxable (for retirement, not short term goals)

Available funds

Funds available in his 401(k)
LARGE CAP
FXAIX .015% Expense
FSPGX .035%
FLCOX .035%
FSKAX .015%
FNCMX .41%
FITLX .11%
JLGMX .6%

MIDCAP
FSMAX .045%
FLPSX .62%
FSDAX .75%

SMALL CAP
FSSNX .025%
SCVIX 1.38%
INTERNATOINAL
RNWFX .68%
FHKCX .96%
FPADX .075%
FSGGX .055%
FSPSX .045%
FTIHX .06%
HJPIX 1.02%
MINDX 1.09%

SPECIALTY
DFREX .19%
FSRNX .07%
FSPTX .75%

FIUIX .7%
OGMIX .75%
TTMIX .66%
THISX .65%

OTHER

MCNVX .73%
PPSIX .8%
RIRGX .29%
DFCSX .64%
FCVSX .49%
Funds available in her 403(b) None


Questions:
1. What fund allocation would you recommend assuming retirement in 70---will not need much of 401k until 2030?


2. If i can afford to be somewhat aggressive because of anticipated inheritance of $1.5 million in 2030--would that change allocation?

Thanks. Looking forward to your insights.
Last edited by Mountinfan on Sun Apr 07, 2019 9:23 am, edited 1 time in total.

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LadyGeek
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Re: 401(k) now at Fidelity--need to pick options

Post by LadyGeek » Sat Apr 06, 2019 10:10 am

Welcome! It looks like you've submitted the post before you finished filling out the information.

No worries, just edit the post using the "pencil" icon in the top right corner of the post. Bump the thread when you're done. Or, just post a new version in this thread.
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Topic Author
Mountinfan
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Re: 401(k) now at Fidelity--need to pick options

Post by Mountinfan » Mon Apr 08, 2019 7:09 pm

What have i not finished?

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Re: 401(k) now at Fidelity--need to pick options

Post by LadyGeek » Mon Apr 08, 2019 7:27 pm

When I first saw your post, the questions section still contained part of the template. It looks OK now.
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.

lakpr
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Re: 401(k) now at Fidelity--need to pick options

Post by lakpr » Mon Apr 08, 2019 8:55 pm

For domestic equities: FSKAX (Fidelity Total Market Index Fund). No need to slice and dice for small-cap/mid-cap/large-cap etc. One fund.

For international equities: FTIHX (Fidelity Total International Index Fund) or FSGGX (Fidelity Global ex US Index Fund), either is fine.

I didn't find any bond funds in the list you pasted, that's odd, perhaps it's an oversight?

For a person aged 65, and with only 5 more years planned for working, a 80:20 portfolio is QUITE aggressive. I will dial it down to 60:40 on the Aggressive side, and 50:50 on the Moderate side (recommend this). But lack of bond fund makes this analysis incomplete.

Topic Author
Mountinfan
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Joined: Sat Apr 06, 2019 8:44 am

Re: 401(k) now at Fidelity--need to pick options

Post by Mountinfan » Sun Apr 14, 2019 1:40 pm

Bond Funds that are available:
FID LT TR BD IDX (FNBGX) .03%
FID INTM TR BD IDX (FUAMX) .03%
FID NEW MARKETS INC (FNMIX) .84%
FID ST TR BD IDX (FUMBX) .03%
FID US BOND IDX (FXNAX) .025%
LD ABT INCOME R6 (LAUVX) .48%

lakpr
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Joined: Fri Mar 18, 2011 9:59 am

Re: 401(k) now at Fidelity--need to pick options

Post by lakpr » Sun Apr 14, 2019 2:14 pm

Excellent, I would put all the bonds allocation into FXNAX (Fidelity US Bond Index fund).

Topic Author
Mountinfan
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Joined: Sat Apr 06, 2019 8:44 am

Re: 401(k) now at Fidelity--need to pick options

Post by Mountinfan » Sun Apr 14, 2019 2:50 pm

What would be percentage internatiomal/bonds?

lakpr
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Re: 401(k) now at Fidelity--need to pick options

Post by lakpr » Sun Apr 14, 2019 4:21 pm

I would invest no more than 20% of the stock portion of your asset allocation into International funds
I would suggest, for a person aged 65, 40% minimum into bonds, if you are conservative 50%

So totally 50:10:40 domestic equities / international equities / bonds.

Topic Author
Mountinfan
Posts: 5
Joined: Sat Apr 06, 2019 8:44 am

Re: 401(k) now at Fidelity--need to pick options

Post by Mountinfan » Sun Apr 14, 2019 5:45 pm

Thanks. With a 60/40 split and 10% international what do you think the long term annual return is likely to be?

lakpr
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Joined: Fri Mar 18, 2011 9:59 am

Re: 401(k) now at Fidelity--need to pick options

Post by lakpr » Sun Apr 14, 2019 11:40 pm

I don't know what the future will bring, I will not speculate at all. But if you want to know what happened with this mixture of funds in the past, here is a quick graph:

https://www.portfoliovisualizer.com/bac ... 0&total3=0

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