Wife 401k - Total World or mix of Fidelity Funds?

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
bowtieman81
Posts: 34
Joined: Sat Dec 13, 2014 4:44 pm
Location: FL

Wife 401k - Total World or mix of Fidelity Funds?

Post by bowtieman81 » Sun Oct 20, 2019 2:50 pm

Greetings everyone,

My wife has just started working at the local hospital and we are setting up her 403b. Her employer uses Fidelity and she has a choice of 28 different funds. Many of them are higher cost, but I am including the list of them since I have no prior experience with Fidelity.

At the moment we are thinking about taking 1 of 2 options:

1 - Contribute to Vanguard Total World (VTWIX) and Fidelity US Bond Index (FXNAX) as her portfolio

2 - Contribute to Fidelity 500 (FXAIX), Fidelity Global ex US (FSGGX), Fidelity Extended Market (FSMAX) and Fidelity US Bond Index (FXNAX) as her portfolio

We are leaning towards option 1 for simplicity, but I don't want to miss out or gloss over something that might be better with Fidelity funds. We are open to any and all input.

Thank you,
Pete

Image
Image

Pyrroc
Posts: 5
Joined: Sun Apr 19, 2015 6:00 pm

Re: Wife 401k - Total World or mix of Fidelity Funds?

Post by Pyrroc » Sun Oct 20, 2019 3:06 pm

#2, but drop the extended market (FSMAX)

Northern Flicker
Posts: 4926
Joined: Fri Apr 10, 2015 12:29 am

Re: Wife 401k - Total World or mix of Fidelity Funds?

Post by Northern Flicker » Sun Oct 20, 2019 3:39 pm

If option 2, I would keep the extended market exposure. While the account is first getting going, new contributions will dominate and the allocation set for new contributions will alleviate the need to rebalance. As the balance grows, new contributions will have a smaller effect and you will need to rebalance. Does the Fidelity platform have an auto rebalance? If so, might as well go with the lower fees of the separate funds, not to mention getting the allocation you want.
Index fund investor since 1987.

snailderby
Posts: 470
Joined: Thu Jul 26, 2018 11:30 am

Re: Wife 401k - Total World or mix of Fidelity Funds?

Post by snailderby » Tue Oct 22, 2019 7:51 am

Do you want to hold international stocks in a ratio that is different from the global market cap allocation? If so, the Fidelity funds you listed in #2 are good options. If not, I would go with #1. Hard to beat the simplicity.

User avatar
1789
Posts: 321
Joined: Fri Aug 16, 2019 3:31 pm
Location: OR

Re: Wife 401k - Total World or mix of Fidelity Funds?

Post by 1789 » Tue Oct 22, 2019 9:54 am

Only FXAIX
"My conscience wants vegetarianism to win over the world. And my subconscious is yearning for a piece of juicy meat. But what do i want?" (Andrei Tarkovsky)

fwellimort
Posts: 117
Joined: Tue Feb 12, 2019 9:41 am

Re: Wife 401k - Total World or mix of Fidelity Funds?

Post by fwellimort » Tue Oct 22, 2019 10:04 am

Personally prefer Vanguard Total World Index. Very simple and no need for headaches trying to figure out how much % in international and all.

Up to you really cause you can always rebalance your 401k with different funds anyway. And I don't think either Option 1 or 2 will make much of a difference. More important is probably how much you put in for investment.

User avatar
Hector
Posts: 1204
Joined: Fri Dec 24, 2010 2:21 pm
Contact:

Re: Wife 401k - Total World or mix of Fidelity Funds?

Post by Hector » Tue Oct 22, 2019 11:46 am

Option # 1.

Post Reply