Investment strategies in my early 40's

[LRH]

Hi -

I am new to the board and would like some feedback from the experts here:

1. 401K - my company automatically contributes 5% whether we match or not. I contribute 8% of my current salary in my Fidelity 401K plan.

2. I opened a ROTH IRA and an Individual Account to start adding more money since my student loans from graduate school have been paid off.

3. I also have a M1 account that I contribute about $100 each month

Question - how should I contribute to my ROTH IRA? I currently have the following - AAP:, FSKAX, MSFT, SPAXX, SYK, VOO, and VTI. Fidelity doesn't have auto-transfers so if someone can provide any suggestions or recommendations that would be great.

I am investing for the long term and would prefer a strategy that will allow me to set it and forget it. Would using a service like Betterment be ideal for someone like me?

[ruralavalon]

Welcome to the forum .

It's great that your "student loans from graduate school have been paid off."
" .

Hi -

I am new to the board and would like some feedback from the experts here:

1. 401K - my company automatically contributes 5% whether we match or not. I contribute 8% of my current salary in my Fidelity 401K plan.

How much (in dollars) do you contribute to your employer's 401k plan annually? The maximum annual employee contribution is $20.5k. The employer contribution does not count toward the employee maximum, it's extra.I

I suggest maximum annual employee contributions if practical.

What funds are offered in your employer's plan? Please give fund names, tickers, and expense ratios.

2. I opened a ROTH IRA and an Individual Account to start adding more money since my student loans from graduate school have been paid off.

The maximum annual contribution to an IRA is $6k.

"If the company plan offers good, low-cost funds, it may be preferable to contribute to the company plan before contributing to an IRA" .

Wiki article PrioritizingInvestments.

3. I also have a M1 account that I contribute about $100 each month

I suggest maximum annual contributions to all tax-advantaged accounts as a priority ahead of investing in a taxable account.

Wiki article PrioritizingInvestments.

Question - how should I contribute to my ROTH IRA? I currently have the following - AAP:, FSKAX, MSFT, SPAXX, SYK, VOO, and VTI. Fidelity doesn't have auto-transfers so if someone can provide any suggestions or recommendations that would be great.

In a Roth IRA at Fidelity I suggest at using:
1) FSKAX - Fidelity ® Total Market Index Fund; and
2) FTIHX - Fidelity ® Total International Index Fund.

I am investing for the long term and would prefer a strategy that will allow me to set it and forget it. Would using a service like Betterment be ideal for someone like me?

Probably not, if you are able to manage for yourself.

[LRH]

Welcome to the forum .

It's great that your "student loans from graduate school have been paid off."
" .
Thanks! It was a tough task, but I got it done with the help of a part time job...LOL

Hi -

I am new to the board and would like some feedback from the experts here:

1. 401K - my company automatically contributes 5% whether we match or not. I contribute 8% of my current salary in my Fidelity 401K plan.

How much (in dollars) do you contribute to your employer's 401k plan annually? The maximum annual employee contribution is $20.5k. The employer contribution does not count toward the employee maximum, it's extra.I

I suggest maximum annual employee contributions if practical.

What funds are offered in your employer's plan? Please give fund names, tickers, and expense ratios.

I contribute about $7,000 a year it appears.
Funds - FSNZX
Expense Ratio - 0.65%

2. I opened a ROTH IRA and an Individual Account to start adding more money since my student loans from graduate school have been paid off.

The maximum annual contribution to an IRA is $6k.

"If the company plan offers good, low-cost funds, it may be preferable to contribute to the company plan before contributing to an IRA" .

Wiki article PrioritizingInvestments. Did not know this.. Thanks!

3. I also have a M1 account that I contribute about $100 each month

I suggest maximum annual contributions to all tax-advantaged accounts as a priority ahead of investing in a taxable account.

Wiki article PrioritizingInvestments.

Thanks!

Question - how should I contribute to my ROTH IRA? I currently have the following - AAP:, FSKAX, MSFT, SPAXX, SYK, VOO, and VTI. Fidelity doesn't have auto-transfers so if someone can provide any suggestions or recommendations that would be great.

In a Roth IRA at Fidelity I suggest at using:
1) FSKAX - Fidelity ® Total Market Index Fund; and
2) FTIHX - Fidelity ® Total International Index Fund.

I am investing for the long term and would prefer a strategy that will allow me to set it and forget it. Would using a service like Betterment be ideal for someone like me?

Probably not, if you are able to manage for yourself.

[ruralavalon]

I contribute about $7,000 a year it appears.
Funds - FSNZX
Expense Ratio - 0.65%

You may be able to use funds with lower expense ratios than Fidelity Freedom® 2045 K (FSNZX) ER 0.65%.

Low expense ratios are important to long-term investing performance.

What other funds are offered in your employer's 401k plan? Please give fund names, tickers, and expense ratios.

Establishing a high rate of contributions is the most important investing decision you can make, forum discussion.

[mega317]

Your investing plan, as it reads here, is scattershot. Individual companies, multiple funds with tons of overlap. Probably what you should do is start over from the beginning, build your plan top-down.

https://www.bogleheads.org/wiki/Getting_started

[tashnewbie]

Welcome to the forum.

I agree that you should maybe take a step back and figure out a high-level plan and then work to execute it. Getting Started wiki is a good place to start, no pun intended.

2. I opened a ROTH IRA and an Individual Account to start adding more money since my student loans from graduate school have been paid off.

You mention a Roth IRA and an Individual Account. So you have these 2 accounts at Fidelity? What is the "Individual Account"?

Fidelity doesn't have auto-transfers so if someone can provide any suggestions or recommendations that would be great.

Fidelity does support automated investments into mutual funds, but not ETFs. I've set it up with a HSA at Fidelity. I don't remember the steps to do it, but look for something on your account page like "automatic investment schedule". If you still can't figure it out, I'm sure you can Google it or contact a Fidelity rep via chat or phone, or another Boglehead may be able to help.

[Duckie]

You mention a Roth IRA and an Individual Account. So you have these 2 accounts at Fidelity? What is the "Individual Account"?

I think that's a standard taxable account. Vanguard also calls it "Individual".

[tashnewbie]

You mention a Roth IRA and an Individual Account. So you have these 2 accounts at Fidelity? What is the "Individual Account"?

I think that's a standard taxable account. Vanguard also calls it "Individual".

Makes sense. So OP has 2 taxable brokerage accounts, one at Fidelity and one at M1? I don't think OP needs more than 1.

[LRH]

Your investing plan, as it reads here, is scattershot. Individual companies, multiple funds with tons of overlap. Probably what you should do is start over from the beginning, build your plan top-down.

https://www.bogleheads.org/wiki/Getting_started

Thanks for the feedback. Will look at the link provided.

[LRH]

Thanks for all the help. Just looking for a strategy where I can auto invest and keep it moving....Seems like contributing to an index fund in my ROTH and increase my 401K contributions are the way to go.