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Three fund Portfolio at Fidelity

Posted: Thu Feb 07, 2019 10:30 pm
by kmn99
Contemplating the below Tax-efficient 3 fund portfolio for a taxable account at Fidelity?

ITOT (iShares Core S&P Total U.S. Stock Market ETF)
IXUS (ISHARES TR/CORE MSCI TOTAL INTL STK)
AGG (iShares Barclays Aggregate Bond Fund)
FSPXX for Cash (Fidelity® California AMT Tax-Free Money Market Fund)

Please let me know if there is a better way to do it. Thank you :-)

Re: Three fund Portfolio at Fidelity

Posted: Fri Feb 08, 2019 7:43 am
by Silk McCue
In order to allow people to provide feedback without having to look up symbols that they don't know, it is recommended to always provide the full fund name along with the symbol for all posts. Without them many people just move on and don't reply.

You can edit your post to do that.

Cheers

Re: Three fund Portfolio at Fidelity

Posted: Fri Feb 08, 2019 7:56 am
by rkhusky
I can guess at what the tickers represent. AGG might not be good in a taxable account if you are in a higher tax bracket. If that is the case, AGG in your 401k and/or tax-exempt bonds in taxable might be better.

Re: Three fund Portfolio at Fidelity

Posted: Fri Feb 08, 2019 8:38 pm
by Ferdinand2014
They are all excellent ETF's with low fees, index and broad based. Bond fund best in tax deferred if possible for tax reasons.
Mutual fund options as an alternate to ETF's could be:

FSKAX (Fidelity Total U.S. Stock Market fund)(ER .015) alternate to ITOT
FSGGX ( Fidelity Total International Fund)(ER 0.06) alternate to IXUS
FXNAX (Fidelity Total Investment Grade Bond Fund)(ER 0.025) alternate to AGG

I tend to prefer mutual funds as they discourage me from trading, dividends are automatically reinvested (if I choose), and exact contributions are possible. They are also marginally cheaper than the ETF's. Either way good choices.

Re: Three fund Portfolio at Fidelity

Posted: Fri Feb 08, 2019 9:14 pm
by pward
Yes those are great choices. Obviously, AGG is not going to be super tax efficient, but it is what it is. If you gotta hold bonds in taxable to hit your AA, then you gotta hold bonds in taxable.

Re: Three fund Portfolio at Fidelity

Posted: Fri Feb 08, 2019 9:24 pm
by DA200
IXUS and ITOT are the optimal tax efficient International and US Total Stock funds to purchase for free at Fidelity.
If tax deferred space is available for bonds, place all bonds there, not in taxable.

Re: Three fund Portfolio at Fidelity

Posted: Fri Feb 08, 2019 10:07 pm
by aj76er
If in taxable, MUB (inter term Muni) and/or SUB (short term Muni) for bonds might be better than AGG depending on your tax rate. Both ITOT and IXUS are good choices for taxable accounts

Re: Three fund Portfolio at Fidelity

Posted: Sun Feb 10, 2019 10:16 pm
by kmn99
Thank you :thumbsup