Index Fund Question in 401k Account

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texas_archer
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Index Fund Question in 401k Account

Post by texas_archer »

I have a quick question, these are the options I choose in my 401k:

Fidelity GNMA Fund FGMNX (10%)
Fidelity Spartan International Index Inv FSIIX (25%)
Fidelity Spartan 500 Index Inv FUSEX (35%)
Fidelity Spartan Extended Mkt Index Inv FSEMX (30%)

FSEMX has a 0.1% ER and a 26% Turnover. Would you keep this index fund?
livesoft
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Post by livesoft »

Yes. In my 401(k) I use FUSEX, FSIIX, FSEMX, and FBIDX.
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Topic Author
texas_archer
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Post by texas_archer »

livesoft wrote:Yes. In my 401(k) I use FUSEX, FSIIX, FSEMX, and FBIDX.
mind if I ask what percentages? Or can you comment on the percentages Im using for each fund?

Thanks.
livesoft
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Post by livesoft »

My percentages don't mean a thing since I have most of my assets not at Fidelity and use my Fidelity 401(k) mostly for rebalancing.

I have listed my asset allocation many times:
half US, half int'l, half large-cap, half small/mid cap, half value, half blend.

I have roughly 31% in US stocks, 31% in foreign stocks, 31% in bonds, and 7% in commercial real estate. So those Fidelity funds alone won't work for me since I need 15.5% small-cap international.

Your percentages are fine if that's the asset allocation you want and you get some small-cap international in your Roth. FSIIX is also missing emerging markets.
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Scott S
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Post by Scott S »

texas_archer wrote:
livesoft wrote:Yes. In my 401(k) I use FUSEX, FSIIX, FSEMX, and FBIDX.
mind if I ask what percentages? Or can you comment on the percentages Im using for each fund?

Thanks.
It's often recommended to use your age to determine the % of bonds you hold, so that your portfolio will gradually become more conservative as you get older. (For example, a 30-year old would have 30% bonds.) Some folks use age-10, but it's obviously up to you.

I don't see anything glaringly wrong with the proportions of your stock funds.

- Scott
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texas_archer
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Joined: Wed Dec 01, 2010 11:20 am

Post by texas_archer »

Im 32 years old and I pay ~25k/ year onto the principle of my mortgate, so I consider that a bond purchase (right or wrong).

The reason for this post was the concern about the 26% turnover = more fees.
livesoft
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Post by livesoft »

What is the turnover of the similar Vanguard fund?

How does FSEMX performance compare to that Vanguard fund?

How does one dance on the head of pin?
Last edited by livesoft on Fri Feb 25, 2011 11:25 pm, edited 1 time in total.
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grberry
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Post by grberry »

I would use any of the Fidelity Spartan funds in my 401(k) if they were available... Because they are better than anything I have available.

If you are thinking about stopping using a fund, you are going to replace it (possibly via a chain of moves) with something else. You need to compare the alternative portfolios, not just look at one fund.
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