Lazy 3-fund portfolio at Fidelity

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blacknotebooks
Posts: 1
Joined: Fri Jan 11, 2019 2:40 pm

Lazy 3-fund portfolio at Fidelity

Post by blacknotebooks » Fri Jan 11, 2019 2:46 pm

Hi gang,

I just rolled over a Fidelity 401k (target fund) from my previous employer into a traditional IRA. I have most of my investments at Vanguard but I wanted to keep some funds at Fidelity. Since the recommended 3 Fidelity funds for a lazy portfolio (FSTVX/FTIPX/FSITX) are closed to new investors does it make sense to just use the new zero-fee funds to achieve this, FZROX/FZILX/FXNAX (not zero-fee)?

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Duckie
Posts: 6166
Joined: Thu Mar 08, 2007 2:55 pm

Re: Lazy 3-fund portfolio at Fidelity

Post by Duckie » Fri Jan 11, 2019 8:02 pm

blacknotebooks, welcome to the forum.
blacknotebooks wrote:Since the recommended 3 Fidelity funds for a lazy portfolio (FSTVX/FTIPX/FSITX) are closed to new investors does it make sense to just use the new zero-fee funds to achieve this, FZROX/FZILX/FXNAX (not zero-fee)?
You could. Or you could use FSKAX (formerly FSTVX), FTIHX (formerly FTIPX), and FXNAX (formerly FSITX).

nix4me
Posts: 101
Joined: Sat Oct 13, 2018 9:32 am

Re: Lazy 3-fund portfolio at Fidelity

Post by nix4me » Fri Jan 11, 2019 8:14 pm

I would use:
FZROX/FZILX/FXNAX

although i am not a fan of international at all, so if my money

FZROX/FXNAX

pasadena
Posts: 205
Joined: Sat Jul 02, 2016 1:23 am

Re: Lazy 3-fund portfolio at Fidelity

Post by pasadena » Fri Jan 11, 2019 9:03 pm

blacknotebooks wrote:
Fri Jan 11, 2019 2:46 pm
Hi gang,

I just rolled over a Fidelity 401k (target fund) from my previous employer into a traditional IRA. I have most of my investments at Vanguard but I wanted to keep some funds at Fidelity. Since the recommended 3 Fidelity funds for a lazy portfolio (FSTVX/FTIPX/FSITX) are closed to new investors does it make sense to just use the new zero-fee funds to achieve this, FZROX/FZILX/FXNAX (not zero-fee)?
The different classes of these funds have been merged together and the funds kept the name of what used to be the "Premium" class.

So FSTVX --> FSKAX
FTIPX --> FTIHX
FSITX --> FXNAX

I just went through the exercise myself as I am rolling over an old 401(k) into my new one at Fidelity. I went with these three funds over the Zero ones for a few reasons :

* The Zero ones lack history in how well they are tracking their index
* They are tracking proprietary, and brand new, indexes
* They are less diversified
* They are very specific to Fidelity so can't be transferred in kind to another custodian. Granted, I am using them in a tax-free manner (in a 401(k) and a Roth IRA) so selling them wouldn't be a taxable event, but I like simplicity.
* The ER of the non-Zero funds are low enough. My weighted ER is 0.024%, which I consider more than acceptable.

I know quite a few people who are using the Zero funds, they seem to be happy with them.

brad.clarkston
Posts: 642
Joined: Fri Jan 03, 2014 8:31 pm
Location: Kansas City, MO

Re: Lazy 3-fund portfolio at Fidelity

Post by brad.clarkston » Fri Jan 11, 2019 9:07 pm

blacknotebooks wrote:
Fri Jan 11, 2019 2:46 pm
Hi gang,

I just rolled over a Fidelity 401k (target fund) from my previous employer into a traditional IRA. I have most of my investments at Vanguard but I wanted to keep some funds at Fidelity. Since the recommended 3 Fidelity funds for a lazy portfolio (FSTVX/FTIPX/FSITX) are closed to new investors does it make sense to just use the new zero-fee funds to achieve this, FZROX/FZILX/FXNAX (not zero-fee)?
FSTVX/FTIPX/FSITX has been removed there's no standard or premium total market funds just "Total".

The new funds are:

FSKAX - FIDELITY TOTAL MARKET INDEX FUND
FTIHX - FIDELITY TOTAL INTL INDEX FUND
FXNAX - FIDELITY U.S. BOND INDEX FUND

The Zero funds would be an acceptable alternative to the above but these should be the gold standard Fidelity 3-port'ers. The wiki needs to be updated.

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