Three fund Portfolio at Fidelity

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kmn99
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Joined: Mon Dec 03, 2018 7:09 pm

Three fund Portfolio at Fidelity

Post by kmn99 » Thu Feb 07, 2019 10:30 pm

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 :-)
Last edited by kmn99 on Fri Feb 08, 2019 12:47 pm, edited 1 time in total.

Silk McCue
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Joined: Thu Feb 25, 2016 7:11 pm

Re: Three fund Portfolio at Fidelity

Post by Silk McCue » Fri Feb 08, 2019 7:43 am

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

rkhusky
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Re: Three fund Portfolio at Fidelity

Post by rkhusky » Fri Feb 08, 2019 7:56 am

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.

Ferdinand2014
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Re: Three fund Portfolio at Fidelity

Post by Ferdinand2014 » Fri Feb 08, 2019 8:38 pm

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.
“You only find out who is swimming naked when the tide goes out.“ — Warren Buffett

pward
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Re: Three fund Portfolio at Fidelity

Post by pward » Fri Feb 08, 2019 9:14 pm

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.

DA200
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Re: Three fund Portfolio at Fidelity

Post by DA200 » Fri Feb 08, 2019 9:24 pm

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.

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aj76er
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Re: Three fund Portfolio at Fidelity

Post by aj76er » Fri Feb 08, 2019 10:07 pm

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
"Buy-and-hold, long-term, all-market-index strategies, implemented at rock-bottom cost, are the surest of all routes to the accumulation of wealth" - John C. Bogle

Topic Author
kmn99
Posts: 26
Joined: Mon Dec 03, 2018 7:09 pm

Re: Three fund Portfolio at Fidelity

Post by kmn99 » Sun Feb 10, 2019 10:16 pm

Thank you :thumbsup

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