Author Topic: Basic Mustachian portfolio with Fidelity  (Read 3239 times)

MrMoneySaver

  • Stubble
  • **
  • Posts: 161
Basic Mustachian portfolio with Fidelity
« on: March 11, 2017, 03:24:18 PM »
As the title suggests, I'd like advice on creating a very simple Mustachian portfolio with Fidelity funds. I have a Roth IRA and a rolled-over IRA. Previously I had the money in Target 2040 funds but when I found this site I realized that index funds would be better. I'm 40 years old and not sure exactly when I retire, but hopefully in my early 50s.

Anyway, I found FSTVX which I understand is similar to VTSAX. I dumped a good chunk of the money in that. But I'm thinking I might need to be a little more diversified than just that fund? I see references to a three-fund approach. Do I need some international exposure and some bonds? If so, I'd like to know which Fidelity funds you recommend.

MDM

  • Walrus Stache
  • *******
  • Posts: 9246
Re: Basic Mustachian portfolio with Fidelity
« Reply #1 on: March 11, 2017, 04:15:13 PM »
As the title suggests, I'd like advice on creating a very simple Mustachian portfolio with Fidelity funds. I have a Roth IRA and a rolled-over IRA. Previously I had the money in Target 2040 funds but when I found this site I realized that index funds would be better. I'm 40 years old and not sure exactly when I retire, but hopefully in my early 50s.

Anyway, I found FSTVX which I understand is similar to VTSAX. I dumped a good chunk of the money in that. But I'm thinking I might need to be a little more diversified than just that fund? I see references to a three-fund approach. Do I need some international exposure and some bonds? If so, I'd like to know which Fidelity funds you recommend.

See Three-fund portfolio - Other than Vanguard.

Frankies Girl

  • Magnum Stache
  • ******
  • Posts: 2901
  • Age: 81
  • Location: The laboratory
  • Typical Ghoul Next Door
Re: Basic Mustachian portfolio with Fidelity
« Reply #2 on: March 11, 2017, 04:18:06 PM »
https://www.bogleheads.org/wiki/Fidelity


I have my entire portfolio with Fido. Three funds:

Fidelity Total Market Index Fund (FSTVX)
Fidelity U.S. Bond Index Fund (FSITX)
Fidelity Real Estate Index Fund (FSRVX)

I personally don't care about international funds and subscribe to the idea that U.S. companies are sufficiently international on their own so don't feel the need to have any actual international funds. Others feel differently, and will tell you why. It's your call tho.

And if you're not sure why you should be holding what funds, then you need to do more reading, research.

Start here: http://jlcollinsnh.com/stock-series/ with either Mr. Collins' book or read through the series on his website. Then head over to Bogleheads site, and read about how to write an investment policy statement, and figure out your asset allocation. Do some research on lazy portfolios there as well.

MrMoneySaver

  • Stubble
  • **
  • Posts: 161
Re: Basic Mustachian portfolio with Fidelity
« Reply #3 on: March 11, 2017, 07:05:03 PM »
Thanks, these answers are exactly what I was looking for.

MrMoneySaver

  • Stubble
  • **
  • Posts: 161
Re: Basic Mustachian portfolio with Fidelity
« Reply #4 on: March 12, 2017, 10:26:58 AM »
Have been looking through the suggested sites, but still can't decide how much to allocate in bonds. The suggestions (up to 40 percent) seem high. Wondering how much other Mustachians are allocating to bonds?
« Last Edit: March 12, 2017, 11:51:08 AM by MrMoneySaver »

2Birds1Stone

  • Walrus Stache
  • *******
  • Posts: 5306
  • Age: 32
  • Location: Earth
  • K Thnx Bye
Re: Basic Mustachian portfolio with Fidelity
« Reply #5 on: March 12, 2017, 10:48:11 AM »
Have been looking through the suggested sites, but still can't decide how much to allocate in bonds. The suggests (up to 40 percent) seem high. Wondering how much other Mustachians are allocating to bonds?

I am about to turn 30, but plan on FIRE in ~5 years.

My stable income portion of portfolio is ~20%, this includes bonds, CD's, high interest savings.

Radagast

  • Handlebar Stache
  • *****
  • Posts: 1426
  • Location: West of the Mountains, East of the Sea
  • hedonismbot
Re: Basic Mustachian portfolio with Fidelity
« Reply #6 on: March 12, 2017, 11:57:07 AM »
Have been looking through the suggested sites, but still can't decide how much to allocate in bonds. The suggests (up to 40 percent) seem high. Wondering how much other Mustachians are allocating to bonds?
Looks like your previous 2040 fund had 10% or 15% in bonds, with a plan to slowly increase towards the retirement date. That might be a good place to start. For myself I have about 8% in retirement accounts (a little less right now) and about 15% in cash and bonds overall (probably less right now also).

jjandjab

  • Stubble
  • **
  • Posts: 133
Re: Basic Mustachian portfolio with Fidelity
« Reply #7 on: March 12, 2017, 12:36:22 PM »
Hi there. The Fidelity funds I use are

  FTSVX, as you mention Total stock market. about 40%

  I have been using FTBFX (Fidelity Total Bond ER 0.45%). While it has a higher ER, I like the fact that this is better performing fund over time than the straight-up bond Index (FSITX) even when accounting for the expenses as it mixes in some active management. It still is much less expensive than most managed bond funds. Simply a personal choice. About 30%

  I use FSRVX - Real Estate Index. 30%. I just like the basic business of real estate and feel it deserves a higher weighing than many other folks.

  I have been thinking of adding their relatively new FTIPX for International - this is a truly world-wide index with about 4000 stocks. Until last year, they only had International indexes that were a bit less diversified. I'm still not sold on the fact that one needs International in such a global environment anyway (as others have mentioned)

  I consider Real Estate as part of my Stock portfolio, so I would say I am 70% stock/30% bond at age 43. I only recently even added any bonds, at age 40, since I plan to continue to work as I consider my job a career and enjoy what I do, so I wanted to stay aggressive up through age 40.

 
« Last Edit: March 12, 2017, 02:09:24 PM by jjandjab »

tiberius

  • 5 O'Clock Shadow
  • *
  • Posts: 18
Re: Basic Mustachian portfolio with Fidelity
« Reply #8 on: March 12, 2017, 01:21:35 PM »
https://www.bogleheads.org/wiki/Fidelity


I have my entire portfolio with Fido. Three funds:

Fidelity Total Market Index Fund (FSTVX)
Fidelity U.S. Bond Index Fund (FSITX)
Fidelity Real Estate Index Fund (FSRVX)

I personally don't care about international funds and subscribe to the idea that U.S. companies are sufficiently international on their own so don't feel the need to have any actual international funds. Others feel differently, and will tell you why. It's your call tho.

And if you're not sure why you should be holding what funds, then you need to do more reading, research.

Start here: http://jlcollinsnh.com/stock-series/ with either Mr. Collins' book or read through the series on his website. Then head over to Bogleheads site, and read about how to write an investment policy statement, and figure out your asset allocation. Do some research on lazy portfolios there as well.

Mine is similar to this except I have five funds:
Total Market Index Fund
U.S. Bond Index Fund
Real Estate Index Fund
Emerging Markets Index Fund
Gold ETF

If you are in retirement and are drawing out of your funds diversification is key
 and performs better than any of the single asset classes individually.

I've tried this out on portfoliovisualizer.com and portfoliocharts.com