Author Topic: Best mutual funds at Fidelity for low fees  (Read 1375 times)

davisgang90

  • Handlebar Stache
  • *****
  • Posts: 1360
  • Location: Roanoke, VA
    • Photography by Rich Davis
Best mutual funds at Fidelity for low fees
« on: July 10, 2020, 03:47:03 AM »
Don't call the retirement police, but I've taken a job with my alma mater that I think I'll really enjoy.

I'm required invest in a 403b plan a minimum of 5% of my salary at Fidelity.  The good news is that my school matches that at 8.5%. This is all fun money as my investments/pensions/beanie baby collection cover our expenses.

I'm an S&P 500 low fee kind of guy normally, but I'd be curious which low fee funds any MMM Fidelity investors recommend? I've got no short term plans for this money and won't touch it for decades.

Also, any tips on timing the market? Just kidding.

Frankies Girl

  • Magnum Stache
  • ******
  • Posts: 3899
  • Age: 86
  • Location: The oubliette.
  • Ghouls Just Wanna Have Funds!
Re: Best mutual funds at Fidelity for low fees
« Reply #1 on: July 10, 2020, 04:11:52 AM »
https://www.bogleheads.org/wiki/Fidelity

The Zero series is very attractive if you don't ever plan to move away from Fido, but as they are proprietary fund class, you aren't allowed to take them out on the town as it were... so if you buy them in a taxable account, it could create tax issues if/when you had to sell them to shift the account to another place (like Vanguard). Otherwise, if you're in it for the long haul with Fido, I'd look hard at those. If I was just starting out, I'd probably go 50/50 split between Zeros and the Fido index funds (below) now. But I haven't done the obsessive homework on the Zero funds that I did in the early days when they had their Spartan series (what the Fido Index funds below used to be called) so you'll want to review the Zero stuff for any gotchas that aren't immediately apparent from my cursory recommendation.

I personally have a 3 fund portfolio at Fido primarily consisting of:

Fidelity Total Market Index Fund (FSKAX)
Fidelity U.S. Bond Index Fund (FXNAX)

With a touch of:
Fidelity Real Estate Index Fund (FSRNX)

I have less than 2% in a few other silly holdovers that I keep from nostalgia (bought from the before times when I had no clue and and despite my total lack of knowledge are doing really well) and another couple of percentage points in cash (E fund/savings). I only mention this in the spirit full disclosure. ;)
« Last Edit: July 10, 2020, 04:18:56 AM by Frankies Girl »

davisgang90

  • Handlebar Stache
  • *****
  • Posts: 1360
  • Location: Roanoke, VA
    • Photography by Rich Davis
Re: Best mutual funds at Fidelity for low fees
« Reply #2 on: July 10, 2020, 04:14:39 AM »
Thanks FG, this is perfect!

This will all be pre-tax retirement and I'll most likely move it when I retire in a few years.

terran

  • Magnum Stache
  • ******
  • Posts: 3807
Re: Best mutual funds at Fidelity for low fees
« Reply #3 on: July 10, 2020, 09:57:15 AM »
The best investments in my wife's Fidelity 403(b) are actually Vanguards funds. It all depends what your university plan offers.