Author Topic: Help for a budding portfolio  (Read 2205 times)

Hustler0

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Help for a budding portfolio
« on: July 28, 2015, 02:33:32 AM »
Hello, I just recently switched jobs and am now for the first time making contributions to a 401k (Fidelity). Currently I'm investing the full amount my employer will match 6% of my total income. I've been with this company a few years and have a 80/20 Stock/bond allotment in the lowest fee options in my 401k.

I balanced my budget a few months into the year and have been so far sticking with it pretty well. In that budget I included some investing money to a Roth IRA with Fidelity as well.

I have about 829 dollars in it currently in cash, and I would like to invest it into something stable, as my plan is to pull some of this money out after a 5 year period, after maxing my contributions to it for the next 5 years for the purchase of a house or rental property.

I'm looking for recommendation for a low cost index/mutual fund with no minimum purchase.

EricP

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Re: Help for a budding portfolio
« Reply #1 on: July 28, 2015, 10:40:18 AM »
I don't believe fidelity has any funds with less than $2.5k as a minimum purchase.

Here's the search I did: https://www.fidelity.com/fund-screener/evaluator.shtml#!&ntf=N&mininv=L2500

forummm

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Re: Help for a budding portfolio
« Reply #2 on: July 28, 2015, 11:04:02 AM »
You could buy whatever ETFs Fidelity lets you buy for free.

For Fidelity funds, pick only those that are Spartan funds. All the other Fidelity funds are high-fee funds.

Tyler

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Re: Help for a budding portfolio
« Reply #3 on: July 28, 2015, 01:25:12 PM »
You could buy whatever ETFs Fidelity lets you buy for free.

For Fidelity funds, pick only those that are Spartan funds. All the other Fidelity funds are high-fee funds.

+1.  Many iShares ETFs are commission free at Fidelity.  https://www.fidelity.com/etfs/ishares  Also, I believe some funds don't have the same minimums in a retirement account as they would in a taxable account, so you might double-check that before making any assumptions.
« Last Edit: July 28, 2015, 01:31:33 PM by Tyler »

BarkyardBQ

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Re: Help for a budding portfolio
« Reply #4 on: July 28, 2015, 02:58:11 PM »
Hello, I just recently switched jobs and am now for the first time making contributions to a 401k (Fidelity). Currently I'm investing the full amount my employer will match 6% of my total income. I've been with this company a few years and have a 80/20 Stock/bond allotment in the lowest fee options in my 401k.

I balanced my budget a few months into the year and have been so far sticking with it pretty well. In that budget I included some investing money to a Roth IRA with Fidelity as well.

I have about 829 dollars in it currently in cash, and I would like to invest it into something stable, as my plan is to pull some of this money out after a 5 year period, after maxing my contributions to it for the next 5 years for the purchase of a house or rental property.

I'm looking for recommendation for a low cost index/mutual fund with no minimum purchase.

For a Roth IRA, you will only be able to pull out contributions that are 5+ years old. If you contribute 5500 this year and the next 4, in 5 years you can only pull out $5500.

seattlecyclone

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Re: Help for a budding portfolio
« Reply #5 on: July 28, 2015, 03:00:31 PM »
Hello, I just recently switched jobs and am now for the first time making contributions to a 401k (Fidelity). Currently I'm investing the full amount my employer will match 6% of my total income. I've been with this company a few years and have a 80/20 Stock/bond allotment in the lowest fee options in my 401k.

I balanced my budget a few months into the year and have been so far sticking with it pretty well. In that budget I included some investing money to a Roth IRA with Fidelity as well.

I have about 829 dollars in it currently in cash, and I would like to invest it into something stable, as my plan is to pull some of this money out after a 5 year period, after maxing my contributions to it for the next 5 years for the purchase of a house or rental property.

I'm looking for recommendation for a low cost index/mutual fund with no minimum purchase.

For a Roth IRA, you will only be able to pull out contributions that are 5+ years old. If you contribute 5500 this year and the next 4, in 5 years you can only pull out $5500.

This is false. Roth IRA contributions can be withdrawn tax-free and penalty-free at any time, for any reason. Conversions are what has a five year waiting period.

BarkyardBQ

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Re: Help for a budding portfolio
« Reply #6 on: July 28, 2015, 03:04:06 PM »
Well that's a good to know. I guess I did not understand that contributions were specifically different than conversions.

Thanks!
« Last Edit: July 28, 2015, 03:11:43 PM by zdravé »