The Money Mustache Community

Learning, Sharing, and Teaching => Investor Alley => Topic started by: reginna on July 08, 2013, 01:13:30 PM

Title: I jumped
Post by: reginna on July 08, 2013, 01:13:30 PM

Just opened my first fund with Fidelity (FFNOX). Wow! Feels great! Thanks for all the help and information you all share on this site. Damn, I feel good!

Gina

Title: Re: I jumped
Post by: more4less on July 08, 2013, 05:19:00 PM

Congrats. Why Fidelity though?

Title: Re: I jumped
Post by: matchewed on July 08, 2013, 06:14:02 PM

The FFNOX is a Four-In-One fund that Fidelity has which is just a percentage of some of the Spartan Index funds they host. It gets you an 85/15 split of equities and bonds at a .24 expense ratio. The individual funds in it are FUSEX, FSEMX, FSIIX, and FBIDX with the following fees respectively - .1, .1, .2, .22 respectively. It would be cheaper just to diversify into those funds at the same ratios but we're not talking a huge amount of difference. It isn't optimal but it's not bad.

Fidelity offers competitive funds to vanguard.

Title: Re: I jumped
Post by: reginna on July 09, 2013, 07:24:13 AM

Quote from: more4less on July 08, 2013, 05:19:00 PM

Congrats. Why Fidelity though?

I had $2500.00

Title: Re: I jumped
Post by: arebelspy on July 09, 2013, 09:43:37 AM

Congrats!  I'm in FFNOX as well in my retirement accounts.

I am paying the slightly higher fees, as matchewed points out, in order to get the automatic rebalancing - otherwise rebalancing within my retirement accounts is difficult.  0.22% is still an acceptable expense ratio, to me.

Likely when I FIRE and take over the account myself I'll tweak it.  I'm a fan of lazy investing though.

Title: Re: I jumped
Post by: reginna on July 09, 2013, 01:35:05 PM

Quote from: arebelspy on July 09, 2013, 09:43:37 AM

Congrats!  I'm in FFNOX as well in my retirement accounts.

I am paying the slightly higher fees, as matchewed points out, in order to get the automatic rebalancing - otherwise rebalancing within my retirement accounts is difficult.  0.22% is still an acceptable expense ratio, to me.

Likely when I FIRE and take over the account myself I'll tweak it.  I'm a fan of lazy investing though.

Thanks! Feels great and makes decisions so much easier.

Title: Re: I jumped
Post by: Joet on July 10, 2013, 12:39:09 PM

I think some of the suggestions regarding FFNOX not being a particularly good vehicle for the OP, in general, or of somewhat higher expense ratios is not particularly accurate information in any of those cases.

The current ER (cap) for the fund is 0.08%. It is true that the gross ER of the fund is 0.24%, but nobody experiences that. You can read the fine print if you'd like.

It is a fine fund, and fidelity is a great company.


*disclaimer: long term (and current) fidelity customer