Fidelity Go vs. 3-fund portfolio vs FXIFX vs FSTVX

[jackk]

Hi there,

I am 52 years old and currently have a Rollover IRA in Fidelity that is currently being managed by Portfolio Advisory Service as I haven't been confident about my investing skills. Despite the huge fees of > 1%, the returns for the last year were lower than even the Fidelity FreedomŽ Index 2030 Fund. After reading so many posts in this forum I realized that I am wasting money on the fees unnecessarily.
Please advise which of these funds would be better for me:
1) Fidelity Go
2) 3-fund portfolio : FSTVX, FTIPX, and FSITX. If so please recommend the percentages.
3) FXIFS : Fidelity FreedomŽ Index 2030 Fund
4) FSTVX: Fidelity Total Market Index Fund Premium Class

My goal is just for retirement. I would be grateful for your advice. Thanks a lot in advance.

[jacoavluha]

Option 2 40%, 20%, 40%
Option 3 reasonable as well

[MustacheAndaHalf]

The symbol for Fidelity Freedom Index 2030 Fund is FXIFX (not fxifs).
https://fundresearch.fidelity.com/mutual-funds/ratings/315793703

You want to lower the fees you pay, but you're afraid of managing this money yourself.  To me that sounds like you want a low expense ratio "all in one" fund, like the one above (option 3).  The bond allocation is automatic (25%), and will increase as 2030 approaches.

[foghorn]

I am 51 and also keep most of my stash with Fidelity. 

I was also using their Portfolio Advisory Services for my IRA until about 6 months ago.  I spent a lot of time here on MMM and other places learning about Index Investing and being self directed.  I moved my IRA out of their Portfolio Advisory Services and went to the following AA:

FSTVX = 50%
FSITX = 25%
FTIPX = 25%

As I was paying similar fees as you (about 80 basis points) for their "advice" and the cost of funds, I am now saving about $1,000 a month.  I am glad I made the move, but embarrassed that I was using those services for so long.  Live and learn...

[SeattleCPA]

Hi there,

I am 52 years old and currently have a Rollover IRA in Fidelity that is currently being managed by Portfolio Advisory Service as I haven't been confident about my investing skills. Despite the huge fees of > 1%, the returns for the last year were lower than even the Fidelity FreedomŽ Index 2030 Fund. After reading so many posts in this forum I realized that I am wasting money on the fees unnecessarily.
Please advise which of these funds would be better for me:
1) Fidelity Go
2) 3-fund portfolio : FSTVX, FTIPX, and FSITX. If so please recommend the percentages.
3) FXIFS : Fidelity FreedomŽ Index 2030 Fund
4) FSTVX: Fidelity Total Market Index Fund Premium Class

My goal is just for retirement. I would be grateful for your advice. Thanks a lot in advance.

Jack, I think that target retirement fund is a pretty good choice for the reasons described in the free downloadable e-book referenced in my signature. (I recommended target retirement funds both to my 80-something parents and my 20-something kids.) They represent a set-it-and-forget-it approach that is hard to beat. Fidelity's expense ratio is .14%, matching Vanguard's, which is cheap. Nearly free...

BTW, I also think a three-fund approach like you describe works reasonably well. An advantage of that approach is you can use it in cases where you've got both taxable and tax-deferred savings. Target retirement funds don't work as well for taxable because the rebalancing that occurs as the investor ages also causes the investor to recognize income. But if you're interested in implementing a three-fund approach, you might find Taylor Larimore's Bogleheads Guide to Three-fund Portfolio useful.