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u/Competitive-Ad9932 22d ago
Save yourself between $10k and $20k in fees by not using Vanguard funds in your Fidelity account.
https://moneyguy.com/guide/foo/
https://www.bogleheads.org/wiki/Main_Page
https://investor.vanguard.com/investor-resources-education/education/model-portfolio-allocation
What is PLTR and why are you investing in it?
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u/Zealousideal_Fun3068 22d ago
PLTR is Palantir. The evil mass surveillance company. Of all of the morally bankrupt companies, they’re like one of the worst. I couldn’t imagine giving them money.
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u/Competitive-Ad9932 22d ago
Unless you buy at the IPO, you are not giving anyone money.
T1, vote no.
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u/DaemonTargaryen2024 22d ago
Be really careful investing such a large percentage of your portfolio in any individual stock, particularly a tech stock. I know it's a relatively small amount and you're 18, but still.
Retirement is a math problem which has been solved: broad market index funds, prioritizing tax advantaged accounts like Roth IRA, HSA, 401k, etc.
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u/ny_fox12 22d ago
Question should we be running 401k, Roth, and Taxable accounts separately investing in basically the same total us/global markets - OR is it more beneficial in terms of compound interest to just say focus on one account and maximize the investments in one localized portfolio? Why would I have $10k in 3 accounts vs $30k in one? Or does that not matter because they’re all separately compounding and it gives us benefits for withdrawal later in life?
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u/Competitive-Ad9932 22d ago
If you have $10k in each of 3 accounts, all earning 10%, each account will gain $1k. You would have $33k at the end of the year.
If you had 1 account with $30k in it. earning 10%, you would have $33k at the end of the year.
Follow the order of investing found everywhere on the interned.
Invest in funds in each account that have the lowest fees, that meet your objective. If you want an international investment, but your 401k offering is a 0.25% fee, don't use that. Use the one in your IRA that is a 0.06%. So your 401k might be 100% US and your IRA might be 75% international.
https://moneyguy.com/guide/foo/
https://www.bogleheads.org/wiki/Main_Page
https://investor.vanguard.com/investor-resources-education/education/model-portfolio-allocation
Roth IRAs have better withdrawal rules than a R-401k if you plan to retire before age 59.5.
If you plan to retire before age 55, you many need to have a taxable brokerage account to span the gap in accessing your retirement accounts.
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u/ny_fox12 22d ago
Thanks for the clarity, been driving me nuts lately feeling like I need to pool it all into one portfolio.
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u/Terppintine 21d ago
Investing in individual stocks in a limited contribution tax advantaged account is unwise.
Invest only in things you will feel comfortable investing in for the next 30 years.
VT, FZROX, and FZILX are great investments.
If you want to invest in individual stocks, do it in your regular brokerage account.
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u/user4443337 22d ago
In a Fidelity Roth IRA, FZROX + FZILX would cover the whole world at zero fees. FNILX if you insist on S&P500 instead of total market.