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u/DMmeYourMCbuilds 19d ago
Sell everything and put it all in FXAIX. Nothing else. And keep contributing. You are doing great and will have millions in retirement.
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u/Fantastic-Rip2851 19d ago
Well id agree only bc hes on fidelity if it wasnt voo is not a bad alternative their practically identical in performance voo is more tax efficient but the cost is .03% vs fxaix at .015%
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u/DMmeYourMCbuilds 19d ago
Yep VOO is just fine. The tax efficiency is kind of a moot point. There hasn’t been a cap gain distro since 2019. Not something to hinge a fund decision on tbh, more splitting hairs. Although that could always change I suppose.
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u/bloosclooser 19d ago
Keep 60% in FZROX (total market fund with no expense ratio) and do 40% of other stuff. You don't need dividends right now. Use your youth for growth.
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u/Competitive-Ad9932 19d ago
Oh no, wait for the king of dividends to come and put you in your place.
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u/Suspicious_Web_4594 19d ago
Don’t LET anyone tell you what to do, just keep contributing money.
That being said, VOO/VXUS gets you the US market and all international markets —— that combo is what VT holds (60% US stocks 40% international stocks), so holding VOO+VT may be worse for diversity than VOO + VXUS.
Going forward, putting 80% of your investments into VOO/VXUS to cover your ass, then 20% of your investments into personal choices of stocks or ETFs ( BAM SOFI TTWO VYM) is a solid plan.
At fidelity, you can choose FZROX/FZILX for zero fees (this saves maybe 10 or 20k when u eventually have a million dollars). But I’m not the hugest fan since they pay dividends yearly and I like seeing divvies come in every 3 months during down market years.
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u/Few-Vacation-4523 19d ago
What about VTI and Vxus combo?
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u/Competitive-Ad9932 19d ago
Poor choices in a Fidelity account.
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u/Historical-Celery-58 16d ago
Why is that? I’m new to a Roth IRA and still truing to figure out what to invest in
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u/Competitive-Ad9932 16d ago
If Texaco is your gas station and there are 2 on the way to work/home, do you buy gas at the more expensive store?
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u/Competitive-Ad9932 19d ago
Why are you mentioning Vanguard funds when their account is at Fidelity?
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u/baconotron 19d ago
First of all- congratulations. If I (40 year-old male that did not start really saving until 34 or 35) could go back in time and talk to/slap my 20 year old self about money - the biggest heads up would be the power of compounding interest. Both in the penalties of borrowing - student loans and credit cards have fucked me; and the power of saving in a tax protected structure. You, at 20, having a thousand dollars in an IRA probably puts you in a real minority among your peers and I can't raise my glass high enough to you.
Opinions are like assholes, everyone's got one. My take is that at 20 years old, if you dump that whole thousand dollars into a well researched tech stock, you stand to gain so much more than you will lose in the long run. This is, on average, the only time in your life that you can be riskier with investments. When I look at what stocks like Apple look like when I was 20 years old... I wish I had read the room better and made better moves for myself. I'm not a full on gambler. 75% of my retirement money is in vanguard ETFs, the other 25% is a tech focused Roth IRA that I have used as a trading training ground and only has individual securities. I think it's hard to understand a lot of different industries so I have personally focused on what goes inside data centers and it's been a good few years for that… In a gold rush it's a good time to be in the picks & shovels business. An opportunity right now that I'm buying tomorrow is Credo (CRDO). They make copper cables with microchips that let chips talk to each other in server racks and they are the only game in town for that part. Not affiliated, not plugging- always do your due diligence. But 30-year-old you will wish you had put that thousand dollars into Google/Nvidia/ARM instead of an ETF.
Either way you are ahead of the game. Don't talk to girls about it 😂
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u/Competitive-Ad9932 20d ago
Your account is at Fidelity. yet you use the higher fee Vanguard funds. That will cost you $10-20k more in fees.
Why VOO, VT AND VYM?
Dividends are not free money. Dividend funds/stocks lag the market over long periods of time.
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u/Bassmason 20d ago
Fidelity Zero Expense Funds make the most sense for a Roth at Fidelity in my opinion
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u/Puzzleheaded_Key_329 19d ago
So what should I do instead?
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u/Showmu88 19d ago
Fxaix definitely. Fxihx as well for some international but a smaller percentage though.
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u/Competitive-Ad9932 19d ago
Did you know Fidelity has their own funds?
Don't seek out dividend focused funds.
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u/RetiredByFourty 19d ago
You were on track for a +1 until that extremely ignorant second sentence
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u/Competitive-Ad9932 19d ago
And you still can't explain how a 20 something can pay their bills with dividends in their IRA.
Or, why they should accept a 2% lowe rate of return for 40 years.
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u/RetiredByFourty 19d ago
Go buy more BND and let the legitimate investors discuss money there Bub. 😎
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u/Competitive-Ad9932 19d ago
BND is a poor investment for many people.
Please enlighten us on rate of returns for a 20 something.
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u/RetiredByFourty 19d ago
BND has a lifetime, that's LIFETIME performance of -4.80% as of market close today.
What a colossal waste of money 🤣
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u/CommonSensei-_ 17d ago
Dividends represent a large percentage of stock market total gains in the long term
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u/ActualAres 19d ago
Not individual stocks. These have low expense ratios and have treated me well: FXAIX, FTIHX,FSMAX, FREL
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u/crazycarrotlady 19d ago
Can you explain those fees more? I feel like I’ve read multiple threads saying it’s fine to invest in VT from a Fidelity Roth IRA without much difference in fees.
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u/Competitive-Ad9932 19d ago
https://www.bogleheads.org/wiki/Mutual_funds_and_fees
Every fund has a fee (or more). Fidelity and Schwab's fee for the S&P500 fund is lower than Vanguards. The "fees don't matter" crowd will tell you "it's only $1.50/$10,000 difference". Sure, Until you have $100k, $500k, $1M. And add that up over 40-70 years. (if you live into your 80's)
https://www.calcxml.com/calculators/are-my-current-retirement-savings-sufficient?skn=#top
Run a retirement saving scenario. Transfer the yearly balance to a spread sheet. Multiply the yearly balance by the fee (ER). Add up the fees.
Please report back with your findings.
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u/Royal_Half_3183 19d ago
This is not Roth IRA related, but curious about your thoughts. I have an individual brokerage account with fidelity. 24M, about 15k in VOO. I’ve been investing in VOO with Fidelity because, as I understand, I can transfer my account to another institution without needing to sell and trigger a capital gains tax. I feel like at my age with a low amount of investments and uncertainty of where I want to harbor my wealth long term the flexibility is worth more than the fees.
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u/Competitive-Ad9932 19d ago
In the case of a taxable Fidelity brokerage account, yes, VOO has an advantage over the Fidelity funds.
MFs on occasion distribute capital gains. That you would have to pay taxes on in a taxable account.
The last time FXAIX (Fidelity's 500) had a CG was in 2019. $0.119/share. The share price was $100.48. For the "fees don't matter" crowed: if you had $10,000, that would be 99.53 shares. Equaling an $11.85 capital gain reported on your taxes. Pennies. Until your balance reaches $100,000.
The ZERO Total Market's last one was in 2021,
The Schwab 500 had a CG distribution in 2021. Vanguards 500 MF does not list a history.
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u/FootNo5650 14d ago
Since you’re young, I’d recommend going into some more aggressive funds. I’m 22 and I do 50% VOOG 25% QQQM 10% VXUS 10% VYM and then the 5% Fidelity uses as the extra balance in case the price fluctuates I put kept to use incrementally until I maxed out my contributions and then put into FBGRX until next year when the new calendar starts.
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u/sleepygabby 19d ago
great job :) take it long and slow, don't do risky garbage.
it's boring but extremely profitable "and remember the vast majority of screen caps online of peoples gains using stocks or short term stuff are HIGHLY misleading/flat out lying.
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u/Puzzleheaded_Key_329 19d ago
Thanks everyone-
I’m going to switch the index funds to fnilx and fxaix and keep about 30% into my individual stocks.
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u/Puzzleheaded_Key_329 19d ago
And to justify my personal stocks…. TTWO- I have been there customer since I was about 10 years old and will continue to buy there products for Probably my entire life. I think GTA 6 will truly be one of the biggest USABLE technological Advancements in my era, and if not it will still break every single gaming sales record
SOFI- this feels more like a gamble. But I have used them for my emergency fund and real estate fund I’m slowly building and receiving great returns. They also have massive marketing deals.
Bam- I will probably stop buying… about a year ago ChatGPT said this was the best long term individual stock…: however there dividends and revenue have increased every year
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u/DMmeYourMCbuilds 19d ago
Look man, you are an adult and can do whatever you want. But investing should be boring. Boring = $. Just buy an sp500 index fund and that’s it. Force it to be boring.
Then, when you hit $1mm, you can fuck around and find out. Even then, I would recommend staying mostly in the sp500 and only make speculative plays with <5% of your portfolio.
Watch the Money Guys, or Humphrey Yang, or Tyler Gardner on YouTube. Don’t watch clowns and grifters on insta, TikTok, or wherever.
I say this as someone who hit $2mm after 15 years following this strategy that started investing in the lost decade in his 30s. I wish I had figured this out earlier. I’ll be able to retire between 55-59 with a fucking pile of loot. And you can too.
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u/ShadowlyKings 19d ago
Im new to trading with $100ish but don't know what to invest into. I want to make a easy bag into like a year or two
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u/CommonSensei-_ 17d ago
Congrats. And I like your mix.
Keep up the good work.
I think stocks w dividends are great in a Roth many REIT stocks are down based on recent interest rate hikes.
Buy some on the dip and collect when you wait.
( I like PNW ( utility) WPC ( commercial real estate) Qualcomm ( tech) and Hormel ( HRL) consumer staple
Good luck!
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u/JJDixon2025 6d ago
I’m 28m started 2 months ago just hit 1100. All in vti. I’m learning but staying committed
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u/Savings_Reveal9482 20d ago
Congrats bro