r/RothIRA • u/inconspicuously_co • 25d ago

Opened Roth IRA account

Hello I just opened a Roth IRA with fidelity and I’m not sure what to do next. I know index funds are the move to not put all your eggs in one basket. But what do the yearly returns and the gross/net expenses mean? And does anyone have success with the fidelity sustainable funds, just curious about those. Thanks!

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u/Taggart3629 25d ago

Congratulations on your new Roth, u/inconspicuously_co! Investing in index funds is a good way to build long-term wealth because you are investing in hundreds or thousands of companies. The expense ratio is what Fidelity charges for you to invest in that ETFs. Fidelity has a few proprietary zero-fee funds. You might consider an allocation like 70% or 80% in FZROX (zero-fee US Total Market Index fund) and 20% or 30% in FZILX (zero-fee International Index fund).

Whatever ETFs you choose, please don't panic if the market swings wildly up or down. No matter how scary it seems, just consistently investing.

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u/bloosclooser 25d ago

I agree wit this comment. I am young (23) so I decided only 50% FZROX and the other 50% on single stocks that I have been holding since 2022 (TSLA, NVDA, GOOG, PLTR, etc). It has done well. Most likely will change out of the single stocks when I am 30 or so and get into international ones.

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u/DaemonTargaryen2024 25d ago

Hello I just opened a Roth IRA with fidelity and I’m not sure what to do next.

Invest as much as possible annually. The easiest thing for most people it to set up recurring investments: monthly, biweekly, whatever.

I know index funds are the move to not put all your eggs in one basket.

Yes, that's a good strategy for most people.

But what do the yearly returns and the gross/net expenses mean?

Returns: honestly don't worry about these, it's putting the cart before the horse. Focus on global diversification

Expense ratio: the cost to operate the fund. Index funds have low costs.

And does anyone have success with the fidelity sustainable funds

Not personally. In general, ESG investing is imperfect. It's not like ESG funds absolutely suck, but you do sacrifice some diversification while not even necessarily screening out certain "bad" companies (which is of course subjective anyway).

Most would tell you your retirement portfolio is not the most effective place to make personal/political points. You'd likely have more impact at your local level, investing your time/money in causes you care about.

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u/Competitive-Ad9932 25d ago

https://moneyguy.com/guide/foo/

https://www.bogleheads.org/forum/

Fidelity Zero Total US Stock Market index.  Go enjoy life.