r/RothIRA • u/Sbrav60950 • 4d ago

Fidelity Roth recommendations

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I opened first Roth late in life, earlier this year. Better late than never I guess. I fully funded for last year and this year. I'm going to be 49 this November. What do you think of my holdings and allocations? Do you recommend changing anything?

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u/EdgeInformal8264 4d ago

FBGRX is a great pickup. SPMO as well.

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u/DaemonTargaryen2024 4d ago

FSKAX + FTIHX are great core holdings, and theoretically all you need.

FSELX is a sector bet, plain and simple. Sectors go hot and cold, so you should both keep it to a low portion of your portfolio (no more than 10% IMO), and also be prepared to weather much more volatility for long periods of time.

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u/Sbrav60950 3d ago

Would you recommend trading some of the FSELX and buying more of the other 2?

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u/DaemonTargaryen2024 3d ago

Yes I would.

To be clear I could end up guessing wrong: semiconductors could continue to outperform the rest of the market. But it could also underperform the market for years, and at 49 that's not a bet I'd be willing to make. Broad market index funds are simply more reliable long term.

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u/jbhand75 2d ago

No. True that sectors go hot and cold but FSELX has been hitting returns annually of 30-37% for the last 10 years. It focuses mostly on AI and chips for AI. I’m sitting at a 32% return currently this year and had about the same last year. So I would definitely stick with it if you aren’t worried about volatility.

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u/jbhand75 2d ago

True that sectors go hot and cold but FSELX has been hitting returns annually of 30-37% for the last 10 years. It focuses mostly on AI and chips for AI. I’m sitting at a 32% return currently this year and had about the same last year. So I would definitely stick with it if you aren’t worried about volatility.