Hi All,
I am working on my Roth and trying to settle it down a little this year. I'm pretty happy with it over all and realize there is a fair a mount of risk currently. Hopefully that pays off eventually, but for now I want to calm it down a bit by adding some funds as opposed to selling anything. I feel like it is a little on the aggressive side but I have about 20+ years to go so I am okay right now.
I want to deploy about 75-80% of my cash to 2 or 3 funds that I don't have to think too much about.
I am considering FBALX, FASGX, FSANX and Fidelity index funds, maybe FUSEX, FBIDX.
I really don't have any experience choosing funds beyond what I read here and hope that you might have some food for thought to help me along.
Thx
DPN
Current Allocation
TGLDX 6.5%
ARIVX 10.5%
FFFEX 18.5%
TOPPX 6.5%
FCNTX 5.25%
FSDIX 7.25%
FLPSX 9.0%
Stocks 7.5%
Cash 29.0%
Comments
You note: A quick blip for my inflation adjusted 2 cents worth. If you add FUSEX, you will be adding to the aggressive side; at least relative to U.S. large cap equity. I don't think that FBIDX is going to add a lot to your wealth; although this fund/area will offer downside protection if equity markets go south, which would be its value and perhaps a +4%/year.
Cousins of the equity market that you could add within Fidelity would be FAGIX, Fido's most aggressive of its high yield bond sector; aggressive, meaning this fund usually holds higher risk junk bonds. SPHIX, also high yield bonds, but is a less aggressive (generally higher quality junk bonds) fund. Both have decent long term returns and will likely continue to do well; as long as the equity sector remains in place/sideways or upward. Another high yield bond fund to review would be FGHNX, which has also performed well. Although a relatively new offering from Fido, the lead manager is John Carlson; who is the manager of the highly regarded FNMIX, emerging markets bond fund. These would give you more exposure to other bond styles not in your mix.
As to the equity side for your cash, and in the moderate arena; you mentioned FBALX which is more in the mode of a 60/40 equity-bond mix and has a decent record. You may want to look at VILLX and/or MAPOX in the balanced area too; and available within Fido. This fund (VILLX), has a better performance record against FBALX; but will cost $75 in transaction fees and .4% more in expense ratio versus FBALX.
Or, you could add to you FSDIX holdings and get a bit more equity exposure; as well as some other sectors, which may not be in your other equity/bond holdings.
---FSDIX income first, then capital appreciation, 2.5% yield, 50% equity (80% large cap, 20% mid/small cap), 15% REITs, 11% convertible securities and 20% preferred stocks. Largest equity exposure (last report) = Exxon-Mobil, Chevron, Verizon, P&G, Pfizer, Microsoft, J&J, Merck, Simon properties and Coca-Cola.
Note: I lean towards the preservation of capital, in order to continue the most important area of investing; and that is to gather compounding of one's monies over the years. However, we all have to also establish our own risk/reward basis. Our house is retired, so our risk/reward will not be the same as yours; although we still must plan for another 20 years of positive investment returns, too.
Take care,
Catch
Growth and compounding is my goal overall. Thanks for the input.
It quickly becomes overwhelming once I start trying to get too cleaver. That's why i'm looking for a little more auto pilot and lower ER (index funds). I will study the funds you mentioned and plan to add to some of my current holdings also.
When working with an Roth, I would think that it is common to have most cash invested as opposed to having a core cash amount that you cost average with. Is my thinking off on this?
Would spreading my purchases out over the year be a good idea not really matter in the long run.
or,
Buy it now and let it grow and compound. i.e auto pilot.
DPN
Mona
Of Equity funds, Fidelity has many index funds for you to choose. Recently they lowered the entry level for index funds.
If you prefer at actively managed funds:
FLPSX is my favorite. It has grown to a go-anywhere type of fund with 1/3 in International equities. It is typically value biased.
FCNTX is a conservative growth fund to consider.
From non-fidelity funds AKREX, YAFFX are funds to look. These are generally on the conservative side. Also take a look at RWGFX if you want something more aggressive. It is a newish fund but has better downside protection than some other aggressive growth funds.
On the international side:
FIGFX is an international fund to consider as a general purpose International fund. FEDDX looks promising in the emerging markets area.
Non-Fidelity funds, take a look at ARTHX, ARTRX, GPGOX and GPIOX. These are rather high ER but from Fund shops/managers that has good track record. If you are looking for something conservative FMIJX should be on your radar.
For balanced funds:
Consider GLRBX. Also take a look at GRSPX.
Regards,
Ted
Low Priced Stock
FLPSX
Mid Cap Blend
20%
Contrafund
FCNTX
Large Cap Growth
20%
Large Cap Core Enhanced
FLCEX
Large Cap Blend
20%
Select Health Care
FSPHX
Health Care
15%
High Income
SPIX
High Yield
15%
Blue Chip Growth
FBGRX
Large Cap Growth
10
I will add to my existing FSDIX, FLPSX also
Might give FEDDX a go too. - Looks like 2012 will be hard to match and the er is little on the high side.
thanks for the reading.
Forgto to note that I agree with Investor regarding FEDDX, if you want some smaller cap emerging market equity. Also, FTEMX; which is a blend of emerging market equity and bonds. Take a review of this fund, too.
Best wishes with your choices.
Regards,
Catch
I'm going to add FBALX @13% and am thinking about lowering FFFEX by 5% or maybe selling and replacing with OAKBX or other. I'm not sure if having both it is redundant.
To boost international exposure I am considering FEDDX @5% , and FIGFX @ 8%, but trying to decide between FIVFX, FIGFX.
Also considering MAINX.
The goal here is to let it sit and hopefully grow until I make a 2014 contribution.
Current Allocation
TGLDX 6.5%
ARIVX 10.5%
FFFEX 18.5%
TOPPX 6.5%
FCNTX 5.25%
FSDIX 7.25%
FLPSX 9.0%
Stocks 7.5%
Cash 29.0%
Allocation after Change
FFFEX or OAKBX=13.0%
FBALX=13.0%
FCNTX=5%
TGLDX=7.5%
FSDIX=7.75%
FLPSX=9.5%
ARIVX=13.5%
TOPPX=5.0%
FEDDX=5.0%
FIGFX=8.5%
SPHIX=4.5%
MAINX=2.25%
Cash=5.5%
Thanks for your thoughts, input and suggestions.
DPN