Any Suggestions on My Portfolio Selection & Allocation

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Topic Author
job55
Posts: 2
Joined: Thu Oct 21, 2021 12:47 pm

Any Suggestions on My Portfolio Selection & Allocation

Post by job55 »

Hi all, I'm still pretty new to investing and basically just have interest in steady index funds for growth. I'm 34 and have a 401k, HSA & Fidelity Go personal investment account highlighted below. I'm just looking for any suggestions if I missed anything or set up the portfolio poorly.

I just unsubscribed from Fidelity's Personalized Planning and Advice for my 401k and tried to make a simple, aggressive allocation 95/5.

Emergency funds: Three to six months of expenses

Debt: None

Tax Filing Status: Single

Tax Rate: 22% Federal, 0% State

State of Residence: Florida

Age: 34

Desired Asset allocation: 90%-95% stocks / 5%-10% bonds
Desired International allocation: 10% of stocks

401k Details:

$40k total balance
Company savings plan through Fidelity that matches 100% on my first 3% contributions and 50% on my next 3% (So basically 4.5% match on my 6%).
I'm currently contributing 6% pre-tax and 9% Roth that I started this year to catch up on the pre-tax contributions I've made the past 4-5 years.

I set up BrokerageLink that allows for 50% of my 401k balance to select my own funds. The Brokerage Link also auto-setup two separate accounts for pre-tax and roth. Here's what I set up after leaving the Fidelity Planning & Advice service:

Company Half:
Blackrock BTC EQUITY INDEX J (S&P 500)_____________________Large Cap_______30% of total___0.01% Net Expense Ratio
FID TOTAL INTL IDX  (FTIHX)________________________________International____ 10% of total___0.06% Net Expense Ratio
Blackrock BTC EXTND EQ MKT IDX (DJ US Completion TSM)______Mid-Cap________ 10% of total___0.04% Net Expense Ratio

Brokerage Link Half:
Fidelity ZERO Total Market Index Fund (FZROX)_______________ Large Cap_______45% of total___0.00% Net Expense Ratio
Fidelity U. S. Bond Index Fund (FXNAX)______________________Bonds____________5% of total___0.025% Net Expense Ratio

HSA Details:

$4,500 total balance
Basically just going to use it as a tax-advantage retirement supplement to the 401k. Max annual contributions is $3,350 and my company adds another $250 annually. The investment option is through TD Ameritrade so I selected all equity in Schwab assets.

Symbol____________Name____________________________________ Type___________Net Expense Ratio_______Allocation
SWPPX____Schwab S&P 500 Index___________________Large Blend_______________________0.02%_____________26.33%
SWLGX____Schwab US Large-Cap Growth Index_______Large Growth______________________0.04%_____________15.88%
SWLVX____Schwab US Large-Cap Value Index__________Large Value ______________________0.04%_____________18.05%
SWMCX____Schwab US Mid-Cap Index ________________Mid-Cap Blend____________________0.04%_____________15.88%
SWSSX____Schwab Small Cap Index__________________Small Blend_______________________0.04%_____________15.88%
SWISX_____Schwab International Index_______________Foreign Large Blend________________0.06%_____________7.98%

Fidelity Go:

$5,700 total balance
Standard issue robo-advisor individual taxable brokerage account. They are 85/15 allocation. I plan to contribute ~$100 a month for 10 years to save for a house down payment or keep growing it (plans change, who knows). I may eventually change to an individual account and select some better funds or possibly stocks but not any time too soon.

So that's basically it, I tried to make it as concise and easy as possible so hopefully I accomplished that and welcome any feedback. Thanks :D
Last edited by job55 on Thu Oct 21, 2021 5:07 pm, edited 2 times in total.
tashnewbie
Posts: 4283
Joined: Thu Apr 23, 2020 12:44 pm

Re: Any Suggestions on My Portfolio Selection & Allocation

Post by tashnewbie »

job55 wrote: Thu Oct 21, 2021 1:40 pm Hi all, I'm still pretty new to investing and basically just have interest in steady index funds for growth. I'm 34 and have a 401k, HSA & Fidelity Go personal investment account highlighted below. I'm just looking for any suggestions if I missed anything or set up the portfolio poorly.

I just unsubscribed from Fidelity's Personalized Planning and Advice for my 401k and tried to make a simple, aggressive allocation 95/5.

401k Details:

$39,550 total balance
Company savings plan through Fidelity that matches 100% on my first 3% contributions and 50% on my next 3% (So basically 4.5% match on my 6%).
I'm currently contributing 6% pre-tax and 9% Roth that I started this year to catch up on the pre-tax contributions I've made the past 4-5 years.

I set up BrokerageLink that allows for 50% of my 401k balance to select my own funds. The Brokerage Link also auto-setup two separate accounts for pre-tax and roth. Here's what I set up after leaving the Fidelity Planning & Advice service:

Company Half:
Blackrock BTC EQUITY INDEX J (S&P 500)_____________________Large Cap_______30% of total___0.01% Net Expense Ratio
FID TOTAL INTL IDX  (FTIHX)________________________________International____ 10% of total___0.06% Net Expense Ratio
Blackrock BTC EXTND EQ MKT IDX (DJ US Completion TSM)______Mid-Cap________ 10% of total___0.04% Net Expense Ratio

Brokerage Link Half:
Fidelity ZERO Total Market Index Fund (FZROX)_______________ Large Cap_______45% of total___0.00% Net Expense Ratio
Fidelity U. S. Bond Index Fund (FXNAX)______________________Bonds____________5% of total___0.025% Net Expense Ratio

HSA Details:

$4,521 total balance
Basically just going to use it as a tax-advantage retirement supplement to the 401k. Max annual contributions is $3,350 and my company adds another $250 annually. The investment option is through TD Ameritrade so I selected all equity in Schwab assets.

Symbol____________Name____________________________________ Type___________Net Expense Ratio_______Allocation
SWPPX____Schwab S&P 500 Index___________________Large Blend_______________________0.02%_____________26.33%
SWLGX____Schwab US Large-Cap Growth Index_______Large Growth______________________0.04%_____________15.88%
SWLVX____Schwab US Large-Cap Value Index__________Large Value ______________________0.04%_____________18.05%
SWMCX____Schwab US Mid-Cap Index ________________Mid-Cap Blend____________________0.04%_____________15.88%
SWSSX____Schwab Small Cap Index__________________Small Blend_______________________0.04%_____________15.88%
SWISX_____Schwab International Index_______________Foreign Large Blend________________0.06%_____________7.98%

Fidelity Go:

$5,767 total balance
Standard issue robo-advisor. They are 85/15 allocation. I plan to contribute ~$100 a month for 10 years to save for a house down payment or keep growing it (plans change, who knows). I may eventually change to an individual account and select some better funds or possibly stocks but not any time too soon.

So that's basically it, I tried to make it as concise and easy as possible so hopefully I accomplished that and welcome any feedback. Thanks :D
Welcome to the forum!!

You've provided some needed information but not all of the information forum members may need to best advise you. I suggest updating your original post (use the pencil icon) with the requested information in this suggested portfolio review format: Asking Portfolio Questions.

401k: You're using good funds. Doesn't look like you really need to use BrokerageLink because you have good fund options on the regular side (assuming you have a low-cost bond index fund on the regular side). I would find the split between the regular and BL to just be unnecessary clutter, but perhaps you don't.

HSA: Too many funds, especially for the amount in this account. You could streamline to 1 or 2 funds -- SWPPX and SWISX if you want international here or need it to complete your desired allocation.

Fidelity Go: Is this an Individual Retirement Arrangement/Account (IRA)? If so, is it Roth IRA or Traditional IRA? Or is this an individual taxable brokerage account? If it's a brokerage account, I would stop investing in it and use a Roth IRA (probably; can't say for sure because I don't know your federal marginal tax bracket) instead. The contributions to a Roth IRA (but not earnings) can be withdrawn at any time, tax- and penalty-free, so you could use them as another way to save for a potential future down payment. You can also use a Roth IRA as an emergency fund if you can't max all available retirement accounts. See this wiki for more information: Roth IRA as an emergency fund
Topic Author
job55
Posts: 2
Joined: Thu Oct 21, 2021 12:47 pm

Re: Any Suggestions on My Portfolio Selection & Allocation

Post by job55 »

Welcome to the forum!!

You've provided some needed information but not all of the information forum members may need to best advise you. I suggest updating your original post (use the pencil icon) with the requested information in this suggested portfolio review format: Asking Portfolio Questions.

401k: You're using good funds. Doesn't look like you really need to use BrokerageLink because you have good fund options on the regular side (assuming you have a low-cost bond index fund on the regular side). I would find the split between the regular and BL to just be unnecessary clutter, but perhaps you don't.

HSA: Too many funds, especially for the amount in this account. You could streamline to 1 or 2 funds -- SWPPX and SWISX if you want international here or need it to complete your desired allocation.

Fidelity Go: Is this an Individual Retirement Arrangement/Account (IRA)? If so, is it Roth IRA or Traditional IRA? Or is this an individual taxable brokerage account? If it's a brokerage account, I would stop investing in it and use a Roth IRA (probably; can't say for sure because I don't know your federal marginal tax bracket) instead. The contributions to a Roth IRA (but not earnings) can be withdrawn at any time, tax- and penalty-free, so you could use them as another way to save for a potential future down payment. You can also use a Roth IRA as an emergency fund if you can't max all available retirement accounts. See this wiki for more information: Roth IRA as an emergency fund
Thanks! I've only been reading the forums for a few days after reading the Bogleheads wiki and tips awhile back.

Good point about how Brokerage Link may complicate the 401k allocation, I guess I wasn't sure how good those 3 funds that I kept were and got excited about managing it myself so wanted more flexibility... The company plan only offers 31 funds with 14 of them being target date funds.

Roth IRA instead of Fidelity Go - I was not even aware that these accounts could be used as an emergency fund and the contributions can be withdrawn at anytime... That is great and very useful for me so I appreciate it very much and will be looking at the link you provided. Thanks again :D

For what it's worth, this is what Fidelity service set me up with:
Name___________________________Asset Class_____________Category________Gross Expense Ratio_____________Allocation %
BTC EQUITY INDEX J_______________Stock Investments_______Large Cap_____________0.01%__________________________32.00%
FID TOTAL INTL IDX (FTIHX)_________Stock Investments_______International__________0.06%__________________________16.49%
INVS GRTH & INC R6 (GIFFX)________Stock Investments_______Large Cap_____________0.39%__________________________15.58%
HARBOR CAP APP INST (HACAX)_____Stock Investments________Large Cap_____________0.72%__________________________8.84%
METWEST TOT RTN BD D____________Bond Investments________Income_______________0.35%__________________________7.43%
MFS INTL INTR VAL R6 (MINJX)_______Stock Investments________International__________0.62%__________________________7.01%
BTC EXTND EQ MKT IDX____________Stock Investments________Mid-Cap______________0.04%__________________________6.19%
AF EUROPAC GROWTH R6 (RERGX)___Stock Investments________International__________0.46%__________________________4.9%
TRP HIGH YIELD INST (TRHYX)_______Bond Investments________Income_______________0.50%__________________________1.11%

The remaining available selection that are offered for the standard selection are the 8 below:
Name___________________________Asset Class_____________Category___________Gross Expense Ratio
CRLN E SM CAP GR R6 (HSRUX)________Stock Investments________Small Cap________________0.66%
GS SM CAP VALUE INST (GSSIX)________Stock Investments________Small Cap________________0.99%
DFA GLOB REAL ESTATE (DFGEX)_______Stock Investments________Specialty________________0.34%
VANG INFL PROT INST (VIPIX)_________Bond Investments________Income___________________0.07%
VANG ST BOND IDX IS (VBITX)0________Bond Investments________Income___________________0.05%
VG TL INTL BD IDX AD (VTABX)________Bond Investments________Income___________________0.11%
BTC US DEBT INDEX M_______________Bond Investments__________N/A____________________0.03%
VANG VMMR-FED MMKT (VMFXX_______Short Term Investments_____N/A____________________0.11%
tashnewbie
Posts: 4283
Joined: Thu Apr 23, 2020 12:44 pm

Re: Any Suggestions on My Portfolio Selection & Allocation

Post by tashnewbie »

job55 wrote: Thu Oct 21, 2021 5:00 pm
Welcome to the forum!!

You've provided some needed information but not all of the information forum members may need to best advise you. I suggest updating your original post (use the pencil icon) with the requested information in this suggested portfolio review format: Asking Portfolio Questions.

401k: You're using good funds. Doesn't look like you really need to use BrokerageLink because you have good fund options on the regular side (assuming you have a low-cost bond index fund on the regular side). I would find the split between the regular and BL to just be unnecessary clutter, but perhaps you don't.

HSA: Too many funds, especially for the amount in this account. You could streamline to 1 or 2 funds -- SWPPX and SWISX if you want international here or need it to complete your desired allocation.

Fidelity Go: Is this an Individual Retirement Arrangement/Account (IRA)? If so, is it Roth IRA or Traditional IRA? Or is this an individual taxable brokerage account? If it's a brokerage account, I would stop investing in it and use a Roth IRA (probably; can't say for sure because I don't know your federal marginal tax bracket) instead. The contributions to a Roth IRA (but not earnings) can be withdrawn at any time, tax- and penalty-free, so you could use them as another way to save for a potential future down payment. You can also use a Roth IRA as an emergency fund if you can't max all available retirement accounts. See this wiki for more information: Roth IRA as an emergency fund
Thanks! I've only been reading the forums for a few days after reading the Bogleheads wiki and tips awhile back.

Good point about how Brokerage Link may complicate the 401k allocation, I guess I wasn't sure how good those 3 funds that I kept were and got excited about managing it myself so wanted more flexibility... The company plan only offers 31 funds with 14 of them being target date funds.

Roth IRA instead of Fidelity Go - I was not even aware that these accounts could be used as an emergency fund and the contributions can be withdrawn at anytime... That is great and very useful for me so I appreciate it very much and will be looking at the link you provided. Thanks again :D

For what it's worth, this is what Fidelity service set me up with:
Name___________________________Asset Class_____________Category________Gross Expense Ratio_____________Allocation %
BTC EQUITY INDEX J_______________Stock Investments_______Large Cap_____________0.01%__________________________32.00%
FID TOTAL INTL IDX (FTIHX)_________Stock Investments_______International__________0.06%__________________________16.49%
INVS GRTH & INC R6 (GIFFX)________Stock Investments_______Large Cap_____________0.39%__________________________15.58%
HARBOR CAP APP INST (HACAX)_____Stock Investments________Large Cap_____________0.72%__________________________8.84%
METWEST TOT RTN BD D____________Bond Investments________Income_______________0.35%__________________________7.43%
MFS INTL INTR VAL R6 (MINJX)_______Stock Investments________International__________0.62%__________________________7.01%
BTC EXTND EQ MKT IDX____________Stock Investments________Mid-Cap______________0.04%__________________________6.19%
AF EUROPAC GROWTH R6 (RERGX)___Stock Investments________International__________0.46%__________________________4.9%
TRP HIGH YIELD INST (TRHYX)_______Bond Investments________Income_______________0.50%__________________________1.11%

The remaining available selection that are offered for the standard selection are the 8 below:
Name___________________________Asset Class_____________Category___________Gross Expense Ratio
CRLN E SM CAP GR R6 (HSRUX)________Stock Investments________Small Cap________________0.66%
GS SM CAP VALUE INST (GSSIX)________Stock Investments________Small Cap________________0.99%
DFA GLOB REAL ESTATE (DFGEX)_______Stock Investments________Specialty________________0.34%
VANG INFL PROT INST (VIPIX)_________Bond Investments________Income___________________0.07%
VANG ST BOND IDX IS (VBITX)0________Bond Investments________Income___________________0.05%
VG TL INTL BD IDX AD (VTABX)________Bond Investments________Income___________________0.11%
BTC US DEBT INDEX M_______________Bond Investments__________N/A____________________0.03%
VANG VMMR-FED MMKT (VMFXX_______Short Term Investments_____N/A____________________0.11%
Definitely update your post with the information in the link I provided above.

Your 401k plan's 31 options are probably more than enough to construct a well-diversified, low-cost portfolio. You really only need 3 funds at most (assuming access to a good US stock option (e.g., total US, S&P 500, large blend), int'l stock option, and bond fund option).

The Fidelity Go account is way too complicated. I recommend you stop using this service until you can get a better handle on your own portfolio. I would use a Roth IRA before I'd use what's presumably a taxable account. See this wiki about investing priority: Prioritizing Investments
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