New here, seeking input on my portfolio

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COmurse
Posts: 1
Joined: Thu Oct 28, 2021 10:06 am

New here, seeking input on my portfolio

Post by COmurse »

Hello everyone,

I have been reading passively here, and have decided to create an account here to seek input- and to learn about what I could be/ should be doing in regards to my retirement savings. Not seeking financial advice, just an unprofessional opinion from this community. I just turned 29 years old, I started investing when I was 27. My student debt is paid off, I have zero credit card debt, my car is paid off, I currently live with my wife who just graduated from Nurse Practitioner school, and starts her new career in the coming months. We do not want kids, and (like true millennials, we live with her in laws in their basement for the time being)

I plan on returning to grad school to pursue my Nurse Practitioner degree in the field of psych. Yes, it will place me 60K into debt, but the field of mental health is in high demand, the job market for this field continues to grow, and the starting salaries for psych NPs is in the 6 figure range.

Currently, I gross around 80K as an RN. My employer offers a 3% match into a 457B plan, which I contribute to. Granted, the mutual funds and stock options that they offered did not seem very appealing to me, as the options had high expense ratios. I chose to contribute to Vanguard Institutional Index Fund Institutional Shares.

I also have a Roth IRA through fidelity, and this is what is in my portfolio. I am able to max out this account every year. I made these decisions based off of their expense ratio, and their turnover rate. (I am definitely open to feedback and criticism.)

FXAIX- 65.88% Fidelity 500 index fund
FTIHX- 5.31% Fidelity total international index fund
FSSNX- 15.63% Fidelity small cap index fund
FSMDX- 8.77% Fidelity mid cap index fund
...GME- 4.41% GameStop corp.

Here is what I am worried about. Overlapping within my funds. I chose these index funds because I want a "broad and diversified portfolio". I am sure there are other things that I should be worried about with this account, but- I do not know everything, and that is why I am here- to learn.

Thank you all in advance for reading this post, and I appreciate your time and feedback. :happy
Last edited by COmurse on Thu Oct 28, 2021 5:47 pm, edited 1 time in total.
billfromct
Posts: 2057
Joined: Tue Dec 03, 2013 8:05 am

Re: New here, seeking input on my portfolio

Post by billfromct »

I doubt many people have memorized all the Fidelity mutual fund abbreviations.

You would probably get some more responses if you listed the mutual fund names.

Heck, I’ve been using Vanguard mutual funds for about 35 years now & I may recognize 4 or 5 of the mutual fund abbreviations. Maybe it’s just me.

bill
mrc
Posts: 1908
Joined: Sun Jan 10, 2016 5:39 am

Re: New here, seeking input on my portfolio

Post by mrc »

You will receive better feedback if you post in the format outline here, Asking Portfolio Questions: viewtopic.php?f=1&t=6212
By the time you know enough to choose a good financial adviser, you don't need one. | bogleheads.org is my advisor: The ER is 0.0% and the advice always solid.
tashnewbie
Posts: 4284
Joined: Thu Apr 23, 2020 12:44 pm

Re: New here, seeking input on my portfolio

Post by tashnewbie »

Welcome to the forum!

I agree that it would be better if you posted a portfolio review in the suggested format linked above.

In the Roth IRA, you could just use Fidelity's total US stock market index fund (FSKAX) instead of the separate US funds you're using. It would greatly simplify your portfolio, and there'd be no overlap.

What would be the income trajectory for a NP versus RN?
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Sandtrap
Posts: 19591
Joined: Sat Nov 26, 2016 5:32 pm
Location: Hawaii No Ka Oi - white sandy beaches, N. Arizona 1 mile high.

Re: New here, seeking input on my portfolio

Post by Sandtrap »

COmurse wrote: Thu Oct 28, 2021 10:44 am Hello everyone,

I have been reading passively here, and have decided to create an account here to seek input- and to learn about what I could be/ should be doing in regards to my retirement savings. Not seeking financial advice, just an unprofessional opinion from this community. I just turned 29 years old, I started investing when I was 27. My student debt is paid off, I have zero credit card debt, my car is paid off, I currently live with my wife who just graduated from Nurse Practitioner school, and starts her new career in the coming months. We do not want kids, and (like true millennials, we live with her in laws in their basement for the time being)

I plan on returning to grad school to pursue my Nurse Practitioner degree in the field of psych. Yes, it will place me 60K into debt, but the field of mental health is in high demand, the job market for this field continues to grow, and the starting salaries for psych NPs is in the 6 figure range.

Currently, I gross around 80K as an RN. My employer offers a 3% match into a 457B plan, which I contribute to. Granted, the mutual funds and stock options that they offered did not seem very appealing to me, as the options had high expense ratios. I chose to contribute to Vanguard Institutional Index Fund Institutional Shares.

I also have a Roth IRA through fidelity, and this is what is in my portfolio. I am able to max out this account every year. I made these decisions based off of their expense ratio, and their turnover rate. (I am definitely open to feedback and criticism.)

FXAIX- 65.88% Fidelity 500 index fund
FTIHX- 5.31% Fidelity total international index fund
FSSNX- 15.63% Fidelity small cap index fund
FSMDX- 8.77% Fidelity mid cap index fund
...GME- 4.41% GameStop corp.

Here is what I am worried about. Overlapping within my funds. I chose these index funds because I want a "broad and diversified portfolio". I am sure there are other things that I should be worried about with this account, but- I do not know everything, and that is why I am here- to learn.

Thank you all in advance for reading this post, and I appreciate your time and feedback. :happy
To get comprehensive input instead of generalized suggestions with assumptions,
Edit your original post using the "pencil icon" into this format.

Asking Portfolio Questions
https://www.bogleheads.org/forum/viewt ... =1&t=6212

Important Questions?

1. What is your desired asset allocation?
IE: 60/40 (equities/fixed or bond like)

Read:
Asset Allocation (what is right for you?)
https://www.bogleheads.org/wiki/Asset_allocation
Emergency Fund
https://www.bogleheads.org/wiki/Emergency_fund

2. Do you plan to buy a home and are saving for it. Do you have emergency money set aside for job loss, etc.
IE: Emergency Fund = X dollars
3. What is your need and ability to take risk in your portfolio?
This establishes your allocation which is the proportion of your funds. Right now you only list equities which is not a good idea. If the market falls 30%, then ALL of it falls 30%.

Read:
Here are links to the wiki's "Getting Started" and "Investing Startup Kit" pages:
https://www.bogleheads.org/wiki/Getting_started
https://www.bogleheads.org/wiki/Bogleh ... rt-up_kit
Define General Investment Goals and Objectives (what is your plan?)
https://www.bogleheads.org/wiki/Invest ... statement

To get a better understanding of "allocation" go to this site. It is Vanguard vs Fidelity but still applies.
VANGUARD PORTFOLIO ALLOCATION MODELS
https://personal.vanguard.com/us/insig ... locations

Actionably:
Fidelity has a Total stock Equiv. to Vanguards VTIAX which is FSKAX "Fidelity Total Stock Market Index Fund" in which you can consolidate:
FXAIX- 65.88% Fidelity 500 index fund
FTIHX- 5.31% Fidelity total international index fund
FSSNX- 15.63% Fidelity small cap index fund
FSMDX- 8.77% Fidelity mid cap index fund
...GME- 4.41% GameStop corp
.
FSKAX : Fidelity Total Stock Market Index
But, before doing that, you need to establish your "allocation", then on your "Fixed" side, you will be adding, "For example", 20% of the total in the Fidelity Total Bond Index Fund (FTBFX) so, "For Example" at that, your allocation becomes 80 % equities and 20% fixed (bond like) or 80/20. This gives you a stable floor of "fixed".

Then, what you will have is:
FXAIX- 65.88% Fidelity 500 index fund
FTIHX- X% Fidelity total international index fund
FSSNX- 15.63% Fidelity small cap index fund
FSMDX- 8.77% Fidelity mid cap index fund
...GME- 4.41% GameStop corp
.
FSKAX : X % Fidelity Total Stock Market Index
FTBFX X % Fidelity Total Bond Index Fund
Read: (tax efficient fund placement)
Funding Priority (what do I do first?)
https://www.bogleheads.org/wiki/Priori ... vestments
Tax Efficient Fund Placement
https://www.bogleheads.org/wiki/Tax-ef ... _placement

I hope these examples are helpful to you.
PM me as you wish if you want 1 on 1 help.

And. . .please do reformat you lst post using the "pencil icon" in the format and missing data needed.
Any suggestions without that information is going to be marginal at best.
j :D
Last edited by Sandtrap on Fri Oct 29, 2021 9:24 am, edited 2 times in total.
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BolderBoy
Posts: 6755
Joined: Wed Apr 07, 2010 12:16 pm
Location: Colorado

Re: New here, seeking input on my portfolio

Post by BolderBoy »

COmurse wrote: Thu Oct 28, 2021 10:44 amI also have a Roth IRA through fidelity...
With both of you working, you'll likely exceed the income cap for directly contributing to a Roth IRA so you'll want to brush up on the "Backdoor Roth" for which the 'how-to' is discussed in the wiki.

Congratulations on deciding to pursue PMHNP schooling. As you pointed out the field is booming.
"Never underestimate one's capacity to overestimate one's abilities" - The Dunning-Kruger Effect
Activesloth
Posts: 133
Joined: Wed Oct 20, 2021 7:03 pm

Re: New here, seeking input on my portfolio

Post by Activesloth »

I don’t see any overlap in your funds. How’s Gamestop turning out for you?
User avatar
ruralavalon
Posts: 26353
Joined: Sat Feb 02, 2008 9:29 am
Location: Illinois

Re: New here, seeking input on my portfolio

Post by ruralavalon »

Welcome to the forum :) .

COmurse wrote: Thu Oct 28, 2021 10:44 am . . . . .

Currently, I gross around 80K as an RN. My employer offers a 3% match into a 457B plan, which I contribute to. Granted, the mutual funds and stock options that they offered did not seem very appealing to me, as the options had high expense ratios. I chose to contribute to Vanguard Institutional Index Fund Institutional Shares.
Vanguard Institutional Index Fund Institutional Shares (VINIX) ER 0.035% is an excellent very diversified fund (a S&P 500 index fund) with a very low expense ratio, and is an excellent fund choice in your 457b account. That is a very appealing fund.

What expense ratio is charged for that fund in your employer's 457b plan?

Are any additional fees charged plan participants, such as plan administration or account maintenance fees?

So far I see no reason why you should limit your contributions to just enough to get the employer match.

What other funds are offered in your employer's 457b plan? Please give fund names, tickers and expense ratios.

Please simply add this to your original post using the edit button (the pencil icon near the upper right corner of your post), it helps a lot if all of your information is in one place. Please see this for information needed and format: "Asking Portfolio Questions".


COmurse wrote: Thu Oct 28, 2021 10:44 amI also have a Roth IRA through fidelity, and this is what is in my portfolio. I am able to max out this account every year. I made these decisions based off of their expense ratio, and their turnover rate. (I am definitely open to feedback and criticism.)

FXAIX- 65.88% Fidelity 500 index fund
FTIHX- 5.31% Fidelity total international index fund
FSSNX- 15.63% Fidelity small cap index fund
FSMDX- 8.77% Fidelity mid cap index fund
...GME- 4.41% GameStop corp.
To simplify you could use just 2 funds in your Roth IRA:
1) Fidelity® Total Market Index Fund (FSKAX) ER 0.015%; and
2) Fidelity® total international index fund (FTIHX) ER 0.06%.

Fidelity® Total Market Index Fund (FSKAX) ER 0.015% includes everything in the mid-cap and small-cap funds.


COmurse wrote: Thu Oct 28, 2021 10:44 amHere is what I am worried about. Overlapping within my funds. I chose these index funds because I want a "broad and diversified portfolio". I am sure there are other things that I should be worried about with this account, but- I do not know everything, and that is why I am here- to learn
In selecting funds to use strive for a combination of both broad diversification (to decrease your risk) and low expense ratios (to increase your net returns). To simply and easily achieve those two goals I suggest choosing funds to simulate the very well diversified, low expense ratio "three-fund portfolio". Please see:
1) Wiki article "Three-fund portfolio";
2) Forum discussion, "The Three-Fund Portfolio"; and
3) Taylor Larimore post, "Articles recommending the three-fund portfolio".

It is often better to coordinate investments among all accounts, in other words treat all accounts together as a single unified portfolio, rather than view each account separately.

Does your wife have any accounts?

Please see this for information needed and format: "Asking Portfolio Questions".
Please simply add this to your original post using the edit button (the pencil icon near the upper right corner of your post), it helps a lot if all your information is in one place.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
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