Roth IRA -What Are Some Good Index Funds?
Roth IRA -What Are Some Good Index Funds?
HI -
What are some good index funds for a roth ria account? I am 42 years old and currently contributing 10% of my salary into my 401 K and I have a 403B.
What are some good index funds for a roth ria account? I am 42 years old and currently contributing 10% of my salary into my 401 K and I have a 403B.
Last edited by LRH on Mon May 16, 2022 11:54 am, edited 1 time in total.
Re: ROTH IRA -WHAT ARE SOME GOOD INDEX FUNDS?
FSKAX.... Done
"A part of all you earn is yours to keep" |
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-The Richest Man in Babylon
Re: ROTH IRA -WHAT ARE SOME GOOD INDEX FUNDS?
Total world market:
VT
US-market:
VTI, ITOT, SCHB
International market:
VXUS, IXUS
Amal cap value:
AVUV, AVDV, FNDA, FNDC, IJS
VT
US-market:
VTI, ITOT, SCHB
International market:
VXUS, IXUS
Amal cap value:
AVUV, AVDV, FNDA, FNDC, IJS
Crom laughs at your Four Winds
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Re: ROTH IRA -WHAT ARE SOME GOOD INDEX FUNDS?
FXIAX Fidelity 500 index fund
- retired@50
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Re: ROTH IRA -WHAT ARE SOME GOOD INDEX FUNDS?
Thank you.
Regards,
Regards,
Last edited by retired@50 on Mon May 16, 2022 1:27 pm, edited 1 time in total.
If liberty means anything at all it means the right to tell people what they do not want to hear. -George Orwell
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Re: ROTH IRA -WHAT ARE SOME GOOD INDEX FUNDS?
The realist sees the glass as completely full, 50% water and 50% air.
Re: ROTH IRA -WHAT ARE SOME GOOD INDEX FUNDS?
Impossible to answer without knowing a bigger picture of your portfolio and goals. What if OP is 18 and the only way s/he could fill the Roth space is with the emergency fund?
Re: Roth IRA -What Are Some Good Index Funds?
Is it a good strategy to have more than 1 index fund in your roth IRA?
- arcticpineapplecorp.
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Re: Roth IRA -What Are Some Good Index Funds?
more important than just the funds is:
How much risk do you need to take: https://www.cbsnews.com/news/asset-allo ... -you-need/
How much risk do you have the ability to take: https://www.cbsnews.com/news/asset-allo ... -you-take/
How much risk do you have the willingness to take: https://www.cbsnews.com/news/asset-allo ... tolerance/
How to deal with conflicts between the need, ability and willingness to take risk: https://www.cbsnews.com/news/asset-allo ... ing-goals/
if you are only prepared to lose 15% of your money what good would it do for me to tell you to vtsax and chill if you can't chill when vtsax loses 50% as it did here (yes it's S&P500 technically, but the risk was the same):
the funds are important, but the asset allocation is critical because it informs you how much risk you're taking. Got to get that right for yourself.
It's hard to accept the truth when the lies were exactly what you wanted to hear. Investing is simple, but not easy. Buy, hold & rebalance low cost index funds & manage taxable events. Asking Portfolio Questions |
Re: Roth IRA -What Are Some Good Index Funds?
It depends.
You need an overall plan for your portfolio, not tips about which fund or funds to put into one account.
I happen to have all of my Roth in Total International Stock, but that is part of my asset allocation, which includes total stock and total bond in other accounts. FIRST figure out what aa is right for you at this time in your life, and THEN figure out how to distribute that aa among your different account types.
Re: Roth IRA -What Are Some Good Index Funds?
Don't pick funds for a single account. Plan a portfolio and then find the funds that fit the plan.
See the link at the bottom of this message for how to get help doing these things.
See the link at the bottom of this message for how to get help doing these things.
Link to Asking Portfolio Questions
Re: Roth IRA -What Are Some Good Index Funds?
Is it good to create a 2 or 3 index fund portfolio??
Re: Roth IRA -What Are Some Good Index Funds?
A good portfolio can be created with 2 or 3 index funds if you have the right funds available. Sometimes it takes more funds that that. Sometimes it can be done with 1 fund (such as an all-in-one fund).
The important thing is to have broad coverage in US stocks, broad coverage in foreign stocks (some think this is not necessary) and a pretty good bond fund or combination of bond funds.
A good place to start planning your portfolio is seeing what you have available at low cost in a work plan (if you have one) and build the rest of the portfolio around that. This is commonly called "the 3 fund portfolio' although it sometimes takes more than 3 funds to put it together.
This might be a good place to explore. https://www.bogleheads.org/wiki/Getting_started
And here too. https://www.bogleheads.org/wiki/Three-fund_portfolio
Link to Asking Portfolio Questions
Re: Roth IRA -What Are Some Good Index Funds?
vanguard target date are good for IRA , it did large distribution last year( see related thread about a lawsuit about the distribution) but it was not an issue in IRA .
Thanks!
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Re: Roth IRA -What Are Some Good Index Funds?
44 here. All in on FZROX.
Re: Roth IRA -What Are Some Good Index Funds?
Thanks for the help everyone.
If I decide to create a 2 index fund portfolio in my roth ira, what percentage of my money should go to my total market index fund and my international index fund?
If I decide to create a 2 index fund portfolio in my roth ira, what percentage of my money should go to my total market index fund and my international index fund?
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Re: Roth IRA -What Are Some Good Index Funds?
It's difficult to give advice in isolation so it would be best to do a full portfolio review.
- ruralavalon
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Re: Roth IRA -What Are Some Good Index Funds?
Which fund for or brokerage is the Roth IRA with?
I often suggest a total stock market index the for a Roth IRA.
In an account at Vanguard that would be Vanguard Total Stock Market Index Fund (VTSAX), the ETF share class is VTI.
In an account at Fidelity that would be Fidelity® Total Market Index Fund (FSKAX).
In an account at Schwab that would be Schwab Total Stock Market Index Fund (SWTSX).
It matters what funds are on offer on your employer's 401k and 403b plans.
It matters what funds are on offer on your employer's 401k and 403b plans.
It's often better to coordinate investments among all accounts treating all accounts together as a single unified portfolio, rather than treating each account separately.
What is your desired overall asset allocation? What is your age? About how long until expected retirement? Do you have any debt? Do you have any dependents? How would you describe your risk tolerance?
What funds do you use in each of your employer's plans? What funds are offered in each of your employer's plans? Please give fund names, tickers and expense ratios.
Please simply add any new information 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 use this format: Asking Portfolio Questions.
"Everything should be as simple as it is, but not simpler." - Albert Einstein |
Wiki article link: Bogleheads® investment philosophy
Re: Roth IRA -What Are Some Good Index Funds?
Emergency funds: Yes I have one
Debt: Mortgage with 3.5% interest rate
Tax Filing Status: Single
Tax Rate: 24% Federal, % State (DC) $3,500, plus 8.5% of the excess over $60,000
State of Residence: DC
Age: 42
Desired Asset allocation: 80% stocks / 0% bonds
Desired International allocation: 20% of stocks
Please provide an approximate size of your total portfolio - 200 K
Show us your current portfolio including all investment and retirement accounts (yourself and spouse or civil partner, if applicable) as it's important to look at the portfolio as a unified whole rather than look at accounts in isolation. Also include the available funds in your employer provided retirement plans.
Show each fund or holding as a percentage of the entire portfolio, not as a percentage of the account that holding is in. If this instruction is not clear, see the example under the Key Points section below. For example:
Current retirement assets
* The format below is shown using his/her pronouns. Use whatever pronouns or identifying names you prefer as long as it is clear which assets belong to which person.
Taxable
M1 Account - 2500
Individual Account at Fidelity -
4 shares of AAPL
0.0037 shares of AMZN
0.053 shares Googl
5 shares of JSTC
2 shares of MSFT
1 share of SYK
1 share of VGT
2 shares of VOO
2 shares of VTI
401k
100% fund name (FSNZX) (0.01%)
No
403b
100% fund name (FSNZX) (0.01%)
Company match? Yes 5%
SIMPLE IRA at Fidelity
50% fund name (FSKAX) (0.01%)
50% (FTIHX) (0.06%)
_______________________________________________________________
1. Just looking for some feeback. Looking to optimize my accounts. Should I make any changes to my Individual Account and Roth IRA?
2.
Debt: Mortgage with 3.5% interest rate
Tax Filing Status: Single
Tax Rate: 24% Federal, % State (DC) $3,500, plus 8.5% of the excess over $60,000
State of Residence: DC
Age: 42
Desired Asset allocation: 80% stocks / 0% bonds
Desired International allocation: 20% of stocks
Please provide an approximate size of your total portfolio - 200 K
Show us your current portfolio including all investment and retirement accounts (yourself and spouse or civil partner, if applicable) as it's important to look at the portfolio as a unified whole rather than look at accounts in isolation. Also include the available funds in your employer provided retirement plans.
Show each fund or holding as a percentage of the entire portfolio, not as a percentage of the account that holding is in. If this instruction is not clear, see the example under the Key Points section below. For example:
Current retirement assets
* The format below is shown using his/her pronouns. Use whatever pronouns or identifying names you prefer as long as it is clear which assets belong to which person.
Taxable
M1 Account - 2500
Individual Account at Fidelity -
4 shares of AAPL
0.0037 shares of AMZN
0.053 shares Googl
5 shares of JSTC
2 shares of MSFT
1 share of SYK
1 share of VGT
2 shares of VOO
2 shares of VTI
401k
100% fund name (FSNZX) (0.01%)
No
403b
100% fund name (FSNZX) (0.01%)
Company match? Yes 5%
SIMPLE IRA at Fidelity
50% fund name (FSKAX) (0.01%)
50% (FTIHX) (0.06%)
_______________________________________________________________
1. Just looking for some feeback. Looking to optimize my accounts. Should I make any changes to my Individual Account and Roth IRA?
2.
Re: Roth IRA -What Are Some Good Index Funds?
Thank you for more information, but we con't do much with this because we don't know how much money is in which account. Since the total portfolio is about $200k, each holding should be shown as a percentage of that $200k.
We also need to know what accounts are getting new money each year and about how much.
Please include fund names so that people don't have to look all of them up.
We also need to know what accounts are getting new money each year and about how much.
Please include fund names so that people don't have to look all of them up.
Link to Asking Portfolio Questions
- bertilak
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Re: Roth IRA -What Are Some Good Index Funds?
You need to look at your investments across all accounts, if you have more than just that Roth. Decide on an overall AA. Consider the following:
Another aspect to consider is asset placement. This basically boils down to "avoid putting bonds in a taxable account -- if a tax advantaged account is available to hold them."
- US Stocks
- International stocks
- Bonds
Another aspect to consider is asset placement. This basically boils down to "avoid putting bonds in a taxable account -- if a tax advantaged account is available to hold them."
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker (aka S.O.B.), the Cowboy Poet
- ruralavalon
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- Location: Illinois
Re: Roth IRA -What Are Some Good Index Funds?
+ 1.retiredjg wrote: ↑Sun May 22, 2022 10:05 am Thank you for more information, but we con't do much with this because we don't know how much money is in which account. Since the total portfolio is about $200k, each holding should be shown as a percentage of that $200k.
We also need to know what accounts are getting new money each year and about how much.
Please include fund names so that people don't have to look all of them up.
How much do you contribute annually to each account? What are the relative sizes of the accounts (in other words what percentage of the total portfolio is in each account)?
The expense ratio on Fidelity Freedom® 2045 K (FSNZX) is 0.65%, not 0.01%.
Last edited by ruralavalon on Sun May 22, 2022 11:26 am, edited 1 time in total.
"Everything should be as simple as it is, but not simpler." - Albert Einstein |
Wiki article link: Bogleheads® investment philosophy
Re: Roth IRA -What Are Some Good Index Funds?
LRH wrote: ↑Sun May 22, 2022 9:28 am Emergency funds: Yes I have one
Debt: Mortgage with 3.5% interest rate
Tax Filing Status: Single
Tax Rate: 24% Federal, % State (DC) $3,500, plus 8.5% of the excess over $60,000
State of Residence: DC
Age: 42
Desired Asset allocation: 80% stocks / 0% bonds
Desired International allocation: 20% of stocks
Please provide an approximate size of your total portfolio - 200 K
Show us your current portfolio including all investment and retirement accounts (yourself and spouse or civil partner, if applicable) as it's important to look at the portfolio as a unified whole rather than look at accounts in isolation. Also include the available funds in your employer provided retirement plans.
Show each fund or holding as a percentage of the entire portfolio, not as a percentage of the account that holding is in. If this instruction is not clear, see the example under the Key Points section below. For example:
Current retirement assets
* The format below is shown using his/her pronouns. Use whatever pronouns or identifying names you prefer as long as it is clear which assets belong to which person.
Taxable
M1 Account - 2500
Individual Account at Fidelity -
4 shares of AAPL
0.0037 shares of AMZN
0.053 shares Googl
5 shares of JSTC
2 shares of MSFT
1 share of SYK
1 share of VGT
2 shares of VOO
2 shares of VTI
401k
100% fund name (FSNZX) (0.01%)
No
403b
100% fund name (FSNZX) (0.01%)
Company match? Yes 5%
SIMPLE IRA at Fidelity
50% fund name (FSKAX) (0.01%)
50% (FTIHX) (0.06%)
_______________________________________________________________
1. Just looking for some feeback. Looking to optimize my accounts. Should I make any changes to my Individual Account and Roth IRA?
2.
retiredjg wrote: ↑Sun May 22, 2022 10:05 am Thank you for more information, but we con't do much with this because we don't know how much money is in which account. Since the total portfolio is about $200k, each holding should be shown as a percentage of that $200k.
We also need to know what accounts are getting new money each year and about how much.
Please include fund names so that people don't have to look all of them up.
Thanks for the feedback...
401K - 47% of my portfolio
403B - 41%
Roth Ira - 7%
Individual Account - 5%
Is this more helpful or should I include my assest allocation?
Re: Roth IRA -What Are Some Good Index Funds?
Right now I am contributing 8% of my salary into my 401Kruralavalon wrote: ↑Sun May 22, 2022 10:21 am+ 1.retiredjg wrote: ↑Sun May 22, 2022 10:05 am Thank you for more information, but we con't do much with this because we don't know how much money is in which account. Since the total portfolio is about $200k, each holding should be shown as a percentage of that $200k.
We also need to know what accounts are getting new money each year and about how much.
Please include fund names so that people don't have to look all of them up.
How much do you contribute annually to each account? What are the relative sizes of the accounts (in other words what percentage of the total portfolio is in each account)?
Roth IRA - 5% of my salary
Individual Account - 2%
M1 Account - 2%
Thanks for any feedback..
- ruralavalon
- Posts: 26353
- Joined: Sat Feb 02, 2008 9:29 am
- Location: Illinois
Re: Roth IRA -What Are Some Good Index Funds?
What are the contributions to each account in dollars.LRH wrote: ↑Sun May 22, 2022 11:24 amRight now I am contributing 8% of my salary into my 401Kruralavalon wrote: ↑Sun May 22, 2022 10:21 am+ 1.retiredjg wrote: ↑Sun May 22, 2022 10:05 am Thank you for more information, but we con't do much with this because we don't know how much money is in which account. Since the total portfolio is about $200k, each holding should be shown as a percentage of that $200k.
We also need to know what accounts are getting new money each year and about how much.
Please include fund names so that people don't have to look all of them up.
How much do you contribute annually to each account? What are the relative sizes of the accounts (in other words what percentage of the total portfolio is in each account)?
Roth IRA - 5% of my salary
Individual Account - 2%
M1 Account - 2%
Thanks for any feedback..
Among other things we are trying to determine if you are making the maximum annual contributions, and whether money put in one account might be better put in another account.
Please list the funds offered in your 401k and 403b plans. Please give fund names, tickers and expense ratios.
Are all Fidelity funds available in the SIMPLE IRA at Fidelity?
The expense ratio on Fidelity Freedom® 2045 K (FSNZX) is 0.65%, not 0.01%, unless there is some special rate available in your employer's plans.
Last edited by ruralavalon on Sun May 22, 2022 11:45 am, edited 4 times in total.
"Everything should be as simple as it is, but not simpler." - Albert Einstein |
Wiki article link: Bogleheads® investment philosophy
- ruralavalon
- Posts: 26353
- Joined: Sat Feb 02, 2008 9:29 am
- Location: Illinois
Re: Roth IRA -What Are Some Good Index Funds?
You can simply use the edit button (the pencil icon near the upper right corner of your post) to add new information to your original post. It helps at lot if all of 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
- retired@50
- Posts: 12835
- Joined: Tue Oct 01, 2019 2:36 pm
- Location: Living in the U.S.A.
Re: Roth IRA -What Are Some Good Index Funds?
Are you certain about the expense ratio for the FSNZX fund?
From what I can tell on Yahoo! Finance, it's showing up as Fidelity Freedom 2045 Fund Class K with an expense ratio of 0.65%.
Source: https://finance.yahoo.com/quote/FSNZX?p ... c=fin-srch
If the 0.01% expense ratio is accurate, that's a pretty good deal.
Regards,
If liberty means anything at all it means the right to tell people what they do not want to hear. -George Orwell
Re: Roth IRA -What Are Some Good Index Funds?
401K FSNZX - $500 a month. Expense ratio -0.64%ruralavalon wrote: ↑Sun May 22, 2022 11:29 amWhat are the contributions to each account in dollars.LRH wrote: ↑Sun May 22, 2022 11:24 amRight now I am contributing 8% of my salary into my 401Kruralavalon wrote: ↑Sun May 22, 2022 10:21 am+ 1.retiredjg wrote: ↑Sun May 22, 2022 10:05 am Thank you for more information, but we con't do much with this because we don't know how much money is in which account. Since the total portfolio is about $200k, each holding should be shown as a percentage of that $200k.
We also need to know what accounts are getting new money each year and about how much.
Please include fund names so that people don't have to look all of them up.
How much do you contribute annually to each account? What are the relative sizes of the accounts (in other words what percentage of the total portfolio is in each account)?
Roth IRA - 5% of my salary
Individual Account - 2%
M1 Account - 2%
Thanks for any feedback..
Among other things we are trying to determine if you are making the maximum annual contributions, and whether money put in one account might be better put in another account.
Please list the funds offered in your 401k and 403b plans. Please give fund names, tickers and expense ratios.
Are all Fidelity funds available in the SIMPLE IRA at Fidelity?
The expense ratio on Fidelity Freedom® 2045 K (FSNZX) is 0.65%, not 0.01%, unless there is some special rate available in your employer's plans.
403B - FSNZ - $700. Expense ratio - 0.64% (Employee makes contributions)
Re: Roth IRA -What Are Some Good Index Funds?
My mistake. Sorry about that.retired@50 wrote: ↑Sun May 22, 2022 12:05 pmAre you certain about the expense ratio for the FSNZX fund?
From what I can tell on Yahoo! Finance, it's showing up as Fidelity Freedom 2045 Fund Class K with an expense ratio of 0.65%.
Source: https://finance.yahoo.com/quote/FSNZX?p ... c=fin-srch
If the 0.01% expense ratio is accurate, that's a pretty good deal.
Regards,
Re: Roth IRA -What Are Some Good Index Funds?
To keep things simple, I have 2 index fund in my Roth IRA. If I can contribute $400 a month, what percentage should go to each index fund? 80/20 split?
FSKAX - FIDELITY TOTAL MARKET INDEX FUND
FTIHX -FIDELITY TOTAL INTL INDEX FUND
Thanks
FSKAX - FIDELITY TOTAL MARKET INDEX FUND
FTIHX -FIDELITY TOTAL INTL INDEX FUND
Thanks
- ruralavalon
- Posts: 26353
- Joined: Sat Feb 02, 2008 9:29 am
- Location: Illinois
Re: Roth IRA -What Are Some Good Index Funds?
LRH wrote: ↑Sun May 22, 2022 9:28 amTaxable
M1 Account - 2500
Individual Account at Fidelity -
4 shares of AAPL
0.0037 shares of AMZN
0.053 shares Googl
5 shares of JSTC
2 shares of MSFT
1 share of SYK
1 share of VGT
2 shares of VOO
2 shares of VTI
401k
100% fund name (FSNZX) (0.01%)
No
403b
100% fund name (FSNZX) (0.01%)
Company match? Yes 5%
SIMPLE IRA at Fidelity
50% fund name (FSKAX) (0.01%)
50% (FTIHX) (0.06%)
It's usually better to coordinate investments among all accounts treating all accounts together as a single unified portfolio, rather than treating each account separately.
Because you use Fidelity Freedom® 2045 K (FSNZX) ER 0.65% in your 401k and 403b accounts, in your Roth IRA I suggest Fidelity Freedom® Index 2045 Fund Investor Class (FIOFX) ER 0.12%.
Using an allocation fund seems to inoculate the investor against behavioral errors, and so prices higher investor returns. Morningstar, "Mind the Gap 2019", link.
it looks like you contribute $14,400 ($1200 x 12) to your employer's plans. The maximum annual employee contribution is $20.5k. The employer match does not count toward the employee maximum, it's extra.
I suggest that you make the maximum annual contribution ($6k) to your Roth IRA.
In general it's better to make maximum annual contributions to all available tax-advantaged accounts as a priority ahead of contributions to a taxable brokerage account. So I suggest stopping contributions to the two taxable brokerage accounts (at M1 and Fidelity), and increasing contributions to your employer's plans.
Wiki article, Prioritizing investments.
How much do you contribute annually to the "SIMPLE IRA at Fidelity" which you mentioned earlier? Are all Fidelity funds available to use in that account?
"Everything should be as simple as it is, but not simpler." - Albert Einstein |
Wiki article link: Bogleheads® investment philosophy