Started off with Fidelity

[35nothing]

After never having invested at all , I started to invest after I joined this forum. Bought some mutual funds and 1 index fund - all from fidelity such as FZROX, FXAIX, FBALX etc and have a few 100 $ in them. ( And even though its pennies, its good to see some credit )

Is there any other fund that is cheaper than FXAIX and provides dividends quarterly?? FZROX looks attractive around 8-10$ but it pays only yearly.

 

[pjigar]

At your age and capital, you should just invest in one balanced fund, or in couple of broad market stock and bond funds. You should not chase returns but just blindly sock away new capital every week/month without looking at fund price and/or market performance. It is boring but that is how you get reach with a snowball. It has worked for many of us and can work for you too if you are disciplined.

 

[ERD50]

At your age and capital, you should just invest in one balanced fund, or in couple of broad market stock and bond funds. You should not chase returns but just blindly sock away new capital every week/month without looking at fund price and/or market performance. It is boring but that is how you get reach with a snowball. It has worked for many of us and can work for you too if you are disciplined.

+1

And what is the "etc" in " FZROX, FXAIX, FBALX etc"?

FZROX is a total market index fund, FXAIX is the S&P 500 index fund, so those are pretty much copies of each other, with zero and 0.015% expenses. Pick one (FZROX as long as it is zero ER)

FBALX is a balanced fund @ 0.45% expense ration. That overlaps with your stock funds at 0% ER.

Best to pick an Asset Allocation (ratio of stocks to bonds), and buy that ratio of each. Done. FTBFX is Fielity's total bond fund, with the same .45% expense ratio. But if you choose a 50-50 Asset Allocation (AA), you only pay that expense on half your holdings. Even less if you move up the scale to 60-40, 70-30, etc.

Is there any other fund that is cheaper than FXAIX and provides dividends quarterly?? FZROX looks attractive around 8-10$ but it pays only yearly.

The share price does not tell you if it is "cheap". It's like the difference between buying one pound of potatoes for $1, or 10 pounds for $10. The $1 potatoes are not "cheaper" than the $10 potatoes, assuming you are buying $10 worth.

And don't focus on dividends. A fund/stock either pays them or not, and if it doesn't they are retained. You get any benefit of them either way. You are accumulating, so it's even better if they are retained.

-ERD50

 

[35nothing]

At your age and capital, you should just invest in one balanced fund, or in couple of broad market stock and bond funds. You should not chase returns but just blindly sock away new capital every week/month without looking at fund price and/or market performance. It is boring but that is how you get reach with a snowball. It has worked for many of us and can work for you too if you are disciplined.

Thank you. Out of those I mentioned, FBALX is the only one with 65% stocks and rest in bonds and others. I assume its "aggressive" if the entire portfolio is stocks ( for FZROX and FXAIX). Its a good advice, since I thought I should aggressively seek returns initially then look at preservation later.

 

[35nothing]

+1

And what is the "etc" in " FZROX, FXAIX, FBALX etc"?

FZROX is a total market index fund, FXAIX is the S&P 500 index fund, so those are pretty much copies of each other, with zero and 0.015% expenses. Pick one (FZROX as long as it is zero ER)

FBALX is a balanced fund @ 0.45% expense ration. That overlaps with your stock funds at 0% ER.

Best to pick an Asset Allocation (ratio of stocks to bonds), and buy that ratio of each. Done. FTBFX is Fielity's total bond fund, with the same .45% expense ratio. But if you choose a 50-50 Asset Allocation (AA), you only pay that expense on half your holdings. Even less if you move up the scale to 60-40, 70-30, etc.

The share price does not tell you if it is "cheap". It's like the difference between buying one pound of potatoes for $1, or 10 pounds for $10. The $1 potatoes are not "cheaper" than the $10 potatoes, assuming you are buying $10 worth.

And don't focus on dividends. A fund/stock either pays them or not, and if it doesn't they are retained. You get any benefit of them either way. You are accumulating, so it's even better if they are retained.

-ERD50

The etc was FSPGX .

Thanks for these points.

 

[DrRoy]

You might look at ETF's instead of funds. The fees should be lower, although Fidelity does have some zero/very low fee funds as well.

 

[target2019]

After never having invested at all , I started to invest after I joined this forum. Bought some mutual funds and 1 index fund - all from fidelity such as FZROX, FXAIX, FBALX etc and have a few 100 $ in them. ( And even though its pennies, its good to see some credit )

Is there any other fund that is cheaper than FXAIX and provides dividends quarterly?? FZROX looks attractive around 8-10$ but it pays only yearly.

You only need one fund at this time, since you're young. FZROX is a core fund for you, with zero expense ratio at this time. Everything else you mention overlaps FZROX, to some extent.

Since FZROX is a new fund, it has only paid one dividend. Here is the M* sheet:
https://www.morningstar.com/funds/xnas/fzrox/quote.html

Time to read a book, and study that sheet from M*. It's all meaningful to you.

 

[pjigar]

Thank you. Out of those I mentioned, FBALX is the only one with 65% stocks and rest in bonds and others. I assume its "aggressive" if the entire portfolio is stocks ( for FZROX and FXAIX). Its a good advice, since I thought I should aggressively seek returns initially then look at preservation later.

Yes, if you can stomach the paper losses without ANY reaction then all equity at your age is fine. But your mind will show true colors at the bottom of a recession. If you don't know your your reaction (as in real recession experience, and not just a gut feeling) then invest in a balanced fund.

PS: My earlier reply had a typo: ".... that is how you get rich with a snowball "

 

[Al18]

The funds seems appropriate. These Mutual Funds have the advantage over ETF's because they only change in price once a day (after the market closes). ETF's can change in price every second the market is open - like stocks.

 

[Aerides]

As mentioned, ignore dividends at this time. You want growth, not income.

 

[OldShooter]

Yes. If you can stomach the paper losses without ANY reaction then all equity at your age is fine.

I would rephrase this: 100% equity is fine. Discipline yourself to accept paper losses without any reaction.

... If you don't know your your reaction (as in real recession experience, and not just a gut feeling) then invest in a balanced fund. ... "

No. The historical case for 100% equity is compelling (see chart and note that the left axis is logarithmic.).

If you do not go 100% you will not learn what your reaction to market setbacks is. If you really, really, can't sleep in a setback that is the time to consider the funds that include a fixed income component. I am not a fan of target date funds, but that is where you should look if you absolutely need that extra cushion and are willing to give up gains to get it.

​

Re funds to invest in: 50% in Fido's zero cost US market index and 50% in Fido's zero cost International market index, reinvest all dividends. Then make like Rip Van Winkle and go to sleep for 20 years. That will put you at 55 and a good time to look at adding some fixed income to your portfolio.

Successful investing is boring. If you're not bored, you're doing it wrong.

 

[35nothing]

Yes, if you can stomach the paper losses without ANY reaction then all equity at your age is fine. But your mind will show true colors at the bottom of a recession. If you don't know your your reaction (as in real recession experience, and not just a gut feeling) then invest in a balanced fund.

PS: My earlier reply had a typo: ".... that is how you get rich with a snowball "

I am still fine. I learnt that lesson late. Retail/individual investors have a few 1000 to few millions , but high worth individuals and companies have billions. So they better make sure the stock prices are up and it will only get better.

And thanks for the other great inputs.

 

[Scuba]

The funds seems appropriate. These Mutual Funds have the advantage over ETF's because they only change in price once a day (after the market closes). ETF's can change in price every second the market is open - like stocks.

Why does this matter? I prefer ETF’s to funds as I can execute trades immediately and ETF’s are more tax-efficient.

 

[35nothing]

Why does this matter? I prefer ETF’s to funds as I can execute trades immediately and ETF’s are more tax-efficient.

Do you are anyone know of comission free ETF's available in fidelity?? or areanyone of the above - fzrox,fbalx, fspgx ETF's already?? Sorry for NOOB questions.

 

[COcheesehead]

Do you are anyone know of comission free ETF's available in fidelity?? or areanyone of the above - fzrox,fbalx, fspgx ETF's already?? Sorry for NOOB questions.

There are a bunch. Go to the ETF tab in your account and you'll see a link to commission free ETF's.

 

[dtbach]

For now just do what you are doing except just ditch the SP500 and buy the Total Market and Balanced. It will be good for you to see how Balanced does against the Total market in the next swoon.