And what funds might those be? (Not being sarcastic, I'm new here! Vanguard Wellesley?)
If you want to retire early, you need to do two things: You need to preserve your capital for the long run, and you need current income to live off of.
To preserve your income for the long run you need to be reasonably conservative, yet you need to protect yourself against long term inflation. That means some reasonable mix (say in the 40-60% range) of stocks.
You also need income, which usually means bonds of some sort, or a tilt towards higher dividend stocks.
A fund like Wellesley is just the sort of thing that accomplishes both. It's oriented towards income, and currently throws off something of order 5%. It contains ~40% stocks and should preserve capital even in the face of ordinary levels of inflation.
Wellesley is an actively managed fund that is not as vastly diversified as say Vanguard's Total Stock Market (or Total World) funds. However, it's one of the least expensive actively managed funds out there, and one of the best. Some people split their money 50-50 between Wellesly and Wellington (which is 60% stocks). You could do worse than Wellesley or some combination.
As an alternative, you can choose one of Vanguards "Target Retirement" funds. Pick the one that currently has roughly the percentage of stocks you want (e.g., 60%).
Another approach is some sort of highly diversified yet low cost combination of a few funds. Here's just one simple example, which is totally pulled from the air and is not a recommendation:
First, a year in cash and a 5-7 year CD ladder of basic expense needs.
Then, with what's left (the bulk of your money by far),
Say 50% stocks (in funds or ETF versions):
20% Vanguard Total Stock Market fund (matches the market)
10% Vanguard Small Cap Value (small and value risk premiums)
5% Vanguard Value fund (higher dividends these days)
15% Vanguard's Total foreign stock market.
Add a dash of REIT's if you are feeling frisky.
Then, with what's left:
50% Vanguard's Total Bond fund.
Alternatively, you could break the bond fund down into say thirds or quarters in GNMA, short-term corporate, TIPS and/or your state's tax free fund (if one exists).
I doubt the above would cost you more than say 0.15% per year, especially as you would be in lower cost Admiral shares more often than not. This is probably at least 10 times less than what you are paying now. Remember that if Fidelity is keeping 1.5% of your money every year, that's 1/2 of your 3% per year withdrawal!!!
It's not that hard.