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Originally Posted by Samson
(I'm not sure what the difference is between "500 Index" and "Total Market". I've read info on each of these at Fidelity's website, but if the difference is in the descriptions, I've not been able to identify it.)
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FSMKX tracks the S&P 500 index and FSTMX tracks the Wilshire 5000 index. As mentioned by CFB, their performance is more or less the same because they're heavily-weighted toward the largest cap stocks: FSMKX: Basic Chart for SPARTAN 500 INDEX FUND INVESTOR - Yahoo! Finance
Quote:
Originally Posted by Samson
Also, the Spartan International Index fund (classified as "International/Global") with an expense ratio of .20. I've read on this forum (and HFWR also stated in his replay) that it is important to have international exposure. Is it important enough to warrant twice the expense ratio?
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According to Fidelity, the expense ratio has been reduced to 0.10% ( Fidelity Investments:) for the foreseeable future. At any rate, a 0.20% expense ratio is dirt cheap. International investing is in theory more expensive than domestic because you have to put the effort into dealing with foreign tax and security regulations and currency conversions.
I have to say, I wish I had the great deal you have in your retirement plan. My small employer uses Big Fat Megacorp 401(K) plus an independent advisor and I found out this Spring that between the two of them, they're skimming 1.3% off the top of my 401(K) savings every year. That's after the management fees and expenses for the funds I'm invested in.
Quote:
Originally Posted by Samson
In your opinion and based on your experience, would it make sense to do the following:
10% Spartan International Index Fund (international)
30% Spartan Extended Market Index Fund (mid blend)
30% One of (which?) / a combination of all 3 of the "Large Blend" items listed in paragraph 2 above
30% Spartan US Equity Index Fund
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Among the funds you cited, there are really only three asset classes: - S&P 500 index funds (FSMKX, VFINX, FUSEX)--I lump FSTMX here, even though it tracks the Wilshire 5000
- Mid/small-cap blend (FSEMX)--tracks the Wilshire 4500 completion index
- International (FSIIX)--tracks the MSCI EAFE index
As a previous poster suggested, since you're young, you could just put 1/3 of your contributions in each.
If you're not comfortable with short-term risk, you could play around with several of the online asset allocation tools to find proportions that you might find more suitable:
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