Well, it's all done and my funds are now available to me in the new, unmanaged IRA. I've taken some time over the past few days to get my mind into the game of asset management of this new account. Based on my other income resources; a pension that covers 100% of my expenses and social security paying a gross $2032 starting next month, along with a comfortable cash reserve in my checking account. I think I'm ready to put this pot of money onto 100% equity funds.
I've been looking into what Fidelity has to offer along market indexed funds, large growth and large blend funds. When comparing their version of S&P500 Index fund (FXAIX) to Fidelity Growth Discovery Fund (FDSVX) and Fidelity Contra Fund (FCNTX), each of which are a large blend and a large growth fund respectively, over 10 years, the growth funds outperform the S&P Index. BUT...
The chart Fidelity graphs performance of these three funds do not take into account expense ratios. The S&P fund is minimal, .015%, as it is unmanaged. The other two however have a .75% expense ratio tacked onto them. I can't find a calculator that will allow plugging in expense ratios. I even tried to find a drawdown calculator that would allow me to enter a percentage of the account balance as a draw, in this case .74%, but can't locate one. So I have to 'guess' as best I can. And by guessing, it seems to me that, while the S&P fund has grown from their hypothetical $10,000 initial investment to $34,646 over the past 10 years and the the other two have grown to $37,410 and $39,132, (both with .74% expense ratios) that those expense ratios pretty much wipe out the difference between their performance and the S&P fund. Am I understanding this right?
If so, I might just as well put the cash into the S&P500 Index fund and let 'er ride for the next 8.5 years while I wait for age 70.5 and have take RMD's.
Assuming that's the case, how to put this pot of money back into circulation? Dump it all at once now? Wait and see? Average into it over time? If over time, what time frame?
Thanks for all the advice and opinions. You guys are great!