Howdy All. I've been lurking around for quite a while and have been trying to soak up as much knowledge as possible. The amount of useful info presented by people on this website is amazing. I'm living in central MA and currently recuperating from hip replacement surgery that I had a few days ago so have a lot of time on my hands to finally do something about organizing my retirement funds.
I recently semi-retired last year and am now looking to simplify my various retirement accounts into 3 or 4 funds. I am thinking of combining my pre-tax accounts (401k, SEP-IRA totaling around 1.4M) into Fidelity funds along the lines of:
40% Total Market Index Fund
15% Total International Index Fund
5% Extended Market Index Fund (to increase small/mid cap exposure slightly) and
40% Total Bond Fund
I was debating whether to include the ZERO funds for the total market, international and extended market funds but not sure if the expense ratio savings (approx. 0.015%) are worth it as the ZERO funds have about 1000 fewer holdings per fund than the others. For example, the ZERO Extended Market currently has 1928 holdings vs. 3218 for the non-zero fund. Similar for the total and international funds. Do you think that makes a difference in being more diversified or the percent of these additional holdings is so minor to be inconsequential? Any thoughts on this or my fund selection would be appreciated.
I recently semi-retired last year and am now looking to simplify my various retirement accounts into 3 or 4 funds. I am thinking of combining my pre-tax accounts (401k, SEP-IRA totaling around 1.4M) into Fidelity funds along the lines of:
40% Total Market Index Fund
15% Total International Index Fund
5% Extended Market Index Fund (to increase small/mid cap exposure slightly) and
40% Total Bond Fund
I was debating whether to include the ZERO funds for the total market, international and extended market funds but not sure if the expense ratio savings (approx. 0.015%) are worth it as the ZERO funds have about 1000 fewer holdings per fund than the others. For example, the ZERO Extended Market currently has 1928 holdings vs. 3218 for the non-zero fund. Similar for the total and international funds. Do you think that makes a difference in being more diversified or the percent of these additional holdings is so minor to be inconsequential? Any thoughts on this or my fund selection would be appreciated.