Roth Moved from EJ to Fidelity

[jesa]

So I made the move from EJ to Fidelity recently. I have a small Roth from prior years (20k). Currently:

$4,350
AMERICAN EUROPACIFIC GROWTH CLASS A
AEPGX
Expense Net - .83
12B-1 - .24

$6,515
AMERICAN INVESTMNT CO OF AMERICA CL A
AIVSX
Expense Net - .58
12B-1 - .23

$2,900
AMERICAN AMCAP CLASS A
AMCPX
Expense Net - .67
12B-1 - .23

$4,600
AMERICAN CAPITAL WORLD GRTH & INC A
CWGIX
Expense Net - .77
12B-1 - .24


$1,800
AMERICAN NEW WORLD FUND CLASS A
NEWFX
Expense Net - .77
12B-1 - .24

The expense fees don't seem horrible, but the 12B-1 is adding fuel to the fire. Any suggestions on replacing these? There would be about 5k of capital gains in selling the existing funds. However, in the long run, the tax on this would be negligible.

I currently max out 401K at 53k/54k and invest in individual stocks. The Roth is just a stagnant account that I want to grow over time pretty aggressively. I am willing to take a higher risk for higher returns.

 

[LOL!]

So I made the move from EJ to Fidelity recently. I have a small Roth from prior years (20k). Currently:

[…]
There would be about 5k of capital gains in selling the existing funds. However, in the long run, the tax on this would be negligible.

It's a Roth, so I predict the tax will be absolutely zero: $0.00.

What's your asset allocation plan for your entire portfolio? Why not follow it? Generally, Roth IRAs are a good place to hold part of your equity asset allocation, so why not use FSTVX?

 

[Morgan22]

If your account is a Roth no taxes due.
You could look at the Fidelity Index Funds, they have super cheap ER's and no 12b-1 fees.

https://www.fidelity.com/mutual-funds/fidelity-funds/overview

Scroll down to where it says Explore the full spectrum of available Fidelity funds, and click on the Index tab towards the right side. You'll see investor class and premium class index funds. (investor class you need $2,500 minimum investment. Premium class you need $10,000 minimum).

 

[Whisper66]

Your annual fees are high also. You average about 0.7%. Vanguard managed funds run about half that (0.3) and index funds much less (0.04 -0.2). So while your annual fees today feel small, I assume it's because the portfolio value is relatively small and so the fees only add up to ~$140/yr if I did the math right. You can do much better with lower cost funds at Vanguard and none have 12B-1 fees (or any other fees)...I don't use Fidelity but many others here do and seems they offer similar products. Suggest you sell all the current funds immediately and move into other products that cost less.

Figure out you asset allocation as others have said. Good giudance on the Boggleheads site.
https://www.bogleheads.org/wiki/Asset_allocation

Then pick some funds that fit your comfort zone. Focus on index funds where you can. Lots of good guidance out there on simple, low cost portfolios that have been back tested to ensure they are reasonable and well diversified:

Boggleheads Lazy Portfolio - https://www.bogleheads.org/wiki/Lazy_portfolios

Paul Merriman's Recommendations for Fidelity (or Vanguard)
Paul's Mutual Fund Recommendations | Paul Merriman

Scott Burns Couch Potato Portfolios - https://assetbuilder.com/knowledge-center/articles/couch-potato-cookbook


EDIT: I see Boggleheads has some suggestions for funds at Fidelity to look at here
https://www.bogleheads.org/wiki/Fidelity

EDIT: Corrected typo on expense fees - thanks to LOL for pointing it out.

 

[LOL!]

… and index funds much less ([-]0.8[/-] 0.04-0.2). ….

You had a typo.

 

[DrRoy]

Congrats on the switch. You improved your return right there. How about a worldwide ETF?