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Vach11

Fidelity Funds

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Hey Everyone,

 

I wrote in awhile ago to get help choosing which fund company to go with. I went with Fidelity and asked a friend of mine (ML advisor) to help me choose a great mix of funds. His name is not on the account as my advisor so he does not receive any kickback from this. Here is what he came up with:

 

25% Fidelity Four in one Index- FFNOX

15 % Contrafund - FCNTX

10% FID LEVERAGED CO STK -FLVCX

10%- FIDELITY LOW PR STK - FLPSX

10%- FID INTL SMALL CAP- FISMX

10%- FID DIVERSIFIED INTL -FDIVX

10%- FID STRATEGIC INCOME FSICX

10% FID TOTAL BOND - FTBFX

 

Is this too many funds? I was thinking about going straight indexing and reducing the amount of funds. I am thankful to have Fidelity but was just looking for a second opinion.

 

Thanks

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I'm no expert, but I'd be inclined to pay lower expenses and put all or most into the Fidelity "Spartan" index funds, which have very low expense ratios--even lower than Vanguard. Spartan SP500 and Spartan Extended market could cover US equities, Spartan international and Spartan bond funds take care of the rest. If you want further diversification, you might consider adding their REIT and emerging market funds as well, though those aren't as cheap.

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I'm no expert, but I'd be inclined to pay lower expenses and put all or most into the Fidelity "Spartan" index funds, which have very low expense ratios--even lower than Vanguard. Spartan SP500 and Spartan Extended market could cover US equities, Spartan international and Spartan bond funds take care of the rest. If you want further diversification, you might consider adding their REIT and emerging market funds as well, though those aren't as cheap.

whyme, you are way too modest when you say "I'm no expert." By your post, you know more about investing, diversification, bond/equity split and the impact of costs than 99.9% of insurance agents who are product and commission driven.

 

Hi Vach11,

whyme and I are not professionals, but we know something about personal investing.

Whyme said it all. Stick with Fidelity's Sparten funds. There fees are lower than Vanguards.

 

Best of fortunes,

Steve

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Thats not a bad fund grouping in my opinion I will give the guy credit. but your expense ratio is up to the limits I would pay (Thats based on the retail costs of the fund. I have no clue what you are paying). I think you have two maybe three consistent index beating active funds in there. Having said that Spartan funds at a very low expense ratio would probably be a better long term option for you. Contra Fund and Low price have performed very well but their managers have been stable to the funds for many years. Once they move on -things could change.

 

I sold my Contrafund shares last year and traded them in to Fidelity Spartan Total Index fund . Did I regret it?

Nope!! 10 basis points for these funds are just an unbelievably good deal.

 

 

Here is a link:http://personal.fidelity.com/products/funds/content/index_funds.shtml

 

 

To answer your other question. With four funds in the spartan line-up you would be good to go.

 

 

 

Looks like Steve and I responded at about the same time. Your getting good advice!!!

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Thats not a bad fund grouping in my opinion I will give the guy credit. but your expense ratio is up to the limits I would pay (Thats based on the retail costs of the fund. I have no clue what you are paying). I think you have two maybe three consistent index beating active funds in there. Having said that Spartan funds at a very low expense ratio would probably be a better long term option for you. Contra Fund and Low price have performed very well but their managers have been stable to the funds for many years. Once they move on -things could change.

 

I sold my Contrafund shares last year and traded them in to Fidelity Spartan Total Index fund . Did I regret it?

Nope!! 10 basis points for these funds are just an unbelievably good deal.

 

 

Here is a link:http://personal.fidelity.com/products/funds/content/index_funds.shtml

 

 

To answer your other question. With four funds in the spartan line-up you would be good to go.

 

 

 

Looks like Steve and I responded at about the same time. Your getting good advice!!!

 

Thanks a ton guys... Great advice! I was thinking about going with the Spartan funds!

 

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whyme, you are way too modest when you say "I'm no expert." By your post, you know more about investing, diversification, bond/equity split and the impact of costs than 99.9% of insurance agents who are product and commission driven.

 

Thanks for the generous assessment of my knowledge, Steve. Alas, I suspect many of those brokers and insurance agents know exactly what you and I know, they just rationalize their way to a different position that serves their self-interest.

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whyme, you are way too modest when you say "I'm no expert." By your post, you know more about investing, diversification, bond/equity split and the impact of costs than 99.9% of insurance agents who are product and commission driven.

 

Thanks for the generous assessment of my knowledge, Steve. Alas, I suspect many of those brokers and insurance agents know exactly what you and I know, they just rationalize their way to a different position that serves their self-interest.

 

Perhaps, my value system is different. I cannot ethically make a living that requires clients to remain ignorant about what they would be paying me for service and then never see them again because its in my self interest! I would be constantly thinking about their self interest too. If I were in that business, my boss will be ordered me to get more clients or be fired! Furthermore, theoretically I have a house payment and private school costs that need to be made--the tempation is too great to do it right for the client. This is the world of sales! I read this stuff over at Bogleheads and some courageous sales people post here from time to time about the pressures of performing in the financial management profession and get out.

 

It not part of the free market system that I value, real capitalists such as Steve Jobs, Bill Gates, Ford and Toyoda who make real things that improve people lives. My father and mother were farmers in Wisconsin and they produced a product that people can buy.

 

3 cents,

Steve

 

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Thats not a bad fund grouping in my opinion I will give the guy credit. but your expense ratio is up to the limits I would pay (Thats based on the retail costs of the fund. I have no clue what you are paying). I think you have two maybe three consistent index beating active funds in there. Having said that Spartan funds at a very low expense ratio would probably be a better long term option for you. Contra Fund and Low price have performed very well but their managers have been stable to the funds for many years. Once they move on -things could change.

 

I sold my Contrafund shares last year and traded them in to Fidelity Spartan Total Index fund . Did I regret it?

Nope!! 10 basis points for these funds are just an unbelievably good deal.

 

 

Here is a link:http://personal.fidelity.com/products/funds/content/index_funds.shtml

 

 

To answer your other question. With four funds in the spartan line-up you would be good to go.

 

 

 

Looks like Steve and I responded at about the same time. Your getting good advice!!!

 

 

 

What would your asset allocation be with the four Spartan funds? I have about 30 years until retirement? Thanks.

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looks to me the four in one fund fits you perfectly. thats right. that one fund has it all.

 

 

4in 1 fund ;

 

The investment seeks high total return. The fund invests in a combination of four Fidelity stock and bond index funds (underlying fidelity funds) using an asset allocation strategy designed for investors seeking a broadly diversified, index-based investment. Its target asset allocation are approximately 48% in Spartan 500 index fund, 12% in Spartan extended market index fund, 25% in Spartan international index fund, and 15% Fidelity U.S. bond index fund.

Fund filings (PDF) »

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looks to me the four in one fund fits you perfectly. thats right. that one fund has it all.

 

 

4in 1 fund ;

 

The investment seeks high total return. The fund invests in a combination of four Fidelity stock and bond index funds (underlying fidelity funds) using an asset allocation strategy designed for investors seeking a broadly diversified, index-based investment. Its target asset allocation are approximately 48% in Spartan 500 index fund, 12% in Spartan extended market index fund, 25% in Spartan international index fund, and 15% Fidelity U.S. bond index fund.

Fund filings (PDF) »

 

 

 

Thanks Tony ...I thought that one looked pretty good. I might just do that. I went with this for the last year:

 

25% Fidelity Four in one Index- FFNOX

15 % Contrafund - FCNTX

10% FID LEVERAGED CO STK -FLVCX

10%- FIDELITY LOW PR STK - FLPSX

10%- FID INTL SMALL CAP- FISMX

10%- FID DIVERSIFIED INTL -FDIVX

10%- FID STRATEGIC INCOME FSICX

10% FID TOTAL BOND - FTBFX

 

and have been thinking about converting to all index. Do you know if I would pay any fees if I converted all my money in these funds to the 4 in 1 index fund?

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I don't think your choices are bad. It seems you've got the market covered. In fact, I own Low Price Stock because it has beaten its index long term. I used to own Contra but dumped it for Vanguard Total Stock Market Index.

 

If I could do it all over again I would strickly do index funds. Thats the direction I keep moving to .Low cost and simplicy matters!! I probably would have more money too.

 

I think you could do the 4 in 1 Fund and probably do fine. Maybe you could add a Reitt component and maybe keep the small cap international fund. Other than that I think the 4 in 1 has many many advantages to it.

 

I've made all the managed fund mistakes and I strongly suggest you minimize them in your portfolio unless they are super low cost.

 

Take care and good for you for asking questions

 

Tony

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I don't think your choices are bad. It seems you've got the market covered. In fact, I own Low Price Stock because it has beaten its index long term. I used to own Contra but dumped it for Vanguard Total Stock Market Index.

 

If I could do it all over again I would strickly do index funds. Thats the direction I keep moving to .Low cost and simplicy matters!! I probably would have more money too.

 

I think you could do the 4 in 1 Fund and probably do fine. Maybe you could add a Reitt component and maybe keep the small cap international fund. Other than that I think the 4 in 1 has many many advantages to it.

 

I've made all the managed fund mistakes and I strongly suggest you minimize them in your portfolio unless they are super low cost.

 

Take care and good for you for asking questions

 

Tony

 

 

Thanks Tony. I appreciate your help.

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I don't think your choices are bad. It seems you've got the market covered. In fact, I own Low Price Stock because it has beaten its index long term. I used to own Contra but dumped it for Vanguard Total Stock Market Index.

 

If I could do it all over again I would strickly do index funds. Thats the direction I keep moving to .Low cost and simplicy matters!! I probably would have more money too.

 

I think you could do the 4 in 1 Fund and probably do fine. Maybe you could add a Reitt component and maybe keep the small cap international fund. Other than that I think the 4 in 1 has many many advantages to it.

 

I've made all the managed fund mistakes and I strongly suggest you minimize them in your portfolio unless they are super low cost.

 

Take care and good for you for asking questions

 

Tony

 

 

Thanks Tony. I appreciate your help.

 

 

I second the Spartan 4 in 1. 20 years from now, you will not regret this decision. 20 years ago, I wanted the Vanguard Wellington fund and it was reject because of ludcrious district policy and outdated state regulations. Its a long story. You are lucky to have this choice. Good luck.

Steve

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Correction. I sold my Contra shares and transferred them into Fodelity total stock market index, not Vanguards.

 

Steve,

 

We should have been so lucky to have a choices like 4 in 1 index when we were younger!! I had to learn the hard way plowing through bad insurance company products and the awful fund choices they offered.

 

 

Tony

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Hey Everyone,

 

I wrote in awhile ago to get help choosing which fund company to go with. I went with Fidelity and asked a friend of mine (ML advisor) to help me choose a great mix of funds. His name is not on the account as my advisor so he does not receive any kickback from this. Here is what he came up with:

 

25% Fidelity Four in one Index- FFNOX

15 % Contrafund - FCNTX

10% FID LEVERAGED CO STK -FLVCX

10%- FIDELITY LOW PR STK - FLPSX

10%- FID INTL SMALL CAP- FISMX

10%- FID DIVERSIFIED INTL -FDIVX

10%- FID STRATEGIC INCOME FSICX

10% FID TOTAL BOND - FTBFX

 

Is this too many funds? I was thinking about going straight indexing and reducing the amount of funds. I am thankful to have Fidelity but was just looking for a second opinion.

 

Thanks

 

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