r/portfolios • u/RefrigeratorKey34 • 6h ago

Advice for Fidelity Roth IRA

Hello, I’m new to investing and IRAs and all of that. I just put in a little bit of money to get started but have no idea what to what to put it in.

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u/Cruian 5h ago

Consider this: https://www.bogleheads.org/wiki/Three-fund_portfolio The bonds are the part that adjust volatility level (if you really can stomach 100% stock, they can even be set to 0%, however not everyone is actually able to tolerate 100% stock). More bonds should equal less volatility. Alternatively, a target date (index) fund or target allocation (index) fund are effectively the 3 fund concept in a single wrapper, managed for you. They are designed to be "one and done," the only thing you hold. They're fully diversified internally for you. These can be found with expense ratios as low as 0.08%-0.12% for the Fidelity, iShares, Schwab, and Vanguard index based ones. The target date and target allocation funds typically are not recommended for taxable accounts but are fine for tax advantaged. VT (2 letters)/VTWAX would cover both stock roles in one fund.

(This is basically mostly just additional information about what /u/Newbiewhitekicks/ already provided)

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u/Newbiewhitekicks 4h ago

Could you recommend some bonds or treasuries please?

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u/Cruian 4h ago

See the tables inside my link.

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u/Newbiewhitekicks 5h ago

Congrats on getting started! Setup auto buys and buy FSKAX and FTIHX at 70/30. That means you own ~10,000 stocks and are nearly fully diversified. Also, the About section of this sub and r/bogleheads both have great advice for beginners.

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u/Adventurous_Elk_4039 5h ago

We can give you ticker suggestions all day, but it helps if you have an idea/strategy you are trying to pursue. I will say for most investors, and what I do personally, is to simply mimic the market at approximate market weights. That way you have no tilts, aren't chasing anything, and you simply rise with the market.

You can accomplish this with a single fund, VT, which is nearly all the publicly traded companies in the world at market weight, or you break it out if you want to slightly overweight the US with VTI/VXUS, or as someone else recommended if you have Fidelity, FSKAX/FTIHX is fine too (and what I personally use).

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u/ducatidrz 5h ago

Just in case you didn’t know, your money automatically goes into SPAXX. You then need to invest it into a fund.

5

u/Ok-Opportunity642 3h ago

Here is somewhat of a roadmap that you can follow or use as a reference:

  1. Build an emergency fund on a HYSA and put in cash 3-4 months worth of expenses.
  2. Get rid of all high interest debts.
  3. Start learning the basics starting with this guide.
  4. As a beginner, play it safe and stick to broad index fund like a mix of VTI and VXUS.
  5. Be consistent with your contributions. Automate if you can.
  6. Do your own research and don't blindly follow advices and what is on hype.
  7. Don't panic sell during downturns or dips.

Do all that and you'll be fine.