[USER]

New to finances… My husband and I have about $350,000 in Roth in Fidelity (we have other assets in 401k and rental units).

The Roth is mostly in S&P 500 Index Fund & Large Cap growth Index Fund.

The Fidelity advisor suggested that we diversify into 60% U.S. Stocks, 25% International Stocks, 15% Bonds.

We have more than 13-15 years till retirement. Is this a good strategy? The fee of 1.25% seems high.

Is it worth it to hire an advisor in this case? Is it easy to manage ourselves using ETFs?

Thanks!

[David]

The fee is average, but you don’t need to use them. Their strategy seems sound.

Maybe take their advice and then fire them and DIY your investment strategy.

[John]

You can easily pick index funds for next to no cost or a target date fund further cheap.

You first need to pick an asset allocation then control asset location.

Your Roth should stay all stocks if possible

[Philip]

I used the Fidelity target date funds for years until I learned about the difference in fees.

Invest yourself and add some diversification if desired.

You only need a handful of funds to mimic what they are doing, and the fees do really add up over many years.

[Jerry]

Sounds like you answered your own question. I’m not sure what they can add to your portfolio in exchange for those thousands of dollars per year.

If you like that blend, just buy it.

[Brian]

No, it is not. That fee drag equals 100s of thousands of performance over time.

Every single person should youtube university at least as much to understand how unbelievably simple it is to create that same balance in their portfolio for almost no fee other than the tiny etf fee (which the advisors will also have on top of theirs).

And I don’t believe in diversifying for the sake of it.

You balance bc one is cheap and another is top heavy presenting an opportunity for mean reversion over time. Playing the laws of averages.

Honestly I think bond etfs like TLT present an opportunity over next 5 yrs bc they are historically under valued at the moment. But don’t take my word or anyone elses.

Learn why I think that. How much worse they can possibly get (so you don’t panic sell but instead dollar cost avg in) and what return you can expect when it mean reverts. Same with s&p..

where we are at historically.

What kind of corrections are possible. When to add aggressively or when to add to something else.

[Author]

Posts