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And if you wanted a 60/40 you could do FBALX Balanced Fund.
fidelity also has puritan which is 60/40 as well .
it holds more high yield bonds then fbalx does . some years balanced does better , some puritan…
but if you are looking for a bit more recession protection then neither with 18% in BBB is a good choice and a roll your own version with treasury bonds and an index fund would be a better choice then what they use ,which is not geared for protection as much as boosting yield
Last edited by mathjak107; 02-03-2024 at 03:18 AM..
I don’t see the point of investing in foreign stocks.
It’s all about U.S. stocks for me.
most large american companies have a big enough foreign presence by themselves .
i get most of my foreign exposure through a fund one would never suspect as having much foreign coverage , and that is fidelity low priced stock fund which is classified as a mid cap fund …it is actually 60% domestic and works out to 40% foreign coverage just from the presence many companies have over seas.
the fund is only overall a 14% allocation in two of the portfolios so it works out to a small allocation overall to foreign in my models as a whole despite the 40% in the fund .
i think foreign is 6.63% overall
the problem with foreign stocks is you have to not only be right about the market , but you need to worry about the dollar’s strength.
the dollar conversion can easily turn being right about their market to a loss
Last edited by mathjak107; 02-03-2024 at 04:09 AM..
I'm a 47 year old single guy with no children. My mom just passed away on Christmas Eve, and now I am inheriting about $850,000. When her house sells I will probably receive another $50,000. Right now I'm completely debt free, my house is paid off, and I currently have about $75,000 saved up. So all together I should end up with a grand total of about $975,000.
So now I need to figure out what I should do next. I'm praying that it's enough for me to quit my dead end job, which I absolutely hate, and go into retirement at age 47. But I'm not sure how realistic that is.
I don't know very much about investing or retirement planning, but I'm wondering if maybe I should invest at least the $850,000 portion into mutual funds. 6% yearly interest on that would give me another $50,000 per year, so maybe I could just live off of the interest? For what it's worth, I currently spend about $25,000 per year in total expenses. So if I quit my job right now, and maintained my current lifestyle, then I assume that it would probably be enough to last me for the rest of my life.
My brother suggested that I also look into annuities, which I know nothing about. Would that be a better idea than investing in mutual funds? I'm open to any advice that I can get. What does everyone think that I should do? Is there any way that I can quit my job and retire now?
what you can live off of and inflation adjust depends on your allocation you intend to use .
with about 40/60 to 60/40 you can start off wth 4% which is 39k…
each year you can inflation adjust that and if over time the growth does well you can add to that draw besides just inflation adjusting.
so , no you can not spend all of what it grows in a year .
there are some years you will grow more then you draw and some years less then you draw
so a safe withdrawal rate is designed to hold up the same in up and down years creating an income stream that is safe , secure and consistent like a pension would be.
as far as what to put it in , without knowing your investing temperament and investor behavior i can’t say what’s right for you
Last edited by mathjak107; 02-03-2024 at 04:26 AM..
I see the risk of OP getting snagged by a bunch of front loaded investments. (Maybe today while at E Jones. Then you have a sunk cost. (And no longer $850k)
I've never quite figured out why, in the modern era, people go to E Jones.
If I go with Fidelity then maybe I could just set up a 3 fund portfolio and call it a day. Probably something like this.
60% Domestic Stocks: Fidelity Zero Total Market Index Fund (FZROX)
20% Foreign Stocks: Fidelity Zero International Index Fund (FZILX)
20% Bonds: Fidelity US Bond Index Fund (FXNAX)
The "3 fund portfolio" is actually an excellent investment concept. Keep it simple, low cost, doesn't try to time the market, set it and forget it.
The "3 fund portfolio" is actually an excellent investment concept. Keep it simple.
depends …there is no such thing as a one size fits all portfolio…it depends on a whole lot of other criteria.
case in point , me …not something i would entertain so for me not an excellent concept .
i think many experienced investors would take issue with so much in international stock as well . not a lot of pro international investors right in this forum .
for some the 20% bond allocation would be silly and would only drag the returns lower in their accumulation stage.
so there are loads of what’s called simple lazy portfolios out there , but they are all geared for different types of investors , situations and ages .
they are only an excellent concept for those who like the concept of that particular model
here are just a few , but again , each one is only an excellent concept if it fits the investor and what they want or need.
telling someone what they want or need is not something i would do … i would just throw out facts , figure and broad ideas but they have to ultimately decide what’s right for them
depends …there is no such thing as a one size fits all portfolio…it depends on a whole lot of other criteria.
case in point , me …not something i would entertain.
i think many experienced investors would take issue with so much in international stock as well .
for some the 20% bond allocation would be silly and would only drag the returns lower in their accumulation stage.
so there are loads of what’s called simple lazy portfolios out there , but they are all geared for different types of investors , situations and ages l
Obviously, he doesn't have to do that exact mix. I discussed the concept, not the allocation. The allocation concerns I discussed in a previous thread here. Anyways, the idea is you only need a few balanced funds (that don't overlap each other) for a portfolio.
Obviously, he doesn't have to do that exact mix. I discussed the concept, not the allocation. The allocation concerns I discussed in a previous thread here. Anyways, the idea is you only need a few balanced funds (that don't overlap each other) for a portfolio.
again depends .
i would never want anything but 100% equities in my accumulation stage .
bonds are for mitigating temporary short term dips , which for someone in their accumulation stage plays no role yet .
all those bonds will do is hurt long term returns as a drag .
that becomes a different situation as we enter the proverbial red zone pre retirement
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