Retirement plan Help!
Moderator: Aitrus
Retirement plan Help!
Ok...Not necessarily TSP related but this is retirement planning and investment related:
I am helping my daughter get started with her first ever retirement plan...her employer offers a 403(b) plan through Fidelity. She's 23 and she's a first year teacher...she will get matched but at this time we are not sure how much or what percentage as it's only been 6 months, lol! But WE WILL figure that part out...
So, I'm trying to plan out an easy mutual fund mix for her that's aggressive and will grow her money long term as an option for her to follow...But, knowing my daughter she will probably just go with the set it and forget it approach and choose one of their Freedom Funds (kind like our Lifecycle funds).
Any help would be greatly appreciated from the TSP collective here!
TIA!
Cheers!
I am helping my daughter get started with her first ever retirement plan...her employer offers a 403(b) plan through Fidelity. She's 23 and she's a first year teacher...she will get matched but at this time we are not sure how much or what percentage as it's only been 6 months, lol! But WE WILL figure that part out...
So, I'm trying to plan out an easy mutual fund mix for her that's aggressive and will grow her money long term as an option for her to follow...But, knowing my daughter she will probably just go with the set it and forget it approach and choose one of their Freedom Funds (kind like our Lifecycle funds).
Any help would be greatly appreciated from the TSP collective here!
TIA!
Cheers!
Cheers!
Current Strat: Loosely following 152300 and 85660 more the former rather than the later
Current PIP: 24.04
Current Strat: Loosely following 152300 and 85660 more the former rather than the later
Current PIP: 24.04
Re: Retirement plan Help!
Perhaps VTSAX if she has access to Vanguard or the Fidelity equivalent of FZROX. Both average around 12% a year in returns and track the total US market.
VTIAX (vanguard) and FZILX (fidelity) are International are average about 4.5% a year if you want some international exposure.
At her age, I would probably dump everything into one of the first two and call it a day.
VTIAX (vanguard) and FZILX (fidelity) are International are average about 4.5% a year if you want some international exposure.
At her age, I would probably dump everything into one of the first two and call it a day.
Re: Retirement plan Help!
VFIAX (Vanguard S&P 500 Index), FSPTX (Fidelity Select Technology), VWUSX (Vanguard US Growth) all for aggressive growth.
David Tepper - "There is a time to make money and a time to not lose money."
Warren Buffett - "Rule No.1: Never lose money. Rule No.2: Never forget rule No.1."
Warren Buffett - "Rule No.1: Never lose money. Rule No.2: Never forget rule No.1."
Re: Retirement plan Help!
Thank you all! those have been helpful so far...It's amazing how hard it can be to cobble together an investment strategy out of mutual funds. She has WAAAYYYY more options than we do and there are still several things we are unclear on specifically can she actively trade the account or is she limited like we are to 2 trades a month...and so on....She's got to find those things out while I compile the data on the funds....
I was at first thinking I could put her a strategy together like what we do with TSPCalc....but now looking at these funds she may not want to....
One mutual fund (semiconductors) she has access to FSELX....has a 25.61%YTD return and 69.34% return for just last year...JUST LAST YEAR 69%! and a 10year average of of nearly 27%! Now of course that's putting all her eggs in one basket and we probably want to diversify and spread the risk...but dang!
Cheers!
I was at first thinking I could put her a strategy together like what we do with TSPCalc....but now looking at these funds she may not want to....
One mutual fund (semiconductors) she has access to FSELX....has a 25.61%YTD return and 69.34% return for just last year...JUST LAST YEAR 69%! and a 10year average of of nearly 27%! Now of course that's putting all her eggs in one basket and we probably want to diversify and spread the risk...but dang!
Cheers!
Cheers!
Current Strat: Loosely following 152300 and 85660 more the former rather than the later
Current PIP: 24.04
Current Strat: Loosely following 152300 and 85660 more the former rather than the later
Current PIP: 24.04
Re: Retirement plan Help!
I own FSELX! Very happy with the returns!
David Tepper - "There is a time to make money and a time to not lose money."
Warren Buffett - "Rule No.1: Never lose money. Rule No.2: Never forget rule No.1."
Warren Buffett - "Rule No.1: Never lose money. Rule No.2: Never forget rule No.1."
Re: Retirement plan Help!
Did you buy that through the TSP mutual fund window?
Cheers!
Cheers!
Current Strat: Loosely following 152300 and 85660 more the former rather than the later
Current PIP: 24.04
Current Strat: Loosely following 152300 and 85660 more the former rather than the later
Current PIP: 24.04
Re: Retirement plan Help!
Negative, it's in my brokerage account.
David Tepper - "There is a time to make money and a time to not lose money."
Warren Buffett - "Rule No.1: Never lose money. Rule No.2: Never forget rule No.1."
Warren Buffett - "Rule No.1: Never lose money. Rule No.2: Never forget rule No.1."
- Scarfinger
- Posts: 811
- Joined: Mon Jan 30, 2012 12:00 am
Re: Retirement plan Help!
It all depends on how her employer sets up the plan. My brother has Fidelity through his employer and they have a lot of expensive funds in it. They have a lot of actively traded funs with high fees. For example a small cap value fund that's 1.25% fees. Also the fees to trade are high and they limit you trades.
With kids now a days I think she will have a lot more to worry about than what the stock market is doing.
I say keep it simple. 100% S&P lowest cost fund or a target date fund. Or 90% target date fund and 10% small cap fund.
There is nothing wrong with set it and forget it if she has 30+ years until retirement.
With kids now a days I think she will have a lot more to worry about than what the stock market is doing.
I say keep it simple. 100% S&P lowest cost fund or a target date fund. Or 90% target date fund and 10% small cap fund.
There is nothing wrong with set it and forget it if she has 30+ years until retirement.
I am just an average Joe. I have no clue to what the market will do.
Paul Merriman 2 fund strat: (age - 25) x2.5 = TDF + balance into S fund or variation ofTimboSlice wrote: "People really need to stop overthinking this."
Re: Retirement plan Help!
Check out Paul Merriman's suggested portfolios:'
https://www.paulmerriman.com/these-7-si ... n-50-years
You may have to readjust at the end of each year (or beginning), but these may be simple enough to get her started.
https://www.paulmerriman.com/these-7-si ... n-50-years
You may have to readjust at the end of each year (or beginning), but these may be simple enough to get her started.
Re: Retirement plan Help!
Can you also access Fidelity ETFs?
I would suggest she also look at FSMEX. That's one of their best and you simply cannot go wrong with healthcare and healthcare equipment.
I would suggest something similar to the others.
Perhaps:
20% FSMEX
10% FSCSX
10% FSELX (very cyclical, but also super important)
20% FXAIX (cheapest SP 500 around!)
40% FSMDX or FIMVX (personally I would choose FSMDX)
I would be wary of their small cap index funds because they're centered on the Russell 2000. That index is great short term and terrible long-term. Russell does an excellent job in the midcap category. See here to compare index results https://www.bogleheads.org/wiki/US_mid_ ... ex_returns.
I would suggest she also look at FSMEX. That's one of their best and you simply cannot go wrong with healthcare and healthcare equipment.
I would suggest something similar to the others.
Perhaps:
20% FSMEX
10% FSCSX
10% FSELX (very cyclical, but also super important)
20% FXAIX (cheapest SP 500 around!)
40% FSMDX or FIMVX (personally I would choose FSMDX)
I would be wary of their small cap index funds because they're centered on the Russell 2000. That index is great short term and terrible long-term. Russell does an excellent job in the midcap category. See here to compare index results https://www.bogleheads.org/wiki/US_mid_ ... ex_returns.
Re: Retirement plan Help!
Bubs
I'm curious as to why you picked FSMEX. While medical equipment tech. was the darling sector for over a decade, it's been a dog the past 3 years, especially in the advent of the new health care darling sector of weight loss pharma. Are you expecting the sector to recover with a bang soon?
Re: Retirement plan Help!
Healthcare tech will always be around. In fact, the changes that I've been seeing in the industry is that they've found better ways to make money. They're going from making things complete to making them modular. They're improving (and sometimes requiring) updated software (for cost) and they're (at times) renting out equipment. Also, given all of the need for healthcare in the near future, I think the equipment side will be a "forever" investment. That's just my opinion.bloobs wrote: ↑Wed Mar 06, 2024 9:02 amBubs
I'm curious as to why you picked FSMEX. While medical equipment tech. was the darling sector for over a decade, it's been a dog the past 3 years, especially in the advent of the new health care darling sector of weight loss pharma. Are you expecting the sector to recover with a bang soon?
I'm also very into midcaps. They have done historically better than the other options, with the exception of small cap value. Sadly, Fidelity uses the Russell 2000 value...so I wouldn't suggest that on any one.
Re: Retirement plan Help!
Thanks, i'm somewhat still in the same camp as you but now differ on it being a forever investment. I was burned lately by it after getting used to 25%APRs for several years straight. In hindsight, i should have scaled back on it when the valuations got a bit crazy on 2021.Bubba wrote: ↑Thu Mar 07, 2024 4:57 am
Healthcare tech will always be around. In fact, the changes that I've been seeing in the industry is that they've found better ways to make money. They're going from making things complete to making them modular. They're improving (and sometimes requiring) updated software (for cost) and they're (at times) renting out equipment. Also, given all of the need for healthcare in the near future, I think the equipment side will be a "forever" investment. That's just my opinion.
Re: Retirement plan Help!
To me everything seems kinda "Bubbly" right now....I feel like the ENTIRE market is in a bubble and overvalued/inflated....
Waiting for the pop! and subsequent crash!
And with that fear and dread I feel like its a time to be cautious and watch....
Cheers!
Waiting for the pop! and subsequent crash!
And with that fear and dread I feel like its a time to be cautious and watch....
Cheers!
Cheers!
Current Strat: Loosely following 152300 and 85660 more the former rather than the later
Current PIP: 24.04
Current Strat: Loosely following 152300 and 85660 more the former rather than the later
Current PIP: 24.04
Re: Retirement plan Help!
Yes, I'm sort of waiting for that too, so around 60 to 70% of my cash is sidelined in a money market fund and some in BOXX (awesome fund by the way!). While I'm missing out on the 20% gains, I do enjoy looking at the "sure" thing of 5% or more until that does happen.
I saw a thing recently where Larry Williams claims the pop will be around Jan 2026. Who knows? For me the signal to run for the hills will be when the 3 month and 10 year uninvert. Until then, everything else is just noise.
Good luck to all!
Fund Prices2024-04-26
Fund | Price | Day | YTD |
G | $18.21 | 0.01% | 1.36% |
F | $18.63 | 0.27% | -3.10% |
C | $79.85 | 1.02% | 7.38% |
S | $78.29 | 0.78% | 1.55% |
I | $41.48 | 0.50% | 3.22% |
L2065 | $15.89 | 0.80% | 5.08% |
L2060 | $15.89 | 0.80% | 5.08% |
L2055 | $15.89 | 0.80% | 5.08% |
L2050 | $31.87 | 0.68% | 4.13% |
L2045 | $14.54 | 0.64% | 3.94% |
L2040 | $53.14 | 0.60% | 3.78% |
L2035 | $14.04 | 0.55% | 3.58% |
L2030 | $46.78 | 0.50% | 3.41% |
L2025 | $13.02 | 0.29% | 2.45% |
Linc | $25.43 | 0.23% | 2.10% |