Fidelity Fund?

formerlyjessica490 · February 2017

Hi! I need help with something...H rolled over a traditional IRA from an old company into a Fidelity traditional IRA to keep all our accounts together. We did this a few months ago but haven't invested it into anything yet...we have ZERO clue on what to invest it in and how to do so. This is an account we are going to set and forget and not add anything else into it so we can focus on our ROTH IRA's instead. Normally I ask my dad these things but he is really sick right now and I don't want to bother him with this. Is there a type of fund that we should look into (stock/bond or mutual fund)? I don't want to be super aggressive with it, maybe moderately...the financial advisor I saw at work recommended a Blackrock global allocation fund but I really don't know how to see if this is a good choice, I can't understand all that financial stats on this this stuff...please help! Once a choice is made (if not then I will just call Fidelity for advice and go with it) and have them do it for me because I don't even know how to buy this stuff online....this is my one downfall in the financial world...totally clueless in this investing stuff. H has a good mix for his 401K already and I have a target date for my 401K and we have started contributing to ROTH IRA's. Thanks for your help! And please, talk to me like I am 5 years old, no big fancy investment lingo LOL

Xstatic3333 · February 2017

I would make an appointment with someone at Fidelity and tell them what you just told us. I could tell you what I do, but my values and risk tolerance could be different from yours and I wouldn't want to lead you astray. I had a meeting there when we opened my Roth IRA when I was 21 or so and they were really helpful. I think I told them I was pretty cautious and they had me go in a fund called the Balanced Fund. Since then, I've changed strategies and now use Fidelity's index funds, which have you invest in the whole S&P 500 (or some sort of international equivalent) and match that index's performance. The fees for these funds are much lower since there is not an actual person on the other end making decisions about what to invest in.

labro · February 2017

My dad advised me to review the list of mutual funds available to me and start my research with Morningstar. If I felt comfortable with the ratings, investments, performance, fund age, etc. then he said he usually based his decision on the fees. He also advised sticking with 10% or less international (but he's also 63 and pretty conservative) and focusing mostly on US funds. At the moment I think I have around 25% of my Roth IRA in VFINX and it's been doing really well. I've seen a lot of advice saying that if you stick with the S&P 500 that it's a pretty safe and stable investment. I'm not sure what your risk tolerance is like, but it's a good place to start.

1. Good Morningstar Rating
2. Low fees.
3. Low expense ratio.
4. USA.

ETA. I'm a total noob to all of this but so far so good. I've only had my Roth open for about a year and a half and I'm just trying to learn as I go along.

vlagrl35 · February 2017

yeah I would go in to your local Fidelity office and discuss that with them. This is what I just did back in December and took notes and now go figure that I'm ready to do this I can't find my notes!

jtmh2012 · February 2017

I'd recommend making an appointment.

If not, look at the target date funds. They'll automatically readjust from more to less risk as you get closer.

You could mirror the other account if the funds are available, but you risk having an unbalanced portfolio.

formerlyjessica490 · February 2017

Thanks, I will probably just give them a call

MommyLiberty5013 · February 2017

You might find a general web search for common investing lingo helpful. P/E...Load vs. no Load...small cap...mid cap...large cap...and general behaviors of stocks and bonds...rate of return...

Just FYI - not to scare you - the investment folks at each brokerage are in the business to not only advise, but to sell you on their company's products. It is not a bad thing, just something to be aware of. And, they will likely steer you toward mutual funds (pre-set groupings of stocks selected by their fund managers) rather than individual stocks.

Don't go in looking for them to educate you on the basics of investing. Do the homework yourself, I promise you will feel more comfortable and confident in your discussion with your advisor.

jtmh2012 · February 2017

I don't necessarily consider mutual funds to be a bad thing. But like stocks, you need to look at what you're buying. Mutual funds simplify the diversification of your portfolio especially when you have smaller amounts invested, but some of them do have crazy high fees to pay for those managers. Either way, know what you're investing in.

formerlyjessica490 · February 2017

Oh boy...you guys are scaring me...

jtmh2012 · February 2017

How so?

formerlyjessica490 · February 2017

there are just too many options/choices and I'm not sure what to invest in...

Xstatic3333 · February 2017

I think that as a new investor, a mutual fund is the way to go. You can always do individual stocks later once you're more comfortable with investing. Definitely talk to Fidelity. Yes, they are salesmen, but I have truly never felt pressured by them.

This blog is super basic, but it's what I read when I first got into MM stuff: https://www.moneyunder30.com/how-to-invest

jtmh2012 · February 2017

The good thing is you're not locked in. You can change your mind later. Although, there may be fees for this.

At this point, I'd either toss it in a target date fund or maybe a few index funds. Then you can figure the rest out later.

And keep the Fidelity appointment.

formerlyjessica490 · February 2017

thanks for the advice and article! I will ask fidelity about mutual fund and index funds

littlemushroom · February 2017

@Xstatic3333 Thank you for recommending that blog! My H and I are very intimidated by trying to figure out how to start investing in things other than our 401k. That blog looks like a good way to get our feet wet with terms to know and basics of investing where we had no idea how to start. Now we have a jumping off point to know what we need to research!

cbee817 · February 2017

We dumped the bulk of our Roth IRA account into a fidelity index fund- FUSVX. Super low expense ratio and mirrors the stock market. My retirement is in a target date fund- FFKFX, has done well so far and is balanced, adjusts as I get older.

formerlyjessica490 · February 2017

cbee817 said:

We dumped the bulk of our Roth IRA account into a fidelity index fund- FUSVX. Super low expense ratio and mirrors the stock market. My retirement is in a target date fund- FFKFX, has done well so far and is balanced, adjusts as I get older.

Ooo, I will check into this one, thanks!

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