4 different index funds in my ROTH IRA. too many?

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#1

I utilize 4 different index funds in my fidelity roth ira: FDEWX, FDKLX, FITLX, FSKAX

FSKAX is 52% of my portfolio in the roth ira, it is a total market index fund. FDEWX and FDKLX are both target date index funds (2055/2060), combining for 11.5% of the roth ira. This leaves FITLX with 36.5% of my roth ira portfolio. Is it okay/smart to invest into multiple index funds throughout the life of a roth ira? I am unsure if I should just pick one and go all in on it going forward, or keep investing in multiple of them as I have done the past few months.

Exp. Ratios: FDEWX: .12% FDKLX: 0.12% FITLX: 0.11% FSKAX: 0.02%

#2

Lots of info on this subject on youtube as well as the reddit forums.

If you could predict the future I could tell you exactly how to allocate your portfolio LOL

Barring your ability to use a crystal ball, it becomes kind of a “use your best judgement” type of thing.

There are some golden nuggets of wisdom out there, as well as some nuggets made of pyrite, so be careful.

For instance, I just now am looking into someone who claims he’s gotten a 16% return on his portfolio starting back in 1987. Is it for real? I dunno, but I’m gonna check it out :laughing: :grin: :+1:

#3

Hi James!

I’ll cover this in tonight’s office hours (8/25/2021) with the recording available afterwards on the course site!

If you’re not signed up for office hours, you can sign up here.

#4

Very interesting video on a 2 fund approach. It even uses Jeremy’s favorite investment, a Target Date Fund :+1: :+1:

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