I am working on rebalancing my 401k and I am wondering the best way to incorporate a few different funds. I have these fidelity index fund choices: Fidelity 500 index, Fidelity extended market index, Fidelity international index and I read a previous post where you recommended someone use this mix:
- 50%: Fidelity 500 index
- 20%: Fidelity extended market index
- 30%: Fidelity international index
But I also have a few Vanguard options including VANG GROWTH IDX ADM, VANG BAL INDEX ADM, and VANG TOT BD MKT ADM plus some AF Target-date funds and other bond options. Does it benefit me to mix the VANG and FID IDX funds together or would it be better just to choose one? I know in your course you said they all perform about the same, so I am not sure how much it really matters.
I am 32, if I was to put together a three-fund portfolio with Int. stocks, US stocks, and bonds like the example you gave in your course, would the best mix be the Fidelity 500 or Vanguard Growth Index for the US Stocks around 50% of the portfolio, the Fidelity International Market around 35%, and then the Vanguard total bond market for the remaining? Does it help me to also squeeze in the Fidelity extended market or would it be better to stick to three? Not sure if diversifying with more than three funds is a good idea? Would love some input.
Enjoying the course and office hours, thanks for all of the great information @Jeremy!