So long story short, when I retire in 22 years ( I’m a teacher) I will have a pension around 3,000 a month with healthcare costs covered 100%. No other options are available (403b 457…nothing) So I opened a IRA with fidelity a few years ago and been maxing it out between FZROX ( 80%) and FSPTX ( 20%) - I have a 6 month emergency fund, zero debt …a few months ago I opened a taxable account with Fidelity and have been splitting between FTEC and FZROX…I lucked out a few months ago and bought 3 shares of Tesla before the monster jump and pre-covid…I want to sell these shares and reinvest the profits ( around 5k) would you continue to split 50/50 with FZROX and FTEC in the tax account?
Welcome @lsutiger25!
Well damn, congrats on killing it! That’s awesome! Sounds like you are going to be wealthy in retirement!
So just to break down the ticker symbols you mentioned:
- FZROX Fidelity ZERO Total Market Index Fund (expense ratio 0.0%): All US stocks (about 80% of value is in large stocks)
- FSPTX Fidelity® Select Technology Portfolio (expense ratio 0.71%): Large US tech stocks
- FTEC FIDELITY MSCI INFORMATION TECHNOLOGY INDEX ETF (expense ratio 0.08%): Large US tech stocks
So you notice your entire portfolio is in US stocks, mostly focused on large tech stocks. Those have done great over the last few years, but what happens if that trend reverses? My mom had 80% of her portfolio in tech stocks in the last 90s… they ended up losing 80% of their value and didn’t recover for like 15 years. You don’t want to be in that situation if it repeats itself.
Notably in your portfolio you’re missing all international stocks and bonds. And way overweight on tech. If it were me, I’d go for a more diversified approach like a 3-fund portfolio or a target date index fund.
1 Like
Awesome! Thanks thats kind of what I was looking at…so even in the taxable account you suggest say I swap out FTEC or FSPTX for FZILX ?
Out of FTEC or FSPTX …IF and only IF you had to pick one to stay in…which one?
Thank you for all this advice… I’ve been following you on IG for awhile now
So for a taxable account you think…
1)FZROX
2) FTEC or FSPTX
3) FZILX
My IRA is 100% FZROX right now too
OR… sorry for the third reply haha
FZROX + Target Date?
If it’s me, I’m doing 100% FDKLX in every account 
Today’s post (FDKLX is Fidelity’s version of VTTSX)!
1 Like
I haven’t looked at IG yet … its like you read my mind! Thanks!
1 Like
I also have a pension, but i am scared since the typical teacher pension plan has not been fully funded at any point in the last two decades… I believe their overly aggressive investment assumptions have contributed to today’s unfunded liabilities.
In the worst case we could still rollover the money into a Traditional IRA.
I also have the option to invest on a 457 plan (MAX:$19500 per year No employer match) in addition to the pension.
1 Like