Just opened it, funded for 2023 recently. Now fully funding for 2024, so I will have $7000 to allocate.

From last year's contributions, I mostly just did S&P and Select Tech. The rest is small amounts I was just playing with.

22.5% - FXAIX - Fidelidty 500
15.4% - FSPTX - Fidelity Select Tech
2.2% - FSPSX - Fidelity Intl
2.2% - FOCPX - Fidelity OTC Port
2.2% - FSDIX - Fidelity Strategic Dividend & Income
2.2% - FZROX - Fidelity Zero Total

I realize I didn't put much into the lower set, but I knew I'd be fully funding for 2024 soon (now), so to start I just went after the big ones. Any of those I should put some more in?

I was considering starting this next round with:
FXAIX
FZROX
FIDU
AMD shares - maybe a few hundred $ for fun

ETA: I'm 30, risk tolerance relatively high (for a Roth), but not ultra confident in tech, hence interest in FIDU, and splitting off some AMD from the rest of the tech pool.

You don’t diversify in Roth.

In Roth accounts you want to swing for the fences. It’s where you put highest growth.

Tax deferred is where you put things like dividend stocks or things that would otherwise be taxable if in a brokerage acct. It is also a good place for bonds and fixed income instruments.

Taxable is for non-dividend stocks to avoid tax drag.

Starts at 2:20

Mine is:

45% VOO
35% QQQM
20% SCHD

Overcomplicated with nonsense.

FSKAX (or VTI) and chill.

100%

Great input, thanks guys. Sounds like I need to chill out and KISS

Is there a benefit to FSKAX vs FXAIX? I'm seeing slightly higher long term returns in the 500 fund.

My 401k has done really well, just trying to nail down similar returns in the Roth.

Only if you are looking at the previous 20 years.  There are 5 and 10 year periods where the total market beat the S&P.  Total market includes a market weighted amount of mid and small caps, which is more balanced.  The long-term returns over a very long period of time are quite similar so you don’t have to be dogmatic in your decision between the two. But I prefer a total market index fund for US equities.

Great explanation, thank you for sharing!

Total market fund or SP500 fund and stop overthinking.

I have a Roth set up through Vanguard.
30% VGT (Tech)
30% VIGAX (Growth)
20% VFIAX (500 fund)
20% VTSAX (Total stock market)

I rebalance once a year when I file taxes. VGT has really done well over the last couple years and I am due to reallocate some into VFIAX.

My pre-tax 403(b) through my employer is currently balanced as follows:
70% VIIIX
10% FSPGX
10% FXAIX
10% FSPTX

My employer defaults to using Vanguard Target Retirement funds for all of its employees. I quickly reallocated all of my money out of that low-yield fund into VIIIX (total stock market). I am rebalancing to get more exposure to growth and the 500 fund, plus a bit in tech.

FZROX, FXAIX and chill. Ive tried so many strategies and ideas over the years and ultimately, would've been further ahead with just plain old index investing and reinvesting dividends

I look at my 401k is funny money, I don't go nuts with diversification. I'm invested in SOXX and SCHD. That's it, I let it fly.

Why?

I'm maxing out my 401k, hammering away at a taxable brokerage account and maxing my Roth, so I just don't stress about it.  

I've been maxing out my 401k for a while and barring a complete economic collapse, in 20 years when I am ready retire that will be more than enough for me to retire on and the Roth will just be extra.

Took the advice here and simplified it quite a bit. Still have some FIDU and AMD shares, but overall consolidated a lot.


Does your employer offer a match up to the 401k limit? As the guy (me) asking Roth questions on a model train forum, there are probably other investment avenues you should look at before maxing a 401k.

Have you heard of the 3 bucket system?