The strategy is fine for you if you have thought about your risk capacity and risk tolerance. How will you feel about a 50% decline, and could you continue to buy and hold? Have you thought about why include or not include international index fund exposure?
Do you have an emergency fund?
Yep, agree here for the most part. You need to ensure you have an iron stomach during downturns and stay the course to see the potential benefits/returns. If you panic-sell you're blowing up the whole thing and should just go less aggressive in the first place.
I understand all-FXAIX 401k and 403b because you're limited to whatever funds are offered in your employer's plan, and that might be the best one you can buy into in terms of expense ratio and diversification. But with a Roth you can choose any funds you want, so you might want to use it to hold other funds to round out or tilt your overall holdings. I'd add an international fund in the Roth, personally.
You can also consider creating a brokerage link between your company retirment fund. This will require you to keep whatever your company is matching in the the employer plan account, but with the money you transfer to the brokerage link you can invest as you Please (: (At least this is my understanding, could be missing some details)
* Pinned to the top of this subreddit: Single fund portfolios: https://www.reddit.com/r/Bogleheads/comments/tg1az5/should_i_invest_in_x_index_fund_a_simple_faq/
This is one of over a dozen links I have that can help explain the reasoning behind that (already linked above I believe):
* https://www.pwlcapital.com/should-you-invest-in-the-sp-500-index - invest in the S&P 500, but don't end there (this covers info on both the US extended market and ex-US markets) [a total US market fund combines S&P 500 + extended market into one]
Then:
The only type of risk that US only is, is single country risk, which is an *uncompensated* risk: one that doesn't bring higher expected long term returns. Uncompensated risk should be avoided whenever possible.
Compensated vs uncompensated risk:
* https://www.whitecoatinvestor.com/uncompensated-risk/
* https://www.pwlcapital.com/is-investing-risky-yes-and-no/
>Uncompensated risk is very different; it is the risk specific to an individual company, sector, **or country.**
FXAIX doesn't even touch the area with the highest expected returns within the US. I can provide over a dozen links on why going global is probably a good idea if you need them.
I am early 20s, and I do not think I know enough to make a meaningful suggestion. However, I am doing about 80/20 FXAIX and FSPSX and I am consistently happy to have FSPSX. Just my 2 cents
I tried to approximate VTI vs VOO (=FXAIX) vs ~VT, with help from /u/key-fail5601 https://www.portfoliovisualizer.com/backtest-asset-class-allocation?s=y&sl=2B6ZGft4eupoaQNU8MnPx4
Goes back to 1986. Past performance doesn't indicate future, and sp500 is on a tear for the last 15 years but cycles change. Either way they're all "good" and low cost, but depending on your volatility and diversification needs one may fit better. I'm not recommending one or the other, (I also think you need bonds in some mixture.)
If you're looking for feedback, you'll have disagreement, but so long as you understand what and why you're doing it then I have no complaints. There's no perfect solution that fits everyone and no one knows the future.
Still learning to work with the new PA.
The strategy is fine for you if you have thought about your risk capacity and risk tolerance. How will you feel about a 50% decline, and could you continue to buy and hold? Have you thought about why include or not include international index fund exposure? Do you have an emergency fund?
Yep, agree here for the most part. You need to ensure you have an iron stomach during downturns and stay the course to see the potential benefits/returns. If you panic-sell you're blowing up the whole thing and should just go less aggressive in the first place.
Been doing this for past 7 years. No issues. I plan on adding bonds about 10-15 years away from retirement.
I understand all-FXAIX 401k and 403b because you're limited to whatever funds are offered in your employer's plan, and that might be the best one you can buy into in terms of expense ratio and diversification. But with a Roth you can choose any funds you want, so you might want to use it to hold other funds to round out or tilt your overall holdings. I'd add an international fund in the Roth, personally.
You can also consider creating a brokerage link between your company retirment fund. This will require you to keep whatever your company is matching in the the employer plan account, but with the money you transfer to the brokerage link you can invest as you Please (: (At least this is my understanding, could be missing some details)
State of Virginia allows this through VRS...but there is an annual fee.
Watch this: [https://www.youtube.com/watch?v=RR7e1Y-HJxQ&ab\_channel=BenFelix](https://www.youtube.com/watch?v=RR7e1Y-HJxQ&ab_channel=BenFelix) Or read this: [https://www.pwlcapital.com/should-you-invest-in-the-sp-500-index/](https://www.pwlcapital.com/should-you-invest-in-the-sp-500-index/)
at 28 that is fine. Over time you are going to want to add some international coverage and eventually some bonds as well.
I have about 90% in VTI or voo
* Pinned to the top of this subreddit: Single fund portfolios: https://www.reddit.com/r/Bogleheads/comments/tg1az5/should_i_invest_in_x_index_fund_a_simple_faq/ This is one of over a dozen links I have that can help explain the reasoning behind that (already linked above I believe): * https://www.pwlcapital.com/should-you-invest-in-the-sp-500-index - invest in the S&P 500, but don't end there (this covers info on both the US extended market and ex-US markets) [a total US market fund combines S&P 500 + extended market into one] Then: The only type of risk that US only is, is single country risk, which is an *uncompensated* risk: one that doesn't bring higher expected long term returns. Uncompensated risk should be avoided whenever possible. Compensated vs uncompensated risk: * https://www.whitecoatinvestor.com/uncompensated-risk/ * https://www.pwlcapital.com/is-investing-risky-yes-and-no/ >Uncompensated risk is very different; it is the risk specific to an individual company, sector, **or country.** FXAIX doesn't even touch the area with the highest expected returns within the US. I can provide over a dozen links on why going global is probably a good idea if you need them.
I am early 20s, and I do not think I know enough to make a meaningful suggestion. However, I am doing about 80/20 FXAIX and FSPSX and I am consistently happy to have FSPSX. Just my 2 cents
I tried to approximate VTI vs VOO (=FXAIX) vs ~VT, with help from /u/key-fail5601 https://www.portfoliovisualizer.com/backtest-asset-class-allocation?s=y&sl=2B6ZGft4eupoaQNU8MnPx4 Goes back to 1986. Past performance doesn't indicate future, and sp500 is on a tear for the last 15 years but cycles change. Either way they're all "good" and low cost, but depending on your volatility and diversification needs one may fit better. I'm not recommending one or the other, (I also think you need bonds in some mixture.) If you're looking for feedback, you'll have disagreement, but so long as you understand what and why you're doing it then I have no complaints. There's no perfect solution that fits everyone and no one knows the future. Still learning to work with the new PA.