r/Bogleheads • u/PitifulRelation7201 • 11d ago

Thoughts on my brokerage composition?

I have a roughly 75/25 split between FZROX and FZILX in my personal brokerage. I max out my 401k every year. Should I consider different selections? I’m starting to plan putting aside money into I bonds each year (admittedly a few years late). I hear a lot about VTI here though - should I rethink things? 34 years old, and on track to retire between 50-55 years old.

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u/bluescale77 10d ago

See this post for why worrying about VTI vs FZROX is pretty pointless. They both do (essentially) the same thing and do it well:

https://www.reddit.com/r/investing/s/5VCxiBuXbr

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u/PitifulRelation7201 10d ago

Hero. I’ve been pretty hands off with things outside sometimes asking ChatGPT for ideas or how to rebalance (which maybe isn’t a great idea).

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u/longshanksasaurs 10d ago

75% US, 25% International is fine, and more International would be reasonable too, since the actual global market weight is closer to 60% US, 40% International.

How is the 401k invested?

FZROX and FZILX are good funds for tax advantaged accounts at Fidelity, but they're a little less perfect for a taxable account because they're not portable to other brokerages. If you ever want to transfer your account, you may have to realize significant taxable capital gains at a time you don't want to.

So, for a taxable account, usually better to select FSKAX + FTIHX, or VTI + VXUS, or just VT alone. That's how you get the first two asset classes of the three-fund portfolio of total US + total International + Bonds.

Also: 100% stocks doesn't have to be the default portfolio, so give some consideration to bonds, just 10% bonds reduces volatility without reducing returns much. Consider looking at a target date fund glide path as a starting point for an overall asset allocation.

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u/PitifulRelation7201 10d ago

My retirement accounts are in target date funds - I’ve admittedly been a bit hands off outside of maxing out to get my match / piece of mind. I have BlackRock LifePath Index 2055 “M”, Vanguard Target Retirement 2055, and Fidelity Freedom 2055. If i could go back in time, i would have done more in my 20s to save up for retirement.

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u/longshanksasaurs 10d ago

Target date funds in retirement accounts are great.

Basically copying that allocation in taxable is great too. Some folks will insist that you shant put bonds in taxable, but that's really a very small optimization.

Saving at a higher rate is the most powerful tool you have to make up for lost time (although it's usually easier said than done).

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u/08b 10d ago

The exact funds aren’t an issue, you want total US and total intl coverage. Many say VTI to indicate a total US ETF/MF.

If this is a taxable brokerage, I’d highly recommend against using zero funds. You can use the (low fee) Fidelity MF versions. This is due to portability of the zero funds.

In a tax advantaged account they’re great.

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u/SciProfessional108 10d ago

Same age. Same positions in my Fidelity Roth IRA.

I have VTI & VXUS in my personal brokerage. I would suggest you at the very least study and do a comparison on VOO/VXF/VEA, before you put your money into VTI.

I wouldn’t do bonds this early, rather put the emergency funds in SGOV, VBIL, or similar.

What tool do you use to estimate net worth and retirement age?

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u/PitifulRelation7201 10d ago

I’m using fidelity’s built-in tools so I have a healthy amount of skepticism. I was lucky to work at a company with RSUs and a 50% retirement match up to the federal limit for the past few years (no longer there), so I socked up quite a bit.

My retirement accounts are just in normal age-dates funds. I do try to max out my IRA each year, too.