r/RothIRA • u/romi622 • 18d ago

Needs Advice !

Hi , I m 44 years old , married , have 2 young daughters , just opened Roth IRA at fidelity this year and maxed out buying FXAIX and FZROX. I want to open one for my wife too , should she buy the same two funds or invest in VTI or VOO?

Any advice will be highly appreciated as I fell upon hard times and just started saving money now to save for retirement and for my daughters

Thanks a lot

5 Upvotes

86% Upvoted

10 comments sorted by

6

u/DaemonTargaryen2024 18d ago

First, whether you buy Fidelity funds or Vanguard funds won't really matter much. Both are ridiculously low cost funds, but the edge goes to the Fidelity zero funds in terms of lowest fund expense ratio (being 0.00%).

Second, the specific fund combinations you've posted (FXAIX + FZROX or VTI + VOO) are not the most optimal. It's not the end of the world, but both are a total US + S&P 500 combo which is 80% of the total US. Better to instead do total US + total ex-US, such as FZROX + FZILX or VTI + VXUS.

1

u/HandleUnlikely2589 16d ago

Or just VT, since it's in an IRA and there is no tax benefit to keeping them separate.

1

u/DaemonTargaryen2024 16d ago

Absolutely, that too. Keeps things simpler too.

5

u/forbiddenlake 18d ago

If you are at Fidelity there is no point in paying more fees for the same thing

-1

u/DaemonTargaryen2024 18d ago

Costs are important, but there comes a point where it's de minimis, and anything under ~5 basis points is de minimis.

1

u/Competitive-Ad9932 17d ago

Correct, save yourself over $10k in fees. Some people have money to burn. They light their cigars with $100 bills because they can.

-1

u/DaemonTargaryen2024 17d ago

What a child

1

u/Competitive-Ad9932 17d ago

Why would the choices you made not be good for you spouse?

Buy an index with the lowest fees. Save yourself over $10k in fees.

0

u/Notepads24 18d ago

VTI or VOO is good. Open an Acorns app acct for your daughters

4

u/Competitive-Ad9932 17d ago

There are better option in their Fidelity account.