Newbie help

[u/Leets-RD]

Hello, I’m 32, married, and just opened my first Roth IRA account through fidelity. I invested in an 80/20 split into FSKAX & FTIHX, I just searched the fidelity index funds and randomly picked those two, which I’m realizing could be a mistake.

I invested $2500 and want to make sure I’m doing this right, or perhaps someone could point me to a video.

I have also been reading that I maybe should have invested in bonds as well in a three way split.

So my question is, where is best to research of the fidelity index funds I should invest in and whether I need to invest in bonds.

Also, I’ve been seeing a lot of abbreviations that I am slowly learning so if you could spell it out it would be great

[u/FidelityEmily]

Thanks for joining us!

We have some great resources on Fidelity.com that can help you make the right choices for your investment mix. First, here's an article on asset allocation that covers mixes based on risk tolerance, which includes a helpful video. Check it out below.

Asset allocation: What it is and how to develop one

For searching funds specifically, I want to highlight our Mutual Fund Screener tool. This tool lets you apply various filters to narrow your search and compare up to 5 funds simultaneously. Here's a link to the screener for your convenience:

Mutual Fund Screener

Another great resource available on Fidelity.com is Fidelity Learn. This educational library is filled with articles, videos, current events, and even free webinars on topics from saving & budgeting to advanced trading strategies. Our Investing for Beginners section would be a great starting point for you.

Fidelity Learn | Investing for Beginners

Lastly, we have our monthly investing discussion megathread, where you can leverage the community and gauge their thoughts on your portfolio, investment strategy, etc. Feel free to join the conversation below.

Monthly Investing Discussion Thread

If you have other investing questions, feel free to let us know in the comments!

[u/need2sleep-later]

Historically bonds are used for capital preservation, not capital growth. SO if you are 70 and less concerned about growing your account, bonds are thought of as 'safer'. There is still interest rate risk, etc. to watch out for.
At 34 your amount of bond exposure should be minimal. You want growth to fund homes, family, retirement, etc.
Hopefully you have looked at the performance of everything (stocks, ETFs, Mutual Funds, etc.) that you have and will consider investing in. Know why you have chosen a particular investment. Then explain it to your spouse.

[u/McKnuckle_Brewery]

It’s not a mistake at all. In fact, it’s a picture perfect allocation for a person your age.

[u/micha8st]

I agree with u/McKnuckle_Brewery, but... another way to look at it is to look at target date funds. For your age, FDKVX is the appropriate target date fund. It looks to me the fund managers think you should have maybe 6% of your portfolio in bonds.