At Fidelity:
VOO or FXAIX in taxable account?
VTI, FSKAX, or FZROX in Roth IRA?
I want to have the ability to transfer brokerages at a later time if needed. I want to track the S&P in my taxable account and Total U.S. Stock Market in my Roth IRA. What would be the best course of action?
Best course of action for taxable account and Roth IRA at Fidelity
byu/resemble4132 ininvesting
Posted by resemble4132
3 Comments
If you already plan for transferring then don’t buy proprietary mutual funds in a taxable account.
If I wanted flexibility to move brokerages later, I’d lean ETFs in the taxable account. VOO for S&P exposure checks the box and avoids getting stuck with proprietary funds. In the Roth, I’d be more comfortable using FSKAX or FZROX since portability isn’t really a concern there and tax efficiency doesn’t matter
Your logic is a bit off. Generally you want ETF’s in a taxable account for tax efficiency. Generally you want your riskier plays in your Roth. Don’t use proprietary funds in taxable if you want portability (not sure why you want to leave Fidelity though, great place to park stuff).
For taxable you can buy VOO on auto weekly basis in Fidelity. Work to increase that weekly, only sell if you have something urgent to pay for.
For Roth you can have some long term conviction bluechips that you like. Maybe some QQQM instead of VOO for added risk for the long term.
The real thing isn’t the portfolio choices, but the behavior. You can certainly VOO and chill, but the trick is to set up auto and work to increase that auto. Don’t panic sell (hint nobody calls it panic selling when they do it, they use some form of cope). Spend less, invest more auto, don’t panic sell, that pretty much it. Best of luck!