They are proposing the following to me: 45 y/o male currently mostly in cash. Based on our discussions and my risk factor, they are saying 70/30 stocks and bonds. THey are saying it would be a blend of fidelity and non fidelity funds/etfs. I would start with about 50k to invest and the fee would be 1.5% and would drop if I chose to put in more money with them:
| Asset Class | Percentage |
|---|---|
| Domestic Stock | 51.3% |
| Domestic Large Cap Stock | 35.2% |
| Domestic Mid Cap Stock | 10.0% |
| Domestic Small Cap Stock | 6.1% |
| International Stock | 22.5% |
| Intl Developed Large Cap Stock | 15.8% |
| Emerging Market Stock | 4.0% |
| Intl Developed Mid Cap Stock | 2.4% |
| Intl Developed Small Cap Stock | 0.3% |
| Bonds | 23.5% |
| Muni Inv Grade Bond | 15.4% |
| Other Bond | 6.4% |
| Muni HY Bond | 0.7% |
| Intl Developed Mkt Bond | 0.6% |
| Taxable Dom Inv Grade Bond | 0.4% |
| Taxable Dom HY Bond | 0.0% |
| Convertible Bond | 0.0% |
| Intl Emerging Mkt Bond | 0.0% |
| Short Term | 2.5% |
| Other† | 0.2% |
| Total | 100.0% |
| Fund | Percentage |
|---|---|
| Strategic Advisers Municipal Bond Fund | 21.4% |
| Strategic Advisers Equity Growth SMA* | 18.1% |
| Strategic Advisers Tax-Managed U.S. Large Cap SMA* | 15.1% |
| Fidelity Strategic Advisers Blended International Equity SMA‡ | 12.0% |
| Strategic Advisers Equity Value SMA* | 11.0% |
| Strategic Advisers Tax-Sensitive Short Duration Fund | 3.2% |
| iShares Core S&P Mid-Cap ETF | 3.0% |
| iShares Core MSCI EAFE ETF | 2.8% |
| Fidelity Emerging Markets Index Fund | 2.2% |
| Fidelity Advisor Focused Emerging Markets Fund – Class Z | 1.6% |
| iShares Core S&P Small-Cap ETF | 1.5% |
| JPMorgan Small & Mid Cap Enh Eq ETF | 1.5% |
| Acadian Emerging Markets Investor | 1.3% |
| Fidelity Emerging Markets Fund | 1.2% |
| Schwab US REIT ETF | 1.2% |
| Fidelity Government Cash Reserves | 1.0% |
| DFA Emerging Markets Value I | 0.9% |
| Victory Trivalent International Sm-Cp I | 0.6% |
| Fidelity SAI International Low Volatility Index Fund | 0.6% |
| Total | 100.0% |
Fidelity came up with this plan for me and I am not sure what to make of it.
byu/ArnoldisKing instocks
Posted by ArnoldisKing
12 Comments
Don’t pay fees based on the value of your investment. Also, if you are 100% in Fidelity, just buy FNILX.
Are you risk averse or can you handle risk? What are your goals with the funds.
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Buy 70% spy and rest cash, deploy cash when spy dips
1.5% advisory fee is a BIG NO. Thats $750 today, compound that over 25 years and you wont like the number.
You’re better off buying low cost index funds like VTI or VT, they will outperform this portfolio and save you the fees.
why on earth would someone buy this many funds?
They try to get people to sign on to their useless products. Just go check /r/bogleheads or just buy the usual ETFs, they are over complicating it to justify charging you high fees
1.5% is a rip off
You sure it’s not .015%? 1.5% seems much too high.
Fee is a ripoff and someone your age does not need bonds. They are a complete drag on your portfolio. The Fidelity *salespeople* are using a formula based on the anachronistic Modern Portfolio Theory. They don’t actually know what they are doing.
Spend some time in r/Bogleheads.
You could literally just buy Index funds and a high yield bond ETF. 70/30 is very generic advice and not worth 1.5% every year.
Jesus lol