What are you invested in? Target date funds, ETFs, individual stocks? Do you think of your portfolio as aggressive, neutral, or conservative?

It occured to me the other day in a discussion about lifestyle creep that a lot of discussions about retirement assume you earn at the 10- or 20-year historical average returns of the S&P500, but it would be very unusual to be 100% in the S&P500 for your entire working life. So, the effect of small changes in cash infusions (i.e. splurging on large but infrequent purchases) is lessened when you consider that most people will be invested more conservatively and real returns will be lower.

So what do you have setup?

Currently about 70% of my retirement account value is in a 401k, which is 100% in FFLDX, a Fidelity target retirement 2055 fund. I’m not as pleased with the returns on this. It says I’m up 11% 1Y but I frankly don’t believe it because it’s worth barely more than the cash that’s been put in to it in that time. Our fund picks for our 401k are kind of crap. The other 30% account value is in a Roth IRA, which I have distributed as:

55% FXAIX (FID S&P 500 ETF)

20% FSPSX (FID international ETF)

15% FSMAX (FID domestic whole market ETF)

10% FXNAX (FID bond ETF)

I would consider this overall rather neutral, maybe even conservative considering my age (31). What do you think?

  • bytor9@lemmy.mlEnglish
    4·
    1 year ago

    25% US Large Cap

    25% US Mid

    25% US Small Cap

    25% International

    No bonds. Will reconsider at age 40.

    Tax strategy - Traditional is more focused in Large and Mid. Small and Intl (higher expected returns) go in Roth.

  • Maybe@lemm.eeEnglish
    2·
    1 year ago

    You should go look at the top 10 holdings of your equity funds you’re in. I bet for two of them it’s identical.

    • TheWoozy@lemmy.worldEnglish
      1·
      1 year ago

      This is correct. S&P 500 and whole market funds are nearly identical. I’d choose the lower cost fund, and throw in a small allocation to small cap value, but that’s just me.

  • undercrust@lemmy.caEnglish
    2·
    1 year ago

    Gonna set a fire in here:

    62% UPRO 3x S&P500

    11% UMDD 3x S&P400 MidCap

    27% East Coast Strategic Credit fund (Credit Spread strip strategy)

    Quarterly rebalancing with a 70% equity / 30% alternative “neutral” balance target.

    Investment horizon ~50+ years

  • TheWoozy@lemmy.worldEnglish
    1·
    1 year ago

    I’m pushing 60, so I’ve collected accounts at Vanguard, Fidelity, Schwab and a couple credit unions. I’ve got too many individual funds and ETFs to list, but my allocation is:

    45% domestic stocks 25% international stocks 25% US bonds 5% short term/cash

    My stocks are nearly all index with a slight small-value tilt.

  • Frozengyro@lemmy.worldEnglish
    1·
    1 year ago

    You are young, however this is a very aggressive portfolio. You’re 3% bonds, 6% international stocks, and 90% domestic stocks.

    I’m not saying it’s bad to be aggressive, as I’m actually 100% in stocks, but be aware of the worst case scenario.

    • Valdair@kbin.socialOP
      1·
      1 year ago

      I think your math is assuming FFLDX is 100% domestic stock, but according to the Fidelity research page it’s ~55% domestic stock, ~35% foreign stock, ~10% bonds so it actually very closely mirrors my Roth distribution (totally accidentally however… I actually hadn’t looked at it before today, I just knew the returns were only about half of the S&P500 over any given period of time).

      https://imgur.com/a/Rfl38fF