All paper losses since the Iran conflict began have now been erased.

quote:

Originally posted by Vette02:
All paper losses since the Iran conflict began have now been erased.

ditto,

slight dip, then back up it went, and still doing well

quote:

Originally posted by lyman:
slight dip, then back up it went, and still doing well

Huh. Did it?

I haven't even looked since January.

It's about the long run, folks. Stick to the program. Keep contributing regularly to widely diversified investments, regardless of whatever the short term market volatility or the global current events may be.

Market goes up this week? Good, investments are going up with it. So stick to the program.

Market goes down this week? Cool, equities are on sale, and my investments will go back up shortly. So stick to the program.

I’ve read the average 401k balance is $148k. The median is just $38k.

My three year annualized pre-tax return is about 14%.

I’m very proud of my little nest egg, and grateful to be way ahead of the curve compared to most. My wife and I have sacrificed lifestyle creep for future returns. When most of my friends are buying expensive cars and homes we are maxing out every tax deferred and ROTH option we can.


I was amazed to learn about after-tax 401k contributions with in-place ROTH conversions. Between that and the back-door ROTH I feel like I’m getting away with something.

Yea, baby! Grow that shit tax free! Of course, I have a feeling they’ll find a way to come get it. But I’m naturally pessimistic.

This latest dip actually worked out for me, because my bonus is paid in March and my 401k contribution hit when the market was down. It’s back to flat already, and is set up nicely for the recovery.

Slow and steady.

Stairs down, elevator up.

quote:

My three year annualized pre-tax return is about 14%.

That's a good number. It doesn't have to be complicated...

VIIIX is widely available on many retirement account platforms. It closely tracks the S&P 500 Index.

The average annual return is 14% over 10 years. It has extremely low fund expenses.

Vanguard Institutional Index Fund Institutional Plus Shares
VIIIX

[/QUOTE]VIIIX is widely available on many retirement account platforms. It closely tracks the S&P 500 Index.

The average annual return is 14% over 10 years. It has extremely low fund expenses.

Vanguard Institutional Index Fund Institutional Plus Shares
VIIIX[/QUOTE]

Not bad.... after watching it for a couple years, I think the fund I'm going all in on for retirement is going to be FSELX.

I officially retired in 2024, have a state run Defined Contribution account that has been doing "ok", but maybe I should expect more?

Had gains of about 5% in 2024, 10% in 2026, and on track for 8-10% this year depending on how things go.

I know at some point I should "roll it over" into an actual 401K but I feel like I need to learn a lot more about the process before doing so.


By my math, 5-6% a year should effectively make it an "infinite" supply for my expected expenses (we live fairly comfortably, but "modestly"). Hearing 14% averages makes me think maybe I could reasonably expect more? It would certainly open up additional travel opportunities that are currently beyond what I think is possible.


I have a small ROTH through Fidelity, only contributed a couple years before retiring. I really wish I had found out about those way earlier in life.


Maybe my 2027 goal will be to improve the way my money is invested and managed. I really need to learn and understand it all more before I will feel comfortable changing what has been working so far.

911BOSS, State run is all you need to know about it. Roll that sucker over. You want to be in charge, not the state. If there is some sort of crash the state is not going to protect you. You will be affected either way. Get out and get with it brother. No tomorrow.

quote:

Not bad.... after watching it for a couple years, I think the fund I'm going all in on for retirement is going to be FSELX.

Awesome!
Fidelity Select Semiconductors Portfolio
The average annual return is +31.09% over 10 years. Fantastic.

Of course, that's concentrated on one sector so I wouldn't put ALL of my eggs in that basket, but I would use it.

quote:

Originally posted by chellim1:
The average annual return is +31.09% over 10 years. Fantastic.

I think imma gonna buy some of that ASAP. I’ll move it into my ROTH and my abysmal attempt at individual stock purchasing accounts at Fidelity.


**ETA**


Ok, I just opened my Rollover IRA with Fidelity. No minimums and no fees for self directed. Didn’t roll over all of it, will see how things go for a few months and then move more until it is all there.


Once the money hits, here are the MF’s I am looking at:

FSELX Fidelity Select Semiconductors Portfolio - 1 Yr/+86.50%, 3 Yrs/+41.28%, 5 Yrs/+29.74%, 10 Yrs/+31.09%

FSKAX Fidelity Total Market Index Fund - 1 Yr/+18.15%, 3 Yrs/+17.86%, 5 Yrs/+10.78%, 10 Yrs/+13.66%

FXAIX Fidelity 500 Index Fund - 1 Yr/+17.79%, 3 Yrs/+18.30%, 5 Yrs/+12.05%, 10 Yrs/+14.15%

FFIDX Fidelity Fund - 1 Yr/+22.08%, 3 Yrs/+19.55%, 5 Yrs/+12.24%, 10 Yrs/+14.60%


All are no minimum investment, no transaction fees, “higher-mid” range to “lower-high” range risk.


Combined, averaged annual returns - 1 Yr/36.13%, 3 Yrs/24.25% 5 Yrs/21.6%, 10 Yrs/18.38%



Even at half those return rates it looks like I will be better off than the state managed plan where my money is in:

23% of my balance - “Total Allocation Portfolio” - 1 Yr/9%, 3 Yrs/10.11% 5 Yrs/10.64%, 10 Yrs/10.02%
54% of my balance - “2015 Retirement Fund” - 1 Yr/8.63%, 3 Yrs/12.01% 5 Yrs/7.42%, 10 Yrs/7.76%
23% of my balance - “State Bond Fund” - 1 Yr/5.74%, 3 Yrs/7.23% 5 Yrs/1.91%, 10 Yrs/3.48%

For a weighted avg of roughly, 1 Yr/11.69%, 3 Yrs/14.67%, 5 Yrs/9.98%, 10 Yrs/10.63%

This message has been edited. Last edited by: 911Boss,

My data point. I'm with Fidelity. My FXAIX has done very well for me.

The market has been good for me. Yesterday and today were both all time highs for me. In addition to solid income stocks, I have my share of growth/technology and that's what helped the most recently.

To paraphrase SNL's Chico Escuela character, "My 401k been berry berry good to me"

911Boss - Take a look at FZROX. It's a total US stock market index fund equivalent to FSKAX, but 0% expense ratio.

One of Fidelity's new "Zero" funds, intended to be a loss leader to draw customers to switch over to Fidelity. (Like the Costco hot dog of index funds...)

In a world of widely available low expense ratio index funds, they had to drop some of their funds to free in order to stand out.

quote:

Originally posted by RogueJSK:
911Boss - Take a look at FZROX. It's a total US stock market index fund equivalent to FSKAX, but 0% expense ratio.

One of Fidelity's new "Zero" funds, intended to be a loss leader to draw customers to switch over to Fidelity. (Like the Costco hot dog of index funds...)

In a world of widely available low expense ratio index funds, they had to drop some of their funds to free in order to stand out.

Added to my list, thanks for the heads up!


Part of why I have delayed rolling my money over is I don’t understand a lot of the “stuff” in the markets. Thing like “expense ratio”, “distribution fees”, etc.

I need to have at least a basic understanding of this stuff to feel comfortable with it all. Easy to understand getting 50% more return on my money, but without understanding the rest of it I’m paranoid I’m missing something and going to get screwed somehow.

My IRA (rolled over 401k) is doing okay.

quote:

Originally posted by 911Boss:

Part of why I have delayed rolling my money over is I don’t understand a lot of the “stuff” in the markets. Thing like “expense ratio”, “distribution fees”, etc.

I need to have at least a basic understanding of this stuff to feel comfortable with it all. Easy to understand getting 50% more return on my money, but without understanding the rest of it I’m paranoid I’m missing something and going to get screwed somehow.

Just do it! The best way to learn is to have very specific investments, which then will get you focused on the specifics. Initially, stay with big name ETFs, and try to avoid mutual funds (though there's nothing essentially bad about mutual funds). ETFs trade immediately, like a stock, whereas mutual funds settle after the markets close. There are a few minor details, but nothing that will screw you over.

Fidelity, Vanguard, Schwab all have decent ETFs. Put your money initially into about 5 funds that spread out across the market. Large cap, small cap, growth, value, high dividend, S&P 500, NASDAQ. That sort of thing. I would avoid industry specific funds at first. e.g. Automobile manufacturers, oil exploration, semiconductors, farm equipment. Those are too narrowly focused. Later as you get more educated, you can use your life knowledge plus new financial savvy to put some into specific areas.

It is wise to keep some in cash-like vehicles like a money market. Especially at first, the security of not dropping if the market goes down will be comforting.

SPY/VOO, VXUS and VTI, plus a bond fund like BND will do most average investors quite well. The % mix is up to your specific risk profile.

quote:

Originally posted by bigwagon:
SPY/VOO, VXUS and VTI, plus a bond fund like BND will do most average investors quite well. The % mix is up to your specific risk profile.

There's no need to hold both SPY/VOO and VTI.

~85% of VTI is SPY/VOO, and as a result they track basically identically. So simply hold one or the other.


You can make a simple, low expense, and broadly diversified 3 fund portfolio with one US index fund - either just S&P 500 like VOO or else just total US market like VTI or FZROX, plus an international index fund like VXUS or FZILX, plus a broad bond index fund like BND or even VGIT.

https://www.bogleheads.org/wiki/Three-fund_portfolio


Or if you're not wanting to control the exact US/Intl split and instead just stick with the global market weight, the even simpler 2 fund portfolio of VT and the bond index of your choice.

https://www.bogleheads.org/wiki/Two-fund_portfolio


See also https://www.bogleheads.org/wiki/Lazy_portfolios



Or for maximum simplicity, you can simply invest in a low cost Target Date Fund with a date around your 65th birthday. These are basic globally diversified 3 or 4 fund portfolios, all in one fund. And their asset allocation transitions from being more aggressive while younger to being more conservative when nearing retirement age. This simplicity does come at the cost of a slightly higher expense ratio (usually a few tenths of a percent) and a potentially more conservative allocation, compared to rolling your own 2/3/4 fund lazy portfolio and rebalancing/adjusting it yourself every few years.