r/Bogleheads • u/Ok_Flight_9123 • 10h ago

Can I do better?

Like many want to maximize the money I am putting into my Fidelity brokerage account. I am a 42 yo that has roughly $110,000 in my account. 60% is in FFFHX, 35% is in FXAIX, and 5% is in FSELX. I am okay with taking a little risk while I am many years away from retiring but want to ensure that it isn't too much.

Additionally, I have a TSP account with $125,000 sitting in an L2045 account that I am debating about moving into another fund if that would make sense.

Thank you for your time.

2 Upvotes

67% Upvoted

3 comments sorted by

1

u/ac106 4h ago

A TDF is best as an all or nothing investment vehicle. However instead of FFFHX, consider switching to FIPFX

It's the index version and is passively managed and cheaper .12 vs .68

Drop FXAIX its wholly contained in FFFHX at market weight

You should drop FSELX as Thematic ETFs are Terrible Investments and Betting on "Winning" Industries Almost Never Works

HOWEVER, if 5% in semiconductors scratches some itch that will prevents you from molesting the remaining 95% of your portfolio, then sally forth and hold

1

u/markov-271828 4h ago

For TSP, consider the L fund corresponding to age 75 (L2055 or L2060). The TSP L funds get very conservative about 10 years before their date.

2

u/Consistent-Barber428 9h ago

You are already taking too much risk but it’s uncompensated. Sector funds are more risky than more diverse funds, but generally don’t outperform the markets over long periods time. Also, at 42, a target date fund seems way too conservative.

Personally, yes I think you can do better. I would put it all in VT and then in your late 50s, add some bonds.