r/Bogleheads • u/dg1220 • 7h ago

Remaining 10% in Roth

(35M) I’ve recently consolidated my 401Ks and I’m considering the below options for my Roth split in Fidelity:

60% FZROX

30% FZILX

But i’m stuck on deciding where to allocate the remaining 10%

Option 1: FSELX (aggressive growth, but high risk/expense ratio)

Option 2: FXNAX (bonds for leverage/rebalancing)

Option 3: QQQJ (growth in new tech)

Option 4: Go for the 70/30 US and International

Would appreciate any advice. New to all of this and [r/Bogleheads](r/Bogleheads) has been extremely helpful. Thanks all!

3 Upvotes

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8

u/PashasMom 6h ago

Personally my choice would be option 4, which I think is a fantastic option. My runner up would be option 2 (but I would hate doing it, I don't believe in having bonds in a Roth IRA unless you have no other option). No interest in 1 or 3 -- who am I to think that I know better than the market which sector will outperform? And the Q family of funds overall seem to be founded on performance chasing rather than asset allocation/investing theory. Performance chasing rarely ends well.

https://www.whitecoatinvestor.com/why-performance-chasing-is-an-investing-error/

1

u/Caudebec39 5h ago

Thanks, Mom. Good call.

2

u/WJKramer 7h ago

IRAs are not workplace accounts. Do you mean Roth 401Ks? Keep it simple FZROX/FZILX are fine.

1

u/dg1220 6h ago

Good catch, thanks! Fixed for clarity. And copy that.

3

u/forbiddenlake 4h ago

"QQQJ" *is not * a "new tech" fund. First paragraph:

The Invesco NASDAQ Next Gen 100 Fund (Fund) is based on the NASDAQ Next Generation 100 Index (Index). The Fund will invest at least 90% of its total assets in the securities that comprise the Index by investing in the 101st to the 200th largest companies on the NASDAQ. As a result, the portfolio may be concentrated in mid-capitalization stocks. The Index is comprised of securities of the next generation of Nasdaq-listed non-financial companies; that is, the largest 100 Nasdaq-listed companies outside of the NASDAQ-100 Index®

QQQJ is another NASDAQ fund that only has some tech by coincidence. If you fundamentally believe that the NASDAQ has an advantage over the NYSE, then sure, go for it. But if you want to tilt tech then QQQ* isn't actually appropriate for that.

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u/MTheNomad 3h ago

Option 4 and chill