Vanguard or Fidelity?

[Anonymous]

What are "the only 3 funds you'll ever need" and in what % ratio do you need them in?

[Anonymous]

Anonymous wrote:What are "the only 3 funds you'll ever need" and in what % ratio do you need them in?

check out this http://www.bogleheads.org/wiki/Three-fund_portfolio

or go to Vanguard's site and try their online questionnaire, but note that it can sometimes give (IMO) slightly off answers

[Anonymous]

Anonymous wrote:What are "the only 3 funds you'll ever need" and in what % ratio do you need them in?

This depends, among other things, on the ages of you, your spouse, and your children. Also need income, expenses, current assets and how those may change going forward. Add to that your risk tolerance. A reasonable answer to your question could be made with this additional information.

[Anonymous]

Vanguard! With Fidelity you have to pay enough in fees to deliver some profit to the Johnson family - owners of Fidelity.
At Vanguard, you're a part owner in an amount equal to your assets placed with them.

[Anonymous]

Anonymous wrote:

Anonymous wrote:What are "the only 3 funds you'll ever need" and in what % ratio do you need them in?

This depends, among other things, on the ages of you, your spouse, and your children. Also need income, expenses, current assets and how those may change going forward. Add to that your risk tolerance. A reasonable answer to your question could be made with this additional information.

Lets assume we're 100% covered in all financial areas but are expecting 5-10 more very high earning years. We've decided we just want to go bogle head on the last investments. About $250,000 per year. We expect this money to be passed to our children.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What are "the only 3 funds you'll ever need" and in what % ratio do you need them in?

This depends, among other things, on the ages of you, your spouse, and your children. Also need income, expenses, current assets and how those may change going forward. Add to that your risk tolerance. A reasonable answer to your question could be made with this additional information.

Lets assume we're 100% covered in all financial areas but are expecting 5-10 more very high earning years. We've decided we just want to go bogle head on the last investments. About $250,000 per year. We expect this money to be passed to our children.

I would probably go something like 60/40 stock/bond, but you could easily vary that 10-20% in either direction depending on your risk tolerance. Then in the stock fund (and possibly in the bond fund) you should consider how much you want international-- you could just invest according to worldwide market caps, which would mean about 50/50 US/rest of the world (or a bit less US), but I'd probably tilt a bit more towards to the US, say 30-40% foreign.

[Anonymous]

So for example, you could go 40% total stock market, 20% total international stock market, 40% total bond market.

[Anonymous]

Finra has a great online calculator that shows how all the mutual fund fees add up. I liked vanguard before but I live it now!!!

[Anonymous]

Just one note -- Fidelity does offer a number of very low cost index funds. our portfolio is with Fidelity and those funds are quite competitive.

[Anonymous]

Anonymous wrote:Just one note -- Fidelity does offer a number of very low cost index funds. our portfolio is with Fidelity and those funds are quite competitive.

which ones, in particular?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Just one note -- Fidelity does offer a number of very low cost index funds. our portfolio is with Fidelity and those funds are quite competitive.

which ones, in particular?

Mostly the Spartan index funds -- e.g., Fidelity Spartan Total Market Index Fund (Advantage class):

Expenses & Fees
Exp Ratio (Gross) 0.07%
($0.70 per $1000)
4/29/2013
Exp Ratio (Net) 0.06%
($0.60 per $1000)
4/29/2013
Exp Cap (Dated) 2 0.06%
($0.60 per $1000)
1/1/2013
Distribution and/or service fee(12b-1) Fees 0.00%
Short-Term Redemption Fee 0.50%
Short-Term Redemption Period 90 Days
Small Balance Fee 3

And Investor Class, with just slightly higher fees:

Expenses & Fees
Exp Ratio (Gross) 0.10%
($1.00 per $1000)
4/29/2013
Exp Ratio (Net) 0.10%
($1.00 per $1000)
4/29/2013
Distribution and/or service fee(12b-1) Fees 0.00%
Short-Term Redemption Fee 0.50%
Short-Term Redemption Period 90 Days
Small Balance Fee 2

[Anonymous]

Anonymous wrote:Just one note -- Fidelity does offer a number of very low cost index funds. our portfolio is with Fidelity and those funds are quite competitive.

You're still winning overall at Vanguard, especially if you want to invest in a wider range of funds. I'm another statisfied Vanguard customer.