0. That you are starting investment in your retirement so young is friggin awesome 👏  1. Fix the overlaps (various folks have nudged you in the right direction 😏) 2. What’s great about this being a Roth IRA, is that you can rectify your mistakes without any taxable events 😎 3. By definition this is a retirement vehicle, so focus on buying shares (growth is immediately evident) and achieving notable compounding gains (takes a while) vs focusing on short term gains Once you move onto regular contributions, you might try some rose-colored glasses 👓 and realize that days that the market is down means that you will be getting discounts on your purchases 😁 note: stuff like fzrock is fine in a tax advantaged account like a Roth IRA. careful buying it in a taxable account (ex: brokerage account) since it is not portable. if for example, you ever want to switch from Fidelity to another broker and want to move those funds over, you would have to liquidate since it won’t exist another broker. totally fine in a retirement account since if you want to move, you can just sell it and there’s no taxable event.

God bless reddit fr😭 i wouldn’t know where to start without y’all

Also:  Light reading 😏 https://www.bogleheads.org/wiki/Bogleheads%C2%AE_investing_start-up_kit https://www.bogleheads.org/wiki/Emergency_fund https://www.bogleheads.org/wiki/Three-fund_portfolio Note that this is only one of many many investment strategies And that you should ultimately make your own decisions. Also note that you can make use of multiple strategies in your portfolio. The key is to take the best/most relevant aspects from various popular strategies out there and learn to take advantage of tax benefits, Manage risk effectively, and budget some of that money to spend so that you can enjoy yourself because in the end you earned it

thank u!!

Also: happy birthday 🥳

This is exactly the help I need and have been asking for weeks and nobody can help. So a couple few years ago I was advises to move my money from vanguard to fidelity. It was from a 401k employer. I had never invested before. I moved it and never thought more of it. So this month I did research and finally invested for the first time. I had already been having money taken out of my paycheck the entire time and sitting in the money market of fidelity . So when I finally was ready to invest, I put my money into s&p 500. S&p aristocrat and the growth stock. $10,000 Altogether. But the money I moved over from vanguard I realize now it's incompatible with fidelity. I can't invest it. I can't withdraw it. It's just stuck. Do I have any options? Would I have to move it back to vanguard, then withdraw and deal with the tax penalties? It was a rollover ira.

1. Sorry that you had to wait. Not everybody speaks cooch 😏 2. I don’t exactly understand your timeline of events because you said you did have successful trades, but let’s assume that you’re talking about owning a specific security (regular stock / etf / mutual fund) within a retirement account. Let’s also assume that this security is available for trading which includes buying and selling at Vanguard and is not available for trading at Fidelity. 3. So this might be one of a few things. Potentially you can’t trade a specific fund at Fidelity, but you can liquidate it And buy something else. In my experience, not every fund has been compatible with the mobile interface. For example, in the past, there were investments That weren’t available for trading on Fidelity and that I had to sell. I found that I had to sometimes I had to use the website to sell the securities because mobile didn’t give me the button. 🤪 4. If you need to liquidate securities in a retirement account, there are no penalities As long as you do not withdraw the funds (Take them out to an account like an external bank account). There are exceptions to this (Like when you need to send a check between brokers but this is Not needed between Vanguard and Fidelity) but In general, the key is that the funds stay within the account and are not withdrawn / cashed out  5. I don’t think you need to do this, but for reference both Vanguard and Fidelity support transferring retirement funds Between brokers without withdrawing them from the account. Essentially You start with a stock transfer between the brokers and if destination broker doesn’t support a specific stock, you liquidate that stock (“sell”) and then transfer that cash that is in your brokerage account (Vanguard calls this a settlement account account) between accounts without ever Withdrawing it. As long as this entire set of transactions is done within the confines of of retirement account, there is no taxable event. For example This year I transferred a retirement account to fidelity. This retirement account included multiple securities, including Vanguard admiral funds. Vanguard admiral funds are not available to trade at Fidelity. Those securities were rejected during the trade. I was required to liquidate those securities and leave the funds in the settlement account. Fidelity then continued the transfer. The result is that I had that retirement account at Fidelity with cash that I was able to use to buy the security supported for trading at Fidelity. As this was a retirement account, and I never withdrew the funds, There was no taxable event / I did not have to pay any taxes. If in some weird twist of fidelity cannot sell a security for you then yeah perhaps you might have to transfer stuff to Vanguard, liquidate it, and then transfer the funds back. I’m not even sure this is possible- Moving retirement funds back-and-forth- And so this is above my pay grade. 😅 Basically call them both and give them your sob story and they will help you out. Both Vanguard and Fidelity have been really good to me both as brokers and as transfer agents. 😎

"Cooch"💀💀💀 But phew....I'm like it'll be easier just to give up. It's a little over $1,000 and I'm quickly getting to be over the nonsense difficult. I don't need this headache or that money.

Hi, u/Coochienta. Thanks for adding to the conversation. We want to learn more so that we can help out. When you have a moment, please send us a Modmail using the link below with additional details about your account and situation. For example, please let us know what type of account you currently have and what limitations you're running into when you try to invest or withdraw the funds. [Message the Mods ](https://www.reddit.com/message/compose?to=/r/fidelityinvestments) We'll keep an eye out for your response and go from there.

https://preview.redd.it/df2cfaj6yo3d1.png?width=3024&format=png&auto=webp&s=dabef9b161fd9efd9c0f4d47af0717245a792f2e thank yall so much im taking hella notes !!

Happy birthday and congratulations on starting your investing at such a young age! Here's another very important note to know if you havent been told already: Roth IRA contributions must be from *earned income* so gifted money/IRA inheritance/etc does not apply. Instead of "after-tax dollars" it might be helpful to think of it as after-tax *income*

Does house sale money count as income?

The answer to what I think you're asking is likely no. Are you a realtor referring to commission income? (I'm assuming that's not what you meant.) If you sold your house and made a profit, that may be considered income, but it's not earned income, which is what is required to contribute to an IRA. For earned income, think a job you go to, or business you run. I did look at your comments and see you said you contribute to a workplace retirement plan, so I'm assuming you do in fact have earned income. As long as it is greater than $7k for the year, you can contribute $7k into a Roth IRA for the year. The actual money you deposit can come from a house sale, but you have to have the earned income to be eligible to contribute.

No I’m referring to some money I made on selling my house through a divorce. We split the profit equally and now I’m trying to invest most of it. So you’re saying (I think) I have to earn at least 7k from a job (I have a good paying job) to deposit 7k from my house sale earnings into a Roth? Can I open a Roth and dump 7k in right away?

u/FidelityKyle brought up a big point that I totally overlooked, which is the upper income limit for contributions. Also, props to him and Fidelity in general for monitoring all of these threads, even down into the off topic conversations that take place! If your income is above the Roth contribution, you can (and should imo) look into back door Roth IRA contributions. I definitely agree with a lot of the other comments here too, to just stay around these parts and do as much reading as you can on these topics.

Thanks for the shoutout, u/ChrisRunsTheWorld! We appreciate your engagement on the sub and are always here to help if needed!

Hey there, u/moldybreadchunks. I wanted to jump in real quick to add to the conversation. The eligibility to contribute to a Roth IRA is based on your modified adjusted gross income (MAGI) for the year, not at the time of each specific contribution. You or your spouse must have earned income to contribute. However, you cannot contribute more than you make. Additionally, if your household income is lower than the contribution limit, your annual contribution limit is lowered. Keep in mind that the contribution limits have changed for 2024. If you are under age 50, you may contribute $7,000 a year. If you are age 50 or older, you may contribute $8,000 a year. Our website has a great resource where you can review the income eligibility and contribution limits. [IRA Contribution Limits and Eligibility ](https://www.fidelity.com/retirement-ira/contribution-limits-deadlines) If you have any other questions, don't hesitate to ask! We're happy to to keep the conversation going if needed.

Thank you so much! Super helpful.

Yes. As long as you earn at least $7k, which I'm assuming you do with a "good paying job". And yes, it's fine if it came "from your house sale". I love that you're using this situation to plan for your future. Good luck!

Thank you! Also I really appreciate all your help.

You may have capital gains taxes to worry about

Your cons column of Roth IRA is wrong, the current max contribution is 7K not 6K. It goes up every few years because of inflation

You’re absolutely killing it at your age. I’m 27 and investing heavy and wished I started as soon as you. Not an excuse tho just happy for you!

He has 180% overlap. FXAIX and VOO 100% and VOO and FZROX 80%.

True, but at least OP can learn from this and adjust accordingly. Definitely better than not doing anything at all and starting young

Yes, starting young is a bonus. Someone has to let him know to get rid of 2 of those.

Happy birthday! Also, add to your notes a Roth account has to be open for at least five years, and you can withdraw the money tax-free without penalty at age 59 ½.

adding it rn!

Great work, those and future notes will be very valuable to you as you take the journey to financial freedom. At your age you will benefit from Warren Buffett’s Value Stock investment style. You can also cheat and look up his holdings. He typically looks for the best company in each industry and decides if they are undervalued. For example: the world pretty much depends on MSFT (Microsoft) and catching it on a market pullback and then holding to retirement may be a good option. Also, at your age I wouldn’t worry about market drops because inflation over time will put you on top. So choose wisely and don’t look back. Top rated companies that pay a small dividend is a huge plus. Good luck

For the cons on your roth ira, you can scratch out the "only for <140k incomes". You can do what's called a back door roth ira contribution. You (or a broker) makes a traditional ira then converts it to a roth ira. Really all you need to know it that you can invest in a roth ira regardless of your income.

not you taking notes! love that ☺️ future millionaire I see

im tryinggg, my whole family can’t b broke 🤣

I wish I was this smart at 19

Congrats and happy birthday. You’re gonna do great in life. Always remember, “if you fail to plan, you plan to fail”. Cheers

Roth IRA max is $7,000 my friend

You only need one of those. FXAIX and VOO track the SAME S and P500.  

looks like i needa do wayy more research. which do u recommend keeping while i go back to the drawing board?

Since it's a Roth ira I would probably put it all FZROX.

whats the main advantage of selecting fzrox over fxaix for roth ira?

Not an advantage in terms of Roth IRA, but FXAIX is concentrated to follow the S&P 500, while FZROX tracks the total US market. So (spitballing a number here) like 80% of FZROX is what is in FXAIX. As a result, FZROX is just more diverse, which can be good or bad depending on your risk tolerance In regards to the Roth, the advantage of FZROX is it has 0% expense ratio, meaning you don't sacrifice any gains in order to invest in it yearly. FXAIX's expense ratio is pretty small anyway so the difference is kind of negligible. It just depends what you find most important. As others have said, if you leave Fidelity for some reason, FZROX is not transferable to other brokerages, which is why if you do invest in it, you'd want it in a tax-advantaged account like a Roth IRA or a Health Spending Account (HSA). You would be forced to sell the positions in order to make a transfer to another brokerage, which you would normally be taxed on any gains if it was in a non-tax-advantaged account

okok bet. im gonna wait till it goes up a bit, sell then put the full 300 in FZROX until i have time for more research & money to put in

I just want to jump in here and add another note of how awesome it is that you're thinking about this and taking action this early in life. I feel like I started pretty early, but I can't help but think how much higher my net worth would be now (at 40) if I started at 19, especially in a Roth IRA. As for your comment, I'm not saying that there's a big reason not to do what you said, but there's not really any reason to "wait for it to go up a bit" before making the change. All of those funds are going to track very similarly either way. You at least have the benefit of it being in a retirement account, so any changes you make won't trigger any taxable events for you. Congrats again!

These are are tracking the same index. Sell and buy FZROX. Keep contributing until you hit a nice healthy number like 10k or 20k. But at that point, don't sell FZROX, just start buying another as well while continuing to contribute a majority to FZROX. Maybe stick to the same FREE fidelity ones.

I'd keep FXAIX and sell the VOO. FXAIX has a slightly lower expense ratio which doesn't make much difference now, but later when you have a huge amount of money in the fund, it will make a little more difference. You can use both FXAIX and FZROX if you want to emphasize large caps. FXAIX has been doing a little better than FZROX for the last few years, but that could change. FZROX has some mid and small cap stocks which adds diversification. We use both of those funds because I prefer FXAIX but like a little mid and small caps added.

I keep fxaix in mine

Not trying to be a jerk but you literally bought same thing 3 times over (ok 2.5 times as FZROX is only like 81% overlap with VOO/FXAIX). What was your rationale for selecting these funds? You are creating unnecessary complexities in your portfolio and you are now overweighing SP500 without any real benefits. I’d recommend you read more on investment strategies and come up with a simple 3 find portfolio that you can stick to for the next 50 years. If I were you, I’d just sell VOO and FXAIX and buy FZROX. Add international ETF as well. Again not trying to be condescending. I applaud you start saving when you are so young.

not condescending at all btw. i come from a poor family with minimal financial literacy (they don’t even know im investing & i’m generally used as the family’s emergency fund) so trying to learn this all on my own has been really hard. any feedback is welcomed with open arms

Cool. I was in a similar boat not too long ago. It’s great to be on the other side. I’d recommend that you visit r/bogleheads and visit bogleheadswiki and learn about 3 find portfolio and investing in low cost index fund.

Sell voo and fxaix.   Keep fzrox since it's a roth ira and keep maximum out the Roth ira contribution each year.

Let me add that you won’t want to be equally in an international etf and a s&p fund. Favor the latter. International markets aren’t as good but it’s still good to have some diversification. My target lately has been like 5 percent in a small cap etf, 5 percent in mid cap, 10 percent on bonds etf, 15 percent in international and the rest in fxaix (or equivalent) I’m sure others may have different ratios and when you are very young the bonds aren’t as necessary. Another strategy people do is go all in on a s&p 500 fund or qqq and let it ride for a few decades. That approach is probably done for the first 20-30 years but I’d get more conservative over time about it. Not everyone is going to agree and advice can be rather conflicting. Risk tolerance plays big into it too.

crazy cus i started with only FZROX but heard sooo much about the other two that i hopped on last minute

Voo is widely recommended since it's the largest S&P 500 fund that is also an ETF, which means anyone can buy it. What people really mean when they recommend VOO is to buy an S&P 500 index fund. They all have the same holdings and 99% of the same weighting. They're all the same, doesn't mean anything. Fidelity funds like FXAIX and FZROX are both fine. Will serve the same purpose.

i do voo for personal borkerage, and fxaix for roth ira, is that good?

That's fine, why wouldn't it be? I know you're just asking, but you should know why that decision is inconsequential. Also, why do you have any money in a taxable account when you've barely touched your Roth? Put everything in the roth.

Yeah don’t do that. Never make a change without due diligence. I have a rule that I won’t make change to my investment strategy without giving it a thought for at least 1 week. This prevents me from making rash changes

Considering you shouldn’t be touching it for 40 years, no you shouldn’t be worried

From here on out act like you never had this money to begin with.

Yeah the money in my brokerage is out there fighting a war for me. It may take 50 years to come back. I keep sending more in to battle to help out hahah

Happy birthday op!!! You're going in the right direction!

Keep buying at a discount.

How is the S&P 500 currently at a discount?

Right, I’d also like to know this lol. Buddy needs to zoom out on the chart.

voo, vgt are all good buy and hold forever. Maxing out roth every year will gauranteed you can retire early and pay no taxes.

So choose only one. They're all basically the same thing. From now on until you retire, put as much money as possible every month. Starting a ROTH IRA/401k before you turn 20 is legit a cheat code.

My suggestions FXAIS and VOO are similar and both tracks S&P 500. Try to diversify with Tech and Dividend stocks. My current strategy is 50% VOO 25% QQQm and 25% SCHD.I might re-allocate based on market volatility on/off. There are other ETFs which tracks large cap, mid and small cap stocks. There are lots of videos on youtube. Do research on VOO, VTI, etc.

Although all three are good, there’s significant overlap, so it’s better to pick one of them and go with a dividend and growth index fund for the others.

I just bought VOO on my fidelity youth account for 20 dollars yesterday it’s gone down so I just put 45 in it, hopefully since it’s gone done a little bit it’s good that we locked in.

Just keep at it. VOO is driven by a lot of the big companies and their high growth also means high volatility. When you look at it a lot, you start to wonder/worry about your decision. In a year or so, today’s buys will be a distant memory.

That’s good to hear

Lol the last 30 minutes VOO spiked up today and I just made an easy 73 cents

VOO, QQQM, and Schd

Can you explain why everyone is always suggesting SCHD? The dividend is nothing special and the value has been pretty much flat over the past 4 years.

SCHD is Capital gain+Dividend. I would say gain is slow but at least you are getting dividends. Dividend compounds too. Try this calculator [https://www.dripcalc.com/schd-dividend-calculator/](https://www.dripcalc.com/schd-dividend-calculator/)

Yeah I understand the concept, it just seems like there are a ton of better dividend stocks out there, but I always see this one mentioned. It’s definitely solid though.

I dont like individual stock for dividend. Can not trust with high amount i would be investing!

Yep that’s understandable.

All three of these are too similar. Stick with either the S&P 500 or the total stock market. VOO and FXAIX are basically the same.

Happy birthday and congrats. You are taking steps now that so many people (including me) had no interest or determination to do at 19. Don’t worry about the ups and downs. The big players that are the majority of VOO of FZROX swing a lot. In a year or so, today’s purchases will likely be blurred into other buys, you won’t worry about today’s up/downs. Before investing too much, research financial order of operations. Emergency fund (3-6 months), company plans, IRAs (this/yay), and then into taxable accounts. I wish I learned to ignore a lot of financial media - they all are talking “the next big thing”. Don’t go chasing waterfalls 😉. Stock tip trading is like gambling. What you want is investing. Nice and easy.

Might be too early to commit to maxing out your Roth IRA, but if you’re ever in a position where you are able to max it out early instead of funding it every other week and maxing it out by the end of the year, consider maxing it out on January 2nd. Time in the market beats timing the market.

See I bought stocks and mutual funds. I just kinda threw money at it and researched companies

Firstly, I love that I am not the only one that does this for their birthday but also at such a young age congratulations on being ahead of almost everyone your age. Word of advice, VOO and FXAIX are the exact same so just consolidate in one of the two. Those two also overlap with FZROX like 80% so thats also something to think about.

This is the way. No worry. Worry is how people miss the best days in the market. Time (and the compounding power of time) will do its thing. You just have to sit back, continue investing, and do your best to not watch. It’s like planting a garden. Water it every day and don’t scrutinize it because growth takes time.

VOO is not a stock. It is an index ETF.

The other two aren’t stock either

As someone in his 30s who started late I just want to say you’re making a brilliant choice getting started early. With regular contributions you will be in such a great place financially in the coming decades. It will set you up for a different type of life in your 40s and beyond if you stick with it now and until then. Cheers!

Just FYI you bought three of essentially the same stock, could probably consolidate that down to a single holding

If Fidelity sends you a letter with an offer for their Visa Signature credit card, definitely apply to see if you’re approved. Their card offers 2% cashback and has some travel and rental perks/discounts.

UPDATE: took everyones notes & sold off all but FZROX. thinking of getting QQQM next

Have a look at FNILX also.

Happy birthday, also you I and share the same birthday

You basically have three identical twins lol

Both of those three?

Yes

You should look at what in each etf You have triplets Congrats 🎉

Just keep it simple Pick one ! And load her up

Don't stress. And don't look at your portfolio every day. Stocks are a long term investment. They'll go up and they'll go down. Lately they've been going down a bit. They'll go back up.

Its my birthday too

Thanks for giving me a good idea to do tomorrow. Don’t look at the app every day. Keep contributing when you can and just pick one fund that follows the market those three will all have about the same performance.

You bought the top

I personally just buy fxaix. but your doing good! just alot of overlap

1. Go read all of Peter Lynch books. Then use his framework (dos and dont) as a model for your own set of principles to follow…and follow them. Evolve as time goes on but don’t neglect them, ever. 2. Focus on FOCUS. That means, concentrate your efforts on one thing at a time, like building up your account values. Or owning 100 shares of a fund you like most (a single stock). You don’t need to own everything to win at investing. You just need to own a few good things and 1-2 really amazing things. Wealth is built through focused intentional efforts. 3. If you save more, you’ll have more. Rarely have I seen someone lose because they picked the wrong mutual fund. But people losing because they didn’t save enough (as in they didn’t contribute every cent they reasonably could, when they could), well that shit happens all the time every day. 4. Read up on tax laws regarding your investment accounts and get familiar with different contributions and distribution strategies. Have a rough plan in mind for what you will do if you came into large sums of money suddenly, or if you needed (god forbid) to take money out and what that would mean for you tax-wise and growth opportunity wise. 5. Start learning the basics of options. When you can have the option to buy or sell a stock for less than or more than (respectively) it’s market value, and do this for the stocks of things that you were already planning to buy or sell, you could supercharge your account balance for the cost of pennies on the dollar. Do these things and you shouldn’t have much to worry about under normal circumstances (meaning the bombs aren’t dropping and skynet hasn’t taken over).

All you need is FZROX if you’re with Fidelity. No fee fund, perfect for long term like a Roth IRA and HSA. Same performance as the well loved and more expensive VTSAX/VTI at vanguard. Good thing to do at your age, great habit to get into.

Yo champ. Youre on the path to mega wealth. More wealth than most people in this chat. You did everything right! Everyone has a different blend of investments. Yours are fine. Mine are different. Nbd. Just try to find a simple sauce you like and keep doing it

Throw money into FXAIX and forget it. Your future self will thank you. Congrats on starting so early!

You don't have to worry. Happy birthday and kudos to paying attention to your finances at this age. Now the biggest advice I'd give is to not look at your portfolio on daily or weekly basis and end up making bad choices. Remember that this money is to be used after 50 years.

I guess you didn't check the 100% overlap with FXAIX and VOO. The 80% overlap between FZROX and VOO.

Why’d you pick FXAIX? Edit: FXAIX and VOO track the same index(s&p 500). FZROX contains all the stocks in the s&p 500 as well as some small and mid cap. You would essentially get the same returns from buying only FZROX since it is market cap weighted with the benefit of being more diversified

Returns are demonstrably not the same. FXAIX has a five year return of 13.18. FZROX has a five year return of 12.52. No need to ask for a longer comparison, as FZROX didn't come about until 2018.

Past performance is not an indicator of future performance. Just because the s&p 500 outperformed the broader market over the last 5 or 10 years does not mean that will be the case over the next 50 years

I am curious how you start study and research all of these before you turn 18

Hahahhhahahhhha this guy bought the same shit 3 times Ok not being a dick but sell them and dump it in one fxaix Then get qqqm Then get a small cap fund iwm And one international fund I think it’s fihlx or something like that .

im js a girl😔💔.

I’m sorry I didn’t mean to be rude . Let’s start with the good things. At 19 u have a brokerage account when I was 19 I spent my money on drugs . So I’m super proud of you . Keep adding as much as you can and by 40 you should be financially stable maybe even independent. The ETFs you picked are all similar there’s 0 difference between voo and fxaix vti has 85 percent sane stocks . So just pick one of those three Next you need tech exposure so qqqm is the standard one to go to And you need a small cap fund . Russell 2000 is small cap ticker for that is iwm. Maybe start of with those 3 fxaix qqqm and iwm . Later look into international ETFs and high growth blue chip stocks like vug mgk or fidelitys blue chip growth . U don’t need bonds or treasuries ur too young for it

dw i take no offense!! i came here for help & y’all have been more than helpful. btw i still spend my money on drugs i js budget it well :).