What do you folks think?

[BB123]

Hello,

I've been investing in my IRA with fidelity for many years now... I have a
portfolio of 5 funds and I'm curious to hear your opinions... just based on
my own risk profile, I am 25 yrs old. this is a Roth IRA, there is an equal
amount of $$ in each fund... your thoughts appreciated...

20% FDGFX: Fidelity Dividend Growth Fund
20% FMCSX: Fidelity Mid-Cap Stock Fund
20% FEMKX: Fidelity Emerging Markets Fund
20% FNMIX: Fidelity New Markets Income Fund
20% FOSFX: Fidelity Overseas Fund

Thank you,
BB123

[John A. Weeks III]

In article <1LednUcLw7fm_YvZ...@comcast.com>,
"BB123" <1...@home.com> wrote:

This is a fairly personal choice. My question is if YOU are happy
with it? Personally, I see 3 categories that could have a lot of
international, and I am not that big on international. I'd like
to see some big-cap, small-cap, and index funds in there. I like
the dividend growth, but a value fund might be good there, too.

-john-

--
======================================================================
John A. Weeks III 952-432-2708 jo...@johnweeks.com
Newave Communications http://www.johnweeks.com
======================================================================

[Elle]

-- Are you above the minimum amounts in each fund required
to avoid an annual "low balance" fee? Not sure how much you
have invested in each fund and so this may not be
convenient.
-- Compare the expense ratios of these funds with similar
funds with Vanguard. If you can put up with Vanguard's
nickel-and-diming fee structure, and customer service that
isn't as convenient as Fidelity's (from what I've heard),
then consider Vanguard.
-- If you anticipate at some point putting individual stocks
into your IRA, probably stick with Fidelity (as opposed to
Vanguard). Fidelity's brokerage is better, from reports I've
read.
-- If you do stick with Fidelity, consider some of its
several very low expense ratio index funds. FSIIX, for
example.
-- If you haven't already, try some of the free online asset
allocation tools at
http://home.earthlink.net/~elle_navorski/id4.html , to
refine your thinking on asset allocation. I think you're off
to a pretty good start with your picks, though. Maybe do a
bit of tweaking.
-- Remember to rebalance periodically when one fund's
principal starts outweighing heavily another one's.

Disclosure: I am a 20+ year Fidelity client but also have
relatives who swear by Vanguard.

[Sandra Loosemore]

"BB123" <1...@home.com> writes:

> 20% FDGFX: Fidelity Dividend Growth Fund
> 20% FMCSX: Fidelity Mid-Cap Stock Fund
> 20% FEMKX: Fidelity Emerging Markets Fund
> 20% FNMIX: Fidelity New Markets Income Fund
> 20% FOSFX: Fidelity Overseas Fund

Looks to me like you are way overweighted in international funds and
emerging markets, in particular. I'd dump the FEMKX in favor of a
large-cap value fund and replace the FNMIX with a diversified bond
fund. Or, you might consider restructuring your whole portfolio
around a single balanced or asset-allocation fund so that you get
better diversification with fewer investments to track.

-Sandra