The percentage numbers are not prescriptive, but merely suggestions. You can tweak these number depending on your goals, age, and risk tolerance profile. Please remember that, even if you divide your asset allocation equally among all your funds, you will still come out ahead simply for getting started. So, don't sweat too much into percentages. Eventually, as you buy and hold your investments for longer timeframes, you can tweak your asset allocation by diverting more or less money.
Portfolio #1: Fidelity Four-in-One Index Fund
If your life is extremely busy, and you love simplicity, then invest in this four-in-one index fund.
| Fund | Aggressive | Moderate | Conservative |
| Fidelity Four-in-One Index Fund | 100% | 100% | 100% |
Portfolio #2: Fidelity Simple Three Index Fund Portfolio
If you like a little bit of control over your asset allocation, here is a simple three index fund portfolio. These funds cover the entire gamut of financial markets.
| Fund | Aggressive | Moderate | Conservative |
| Spartan® Total Stock Market Index Fund | 40% | 40% | 30% |
| Spartan® International Index Fund | 40% | 30% | 30% |
| Spartan® US Bond Index Fund | 20% | 30% | 40% |
Portfolio #3: Fidelity Simple Four Index Fund Portfolio
If you like to diversify into the real estate market without purchasing a physical property, here is a simple four index fund portfolio. See A Primer on Real Estate Investment Trusts (REITs).
| Fund | Aggressive | Moderate | Conservative |
| Spartan® Total Stock Market Index Fund | 40% | 40% | 30% |
| Spartan® International Index Fund | 30% | 30% | 30% |
| Spartan® US Bond Index Fund | 10% | 15% | 30% |
| Spartan® Real Estate Index Fund | 20% | 15% | 10% |
Portfolio #4: Fidelity Six Index Fund Portfolio
If you like to diversify and further control over your asset allocation, here is a six index fund portfolio.
| Fund | Aggressive | Moderate | Conservative |
| Spartan® Total Stock Market Index Fund | 20% | 15% | 10% |
| Spartan® 500 Index Fund | 10% | 15% | 10% |
| Spartan® Extended Market Index Fund | 10% | 10% | 10% |
| Spartan® International Index Fund | 30% | 30% | 30% |
| Spartan® US Bond Index Fund | 10% | 15% | 30% |
| Spartan® Real Estate Index Fund | 20% | 15% | 10% |
Portfolio #5: Fidelity Eight Index Fund Portfolio
Here is a eight index fund portfolio that adds mid-cap index fund and emerging markets fund.
| Fund | Aggressive | Moderate | Conservative |
| Spartan® Total Stock Market Index Fund | 20% | 20% | 15% |
| Spartan® 500 Index Fund | 10% | 15% | 15% |
| Spartan® Extended Market Index Fund | 10% | 5% | 5% |
| Spartan® Mid Cap Index Fund | 10% | 5% | 5% |
| Spartan® Emerging Markets Index Fund | 10% | 5% | 3% |
| Spartan® International Index Fund | 10% | 15% | 12% |
| Spartan® US Bond Index Fund | 10% | 15% | 30% |
| Spartan® Real Estate Index Fund | 20% | 15% | 10% |
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ReplyDeleteHappy new year to you !! Thanks a lot for sharing such information. I am a newbie in investing and would like to know more about brokerage and mutual fund accounts need to be opened for investing. I know there are many options but not sure which would be most cost effective. I have a regular tradeking brokerage account as present.
Thanks in advance
Pk
PK,
ReplyDeleteThanks for commenting. Here is what I would suggest. Both Vanguard and Fidelity are good companies. But, I like Vanguard a lot and that's where I have all my account including 401(K).
(1) If you have 401(K) plan at your employer, then you should first invest money there at least up to the portion where they match your contributions.
(2) If you have additional money left-over, then open a Roth IRA account as it has long-term tax benefits. More info here.
(3) If you still have additional money to invest, then open a Taxable Mutual Fund Account. Sometimes, it is called an Individual Account.
None of the above options require any account maintenance fees or trading fees. You will just have meet fund minimums to purchase initially.
Hope this helps.