I have been investing in 401k since out of college but i have basically always just let it be managed by the company and admittedly not been something I have looked closely at outside of the overall balance.

I want to start investing separately (I am thinking Fidelity) and start putting excess money into ETFs or Index funds (or both?).

What is a healthy mix of these (and what type of funds or ETFs should I be looking at) that I can put money in each month, for the record I am 35, I have a mortgage.

I'm moving away from going super heavy S&P with 30% of it allocated to 7 companies. I've been adding global and bond funds

Holistic Planning said:

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Congrats on getting serious about it!

I think the general advice here is going to be to keep it simple and buy an S&P 500 ETF like VOO, IVV or STRV to keep your costs low and tax efficient.

Make sure if you're able to be tax smart by funding Roth IRAs and if applicable consider 529 plans.

Make sure you keep your emergency funds liquid and risk free in something like USFR or money market. Target today should be around 4% return on your risk free funds.

Make sure then to get your basic term life insurance if needed and estate documents in place and you are set!

Good luck!

---

I have 6 months of expenses in an HYSA for right now, I believe that is 3.5%

Is there a mix I could be looking at to diversify out of just s&p 500? Bringing in some international mix and r some other ETF that targets something g other than s&p500?

You'll have to look at your options in your 401k

Mine is about as limited as it could be and have

Large cap - S&P
Small caps- Russell 2000
International
Global
Bonds


The rest for me are target funds that mix bonds and equities based on retirement year

If you pick a broad basket of holdings, it'll grow over time. If you dollar cost average, you can smooth out the hills and valleys.

As for individual holdings, most people can't perform better than just buying a bunch of SPY or VOO and holding it forever. These are ETFs that track the S&P 500.

While I'm not making endorsements and your strategy is your own, I personally have a lot of SPMO. It's a subset of the S&P 500 that's focused on momentum stocks. Its been performing very well, but if there were such a thing as a perfect holding, everybody would already have it.

First thing you do is reach your 401k limit. I believe it is 23.5k. Many people don't know that, I shockingly didn't until about 6 years ago. You are shielding that money from taxation and when you leave your job, you move the money into an IRA and invest in anything you want and $$$.

My other secret is: For 401k, don't invest in multiple funds. You will have many options. Do not invest in the company stock. Find one which has lowest fees and highest performance over the past 1 year. Put all your money in it. Just 1 fund. That has worked for me, keeps things simple and diversified but not overly so (which causes low returns). Formula is more risk, more return, so you want to find your spot.

I manage my wife's 401k and all her money is in

Quote:

---

FSPGX -Fidelity Large Cap Growth Index Fund

---

16% over 1 Year.

You can do a lot more than 23.5K in your 401K

Between employers and employees the max is 70K but I think that offense goes into an after tax bucket

Investing in a single fund works until it doesn't. I've chosen to diversify

infinity ag said:

---

First thing you do is reach your 401k limit. I believe it is 23.5k. Many people don't know that, I shockingly didn't until about 6 years ago. You are shielding that money from taxation and when you leave your job, you move the money into an IRA and invest in anything you want and $$$.

My other secret is: For 401k, don't invest in multiple funds. You will have many options. Do not invest in the company stock. Find one which has lowest fees and highest performance over the past 1 year. Put all your money in it. Just 1 fund. That has worked for me, keeps things simple and diversified but not overly so (which causes low returns). Formula is more risk, more return, so you want to find your spot.

I manage my wife's 401k and all her money is in

Quote:

---

FSPGX -Fidelity Large Cap Growth Index Fund

---

16% over 1 Year.

---

Last year I had everything in VOOG (S&P 500 Growth Index). It captured the AI boom and took off like a rocket ship. I switched it up in late summer / early fall, but large cap growth has been very good.

jamey said:

---

You can do a lot more than 23.5K in your 401K

Between employees and employees the max is 70K but I think that offense goes into an after tax bucket

Investing in a single fund works until it doesn't. I've chosen to diversify

---

OK, I see this online. Does it mean that you put in money for the rest of it? You can send your plan 43.5k and shield from tax? I have never done it before. Why not just send it to your IRA then? More fund options.


Google AI

Quote:

---

In 2025, you can contribute up to $23,500 to your 401(k) plan, with an additional $7,500 catch-up contribution available for those age 50 or older, and a $11,250 catch-up for those aged 60-63. The maximum combined contribution limit for employee and employer contributions is $70,000.

---

Investing in a single fund has always worked for me. More risk but more reward over long term. But then everyone's situation is different.

Jeeper79 said:

---

infinity ag said:

---

First thing you do is reach your 401k limit. I believe it is 23.5k. Many people don't know that, I shockingly didn't until about 6 years ago. You are shielding that money from taxation and when you leave your job, you move the money into an IRA and invest in anything you want and $$$.

My other secret is: For 401k, don't invest in multiple funds. You will have many options. Do not invest in the company stock. Find one which has lowest fees and highest performance over the past 1 year. Put all your money in it. Just 1 fund. That has worked for me, keeps things simple and diversified but not overly so (which causes low returns). Formula is more risk, more return, so you want to find your spot.

I manage my wife's 401k and all her money is in

Quote:

---

FSPGX -Fidelity Large Cap Growth Index Fund

---

16% over 1 Year.

---

Last year I had everything in VOOG (S&P 500 Growth Index). It captured the AI boom and took off like a rocket ship. I switched it up in late summer / early fall, but large cap growth has been very good.

---

You got lucky they offered it in your 401k. FSPGX is the best my wife has in her plan. Others made lesser.

Saxsoon said:

---

Holistic Planning said:

---

Congrats on getting serious about it!

I think the general advice here is going to be to keep it simple and buy an S&P 500 ETF like VOO, IVV or STRV to keep your costs low and tax efficient.

Make sure if you're able to be tax smart by funding Roth IRAs and if applicable consider 529 plans.

Make sure you keep your emergency funds liquid and risk free in something like USFR or money market. Target today should be around 4% return on your risk free funds.

Make sure then to get your basic term life insurance if needed and estate documents in place and you are set!

Good luck!

---

I have 6 months of expenses in an HYSA for right now, I believe that is 3.5%

Is there a mix I could be looking at to diversify out of just s&p 500? Bringing in some international mix and r some other ETF that targets something g other than s&p500?

---

Keep it simple. If you want to go with Fidelity then go with their total US stock market fund FSKAX. It has the entire stock market in one fund, around 3900 stocks. You cant get more diversified than that.

I would do 100% FSKAX and forget about international funds, but if you insist on adding international, then go with their total international index fund, FTIHX.

IMO cant go wrong with the below, or a similar percentage.

90% FSKAX
10% FTIHX

infinity ag said:

---

jamey said:

---

You can do a lot more than 23.5K in your 401K

Between employees and employees the max is 70K but I think that offense goes into an after tax bucket

Investing in a single fund works until it doesn't. I've chosen to diversify

---

OK, I see this online. Does it mean that you put in money for the rest of it? You can send your plan 43.5k and shield from tax? I have never done it before. Why not just send it to your IRA then? More fund options.


Google AI

Quote:

---

In 2025, you can contribute up to $23,500 to your 401(k) plan, with an additional $7,500 catch-up contribution available for those age 50 or older, and a $11,250 catch-up for those aged 60-63. The maximum combined contribution limit for employee and employer contributions is $70,000.

---

Investing in a single fund has always worked for me. More risk but more reward over long term. But then everyone's situation is different.

---

The remainder has to go into an after tax bucket as I recall. My 401K has 3 buckets

Traditional pre tax
Roth 401K
After tax

infinity ag said:

---

First thing you do is reach your 401k limit. I believe it is 23.5k. Many people don't know that, I shockingly didn't until about 6 years ago. You are shielding that money from taxation and when you leave your job, you move the money into an IRA and invest in anything you want and $$$.

My other secret is: For 401k, don't invest in multiple funds. You will have many options. Do not invest in the company stock. Find one which has lowest fees and highest performance over the past 1 year. Put all your money in it. Just 1 fund. That has worked for me, keeps things simple and diversified but not overly so (which causes low returns). Formula is more risk, more return, so you want to find your spot.

I manage my wife's 401k and all her money is in

Quote:

---

FSPGX -Fidelity Large Cap Growth Index Fund

---

16% over 1 Year.

---

Agreed about the 1 fund approach. Too many people overthink things and feel like they have to invest in a bunch of different funds to be totally diversified, and of course their returns typically lag the S&P 500.

infinity ag said:

---

Jeeper79 said:

---

infinity ag said:

---

First thing you do is reach your 401k limit. I believe it is 23.5k. Many people don't know that, I shockingly didn't until about 6 years ago. You are shielding that money from taxation and when you leave your job, you move the money into an IRA and invest in anything you want and $$$.

My other secret is: For 401k, don't invest in multiple funds. You will have many options. Do not invest in the company stock. Find one which has lowest fees and highest performance over the past 1 year. Put all your money in it. Just 1 fund. That has worked for me, keeps things simple and diversified but not overly so (which causes low returns). Formula is more risk, more return, so you want to find your spot.

I manage my wife's 401k and all her money is in

Quote:

---

FSPGX -Fidelity Large Cap Growth Index Fund

---

16% over 1 Year.

---

Last year I had everything in VOOG (S&P 500 Growth Index). It captured the AI boom and took off like a rocket ship. I switched it up in late summer / early fall, but large cap growth has been very good.

---

You got lucky they offered it in your 401k. FSPGX is the best my wife has in her plan. Others made lesser.

---

They didn't initially. But we got an option (which I'm sure nobody else at our company even noticed) to offload all of our 401k into a more standard brokerage account and still be shielded under 401k rules. So I emptied my 9 years worth of 401k holdings into this account on day one.

Now I can do whatever I want with it (and I mean ANYTHING). Leveraged ETFs, penny stocks, options… And since it's tax advantaged and Fidelity trades are free, I can do as many trades as my settled cash allows without worrying about capital gains tax.

Yes I'm very lucky. (And I don't do penny stocks or options.)

Petrino1 said:

---

infinity ag said:

---

First thing you do is reach your 401k limit. I believe it is 23.5k. Many people don't know that, I shockingly didn't until about 6 years ago. You are shielding that money from taxation and when you leave your job, you move the money into an IRA and invest in anything you want and $$$.

My other secret is: For 401k, don't invest in multiple funds. You will have many options. Do not invest in the company stock. Find one which has lowest fees and highest performance over the past 1 year. Put all your money in it. Just 1 fund. That has worked for me, keeps things simple and diversified but not overly so (which causes low returns). Formula is more risk, more return, so you want to find your spot.

I manage my wife's 401k and all her money is in

Quote:

---

FSPGX -Fidelity Large Cap Growth Index Fund

---

16% over 1 Year.

---

Agreed about the 1 fund approach. Too many people overthink things and feel like they have to invest in a bunch of different funds to be totally diversified, and of course their returns typically lag the S&P 500.

---

What i don't like is 30% of the S&P is 7 companies, all in the same AI bucket.

Eventually AI will benefit all, not just those doing the work to create AI itself.


My Global fund isn't much different than the S&P plus some big international companies. I think the first international company listed by allocation is like 15th

But the allocation to the Mag7 is abiut 40%, so if Microsoft is 6% in the S&P, the global fund might be about 2.4%

My employer match when I joined last year put their 7% match into a company stock fund. I immediately got out of it with my advisor at the company to be spread out like what I was having go in. That said the stock doubled since I joined last year so maybe I should have stuck it out

I'm pretty bad at stock picking. That's why I stick to indexes.

Time in the market is more important than what you invest in imo. Max it out, dollar cost average and watch it grow over time . Personal opinion is that diversifying will outperform company stock over the long haul and will be less volatile so don't worry about lost opportunity because your company stock doubled . Take the long view .

Personal opinion here but I was in Engineering and didn't know anything about investing in my early 20's. I had an opportunity to go to a continuing education program on investing and it helped set a foundation of understanding that has helped me since. I think I went when I could once a week for 6 mos or so. Was well worth it.

jamey said:

---

infinity ag said:

---

jamey said:

---

You can do a lot more than 23.5K in your 401K

Between employees and employees the max is 70K but I think that offense goes into an after tax bucket

Investing in a single fund works until it doesn't. I've chosen to diversify

---

OK, I see this online. Does it mean that you put in money for the rest of it? You can send your plan 43.5k and shield from tax? I have never done it before. Why not just send it to your IRA then? More fund options.


Google AI

Quote:

---

In 2025, you can contribute up to $23,500 to your 401(k) plan, with an additional $7,500 catch-up contribution available for those age 50 or older, and a $11,250 catch-up for those aged 60-63. The maximum combined contribution limit for employee and employer contributions is $70,000.

---

Investing in a single fund has always worked for me. More risk but more reward over long term. But then everyone's situation is different.

---

The remainder has to go into an after tax bucket as I recall. My 401K has 3 buckets

Traditional pre tax
Roth 401K
After tax

---

I'm doing $31K all in Roth 401k. I'm 51.

Saxsoon said:

---

My employer match when I joined last year put their 7% match into a company stock fund. I immediately got out of it with my advisor at the company to be spread out like what I was having go in. That said the stock doubled since I joined last year so maybe I should have stuck it out

---

You just got a tad unlucky there. But in the long run, it is a bad thing to put money in a single stock. If your CEO was a corrupt clown, he single-handedly could have tanked the stock and your money.

It happened to me in 2007 in a company I had invested in. Wellcare Health Plans. Made a killing but an accounting scandal tanked the stock. I got away with a very small profit.

Jeeper79 said:

---

I'm pretty bad at stock picking. That's why I stick to indexes.

---

The only way to make money.

Any real major differences between investing the Fidelity Index Funds vs. Vanguard Mutual Funds?

For example - total stock market, total international, total bond and total international bond

I'm aware of minimum investment in vanguard mutual funds but wanted to see if there was a real difference.

I no longer want to invest in a target date mutual fund in my taxable brokerage so I'm just going to do individual funds.

60/30/6/3 in terms of total stock market, total international, total bond and total international bond.

TheMasterplan said:

---

Any real major differences between investing the Fidelity Index Funds vs. Vanguard Mutual Funds?

For example - total stock market, total international, total bond and total international bond

I'm aware of minimum investment in vanguard mutual funds but wanted to see if there was a real difference.

I no longer want to invest in a target date mutual fund in my taxable brokerage so I'm just going to do individual funds.

60/30/6/3 in terms of total stock market, total international, total bond and total international bond.

---

Cost and performance. I've found Fidelity to generally be better in both categories even if just a small amount. Platform and customer service are certainly better based on the general consensus I've seen on here.

YouBet said:

---

TheMasterplan said:

---

Any real major differences between investing the Fidelity Index Funds vs. Vanguard Mutual Funds?

For example - total stock market, total international, total bond and total international bond

I'm aware of minimum investment in vanguard mutual funds but wanted to see if there was a real difference.

I no longer want to invest in a target date mutual fund in my taxable brokerage so I'm just going to do individual funds.

60/30/6/3 in terms of total stock market, total international, total bond and total international bond.

---

Cost and performance. I've found Fidelity to generally be better in both categories even if just a small amount. Platform and customer service are certainly better based on the general consensus I've seen on here.

---

Sweet - I had heard about the capital gains tax issue with TDF and how it's not an issue since 99% of people have them in IRAs/401ks and hardly in a taxable account.

So I figured something was up and figure I need to change since it's in a taxable account. I don't feel scammed and don't think it will make too much of a material difference later on but if I can be more in control using the individual funds and just change the % myself than I'd rather do that.

I do have an appt. with a Fidelity advisor soon who is right below my office.

infinity ag said:

---

Saxsoon said:

---

My employer match when I joined last year put their 7% match into a company stock fund. I immediately got out of it with my advisor at the company to be spread out like what I was having go in. That said the stock doubled since I joined last year so maybe I should have stuck it out

---

You just got a tad unlucky there. But in the long run, it is a bad thing to put money in a single stock. If your CEO was a corrupt clown, he single-handedly could have tanked the stock and your money.

It happened to me in 2007 in a company I had invested in. Wellcare Health Plans. Made a killing but an accounting scandal tanked the stock. I got away with a very small profit.

---

Oh absolutely.

I only hold a small number of Sector ETFs.

I follow 80/20. My strategy is to beat the S&P by simply not holding the underperforming sectors. It's served me well.

Also, I made it a point to hold non-correlated sectors to reduce volatility.

Example portfolio

1/3 tech
1/3 healthcare
1/3 utilities.

If you want to get more agressive with growth, you can do

60% tech
20% health care
20% utilities


Or even just

80% tech
20% utilities


Utility sector is lowest volatility sector of the S&P500 and typically has an inverse correlation to the others. It makes up only 5% of The S&p500 but when you make it a larger fraction of your portfolio it reduces volatility quite a bit. When market is down usually utilities are up.

Tech because it's the highest growth, and fundamentally higher margin businesses than other sectors due to software.

Health care because it also has a lot of growth but isn't strongly correlated to tech or utilities, so the lack of correlation is good for overall portfolio volatility.

Don't hold sectors with bad growth to volatility history. Energy is the worst on this front, highest volatility and below average growth.

No gold, no bonds, just too slow growing. I use the utility sector as the slow growth volatility reducing holding instead of gold or bonds.

Other sectors to consider holding are Consumer Staples and Consumer Discretionary. They have decent returns vs volatility.


Example:

30% tech
30% healthcare
30% utilities
10% consumer staples.


Rebalance every 1-2 years.

I'm personally heavily weighted to the tech sector. Unlike many I do believe past performance is indicative of future performance. And I look at the architecture of the underlying businesses. Tech with software is higher margin and can grow faster. New players can rise faster. Sectors that rely on hard goods, manufacturing, or services, simply cannot scale new products or innovations as quickly.

I also think US stocks are the best in the current global economy. The US has the best and brightest minds in the world, and a spirit of entrepreneurship the rest of the world lacks.

Petrino1 said:

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jamey said:

---

Petrino1 said:

---

infinity ag said:

---

First thing you do is reach your 401k limit. I believe it is 23.5k. Many people don't know that, I shockingly didn't until about 6 years ago. You are shielding that money from taxation and when you leave your job, you move the money into an IRA and invest in anything you want and $$$.

My other secret is: For 401k, don't invest in multiple funds. You will have many options. Do not invest in the company stock. Find one which has lowest fees and highest performance over the past 1 year. Put all your money in it. Just 1 fund. That has worked for me, keeps things simple and diversified but not overly so (which causes low returns). Formula is more risk, more return, so you want to find your spot.

I manage my wife's 401k and all her money is in

Quote:

---

FSPGX -Fidelity Large Cap Growth Index Fund

---

16% over 1 Year.

---

Agreed about the 1 fund approach. Too many people overthink things and feel like they have to invest in a bunch of different funds to be totally diversified, and of course their returns typically lag the S&P 500.

---

What i don't like is 30% of the S&P is 7 companies, all in the same AI bucket.

Eventually AI will benefit all, not just those doing the work to create AI itself.


My Global fund isn't much different than the S&P plus some big international companies. I think the first international company listed by allocation is like 15th

But the allocation to the Mag7 is abiut 40%, so if Microsoft is 6% in the S&P, the global fund might be about 2.4%

---

The S&P 500 has always been top heavy. This isnt new.

---

Everyone should realize that the S&P500 is a stock picking method. It just happens to be a good one that's easy to copy.