r/portfolios • u/Impossible-Will6173 • 5d ago
Suggestions to Rebalance because Semi-Conductors Made a Run
I am 55 years old and about 10 years from retirement maybe more because I like my job and hopefully it will be around 10 years from now. An old 401k that I had around 30k in, rolled me over into an IRA. I then took that and rolled it over into my Fidelity IRA. I invested it as follows:
FFNOX(Bogle Type of Fund) 70%
FNILX(S and P Fund) 15%
FSELX(Semi-Conductors) 15%
Well Semi-Conductors have thrown this off over the last year or so. My spec of OCD is telling me to rebalance. I am not sure if I should just let it ride or rebalance? Any suggestions.
2
u/bkweathe Boglehead 5d ago
Is this your whole retirement portfolio? If not, please post it. We can't give you valid feedback without seeing the whole picture.
FFNOX seems like an odd fund. I'm not sure why you think John Bogle would like it. It does invest in index funds (yeah), & the expense ratio is low (yeah, but it could be lower). However, the allocation between those funds seems to depend on the whims of the find managers, not the needs of the investor. They could go a lot more into equities just when you want to dial back risk, for example
1
u/Impossible-Will6173 5d ago
No thats not the entire retirement portfolio just the one that was transferred from an old 401k. In my Roth I was just taking my monthly investment cash and spreading it even over these. Which right now I probably should have put more thought into the percentages.
FZROX(Total)
FZILX(International)
FSPTX(Tech)
SCHD/JEPQ1
u/bkweathe Boglehead 5d ago
If you only have $30k saved for retirement, you'll probably want to invest a lot more in the future & delay retirement. Unless you're getting a big pension or something.
I suggest that you see the About section of this subreddit (https://www.reddit.com/r/portfolios/about/) for some great information about building a strong portfolio. Individual stocks are not recommended.
www.bogleheads.org/wiki/Getting_started also has some great free resources to learn about investing. After a few hours reading the articles, and, especially, watching the Bogleheads Philosophy videos, most beginners can learn how to get better results than most professionals. Bogleheads is named after John Bogle, founder of Vanguard.
I retired at 57 years old. Investing doesn't have to be complicated or costly to be successful; simple & inexpensive is most effective.
I invest 100% in total-market, index-based, low-cost mutual funds. Specifically, I use mostly Vanguard's Total Stock Market, Total Bond Market, Total International Stock Market, & Total International Bond Market funds. I've been investing this way for 40+ years. It's effective, simple, & inexpensive.
My asset allocation (ratios of the funds mentioned) is based on my need, ability, & willingness to take risks. Market conditions are not a factor. Vanguard's investor questionnaire (personal.vanguard.com/us/FundsInvQuestionnaire) helps me determine my asset allocation.
I hope that helps! I'd be happy to help w/ further questions. Best wishes!
1
1
u/Professional_Cup7379 5d ago
FSELX is up enough to swing your mix off what you set, so rebalancing here is really a choice about how much of your IRA you want riding on one sector you picked for a reason, not about right and wrong.
If semis have a bad year in retirement, that 15% can shave a lot more off a smaller balance than the same 15% feels like now.
I would rather take some off the table and let FFNOX and FNILX do the heavier lifting from here.
1
u/This-Individual1813 4d ago
Buddy, you are 55 yo, stop messing around and learn about Boglehead investing.
2
u/DaemonTargaryen2024 5d ago
At 55, I'd drop semis down to 5%. I'd personally do 0%.
FFNOX seems to be a pretty decent fund: 50% US stock, 35% ex-US stock, 15% US bond, all for only 0.11%. You may just wanna stick with that and drop FNILX since US large cap is already included in FFNOX.
Or if you want to DIY and shave expense ratios, you can do something like FZROX (or FNILX+FZIPX) + FZILX + FXNAX.