PebHmong Discussion Forum

General Category => General Discussion => Topic started by: hmgROCK on May 23, 2018, 10:11:16 AM

Title: a fellow PHer ask me why it seem like her investment isn't going up
Post by: hmgROCK on May 23, 2018, 10:11:16 AM

she inform me that she had the fidelity freedom 2050

as you can see from this chart
you will notice the 0.75%  fee
this is pretty high
since it is an activity manage fund
the fee has to be high to pay the boss

(https://i.imgur.com/PGyccwD.jpg)

I than inform her
that no one
not even the Pro
can beat an index
which I've been preaching here on PH since the begining of time

this is fidelity freedom 2050 index
almost the same name
expect that index part
with a fee of 0.15%  (compare to the 0.75%)

(https://i.imgur.com/VwaWo9i.jpg)


the index just trend nicely upward
this is a 5 year comparison
to make it fair

Title: Re: a fellow PHer ask me why it seem like her investment isn't going up
Post by: hmgROCK on May 23, 2018, 10:28:37 AM

you want to mimic the S&P 500 index
because not even the pro can beat it


depending on who your broker is

vanguard:  VFINX
schwab: SWPPX
fidelity: FUSEX
t rowe: PREIX

all these mimic the S&P 500 index
with a few minus and plus


if you only want to invest in one thing to make it easy
go 100% on any of the above
or something that mimic the S&P 500
you will be super rich in the end

Title: Re: a fellow PHer ask me why it seem like her investment isn't going up
Post by: Reporter on May 24, 2018, 04:34:33 AM

I have the SWPPX, but I'm not too happy with it. I'm going to go for the PREIX next and see.

Quote from: hmgROCK on May 23, 2018, 10:28:37 AM

you want to mimic the S&P 500 index
because not even the pro can beat it


depending on who your broker is

vanguard:  VFINX
schwab: SWPPX
fidelity: FUSEX
t rowe: PREIX

all these mimic the S&P 500 index
with a few minus and plus


if you only want to invest in one thing to make it easy
go 100% on any of the above
or something that mimic the S&P 500
you will be super rich in the end

Title: Re: a fellow PHer ask me why it seem like her investment isn't going up
Post by: hmgROCK on May 24, 2018, 06:25:33 AM

Quote from: Reporter on May 24, 2018, 04:34:33 AM

I have the SWPPX, but I'm not too happy with it. I'm going to go for the PREIX next and see.

They both are the same
They both mimic the S&P 500
The PREIX. Has a fee of 0.21%
Kinda high

Are you using the three portfolio fund?
You need to do a three fund portfolio

60% SWPPX
30% total stock international index
10% total bond index

So if you got $1
It is split


60 cent
30 cent
10 cent

Title: Re: a fellow PHer ask me why it seem like her investment isn't going up
Post by: hmgROCK on May 24, 2018, 09:17:50 AM

reporter


I use schwab too.
only $100 to start compare to fidelity $2500
i like their target date index fund
you don't even need to rebalance or do a three fund portfolio
everything is done
they folo that 60% 30% 10% bond
can't lose
the fee is only 0.08%  super low


Schwab Target 2045 Index Fund SWYHX
Schwab Target 2050 Index Fund  SWYMX
Schwab Target 2055 Index Fund SWYJX