Bogleheads' three fund portfolio

[kork13]

I use Fidelity. Was thinking about using the 3 fund portfolio when I max out my RothIRA next year. Does this look right? I’m 30 years old.

-FZROX Fidelity Zero Total Market Index 65%
-FZILX Fidelity Zero international Index 25%
-FXNAX US Bond Index 10%

Lacking any other information.... I'd say that's a very appropriate mix for someone your age.

[A-Aron1]

Thanks Kork!

[~bs]

Just my 0.02. If you're looking to "beat the market" so to speak, you could add a small growth component to your portfolio. These stocks have been on a tear with good reason. This situation with covid is basically accelerating a long term market shift that was already happening. Fidelity growth funds have been skyrocketing. For example, this one is up 28% for the year. I dont really consider angling the portfolio in favor of large cap growth to be market timing or anything like that because I do feel it will be a longer term market shift

https://fundresearch.fidelity.com/mu...mary/316200781


Standard 3 fund portfolios, dow 30, s&p500 is lagging growth sector due to overweighted "dogs" in the portfolio, namely financials, utilities, retail, travel & hospitality, and energy. It will take a real recovery of the entire economy overall for these companies to turn the corner and causing lag on the entire index.

[A-Aron1]

Just my 0.02. If you're looking to "beat the market" so to speak, you could add a small growth component to your portfolio. These stocks have been on a tear with good reason. This situation with covid is basically accelerating a long term market shift that was already happening. Fidelity growth funds have been skyrocketing. For example, this one is up 28% for the year. I dont really consider angling the portfolio in favor of large cap growth to be market timing or anything like that because I do feel it will be a longer term market shift

https://fundresearch.fidelity.com/mu...mary/316200781


Standard 3 fund portfolios, dow 30, s&p500 is lagging growth sector due to overweighted "dogs" in the portfolio, namely financials, utilities, retail, travel & hospitality, and energy. It will take a real recovery of the entire economy overall for these companies to turn the corner and causing lag on the entire index.

How would you incorporate FGKFX into the portfolio? Would it replace the total US market index?

[~bs]

How would you incorporate FGKFX into the portfolio? Would it replace the total US market index?

No, you could just allocate whatever % you like to the portfolio of the new fund. People modify the 3 fund portfolio all the time.

Some people add international bond fund. Some people add REIT index fund.

Even with a standard 3 fund portfolio, you generally aren't going 1/3 1/3 1/3. If you're relatively young, you probably want a higher % weight to equities, and many people (myself included) favor US equities over international so have a higher weighting of that. You could try reading around on the boglehead forum for some ideas.

https://www.bogleheads.org/wiki/Lazy_portfolios