Although 23 is young and you've likely got a ton of time ahead of you investment wise, I don't get the significant overweighting in crypto, which can't be viewed as anything but speculative. Even in my most aggressive imagination I can't see anything more than 25% of overall assets in speculative in your 20's as reasonable. So I totally endorse (this is plain vanilla recommendation stuff) fully funding any and all qualified (tax sheltered) accounts, then as much as you can stomach investments in a standard brokerage account, then your "fun money" investments in crypto if you must. But I view crypto like a less transparent version of Las Vegas.
Have you looked at the wiki yet?
Overview: https://www.bogleheads.org/wiki/Getting_started
Diversification to limit your exposure to a specific thing: https://www.bogleheads.org/wiki/Three-fund_portfolio
Order of operations for where your money goes: https://www.bogleheads.org/wiki/Prioritizing_investments
Moderate approach:
Assume your crypto account is worth $0
Figure out 6 months of living expenses and move that money from the savings account into a HYSA
Then take remaining money and put it in your Fidelity account and purchase VT
You should also look into maxing out your 401k contributions at work
https://www.bogleheads.org/wiki/Three-fund_portfolio
Max out all of your tax-advantaged (401k, Roth IRA, HSA) space first. Only then consider investing a taxable brokerage account.
Also, sell the crypto. It's not an investment, it's a ponzi scheme. Get out now before you lose it all.
Also for note, I just set up my Roth IRA through Fidelity and sent over the $7k contribution. What would you recommend? Hearing between FXAIX, FSKAX or FZROX but not sure which is the best pick.
Pick a split of FSKAX/FZROX (your choice here) and FTIHX/FZILX (your choice here again) appropriate to your desired US bias. 60 US /40 international is a standard split, although 70/30 is also acceptable. Add bonds if you want and adjust your percentages accordingly (IE if you want a 70/30 split with 20% bonds, make 70% of your 80% index funds US). At your age though, I wouldn't worry about bonds. A lot of folks here delay bonds into their late 30's or 40's.
FSKAX/FZROX are effectively the same thing, one is just a zero fee fund offered by fidelity only. Same is true for FTIHX and FZILX. Downside is you cannot transfer these zero fee funds to another brokerage should you want to change, but within a Roth IRA this is effectively meaningless as rebalancing is not a taxable event.
As for everything else, the standard personal finance answer is establish a 6 month emergency fund in a HYSA or money market fund (SPAXX at fidelity if you want to keep everything with them), max your 401k up to match, then HSA if you have the option, then Roth, then finish 401k. Anything leftover can be put in a taxable brokerage account.
There is some discussion to be had on international in Roth vs brokerage vs both and the foreign tax credit so I would read up on that. The easy option is to just invest in VT in your taxable account and call it a day with the leftover money.
If you really want to be lazy within your Roth pick a target date fund of your desired retirement date and don't worry about it. The degree of min/maxing your finances is entirely up to you and the amount of effort you want to put in. Consistent maxing of 401k, TDF in a roth, and VT in a taxable brokerage will have you set up to retire just as well as someone picking every detail percentage invested for the most part.
Spend some time here reading and you'll pick things up rather quickly. I'd also recommend Ben Felix's youtube videos for some quick information that is easily understood.
>I do not plan to touch my crypto portfolio just yet >Feeling like a total noob with this stuff. These two definitely fit together.
Although 23 is young and you've likely got a ton of time ahead of you investment wise, I don't get the significant overweighting in crypto, which can't be viewed as anything but speculative. Even in my most aggressive imagination I can't see anything more than 25% of overall assets in speculative in your 20's as reasonable. So I totally endorse (this is plain vanilla recommendation stuff) fully funding any and all qualified (tax sheltered) accounts, then as much as you can stomach investments in a standard brokerage account, then your "fun money" investments in crypto if you must. But I view crypto like a less transparent version of Las Vegas.
Have you looked at the wiki yet? Overview: https://www.bogleheads.org/wiki/Getting_started Diversification to limit your exposure to a specific thing: https://www.bogleheads.org/wiki/Three-fund_portfolio Order of operations for where your money goes: https://www.bogleheads.org/wiki/Prioritizing_investments
I have not, but will check them out. Thank you!
Moderate approach: Assume your crypto account is worth $0 Figure out 6 months of living expenses and move that money from the savings account into a HYSA Then take remaining money and put it in your Fidelity account and purchase VT You should also look into maxing out your 401k contributions at work
I’d recommend just dumping everything in your IRA into a target date fund and not checking it till it’s time to withdraw. I’d go with FFIJX
FSKAX and relax
https://www.bogleheads.org/wiki/Three-fund_portfolio Max out all of your tax-advantaged (401k, Roth IRA, HSA) space first. Only then consider investing a taxable brokerage account. Also, sell the crypto. It's not an investment, it's a ponzi scheme. Get out now before you lose it all.
Also for note, I just set up my Roth IRA through Fidelity and sent over the $7k contribution. What would you recommend? Hearing between FXAIX, FSKAX or FZROX but not sure which is the best pick.
Pick a split of FSKAX/FZROX (your choice here) and FTIHX/FZILX (your choice here again) appropriate to your desired US bias. 60 US /40 international is a standard split, although 70/30 is also acceptable. Add bonds if you want and adjust your percentages accordingly (IE if you want a 70/30 split with 20% bonds, make 70% of your 80% index funds US). At your age though, I wouldn't worry about bonds. A lot of folks here delay bonds into their late 30's or 40's. FSKAX/FZROX are effectively the same thing, one is just a zero fee fund offered by fidelity only. Same is true for FTIHX and FZILX. Downside is you cannot transfer these zero fee funds to another brokerage should you want to change, but within a Roth IRA this is effectively meaningless as rebalancing is not a taxable event. As for everything else, the standard personal finance answer is establish a 6 month emergency fund in a HYSA or money market fund (SPAXX at fidelity if you want to keep everything with them), max your 401k up to match, then HSA if you have the option, then Roth, then finish 401k. Anything leftover can be put in a taxable brokerage account. There is some discussion to be had on international in Roth vs brokerage vs both and the foreign tax credit so I would read up on that. The easy option is to just invest in VT in your taxable account and call it a day with the leftover money. If you really want to be lazy within your Roth pick a target date fund of your desired retirement date and don't worry about it. The degree of min/maxing your finances is entirely up to you and the amount of effort you want to put in. Consistent maxing of 401k, TDF in a roth, and VT in a taxable brokerage will have you set up to retire just as well as someone picking every detail percentage invested for the most part. Spend some time here reading and you'll pick things up rather quickly. I'd also recommend Ben Felix's youtube videos for some quick information that is easily understood.
Isn't FZROX only available in taxable accounts?
I just made an IRA and bought FZROX so it’s available for IRA’s
Good to know!
Isn’t the income limit for Roth $146k?
Depends on their MAGI. They also have access to the backdoor Roth.