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how does one go about choosing investment profile

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  • how does one go about choosing investment profile

    Hi everyone. I really could do with some advice. I'm a new attending , don't really have a 401k and now I have to pick my investments through fidelity.
    I haven the foggiest idea. I just found out about whitecoatimvestor 2 months ago. I'm trying to get my financial house in order. Would reading the investing forums help as I only have 4 days in which to make a pick?
    Thanks everyone.

  • #2
    Make a pick for what?

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    • #3
      Four days (including the weekend)!
      Short version:
      *max your pretax contributions and get employer match wherever possible.
      Target saving 20% of gross for retirement.
      What plans are available? 401k, 403b, 457? The Fidelity net benefits phone number should know exactly what is available to you.
      You will add your own IRA, Roth, and taxable later.
      Asset allocation is your first choice: Stocks/Bonds
      Probably no more than 15% bonds, 0% or 10% is fine.
      You want low cost broad indexes. If you have zero cost available, use those. If not, choose a Total World or S&P 500 mutual fund and possibly and Intl plus the bond.
      Example:
      FXAIX 60%. ER .015. S&P
      FSPSX. 30%. ER. .035. INTL
      VBTIX. 10%. ER. .035. Bonds
      That gives you 90/10 with 2/3 in US and 1/3 International for stocks.
      You need to setup the allocations for contributions and dividend reinvestment.
      Set up your bank account for all your accounts as well.

      Plan on using the IRA and Roth for a Backdoor Roth later this year (December is fine).
      Setup your brokerage account as well.
      You can set up accounts without funding.
      The taxable is for whatever you need to hit 20% savings. Probably use FXAIX for that and the Roth.
      IF you have the types of accounts and the index options, feel free to post with the ER’s and others may give opinions than the example above.
      Make sure to fill in the beneficiaries for each account.
      It is a tedious process to set up but automated once done.
      You will have your retirement and personal account on one login.




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      • #4
        Use the blog for articles you need.
        Use the Forum for specific questions.
        Learn how to use the search.
        Educate yourself and create an IPS
        https://www.whitecoatinvestor.com/fi...nd-attendings/
        https://www.whitecoatinvestor.com/ho...nal-statement/
        You won’t do it in four days. The key is to know your financial destination and avoid mistakes.
        Do you have own occupation private disability insurance? Do you have student loans? Etc.
        A general question of “how do I invest in retirement accounts” indicates you don’t have a plan. Fill in the gaps. This was your first post. Don’t take it personal. My intent was to bandaid due to your four day deadline that you were unprepared for.
        Welcome to the Forum.

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        • #5
          Welcome. It can be overwhelming to figure out this investing thing at first. This place is a non-judgemental way to get advice. Even if this deadline passes you are taking your first steps. I would suggest getting the WCI book. Clements book on how to think about money, Simple Path to Wealth for starters. Start reading this blog and forum. Post questions. Provide more details for better advice. Some people even post their exact retirement plan choices. Also post what debts you have along with any assets.. Marital status, kids, and income.

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          • #6
            Thanks for all the responses. I'll think ill just start reading the investing forum as clearly I don't have a clue. I just won't make any elections yet till I know what I'm doing. Thanks again?

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            • #7
              I learned a lot reading the bogleheads wiki pages. https://www.bogleheads.org/wiki/Getting_started

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              • #8
                Take a screenshot and post your options?

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                • #9
                  My hospital 403b with fidelity allows us to change investments and contributions at any time. You might not be as time limited as you think.

                  For general intro, would read the blog "classics"

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                  • #10
                    It's early in your investing life, if your under a time limit to pick something I'd lean towards a total stock market fund with a low expense ratio (eg VTSAX or VTI, or and S&P 500 fund). Then spend some time getting a decent grasp on where/how you feel comfortable investing. I don't think you will ever regret having investments in a large based index.

                    My 2 cents at least. You're already ahead of most being concerned/intersted at this stage

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                    • #11
                      Thanks so much everyone.Turns out that I am not locked in to time as I thought I would be so I have time to educate myself. Thanks again for all the good advice

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                      • #12
                        Originally posted by Wagmanager View Post
                        Thanks so much everyone.Turns out that I am not locked in to time as I thought I would be so I have time to educate myself. Thanks again for all the good advice
                        No decision is a bad decision. Because you lose time in the market if you delay a decision.

                        In your shoes I would make the simplest of 401k investment elections to jump in and get started.

                        What year will you turn 65? Choose the target date fund closest to your 65th birthday and get started. As in now.

                        One of the great things about tax deferred investments is you can trade to a different fund later with no tax consequences, so it’s no harm to make a choice now even if you change your mind in six months when you have more knowledge.

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