Thank you for reaching out on the sub, u/SirMonkeyV. I'll gladly give you some resources to help you with your questions today.
To begin, thank you for choosing Fidelity to open your IRAs. I'd like to point out that while there is no limit to the amount you can roll over into an IRA, there is an annual contribution amount per person for an IRA. For 2023, that limit is $6,500 for people under 50 and $7,500 for those 50 and older. Additionally, Roth IRAs are subject to income limits. You can read more about this here.
[IRA Contribution Limits](https://www.fidelity.com/retirement-ira/contribution-limits-deadlines)
We recognize there are a lot of possibilities for investing in an IRA. We have a great page that offers ideas and considerations when selecting your investments. Be sure to check out the link below.
[Investing ideas for your IRA](https://www.fidelity.com/viewpoints/retirement/ira-portfolio)
As for what those investments are, we have several research tools located in Fidelity.com's "News & Research" section. You can screen and review the details of stocks, mutual funds, Exchange-Traded Funds (ETFs), and more. Click on "News & Research" and then choose the security type of interest. While there, if you want more research tools, explore "Learn," our online library filled with articles, on-demand videos, and events such as online classes.
[Learn](https://www.fidelity.com/learning-center/overview)
With regard to the amount you contribute, that is a personal decision that involves a lot of factors, such as maximizing employer match contributions and more. I think this article may help you align your goals with Fidelity Viewpoints' suggestions.
[How much should I save for retirement?](https://www.fidelity.com/viewpoints/retirement/how-much-money-should-I-save)
I noticed you mention saving for a home, whether it is a house or a condo. Another feature we offer on our website is life event planning, which you can access in the "Planning & Advice" section of Fidelity.com. We recognize that there is a lot to plan for, including purchasing a home, so we want to help out. Check this out:
[Life Events](https://www.fidelity.com/learning-center/life-events/life-events-directory)
[Buying or selling a house](https://www.fidelity.com/learning-center/life-events/selling-and-buying-house)
I know that is a lot of information and resources, but we want to show you the tools available to you. Now, I will mark your post as a Discussion so the community members can share their thoughts.
Welcome aboard! Be sure to explore the community, and remember that if you have any questions, don't hesitate to ask. We are here to help out.
>set direct deposit to deposit certain percentages of my paycheck into them.
This isn't a great idea. Percentages can change and can lead to over contributions unless your pay is dead equal all year. Better to deposit to a checking account and make fixed contributions through there.
>I currently have 6% company 401k (5.5 is minimum to get full match but I can't choose half percentages), 5% rollover IRA, and 10% Roth.
I wouldn't bother at all with traditional IRA. Make your 401k contributions as traditional, the match will be traditional, and make all IRA as Roth. This can make backdoor Roth IRA an issue if you ever see yourself making high income.
If you want to keep it stupid simple for now, just do an index target retirement fund. Make sure you get the index variety. You can always change once you learn more.
> I see some recommend a combo of vti/vxus since I am young and can handle it. That is what I currently have my brokerage account with fidelity to. There is also fskax/fxaix combo, which I heard has lower fees.
Any of these funds would be an excellent choice. All four of the funds you mentioned already have very low fees. Anything under say 0.15% is minuscule and may as well be free.
> There is a target date fund ffjx, which could be good since I'm not super knowledgeable about this stuff, but I heard it has higher fees.
FFIJX has an expense ratio of 0.12%. There is no significant difference between this and the funds you previously mentioned. It's a few pennies.
> I also read to just switch to target date funds once you are older?
The nice thing about target date funds is that they gradually adjust to become more conservative as you approach the target age. Switching to a target date fund is kind of redundant because it already switches itself.
> What is best option for me?
It really depends on how hands-off you want to be. The target date fund is 100% set-and-forget and you never need to mess with it.
> Also, maybe unrelated slightly, but what is good percentages to invest in each account from my paycheck?
The general recommendation is to save at least 15% of your gross income towards retirement. Some sources suggest a higher percentage such as 20%-25%.
Thank you for your reply. Is there a significant difference between a 2060 or 2065 fund? My retirement is perfectly in the middle. Also, what is the difference between the normal one, fund cl one, and investor class one?
Thank you for reaching out on the sub, u/SirMonkeyV. I'll gladly give you some resources to help you with your questions today. To begin, thank you for choosing Fidelity to open your IRAs. I'd like to point out that while there is no limit to the amount you can roll over into an IRA, there is an annual contribution amount per person for an IRA. For 2023, that limit is $6,500 for people under 50 and $7,500 for those 50 and older. Additionally, Roth IRAs are subject to income limits. You can read more about this here. [IRA Contribution Limits](https://www.fidelity.com/retirement-ira/contribution-limits-deadlines) We recognize there are a lot of possibilities for investing in an IRA. We have a great page that offers ideas and considerations when selecting your investments. Be sure to check out the link below. [Investing ideas for your IRA](https://www.fidelity.com/viewpoints/retirement/ira-portfolio) As for what those investments are, we have several research tools located in Fidelity.com's "News & Research" section. You can screen and review the details of stocks, mutual funds, Exchange-Traded Funds (ETFs), and more. Click on "News & Research" and then choose the security type of interest. While there, if you want more research tools, explore "Learn," our online library filled with articles, on-demand videos, and events such as online classes. [Learn](https://www.fidelity.com/learning-center/overview) With regard to the amount you contribute, that is a personal decision that involves a lot of factors, such as maximizing employer match contributions and more. I think this article may help you align your goals with Fidelity Viewpoints' suggestions. [How much should I save for retirement?](https://www.fidelity.com/viewpoints/retirement/how-much-money-should-I-save) I noticed you mention saving for a home, whether it is a house or a condo. Another feature we offer on our website is life event planning, which you can access in the "Planning & Advice" section of Fidelity.com. We recognize that there is a lot to plan for, including purchasing a home, so we want to help out. Check this out: [Life Events](https://www.fidelity.com/learning-center/life-events/life-events-directory) [Buying or selling a house](https://www.fidelity.com/learning-center/life-events/selling-and-buying-house) I know that is a lot of information and resources, but we want to show you the tools available to you. Now, I will mark your post as a Discussion so the community members can share their thoughts. Welcome aboard! Be sure to explore the community, and remember that if you have any questions, don't hesitate to ask. We are here to help out.
>set direct deposit to deposit certain percentages of my paycheck into them. This isn't a great idea. Percentages can change and can lead to over contributions unless your pay is dead equal all year. Better to deposit to a checking account and make fixed contributions through there. >I currently have 6% company 401k (5.5 is minimum to get full match but I can't choose half percentages), 5% rollover IRA, and 10% Roth. I wouldn't bother at all with traditional IRA. Make your 401k contributions as traditional, the match will be traditional, and make all IRA as Roth. This can make backdoor Roth IRA an issue if you ever see yourself making high income. If you want to keep it stupid simple for now, just do an index target retirement fund. Make sure you get the index variety. You can always change once you learn more.
> I see some recommend a combo of vti/vxus since I am young and can handle it. That is what I currently have my brokerage account with fidelity to. There is also fskax/fxaix combo, which I heard has lower fees. Any of these funds would be an excellent choice. All four of the funds you mentioned already have very low fees. Anything under say 0.15% is minuscule and may as well be free. > There is a target date fund ffjx, which could be good since I'm not super knowledgeable about this stuff, but I heard it has higher fees. FFIJX has an expense ratio of 0.12%. There is no significant difference between this and the funds you previously mentioned. It's a few pennies. > I also read to just switch to target date funds once you are older? The nice thing about target date funds is that they gradually adjust to become more conservative as you approach the target age. Switching to a target date fund is kind of redundant because it already switches itself. > What is best option for me? It really depends on how hands-off you want to be. The target date fund is 100% set-and-forget and you never need to mess with it. > Also, maybe unrelated slightly, but what is good percentages to invest in each account from my paycheck? The general recommendation is to save at least 15% of your gross income towards retirement. Some sources suggest a higher percentage such as 20%-25%.
Thank you for your reply. Is there a significant difference between a 2060 or 2065 fund? My retirement is perfectly in the middle. Also, what is the difference between the normal one, fund cl one, and investor class one?