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Rebalancing to Index funds?

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    Rebalancing to Index funds?


    We currently have a few mutual funds in our Roth IRAs: LETRX, EUROX, and PREMX. I would like to "tune down" the volatility and move towards Index funds. I have just finished reading "The Lazy Persons Guide to Investing", and I'm pretty convinced to move everything to index funds. My initial idea on investing was to invest an initial year (every year) in a "trendy" fund which has very high performance to make gains off it's momentum and then take the funds after approximately one year to an index fund. (This was to grow the initial seed $$ a bit more before indexing it and to time the transfer when the indexes are lower than average).

    After reading the book, I think I will rather not spend many hours looking for the fund for the year and face potential bad volatility. Instead putting it directly in an index of some sort.

    I was poking around Fidelity's site and I found this: FFNOX -- Fidelity Four-In-One. I was thinking of rebalancing all of our IRAs to this (and any future IRA contribution)... It's pretty neat because it's a fund of funds

    Fidelity Spartan 500 Index Investor 54.8%
    Fidelity Spartan Extended Mkt Index 15.8%
    Fidelity Spartan International Index 15.2%
    Fidelity U.S. Bond Index 14.3%
    The expenses of this are VERY VERY low: 0.08%!!!

    How do you all think of this? We would like to stick with Fidelity for now as my wife and my 401k/roth's are currently there. I am currently 30 years old and would *like* to retire between 45-50 depending on how our funds are doing. We are currently maxxing out both our 401ks and maxxing out our IRAs. Wife's 401k is 50% Vanguard Wellington, and 50% Fidelity S&P500 Spartan index. My 401k is 75% Agressive Growth, and 25% Conservative (I have to check the prospectus to see what's actually in these, but that's what my offering had).

    Anyways, what do you all think? Can you suggest anything better? Better index fund? Other strategies?

    Appreciate your inputs!


    Re: Rebalancing to Index funds?

    Looks like a good move to me. But FYI, the expense ratio is .21%, not .08%.


      Re: Rebalancing to Index funds?

      Hmm.. thanks for that info-- it's strange- I looked on Yahoo, and it shows 0.08%

      Oh well, I guess Fidelity's site should be the main source for valid info on this anyways.

      Which funds do you invest in? Indexes? How are they doing for you?