Quote:
Originally Posted by RunKC
So I use Fidelity and they sold me their target managed fund for my Roth IRA.
My question is, why would I do that and not just get an S&P low cost Index Fund, specifically the Fidelity version FXAIX?
Here’s the comparison:
Fidelity managed target fund-average life of return to date is 7.70%. It’s got an expense ratio of 0.75%
Fidelity S&P FXAIX-average life of return to date is 13.22%. It’s expense ratio is 0.02%
It also seems like a large portion of the target fund is made up of the S&P anyway.
That seems like one hell of a huge difference. Any downside to this in your minds?
|
You could split out some and put some in an S&P ETF, but I wouldn't do all of it.
Quote:
Originally Posted by Rain Man
On that note, I didn't pay attention to the Trump tax changes as they relate to mortgage interest. But my impression is that the mortgage interest deduction won't apply to a lot of people any more since the standard deduction is higher. It seems like that would decrease home values, but I haven't noticed it when looking at sales. Anyone got any theories?
|
Yeah. My theory is that housing purchases aren't driven by Schedule A Mortgage Interest deductions.