Ten years ago, I found myself at a crossroads, contemplating a shift from a managed Roth IRA to a self-directed one with Fidelity.
Through this experience, I gathered invaluable wisdom from a supportive online community, and I’m keen to share my journey with those who may be considering a similar path.
To provide some context, I’ve been diligently following Dave Ramsey’s Baby Steps 4/5/6, ensuring I have an emergency fund, paying off debts, and investing in my future.
For the past seven years, I’ve been maxing out my Roth IRA, a financial move I’m proud of. However, my investment strategy recently came into question due to a substantial 1.75% management fee charged by my advisor.
The Turning Point
As my Roth IRA was managed by an advisor based in Tennessee while I live in New York, our interactions transitioned to virtual meetings due to the pandemic. This shift prompted me to reevaluate my investment strategy and explore the Fidelity self-directed Roth IRA.
Self-Directed IRA at Fidelity
I decided to open a self-directed Roth IRA with Fidelity. The thought of having more control over my investments and potentially reducing fees was an enticing proposition.
With Fidelity as my chosen platform, I crafted a diversified portfolio. After considering the valuable suggestions from my peers, I formulated a mix of funds tailored to my preferences and risk tolerance.
- FFIDX for large growth
- FXAIX for S&P 500
- FSKAX for total US
- FDGFX for dividend large value
- FMCSX for mid blend
- EIMGX for small growth
I should highlight the importance of avoiding overlap between large growth, S&P 500, and total US.
Alternatively, I went with FXAIX and added a small-cap value ETF like AVUV.
Transitioning to a self-directed Roth IRA with Fidelity has been a pivotal step in my financial journey. If you’re at a similar juncture, consider the benefits of a self-directed Roth IRA.