Hello everyone:
I'm in the process of helping my young new-to-the-workforce daughter set up some investments now that she is earning enough to have disposable income.
We have already set her up with a Roth IRA through Fidelity into which she is making the maximum annual contributions. That is going 100% into FZROK which is Fidelity's zero fee total stock market fund and the equivalent to Vanguard's Total Stock Market.
She now has the additional income to up her monthly savings into Fidelity by about $1,500/month and I'm not sure exactly how to advise her to invest that additional money. Her main objective with this money is to save for a down payment on a house that she would like to buy within the next 5 years or so. Right now it is just going into a Fidelity money market but she wants to invest it into something a bit more aggressive without risking too much principal. I'm still educating her on risk vs. reward but it is all new to her.
What would you guys recommend as a good short/medium term investment vehicle in Fidelity for a 25 year old trying to save for a down payment on a house within the next 5 years or so? I was thinking maybe something like one of Fidelity's 60/40 balanced funds such as FSANX but I'm totally open to suggestions and so is she.
Note: This is a taxable account and will be starting with zero balance and accumulating about $1500 per month so the balance isn't that high yet and won't be for several years at least.
I'm in the process of helping my young new-to-the-workforce daughter set up some investments now that she is earning enough to have disposable income.
We have already set her up with a Roth IRA through Fidelity into which she is making the maximum annual contributions. That is going 100% into FZROK which is Fidelity's zero fee total stock market fund and the equivalent to Vanguard's Total Stock Market.
She now has the additional income to up her monthly savings into Fidelity by about $1,500/month and I'm not sure exactly how to advise her to invest that additional money. Her main objective with this money is to save for a down payment on a house that she would like to buy within the next 5 years or so. Right now it is just going into a Fidelity money market but she wants to invest it into something a bit more aggressive without risking too much principal. I'm still educating her on risk vs. reward but it is all new to her.
What would you guys recommend as a good short/medium term investment vehicle in Fidelity for a 25 year old trying to save for a down payment on a house within the next 5 years or so? I was thinking maybe something like one of Fidelity's 60/40 balanced funds such as FSANX but I'm totally open to suggestions and so is she.
Note: This is a taxable account and will be starting with zero balance and accumulating about $1500 per month so the balance isn't that high yet and won't be for several years at least.
Statistics: Posted by texasdiver — Wed Nov 13, 2024 5:26 pm — Replies 5 — Views 479