A Zero fund is one of several Fidelity funds that have no expense ratio, 0.00%. The problem is you can never transfer-in-kind such a fund to another brokerage. So sort of like you read now about some Bogleheads abandoning Vanguard (the brokerage, maybe not the funds), someday Fidelity might misbehave or otherwise displease you, and with a Zero fund you would likely be unable to leave Fidelity without paying large amounts of taxes immediately. You are locking yourself into Fidelity by holding Zero funds in taxable over a long term. A decade or two ago most Bogleheads leaving Vanguard now would never have believed they would have wanted to, but now they do. So you need to leave your options open.Can you explain this a little further? What does portability mean, and why do I need it? I read the Simple Guide to Wealth, and was trying to choose a fund similar to Vanguards total stock index fund. Did I choose the wrong thing? I’m not sure what a Zero fund is. This is all such a new language to me!I would avoid using any Fidelity Zero fund in a taxable account, due to lack of portability. There are perfectly fine non-Zero substitute funds available at Fidelity (including other Fidelity funds.) If you a loss in your Zero fund now (or a trivial gain), take it and move on.For investing, after reading numerous threads I have chosen Fidelity. I opened the Roths through them, and plan to open an investment account as well. For now I am putting it all in FZROZ through Fidelity, but I know I need to add in a total bond market fund as well.
Statistics: Posted by tibbitts — Fri Aug 09, 2024 3:05 pm — Replies 7 — Views 408