Understanding investment options

[Anonymous]

I have a ROTH IRA that I purchased individual stocks like Netflix, Google and others on Fidelity. I also have a 403(b) account that I invested some percent in FASMX, FBSOX, FHKCX etc. My question is, is it possible to convert my ROTH IRA to reflect something like my 403(b) with certain percentages on some stocks instead of individual share.

[Revelate]

I think you mean your contributions are allocated on a fixed percentage basis for your 403(b)?

Other than robo-advisers where you don't get a choice of basically anything except for your risk tolerance and maybe your asset target, I don't know of anything that will automatically adjust your allocations... given that has tax implications for some accounts it's usually manual TBH.

There's nothing stopping you from purchasing mutual or index funds in your equity account though instead of individual equities though I suspect it's always a manual process.

[brother7]

NEWSFLASH: Fidelity just started fractional share trading for individual stocks. So now you say "buy $100 worth of Netflix".

It's not exactly what you're looking for, but it's a step in the right direction.

To accomplish what you're trying to do (e.g. Here's $100, buy 25% Netflix, 25% Google, 50% Apple), you need a brokerage like M1 Finance.

Here's a link to the Fidelity fractional share details: https://www.fidelity.com/trading/fractional-shares

[iced]

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@brother7 wrote:

NEWSFLASH: Fidelity just started fractional share trading for individual stocks. So now you say "buy $100 worth of Netflix".

It's not exactly what you're looking for, but it's a step in the right direction.

To accomplish what you're trying to do (e.g. Here's $100, buy 25% Netflix, 25% Google, 50% Apple), you need a brokerage like M1 Finance.

Here's a link to the Fidelity fractional share details: https://www.fidelity.com/trading/fractional-shares

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This will be useful to round up my old pre-free-trade DRIPs I had to the nearest share, but otherwise I don't see much point in buying a fractional share unless you're talking about a stock like BRK.

I would second Revelate's comment with how to do it in Fidelity. The same or equivalent funds in your 403b are available in an individual brokerage, so it's just a matter of finding them and executing buys.

As to having a regular deposit go in and get automatically allocated percentage-wise across a number of funds...you could always open an after-tax IRA, or find a different brokerage that supports it. Be wary of fees with such a move, though.

[wasCB14]

Lots of tiny transactions also means lots of things to review when tax time comes.

[wasCB14]

Another downside is that fractional shares often don't move well between brokerage accounts. So if you want to move to another brokerage without triggering capital gains taxes right away, you might not be able to. And while the taxes on fractional shares may not be significant, there's time involved in making sure the whole shares and their basis is correct.