Computerized Investing > July 15, 2017

Selecting Asset Classes for Retirement Investments

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by John Zhong


The founder of shows how to use his online portfolio management platform to build a well-rounded retirement portfolio.

When it comes to retirement investments, it’s paramount to construct a portfolio that can deliver a reasonable return with acceptable risk. This is where asset allocation comes into play. One should carefully choose funds that represent specific asset classes being targeted within a portfolio. Furthermore, one can reduce risk by carefully weighting allocations to each asset class and choosing asset classes that have a low correlation (meaning they haven’t historically moved in the same direction).

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H Mercer from TX posted 9 months ago:

Unusual that REIT's are mentioned but health care, biotech, and pharmaceuticals are not. Just how have they done as a group over the past 1,3,5,10, 20yrs? I have a good bit of these in my portfolio.

John Zhong@MyPlanIQ from CA posted 8 months ago:

Even though REITs are sometimes classified as a sector, like health care, technology, etc., they have some distinct features that make them more suitable as a major asset class. We will have a future newsletter to discuss this issue in more details. In the meantime, you can find more info on

John Zhong@MyPlanIQ from CA posted 8 months ago:

A user recently told us that the statement “Fidelity offers half-baked commission-free ETF trades that are only buy commission-free, but not sell commission-free.” in the article is misleading. He believes that Fidelity offers ETFs that are commission free in both purchase and sell trades.

Here is our answer:

We have monitored Fidelity commission free ETFs since the days they were introduced. Fidelity went through commission free (both purchase and sell) and then commission free purchase but sell with a commission till last year sometime. Apparently, recently, they changed the policy to

commission free purchase and sell with some activity fees (0.01 - 0.03 per $1000, so $100,000 would be charged $1-$3).

This is true even after you have held shares for more than 30 days. So it's still not entirely commission free but now it's close.

See foot print on page :

Free commission offer applies to online purchases of Fidelity ETFs and select iShares ETFs in a Fidelity brokerage account. Fidelity accounts may require minimum balances. The sale of ETFs is subject to an activity assessment fee (from $0.01 to $0.03 per $1,000 of principal). iShares ETFs and Fidelity ETFs are subject to a short-term trading fee by Fidelity if held less than 30 days.

We wrote the piece late last year and the information was correct at that time.

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