While tinkering around with finding good funds to invest in moving forward to slightly increase my international exposure, I came across what sounded like an agreement that FZROX was fine for pre tax accounts, but that it was ill-advised to use it for taxable accounts because it means that you can't leave fidelity without tax implications.
I am invested entirely in FZROX and FZILX at the moment in my taxable accounts.
1. How concerning of a position is this? Should I make adjustments and find different no/low fee fund moving forward? I can do my own research but if the answer is yes, any fund recommendations I can use with Fidelity?
2. It's my understanding that the reason to avoid using it in taxable accounts is because it's locked into fidelity and can't be transferred, so switching brokerages requires liquidating it and realizing capital gains, then taxes. Is this the only reason why it's not recommended?
3. If the answer to 2 is yes, is it really that much of a risk to hold a fund that can't be transferred out of your brokerage without liquidating? I don't have plans to find another brokerage and it's unlikely Fidelity goes out of business. Or perhaps it's a situation where there's low upside and high downside if something very unlikely occurs?
4. I am planning to retire early. If it is the case that this was a big oopsie, I am assuming I'll begin investing in a new index fund, and simply prioritize withdrawals from the FZROX fund in the early days to decrease my allocation there over time. What else should I be thinking about if this was a large error?
Cheers, and thanks for your help!