Fidelity 401k and FID freedom 2030, opinions.. | TigerDroppings.com

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vodkacop
LSU Fan
GOM
Member since Nov 2008
1932 posts

Fidelity 401k and FID freedom 2030, opinions..


i just started my 401k not long ago and have less then 5k in it. after mixing my money into several different 401k choices like FID Growth Company and FID Contrafund i decided to let fidelity do more of the work and put all my future deposits and matching into the Freedom 2030, since i know nothing about any of these investments and how much i should put into them i just figured it would be safer. Anyone know if its a wise move or if i should take it out of the 2030 and just mix my deposits into things like the contrafund. Im just all around confused about what are good fidelity investments and how much should i put into each one, percentage wise of my money that goes into the 401k. im 40 and like i said just started making deposits. i aint looking to get rich just looking to live comfortably. I know its all speculation so any and all advice will be greatly appreciated. Thanks






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white perch
LSU Fan
the bright, happy side of hell
Member since Apr 2012
2620 posts

re: Fidelity 401k and FID freedom 2030, opinions..








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gamatt53
Georgia Fan
Member since Nov 2010
739 posts

re: Fidelity 401k and FID freedom 2030, opinions..


quote:

i just started my 401k not long ago and have less then 5k in it

quote:

im 40

quote:

just looking to live comfortably.


how long do you plan on working? Your way late to the game at this point






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wiltznucs
South Florida Fan
Apollo Beach, FL
Member since Sep 2005
7601 posts

re: Fidelity 401k and FID freedom 2030, opinions..


The argument for the target-date retirement funds is that they adjust your level of risk between equity/debt securities as you approach retirement. In addition, its assumed that the fund manager has adequately diversified the portfolio. It's an easy way for lazy or unsophisticated investors to have their money managed by a professional. In most cases the individual places nearly 100% of their contributions in a target-date fund. Some of these funds actually do pretty well..

In your specific case some will argue that you've arrived to the game a bit late. There is nothing wrong with this and I congratulate you for taking an active role in your retirement. Some will argue that in your case its time to play catch up and you should be investing heavily in equities in the current market. I say let your own level of risk aversion guide your choices.

Go to Morningstar.com and compare your fund choices.



This post was edited on 4/4 at 1:50 pm


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matthew25
Ole Miss Fan
Member since Jun 2012
3359 posts

re: Fidelity 401k and FID freedom 2030, opinions..


Are you maxing out your contribution so the company will match? At age 40, you need to put 15-20 in retirement to play catch up.

Of the 3 funds, the Contrafund is your best bet. As wilt said, look at Morningstar ratings. FCNTX is a 5-star with low risk and above average returns. The Growth fund is high return, but also has more risk. If your were in your 20's or wee 30's, I would say the Growth Fund for you.






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FulmersGonnaFixIt
Tennessee Fan
Brentwood, TN (Utopia)
Member since Jun 2011
3170 posts

re: Fidelity 401k and FID freedom 2030, opinions..


Contrafund and the Fidelity Spartan funds.






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Ace Midnight
LSU Fan
Ball, LA - Home, Sweet Home
Member since Dec 2006
29094 posts
 Online 

re: Fidelity 401k and FID freedom 2030, opinions..


quote:

i just started my 401k not long ago and have less then 5k in it.



Personally, you still have a long time in the market, 20 to 25 years. I would stick to S&P index funds, about 60%, 20% to 25% in a small or mid cap fund, maybe even a growth fund, and 15% to 20% in an international fund.

Obviously you don't want to leave anything on the table, but at 40, you've got to keep pushing the envelope until you max out your contributions for the year, and then consider other retirement savings options beyond that.

Maybe go up 1 to 2% every quarter until it hurts?






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vodkacop
LSU Fan
GOM
Member since Nov 2008
1932 posts

re: Fidelity 401k and FID freedom 2030, opinions..


thanks guys. yes i was looking at maybe doing fidelity small cap fund and i think they are rated 5 star by morning star. I started out doing 15 percent but seen i couldnt manage it now im at 6 percent and thinking about during the 1 percent extra every year or go up even more when i can.





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