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.

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

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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?