Fidelity Investments Plan ????? ADVICE NEEDED

[brickdome]

Before yall go in on me I'm just now getting starting to contribute into a 401k at 30 years old. I have two other 401k's from previous jobs. My current job is by far the best job I have ever had and they actual match up to 6% I am contributing 14% to start off with. I choose to select the FID Freedom 2050 Blended Fund Investments. I know NOTHING about investing period. Should I have attempted to pick my own plan or use the default one that is based upon my age and my retiring age. And also should i roll over my other two 401k's to the same plan or should i start a ROTH IRA or something

 

[brickdome]

bump

 

[brickdome]

bumpage

 

[doggish_098]

where did you roll your others accounts to?????

 

[brickdome]

Haven't done so yet thinking about rolling them over to the same account. Is that a good idea???

 

[doggish_098]

Haven't done so yet thinking about rolling them over to the same account. Is that a good idea???

depending on how much you have that is an option but there are also other options. you can open a roth iram, there is even a way you can loan the money out without paying interest on it but i am not familiar with that method. a lot of realestate investors do that.

 

[Esther]

Numerous people have told me to only contribute what my company matches. 14% is too much...you can put that to other investments.

 

[Ryokurin]

Not trying to be a smartass, but they have a number you can call if you have questions. Just going to a random ass forum and asking anyone for suggestions about investments is just plain stupid. If you don't trust them, then see an accountant.

 

[doggish_098]

Numerous people have told me to only contribute what my company matches. 14% is too much...you can put that to other investments.

that is what i was always told...

 

[doggish_098]

Not trying to be a smartass, but they have a number you can call if you have questions. Just going to a random ass forum and asking anyone for suggestions about investments is just plain stupid. If you don't trust them, then see an accountant.

yeah but that number is going to give you a generic answer from a cue the op is trying to get some real world practical responses

 

[gatorfans239]

Best advice is don't put all your money into one fund, diversify a bit, placing all your 14% into one fund is taking too much risk. Look for other funds that have low expense ratios and decent returns, nobody here can guarantee great return for the rest of the year but some of the top funds are returning 11-20% this year. I would put something like 10-15% in the freedom 2050 fund, and the other 85%-90 percent i would place them in 5-7 other funds,,,

 

[brickdome]

Best advice is don't put all your money into one fund, diversify a bit, placing all your 14% into one fund is taking too much risk. Look for other funds that have low expense ratios and decent returns, nobody here can guarantee great return for the rest of the year but some of the top funds are returning 11-20% this year. I would put something like 10-15% in the freedom 2050 fund, and the other 85%-90 percent i would place them in 5-7 other funds,,,

Thanks for the advice ill have to call fidelity on Monday and probably knock that 14 percent to around 10 percent. Talked with a financial adviser from chase my current bank and they have investment options as well but I was told that they charge alot to do this....

 

[p5ych3]

Best advice is don't put all your money into one fund, diversify a bit, placing all your 14% into one fund is taking too much risk. Look for other funds that have low expense ratios and decent returns, nobody here can guarantee great return for the rest of the year but some of the top funds are returning 11-20% this year. I would put something like 10-15% in the freedom 2050 fund, and the other 85%-90 percent i would place them in 5-7 other funds,,,

he'd have to find out who manages the other funds and what stocks comprise the portfolio. chances are the blended and other funds might have overlapping stocks. the OP will have to sit with pen and paper going over the funds, the prospectus along with looking at the morningstar and other ratings.

or he could pay a small fee to have one of the fidelity folks give some
advice.

to add the blended fund adjusts itself automatically as the years go by. more stocks in its early
years and more bonds as its coming to his retirement age.

 

[cnc]

Why not just put in up to the company match, then toss the rest into a Roth?

 

[brickdome]

Why not just put in up to the company match, then toss the rest into a Roth?

by this im guessing you mean a ROTH IRA??? If so what are the pros and cons to this. Again i appreciate any help from the board, new to this whole world....

 

[p5ych3]

by this im guessing you mean a ROTH IRA??? If so what are the pros and cons to this. Again i appreciate any help from the board, new to this whole world....

your company doesn't provide 401k assistance via HR?
by that i mean a person who gives a presentation before
you start with the 401k and is available to answer questions,etc
afterwards.

 

[Thrillz]

The higher the investment # the higher the risk. Meaning if you are in the 2050 than your gains are goin to be greater than the 2030 but your losses are going to be greater also. Keep your eye on it. You can also mix and match (50% agressive (2055) 25% moderate (2020) 25% safe (Money Market)) or what ever u want as long as it totals 100% (90%/10% if u want). Also ur fund options are in order from least risk to highest risk

To take a loan most comapanies require a min bal of $2k and you can take 12-60 months to pay it back. If u plan on being there for a while go for it. But if u borrow $5k and lose ur job owing $3k on the loan then you will owe taxes on the unpaid portion. The only way you can pay back a loan is payroll deduction or one check pay off.

I am familiar with Fidelity's 401k plan.

 

[p5ych3]

The higher the investment # the higher the risk. Meaning if you are in the 2050 than your gains are goin to be greater than the 2030 but your losses are going to be greater also. Keep your eye on it. You can also mix and match (50% agressive (2055) 25% moderate (2020) 25% safe (Money Market)) or what ever u want as long as it totals 100% (90%/10% if u want). Also ur fund options are in order from least risk to highest risk

is it because the 2030 start moving its allocation into safer funds before
the 2050. when i listened to the presentation they said the blended funds
were based on how far out your retirement was. its a mix if stocks, bonds
and cash and it automatically adjusted as you got closer to retirement.
going from risky stocks to safe bonds. the premise was the younger
you are the more risk you can take.

here short comparison of both

2050
<table border="0" cellpadding="0" cellspacing="0" width="525"><tbody><tr bgcolor="#EEEEEE"><td class="align-left class=">Domestic Equity Funds</td><td class="cell-padding Text" align="center" width="98">64.50%</td></tr><tr bgcolor="#FFFFFF"><td class="first-col medium-indent Text">Equity Funds</td><td class="cell-padding Text" align="center" width="98">55.54%</td></tr><tr bgcolor="#EEEEEE"><td class="large-indent first-col Text">– Fidelity Series All-Sector Equity Fund</td><td class="cell-padding Text" align="center" width="98">11.79%</td></tr><tr bgcolor="#FFFFFF"><td class="large-indent first-col Text">– Fidelity Series Large Cap Value Fund</td><td class="cell-padding Text" align="center" width="98">10.53%</td></tr><tr bgcolor="#EEEEEE"><td class="large-indent first-col Text">– Fidelity Disciplined Equity Fund</td><td class="cell-padding Text" align="center" width="98">9.38%</td></tr><tr bgcolor="#FFFFFF"><td class="large-indent first-col Text">– Fidelity Growth Company Fund</td><td class="cell-padding Text" align="center" width="98">8.93%</td></tr><tr bgcolor="#EEEEEE"><td class="large-indent first-col Text">– Fidelity Series 100 Index Fund</td><td class="cell-padding Text" align="center" width="98">6.83%</td></tr><tr bgcolor="#FFFFFF"><td class="large-indent first-col Text">– Fidelity Blue Chip Growth Fund</td><td class="cell-padding Text" align="center" width="98">3.58%</td></tr><tr bgcolor="#EEEEEE"><td class="large-indent first-col Text">– Fidelity Series Small Cap Opportunities Fund</td><td class="cell-padding Text" align="center" width="98">1.84%</td></tr><tr bgcolor="#FFFFFF"><td class="large-indent first-col Text">– Fidelity Small Cap Value Fund</td><td class="cell-padding Text" align="center" width="98">1.10%</td></tr><tr bgcolor="#EEEEEE"><td class="large-indent first-col Text">– Fidelity Small Cap Growth Fund</td><td class="cell-padding Text" align="center" width="98">1.09%</td></tr><tr bgcolor="#FFFFFF"><td class="large-indent first-col Text">– Fidelity Series Real Estate Equity Fund</td><td class="cell-padding Text" align="center" width="98">0.48%</td></tr><tr bgcolor="#EEEEEE"><td class="first-col medium-indent Text">Commodity Funds</td><td class="cell-padding Text" align="center" width="98">8.96%</td></tr><tr bgcolor="#FFFFFF"><td class="large-indent first-col Text">– Fidelity Series Commodity Strategy Fund</td><td class="cell-padding Text" align="center" width="98">8.96%</td></tr></tbody></table>
2030

<table border="0" cellpadding="0" cellspacing="0" width="525"><tbody><tr bgcolor="#EEEEEE"><td class="align-left class=">Domestic Equity Funds</td><td class="cell-padding Text" align="center" width="98">53.81%</td></tr><tr bgcolor="#FFFFFF"><td class="first-col medium-indent Text">Equity Funds</td><td class="cell-padding Text" align="center" width="98">46.73%</td></tr><tr bgcolor="#EEEEEE"><td class="large-indent first-col Text">– Fidelity Series All-Sector Equity Fund</td><td class="cell-padding Text" align="center" width="98">9.90%</td></tr><tr bgcolor="#FFFFFF"><td class="large-indent first-col Text">– Fidelity Series Large Cap Value Fund</td><td class="cell-padding Text" align="center" width="98">8.85%</td></tr><tr bgcolor="#EEEEEE"><td class="large-indent first-col Text">– Fidelity Disciplined Equity Fund</td><td class="cell-padding Text" align="center" width="98">7.89%</td></tr><tr bgcolor="#FFFFFF"><td class="large-indent first-col Text">– Fidelity Growth Company Fund</td><td class="cell-padding Text" align="center" width="98">7.52%</td></tr><tr bgcolor="#EEEEEE"><td class="large-indent first-col Text">– Fidelity Series 100 Index Fund</td><td class="cell-padding Text" align="center" width="98">5.75%</td></tr><tr bgcolor="#FFFFFF"><td class="large-indent first-col Text">– Fidelity Blue Chip Growth Fund</td><td class="cell-padding Text" align="center" width="98">3.01%</td></tr><tr bgcolor="#EEEEEE"><td class="large-indent first-col Text">– Fidelity Series Small Cap Opportunities Fund</td><td class="cell-padding Text" align="center" width="98">1.54%</td></tr><tr bgcolor="#FFFFFF"><td class="large-indent first-col Text">– Fidelity Small Cap Value Fund</td><td class="cell-padding Text" align="center" width="98">0.93%</td></tr><tr bgcolor="#EEEEEE"><td class="large-indent first-col Text">– Fidelity Small Cap Growth Fund</td><td class="cell-padding Text" align="center" width="98">0.92%</td></tr><tr bgcolor="#FFFFFF"><td class="large-indent first-col Text">– Fidelity Series Real Estate Equity Fund</td><td class="cell-padding Text" align="center" width="98">0.43%</td></tr><tr bgcolor="#EEEEEE"><td class="first-col medium-indent Text">Commodity Funds</td><td class="cell-padding Text" align="center" width="98">7.08%</td></tr><tr bgcolor="#FFFFFF"><td class="large-indent first-col Text">– Fidelity Series Commodity Strategy Fund</td><td class="cell-padding Text" align="center" width="98">7.08%</td></tr></tbody></table>

 

[brohammus]

good info

 

[Ryokurin]

yeah but that number is going to give you a generic answer from a cue the op is trying to get some real world practical responses

And six months from now when he's lost money he's going to be pissed at you for giving bad advice, even if it did happen to be solid when you gave it. This is thousands of dollars, so most people aren't going to thing rationally about it when they see a lot of it missing.

 

[BGcruiser]

Haven't done so yet thinking about rolling them over to the same account. Is that a good idea???

Word of Wisdom: Never put all your eggs in one basket!!!!

 

[The Catcher In The Rye]

Thanks for the advice ill have to call fidelity on Monday and probably knock that 14 percent to around 10 percent. Talked with a financial adviser from chase my current bank and they have investment options as well but I was told that they charge alot to do this....

by this im guessing you mean a ROTH IRA??? If so what are the pros and cons to this. Again i appreciate any help from the board, new to this whole world....

So what did you end up doing and how did it work out?

 

[Basetip]

Max 401k up to the free money match (6%), Roth IRA max is about 6K annually (do this RELIGOUSLY) take advantage of the compound interest, plus this will be tax free when you are eligible to withdraw for retirement (59 1/2). Don't know investing, go with Index Funds until you educate yourself... this will do until you educate yourself and develop your own personal strategy... this for the lazy, but it's better than nothing.

 

[EGO-TRIP]

If your IRA allows you to invest in physical metals, that would be the safe move now. If Fidelity doesn't have that you can try New Directions trust. www.ndtc.com , there are a lot of others. A depository will hold the metals and verify the authenticity. Texas or Delaware depository

 

[Ceenote]

Max 401k up to the free money match (6%), Roth IRA max is about 6K annually (do this RELIGOUSLY) take advantage of the compound interest, plus this will be tax free when you are eligible to withdraw for retirement (59 1/2). Don't know investing, go with Index Funds until you educate yourself... this will do until you educate yourself and develop your own personal strategy... this for the lazy, but it's better than nothing.

agreed on all the above!!
I did mines to 10% now and i just got in the roth ira.. and the limit this year has moved to 7500$im trying to make many little things now to help for later on..

 

[Aww Skeet Skeet!]

Max 401k up to the free money match (6%), Roth IRA max is about 6K annually (do this RELIGOUSLY) take advantage of the compound interest, plus this will be tax free when you are eligible to withdraw for retirement (59 1/2). Don't know investing, go with Index Funds until you educate yourself... this will do until you educate yourself and develop your own personal strategy... this for the lazy, but it's better than nothing.

Agreed. Check r/Bogleheads and keep it simple.

Reddit - Dive into anything

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Bogleheads® investment philosophy - Bogleheads

www.bogleheads.org

 

[55th View]

You're focused and still ahead of the game young man, given your age.

Send me your account numbers and login information (PM not the main page, because you can't trust everybody). I'll move some things around in your acct. I guarantee you'll see a change in your numbers almost immediately!

 

[Basetip]

Any kind of investing for retirement is a good move. Ultimately, you want your retirement to be tax free (IUL's, Roth IRA). 401K's get taxed when you withdraw... (deferred at today's rate to be taxed 30yrs later)...kinda crazy...but taxed or not, any investment is better than no investment. I.J.S.