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Point Me in the Right Direction
Old 03-22-2011, 04:12 PM   #1
Confused about dryer sheets
Join Date: Mar 2011
Location: San Diego
Posts: 5
Point Me in the Right Direction

Hi Everyone! I'm a new member to this board and am really enjoying the wealth of knowledge I'm finding in the comments here. I introduced myself in the "Hi, I'm New" forum, so I'll try not to re-hash too much of that in here. Hopefully this is the right forum for my questions.

Here goes:
Age: 28 - married and living on a single-income (wife is currently in nursing school)
Residence: San Diego, CA
Income: $4000/month after taxes and after 15% retirement contribution
-will be closer to $8-$9000/month in 2013 once the wifer starts her career.
Savings: $25,000 in regular savings account ; $34,000 in 401K

My question:
I recently relocated to San Diego. I have $34,000 in a Fidelity 401K plan (Freedom Fund Fidelity Freedom 2045 Fund (FFFGX)) from my old employer. I have chosen to roll that money into the the Fidelity 457 that my new employer offers and keep with the same freedom fund.

My new employer also provides a yearly contribution into a Fidelity 401a plan. It's very generous as it's 6% of my salary on top of the contribution they already make to the 457 plan.

I guess my main question has to do with diversification. With me already invested in that Freedom Fund, what should I invest my 401a money in? Also, I do have $400-$500 of extra monthly income to invest somewhere else. Any ideas?



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Old 03-22-2011, 05:36 PM   #2
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Join Date: Mar 2007
Posts: 10,274
In general, many if not most, here feel that you should have an overall asset allocation plan which spans all of your investments. So, having decided what percentage of your investments will be in stocks and in bonds, you tweak the individual plans to achieve this ratio in the most tax effective way. For instance, keep bonds in a deferred plan and stock funds in a taxable account.

If you are happy with the asset allocation of the 2045 plan, you could copy it across your other investments.

Yes, I have achieved work / life balance.
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Old 03-23-2011, 01:53 AM   #3
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Join Date: Nov 2010
Location: Vermont & Sarasota, FL
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No need to point you in the right direction, you are already heading in the right direction - congratulations!!!

Agree with travelover that you need to look at asset allocation holistically across all of your accounts and portfolios. 2045 Fund is 86% equities/16% fixed income and seems an appropriate AA for your age.

Best of luck.
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