I'm 23 and just started working a few months ago. My company offers a 401k, and currently my money is all going into a Fidelity Freedom 2050 plan. I read that these types of "fund of funds" aren't a good idea because fees and funds usually overlap, and that some bad funds are thrown in so the companies like Fidelity can make a little off of those.
I also read that since the asset allocation of the Freedom 2050 plan is available, it should be possible to manually allocate assets based on a similar strategy.
I found the breakdown of the Freedom 2050 plan (Fidelity Investments:), but I don't really know what to do from there...
The funds available to me are:
Stock Investments
LARGE CAP
ALLNZ NFJ DIV VAL I
FID CAP APPRECIATION
FID CONTRAFUND
FID GROWTH COMPANY
SPARTAN US EQ INDEX
MID-CAP
ALGER MIDCAP GRTH I
FIDELITY LOW PR STK
SMALL CAP
ABF SM CAP VAL INST
BARON SMALL CAP
INTERNATIONAL
FID DIVERSIFIED INTL
FID WORLDWIDE
Blended Fund Investments*
FID FREEDOM 2000
FID FREEDOM 2005
FID FREEDOM 2010
FID FREEDOM 2015
FID FREEDOM 2020
FID FREEDOM 2025
FID FREEDOM 2030
FID FREEDOM 2035
FID FREEDOM 2040
FID FREEDOM 2045
FID FREEDOM 2050
FID FREEDOM INCOME
Bond Investments
STABLE VALUE
FID MGD INC PORT
INCOME
FID TOTAL BOND
I also read that Money Magazine recommends that for someone in my "stage of life" (35+ years to retirement) should have their retirement money invested like so:
I also read that since the asset allocation of the Freedom 2050 plan is available, it should be possible to manually allocate assets based on a similar strategy.
I found the breakdown of the Freedom 2050 plan (Fidelity Investments:), but I don't really know what to do from there...
The funds available to me are:
Stock Investments
LARGE CAP
ALLNZ NFJ DIV VAL I
FID CAP APPRECIATION
FID CONTRAFUND
FID GROWTH COMPANY
SPARTAN US EQ INDEX
MID-CAP
ALGER MIDCAP GRTH I
FIDELITY LOW PR STK
SMALL CAP
ABF SM CAP VAL INST
BARON SMALL CAP
INTERNATIONAL
FID DIVERSIFIED INTL
FID WORLDWIDE
Blended Fund Investments*
FID FREEDOM 2000
FID FREEDOM 2005
FID FREEDOM 2010
FID FREEDOM 2015
FID FREEDOM 2020
FID FREEDOM 2025
FID FREEDOM 2030
FID FREEDOM 2035
FID FREEDOM 2040
FID FREEDOM 2045
FID FREEDOM 2050
FID FREEDOM INCOME
Bond Investments
STABLE VALUE
FID MGD INC PORT
INCOME
FID TOTAL BOND
I also read that Money Magazine recommends that for someone in my "stage of life" (35+ years to retirement) should have their retirement money invested like so:
- 50%--large cap stocks
- 15%--mid cap stocks
- 15%--bonds
- 10%--small cap stocks
- 10%--international stocks