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fidelity 401k - what to invest in?
08-14-2011, 10:31 PM
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#1
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Dryer sheet aficionado
Join Date: Oct 2010
Location: Ft. Lauderdale
Posts: 32
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fidelity 401k - what to invest in?
Hello all,
I have been addicted to this site for some time now. I will introduce myself in a different thread, but for now, here is my question.
I contribute the max ($16.5) in my 401-k. I'm 37 years old and just 1 year out of grad school. My income is around $130-$150k depending on how much overtime I work. I have a fidelity 401-k.
I will post what is available to me for investment. right now they have me in 100% of the fidelity freedom 2040 fund. They assume i will retire in 2040. However, my plan is to retire at 50 in 2024. at least that is my plan. I have no kids, my only debt is my mortgage of 110k which i intend to pay off in the next 2 years. I am living WAYYYYYYY below my means.
anyway, not to get off track, here are my avail investment options and I would like to ask the forum what they think my best options would be for investment. maybe a % of each type? etc. here are my avail investements..... what would you guys invest in, and how much %?
i'm investing the max and will continue to do so until my ER.
thank you in advance. any questions please ask. At the moment, I have only $21,000 in this 401-k but that will increase by the max every year.
Large Cap
DAVIS NY VENTURE A
FID CAPITAL APPREC
FID CONTRAFUND
IVK GRTH & INC A
APTN 500 INDEX INV
Mid-Cap
COL MID CP OP R4
FID LEVERGD CO STK
FID LOW PRICED STK
MSIF MID CAP GRTH P
Small Cap
ABF SM CAP VAL INV
KEELEY SMALL CAP VAL
MSIF SM CO GRTH P
International
FID INTL DISCOVERY
LZRD EMRG MKTS EQ IS
OPPHMR INTL GRTH Y
Blended fund investments
there are freedom funds for several years...... but i'm in the 2040
FID FREEDOM 2040 (this is what I have 100% invested in right now)
FREEDOM INCOME
FID PURITAN
Bond Investments
Stable Value
FID MGD INC PORT
Income
FID INTERMED BOND
I would love to know what you guys suggest for me. I am brand new to this and just now beginning my education in finance. I'm a Nurse Anesthetist and have only science in my brain at the moment. lol. Thank you.
Moderator edit: this thread was relocated to "FIRE and money because it is a request for investing advice
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08-15-2011, 07:34 AM
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#2
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Thinks s/he gets paid by the post
Join Date: Oct 2008
Location: Naples
Posts: 2,179
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hey floridanurse, welcome to the forum. When I was with mega corp, the 401k plan was administered by Fidelity. Thought they were very effective overall. I am aware of the Freedom Plans and wondered if you have reviewed the 2020 and 2030 plans and what investments they include. Naturally, the later the planned retirement year, the more aggressive the fund. You can mix it up to suit your own thoughts. Like 50% of your total investment in Freedom 2020 or 2030 and the remaining 50% split among other funds.
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08-15-2011, 07:40 AM
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#3
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,303
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The Freedom fund closest to your expected retirement date would be easiest. The 2040 fund would be similar, just more aggressive which should provide higher returns though more volatility (risk).
If you want to slice and dice, I'd suggest you read a little on Scott Burns Couch Potato portfolio or the Coffeehouse Investor portfolios. You will want to understand the purpose of each holding and rebalancing for yourself IMO. Freedom Funds are for those who want selections and rebalancing done automatically, and that serves well for many people. Best...
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
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08-15-2011, 08:47 AM
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#4
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Recycles dryer sheets
Join Date: Sep 2007
Posts: 464
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Low Cost spartan S&P 500 as core.
Contra Fund and Low Priced Stock have excellent fund managers with good long term records.
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08-15-2011, 02:31 PM
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#5
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Recycles dryer sheets
Join Date: Jul 2008
Posts: 141
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contrafund for sure
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08-15-2011, 08:14 PM
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#6
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Thinks s/he gets paid by the post
Join Date: Jan 2004
Posts: 2,049
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Fstmx
ffnox
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08-16-2011, 08:07 AM
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#7
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Thinks s/he gets paid by the post
Join Date: Sep 2006
Posts: 1,691
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I would even spread (1/5th each) in LC, MC, SC, Intl, & Bonds
TJ
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08-16-2011, 08:40 AM
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#8
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Mar 2007
Posts: 14,328
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I would post at Bogleheads.
Getting Started - Bogleheads
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08-16-2011, 09:08 AM
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#9
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Moderator Emeritus
Join Date: Sep 2007
Posts: 17,774
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 Quote:
Originally Posted by travelover
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+1
I just did a little historical compare of the Fidelity 2040 fund vs. the S&P 500 and they behave the same but the plain vanilla S&P outperforms slightly, it looks like.
__________________
“Would you like an adventure now, or would you like to have your tea first?” J.M. Barrie, Peter Pan
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08-16-2011, 04:21 PM
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#10
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Dryer sheet aficionado
Join Date: Oct 2010
Location: Ft. Lauderdale
Posts: 32
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thank you all for the tips and the links.......
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08-16-2011, 04:29 PM
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#11
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Recycles dryer sheets
Join Date: Jan 2011
Posts: 125
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wow. they must pay florida RN's really good down there!
Or are you a NP?
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08-16-2011, 04:49 PM
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#12
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Dryer sheet aficionado
Join Date: Oct 2010
Location: Ft. Lauderdale
Posts: 32
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Yes, NP, specifically I'm a CRNA. Certified Registered Nurse Anesthetist. and actually my $150k/yr is low compared to the rest of the country. However, I get to swim in the ocean several days a week  and I guess that makes up for it. I guess I need to go introduce myself in the appropriate section.
I am just 2 years out of school, and have not changed my lifestyle one bit. In fact, I am living on less.
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08-17-2011, 06:58 AM
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#13
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Dryer sheet wannabe
Join Date: Jul 2010
Posts: 23
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Quote:
Originally Posted by Bestwifeever
+1
I just did a little historical compare of the Fidelity 2040 fund vs. the S&P 500 and they behave the same but the plain vanilla S&P outperforms slightly, it looks like.
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+2. The first question to ask yourself is how much risk are you willing to accept in your portfolio, and then determine your allocation (stocks-to-bonds). Picking the funds is the easy part. Like the others said, post this over on the Bogleheads forum and you will get some detailed responses.
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08-19-2011, 08:24 PM
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#14
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Recycles dryer sheets
Join Date: Sep 2004
Posts: 174
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Do you have Fidelity Brokerage Link?
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08-19-2011, 10:18 PM
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#15
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Recycles dryer sheets
Join Date: Jun 2008
Posts: 85
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Quote:
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Originally Posted by travelover
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+2
__________________
Democracy will cease to exist when you take away from those who are willing to work and give to those who are not. - Thomas Jefferson
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08-19-2011, 11:58 PM
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#16
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Thinks s/he gets paid by the post
Join Date: Mar 2010
Location: Kerrville,Tx
Posts: 3,361
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Quote:
Originally Posted by Bestwifeever
+1
I just did a little historical compare of the Fidelity 2040 fund vs. the S&P 500 and they behave the same but the plain vanilla S&P outperforms slightly, it looks like.
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Although the expense ratio is very low there are a few expenses even for an index fund (if nothing else the custodian and auditors to hold the stocks so that its harder to pull a Madoff).
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08-20-2011, 02:49 AM
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#17
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jul 2005
Posts: 6,192
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the biggest factor is not what we think but what you think.. investing is all about your own pucker factor and stomach for risk. if we put you all in equities and you panic or cant sleep at night and you bail out each downturn what we think will not matter.
the financial world likes to do risk and allocations by age. that is wrong wrong wrong.
its never about age. even a 65 year old still has money they wont need for 15 to 30 years. with time like that odds are greatly in favor of not losing a penny in equities if you stick to the plan.
on the other hand a 25 year old who panics each time and loses money should not be allocated heavy in equities because of their age..
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