Fidelity Asset Manager 20%

[johnbb]

I am in the process of rolling over my 401K ($260K) to Fidelity. I am 62 and will be taking SS ($1468/mo). They recommended the Fidelity Asset Manager 20% fund, but I have a meeting next week to discuss having them manage my retirement fund. They will make a proposal next week for that. Don't know if I want to do that, but I don't have much knowledge in the financial area. Anyone familiar with this fund or have suggestions on whether I should have them manage my fund?

 

[mathjak107]

I have this fund in my short term model portfolio. Very conservative and about a step up in risk from a bond fund. up 5.12 ytd . I wouldnt use this fund for a long term view but would use it as a kicker to supplement my money markets/cd's and short term bond funds.

 

[Dawg52]

I would consider the balanced fund. It is roughly 60% stocks/ 40% bonds. A pretty typical asset/bond ratio for retirees. Ask them about it.
http://personal.fidelity.com/products/funds/mfl_frame.shtml?316345206

Another good option would be the Freedom funds. They automatically become more conservative as you grow older.
http://personal.fidelity.com/products/funds/content/freedomfunds.shtml.cvsr?refpr=ipmf8

 

[Nords]

I am in the process of rolling over my 401K ($260K) to Fidelity. I am 62 and will be taking SS ($1468/mo). They recommended the Fidelity Asset Manager 20% fund, but I have a meeting next week to discuss having them manage my retirement fund. They will make a proposal next week for that. Don't know if I want to do that, but I don't have much knowledge in the financial area. Anyone familiar with this fund or have suggestions on whether I should have them manage my fund?

Reading this board will tend to steer you toward do-it-yourself investing and staying away from the more expensive actively-managed funds. I wouldn't buy anything with the words "Asset Manager" in its title.

If you're willing to put in the time to read the books, you'll be able to develop the asset allocation & diversification that meets your temperament/lifestyle along with the confidence to stick with it. I'm not sure that it's in a financial manager's best interests to teach you how to do that. In fact it's probably cheaper to attend a community college for a degree in financial management than it would be to pay four years of a financial manager's fees, and educating yourself will benefit you for the rest of your life instead of your manager's life.

"Bob C." over at FundAlarm is a financial manager who spends his time defending his profession from the sins of its more venial members. He has some good advice on choosing a financial manager: http://66.223.18.76/wwwboard/messages/155596.html

 

[mathjak107]

balanced fund is way to aggressive for a proxy for an income fund. i like balanced and do own it too but its in my growth and income mix. income manager is a nice play as a proxy for a bond fund..

its about 80% bonds and cash and 20% inflation oriented stocks as a hedge. its swings are very mild and spins off a nice amount of income.

asset manager 20% which actually just had its name changed from asset income manager is a nice match withthe strategic income fund . you have nice bond diversification covering all the bases plus a little stock kicker.

 

[jazz4cash]

I am in the process of rolling over my 401K ($260K) to Fidelity. I am 62 and will be taking SS ($1468/mo). They recommended the Fidelity Asset Manager 20% fund, but I have a meeting next week to discuss having them manage my retirement fund. They will make a proposal next week for that. Don't know if I want to do that, but I don't have much knowledge in the financial area. Anyone familiar with this fund or have suggestions on whether I should have them manage my fund?

Curious to know how this works and why you are doing the rollover ahead of the meeting you have scheduled with them. If it was me, I would have the meeting and review the whole proposal before rolling anything over and certainly it seems the proposal could impact choice of Asset Manager vs some other fund......

 

[Dawg52]

balanced fund is way to aggressive for a proxy for an income fund. i like balanced and do own it too but its in my growth and income mix. income manager is a nice play as a proxy for a bond fund..

I didn't suggest it as a proxy for an income fund. I recommended it for growth as well. We really don't know how much he has in his overall portfolio but if the 260k is pretty much it, he's gonna need more growth potential than 20% in stocks. But again, we really need more info on his overall situation.

 

[johnbb]

My situation is SS at 62 = $1468/mo., $260K in 401K, and $400K equity in home, which I can't (won't) sell now because of being caretaker for a family member. I plan on selling in four years. My retirement assets are small because I didn't start saving until I was in my 40s.

 

[mathjak107]

Well a few problems here, at first you wanted an opinion on income manager which is really a proxy for a bond fund however its not a well balanced diversified mix that should be your only investment.

The problem is without knowing how much you will have after selling the house and i assume buying something else you cant tell us what your nest egg will be, your expenses or monthly draw needed. without that info there is no way we can draw up a balanced allocation plan.

for a more diversified mix a 60/40 split or 50/50 split between asset manager and balanced or equity income would not be bad place to start but again we dont have enough info about you.

 

[johnbb]

Sorry for lack of info, I'm new at this. As of now I need 3400/mo. My SS leaves me about 2K short. I have no choice but to use my 260K 401K to make up the difference. I will be seeking part-time work, but I can't count on it. I am estimating I will have 400K from the house when I sell in four years. Of course who knows what the market will be like then. It recently appraised at $670K, and I owe 200K. I will probably rent after I sell, but I'm open to purchasing if I can find something in an affordable area at that time. I'm aware I don't have much to work with, but my family member needs my care for the next few years, so that limits me working and selling the house now.

 

[mathjak107]

the unknown is the rent you will pay because then its more than 3400.00 a month you will need yes?

working it from another angle 660,000 could safely generate about 2100 a month inflation adjusted yearly initialy figuring a 7% return and inflation of 3%. a 50/50 mix of income manager and balanced or equity income could do that but we would prefer more diversification in the stock part

i like using a bucket systm myself

bucket 1 would hold some cash , not knowing everything about you i wont give amounts


bucket 2 would be my income fund bucket divided up using these fidelity funds

asset manager income

ultra short term bond

floating rate loan

strategic income



bucket 3 is stock funds, for you id stay with growth and income

fidelity puritan

fidelity balanced

fidelity equity income

that mix ytd is about 8.5% so far using a 50/50 split

WARNING WARNING

REMEMBER THE ABOVE IS JUST MY OPINION, AND WHAT THE HECK DO I KNOW

 

[Dawg52]

My situation is SS at 62 = $1468/mo., $260K in 401K, and $400K equity in home, which I can't (won't) sell now because of being caretaker for a family member. I plan on selling in four years. My retirement assets are small because I didn't start saving until I was in my 40s.

I am sorry for your situation. Hard enough to care for a family member much less having to worry about your finances. I think I would go the bucket route as well. I would probably put 100k in a ladder of 4 years worth of cd's and put the rest in a balanced fund of some kind. Live off the cd's over the next 4 years then sell your house and scale way back. If your single like me, you don't need anything big anyway. Plus you can always do a little part time work if you have to.

Best of luck!