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Fidelity investments.?

Is this a good company fidelity investments for 401k? Im putting 13% company covers 100% BGI LifePath® 2030 Class S.

Update:

Im sorry My company matches 3% IM 45 years old .

Update 2:

What is a broad based index fund? Will this add more money or will it sink? Please explain!!!

6 Answers

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  • Anonymous
    1 decade ago
    Favorite Answer

    In short, fidelity is a good 401k provider. I work with people who roll over their 401ks and I would say that 70% or more are with fidelity.

    It sounds like your contributing alot to your 401k which is great! Make sure you contribute at LEAST what your employer matches. It is free money and in most cases is yours when you retire/quit.

    The choice your making on your investment choice is OK at best. An asset allocation fund like what you've chosen is good for the investor who knows very little about the market but in the long run you'll lose out because of a few factors:

    - Over diversification: You'll resemble a benchmark too closely (S&P500, etc). You want to beat these if possible.

    - Higher yearly expenses: All mutual funds have a yearly expense and 401k plans are no exception. Out of all types of mutual funds asset allocation funds can be one of the highest (as well as growth funds).

    - An asset allocation fund is based on general, broad based assumptions. (life expectancy, years to retirement, etc) I may retire in 10 years but maybe I'm more aggressive than the average investor.

    Hopefully this helps to steer you in the right path!

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  • Anonymous
    1 decade ago

    Fidelity is very reputable (as any big firm would be). I used to keep my 401K there, but moved it when I changed jobs. they're fine.

    I can't tell you anything about your fund tho. Although it seems to be a life-cycle type fund, and you expect to retire somewhere around 2030-ish. Those funds seem pretty good for people who don't want to keep up on individual funds.

    My 401k company, John Hancock, also has those. they were just added to our plan last month. I'm sticking with picking my own tho. I think I can do a little better.

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  • Anonymous
    1 decade ago

    Yes, the leading companies for mutual funds are Vanguard, T Rowe Price, and Fidelity. Although I prefer the service level offered by Vanguard, which has the lowest management fees in the market for their mutual funds, Fidelity compares well with them.

    I personally would avoid the retirement targetted funds, but then I prefer more control over the allocation of my money. These funds tend to be very conservative in their models, and considering we are all on average living much longer, to maintain income in retirement, we will all need to increase our equity exposure even in retirement. That said, a retirement targetted fund will give you good distribution across equity classes and bond funds.

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  • Big R
    Lv 6
    1 decade ago

    Fidelity is one of the best. I'd be a bit more aggressive if I were you. You may want to consider putting part of your money into a broad based index fund. Fidelity has those available. Look into it then do what you want. Fidelity is a good one though.

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  • Anonymous
    1 decade ago

    If you are 42 years old, then the 2030 Fund is just fine. If you are younger than that, it may not be aggressive enough, and you will probably find you do not have enough to live well on when you retire.

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  • 4 years ago

    Some of Vanguard's funds can be opened with lower amounts if you agree to direct deposit. Also look at T. Rowe Price - same thing there.

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