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I have rolled my 401k over to Fidelity investments and have appointment with a planner, what do you suggest?

I would like to have the fewest fees and charges but the highest yield, of course. Does anyone have some solid investment advice at this shaky time of our economy and market? I have about 12 years before retirement. Thanks in advance for any suggestions.

4 Answers

  • J
    Lv 4
    1 decade ago
    Favorite Answer

    A good advisor should be suggesting allocating between 40 and 60% in stock funds and the balance in short term bond funds. Based on your "shaky" comment I assume you are conservative so your allocation to stock funds should be closer to 40% than 60%.

    The advisor might suggest a Target Date Fund.(Fidelity calls them Freedom Funds) The concept is that the Freedom Fund 2020 would be suitable to those planning to retire in 2020. These funds have a mix of stock bond and money market funds that will gradually reduce the stock allocation as time goes by. Don't focus on the date e.g. 2020 focus on the amount of stock e.g. their 2010 fund has almost 50% in stock funds.while the 2020 fund has 60%+ These funds are pretty good for "set it and forget it" investors. I believe the 2010 fund has a yearly expense ratio (charge) of 0.67. Not bad. A similar fund at Vanguard is about 0.17 or 1/2 of 1% cheaper. You won't see these charges on a statement they affect the fund's performance.

    The advisor might also suggest their index funds. The have some of the lowest cost index funds in the business. You can get away with three funds: A total us stock market fund, a total international index fund, and a short term bond fund. Don't expand to too many funds are you will get confused.

    Good Luck

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  • 1 decade ago

    Fidelity was a decent choice. You could wipe out the advantage of using them by using a planner.

    If they offer a managed plan that only charges 1% to 2% a year......... you're paying way to much money in additional fees.

    If the planner suggests an annuity.... get another planner.

    Best bet;

    Read Mutual Funds For Dummies. After that pick a couple of additional books on retirement investing. This will save you tons of money. It's not nearly as hard as some planners would like you to believe.

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  • Anonymous
    1 decade ago

    There's no rush.. Take your Time

    Put the money in a Core Account(money Fund that earns interest)

    I would choose a self-directed roll-over account.

    You choose what you wish to buy...Bonds..Stocks..Fidelity Mutual Funds..Other company Mutual Funds..Electronic Traded Funds(ETF's)...OTC..etc.

    When you buy something the money is subtracted from your Core Account, which gives you the advantage of buying something quickly.

    I'd decline buying annuities, because the markets volatile, and an annuity is illiquid, with poor returns.

    Growth Mutual Funds like..Contra Fund ..Yackman Fund..Oakmark are good starts, but pick your entry point, buy a historically good performer in a market correction

    If your tolerance for risk is low, pick a balanced mutual fund 60% equity 40% bonds.

    And if you choose to let them control it, at least keep track of the Market as a whole.keeping track of major swings in the market.

    "Buy and Hold" is dead, even in mutual funds

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  • 4 years ago

    i ought to bypass with forefront (i'm a forefront customer yet were with constancy interior the previous). it is a few tremendous print i got here upon on constancy's web site: 3 IRA brokerage account fee has been eliminated on constancy's classic, Roth, SEP and Rollover IRAs. Fund prices and brokerage commissions nonetheless be conscious. counting on your subject, expenditures ought to contain low-stability expenditures, short-time period buying and promoting expenditures, and account final expenditures. different expenditures and prices appropriate to a persisted funding interior the fund are defined interior the fund's cutting-edge prospectus. constancy nonetheless expenditures administration expenditures on the mutual money and forefront's expenditures are many times decrease so i ought to bypass with them.

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