FID FREEDOM 2050 K - 401 K

[phatposts]

@InSearch

I am telling based on my experience, take it with a grain of salt. 

Understanding the funds is important. 

1. FID 2050K means - if you anticipate to retire in 2050 this is a good bundle option ani. Since you are investing now, and have 30 years to retire the fund is going to be aggressive during the initial days (now) and get more conservative as it gets closer to 2050. You may want to check fund compositions. 

2. Few things to consider when trying to understand funds:

Fund composition : Every fund is comprised of several kinds of industries/commodities like tech, oil, energy, gas, manufacturing, real estate, metal etc. 
If a majority of the fund is comprised of stocks - it is called "heavy exposure". 
Apart from what I mentioned there will be less risk elements like bonds, treasuries, munis etc. 

For example if you take your Fidelity 2050K today this is a high level composition split
https://imgur.com/a/YfIZacM

https://imgur.com/a/MEaPenL

https://imgur.com/a/u7qf6Kx

If you read the composition - it is a major domestic equities driven choice. Ante stock market lo fluctuations ee fund meeda ekkuva untayi. Before March chooste this will be a great option. Now it is not. 

Pricing Every fund will have pricing and fees associated. For FID 2050K it is 0.65%. I think it is high. If you compare to Vanguards and other FID options this is high IMO. Ee pricing ni koncham next level ki teesukelte distribution periods gurunchi chaduvu. Basically 0% fees undi kada ani adi greatest/best option avvadu. If the fee is 0% but returns are aggregated once every 12 months - it is proven that a fund with 0.15% but 3 month aggregation performs better. Banda lekkalo chppalante chakra vaddi siddantham.

Ila chaduvukuntu pote chala factors play avtayi. 

My feedback is leaving all your money in 2050K is a horrible idea. It is a poor option with not great metrics.

My personal split was 40/40/20 between large cap index, international equities and bonds. 20% bonds is like my insurance. 

Naaku telidu ani cheppaku. nee dabbulu kabatti ardham chesukovalsina responsibility neede. Good Luck! 

 

 

 

 

 

 

[Spartan]

@phatposts   Good Post.. 

[Damnn]

If u plan to leave in couple of years or max 5 yrs... check other Funds and get out of this, this works for longer longer period of time and safest bet..  If you want to bet then put into something aggressive one in ur list, ur list should have large, medium, small CAP, and also should show Risk levels.. put in a large cap and aggressive RISK LEVEL and make sure that index fund has for sure AAPLE, AMAZON, NETFLIX, GOOGLE, SALESFORCE and quite a few Stocks invested in.

I did same, put everythig in my available ones with fiedlity.  90% of it in the index fund available for me is "TRBCX". try it and do some homework before u jump in

[uyghur12]

28 minutes ago, phatposts said:

@InSearch

I am telling based on my experience, take it with a grain of salt. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Skip

 

 

Understanding the funds is important. 

1. FID 2050K means - if you anticipate to retire in 2050 this is a good bundle option ani. Since you are investing now, and have 30 years to retire the fund is going to be aggressive during the initial days (now) and get more conservative as it gets closer to 2050. You may want to check fund compositions. 

2. Few things to consider when trying to understand funds:

Fund composition : Every fund is comprised of several kinds of industries/commodities like tech, oil, energy, gas, manufacturing, real estate, metal etc. 
If a majority of the fund is comprised of stocks - it is called "heavy exposure". 
Apart from what I mentioned there will be less risk elements like bonds, treasuries, munis etc. 

For example if you take your Fidelity 2050K today this is a high level composition split
https://imgur.com/a/YfIZacM

https://imgur.com/a/MEaPenL

https://imgur.com/a/u7qf6Kx

If you read the composition - it is a major domestic equities driven choice. Ante stock market lo fluctuations ee fund meeda ekkuva untayi. Before March chooste this will be a great option. Now it is not. 

Pricing Every fund will have pricing and fees associated. For FID 2050K it is 0.65%. I think it is high. If you compare to Vanguards and other FID options this is high IMO. Ee pricing ni koncham next level ki teesukelte distribution periods gurunchi chaduvu. Basically 0% fees undi kada ani adi greatest/best option avvadu. If the fee is 0% but returns are aggregated once every 12 months - it is proven that a fund with 0.15% but 3 month aggregation performs better. Banda lekkalo chppalante chakra vaddi siddantham.

Ila chaduvukuntu pote chala factors play avtayi. 

My feedback is leaving all your money in 2050K is a horrible idea. It is a poor option with not great metrics.

My personal split was 40/40/20 between large cap index, international equities and bonds. 20% bonds is like my insurance. 

Naaku telidu ani cheppaku. nee dabbulu kabatti ardham chesukovalsina responsibility neede. Good Luck! 

 

 

 

 

 

 

+1 and thank you