Fidelity 401k advice

[OSA]

So whenever I want financial advice I go to PFA.

I am 29 and looking to choose a 401k plan from Fidelity. I plan on doing a Roth IRA, but don't know which plan to take.


Anyone have Fidelity for their 401k? I am totally a noob when it comes to this so all advice is appreciated.

[SrslySirius]

I just dumped all mine in Vanguard 2050.

[OSA]

I just dumped all mine in Vanguard 2050.

90% allocation to stocks.. Hmmmm.... Im not seeing that on my list.

[lvpkr1009]

Fuck fidelity and throw it all into bitcoin...what's the worst that could happen?

Not really sure what plans you have options for but make sure that it's pretty well diversified across all spectrums and invests in Latin America. It's never too late to start and it's always a good idea to sink whatever money you can afford to in a 401k

[GrenadaRoger]

staking bv

[GrenadaRoger]

staking

[NorCal Sports]

I don't use Fidelity but they are a fairly well known in the investment world. I'm not familiar with any of the plans they use, I tend to stay away for any plan or automatic investment because a broker is going to put you in funds that give them the best return AKA: they'll invest your money in funds with the highest fees or kickbacks.

Personally, I'd start off by trading Fidelity mutual funds manually. They will let you trade Fidelity branded funds for no transaction fee. That basically saves you $8 every time you buy & sell. Also, you can put your money in the sectors you want - and at the times you want.

Here is a list of 200+ mutual funds Fidelity offers that can be traded inside your account commission free. Most will have minimum initial investment (like $100 or $1000). Most will have early redemption fees, but the key thing to understand are the net/gross expense ratio. In general, they have fairly competitive fees but it's something you want to keep close eye on as you build your account up over the years.

https://www.fidelity.com/fund-screen...&ntf=N&mgdBy=F

Lastly, remember you are putting new money to work when markets are at all time highs. That's not the worst thing if you're 29, but managing your account yourself allows you to hold cash or sell out when markets get a little frothy. These investment banks want you to think noob's can't manage their own money - but that's false. Since you are young, I'd take an active approach managing your money now - so when you are 49 and have $500k+ in your account you know what you're doing. In 2008 - people got whacked because they had no control over their money.

Index funds will typically have lower expense ratios and a large number of holdings. They are designed to track something like the Nasdaq or DOW, and they are easy to track because most news outlets report how those index's did each day. Sector based funds typically have higher fees, a more focused group of holdings & a fancy name like "Capital Appreciation Fund" - As you get more into investing, you might like a certain sector, like banks, health care, foreign co's ... ect - then you can invest in a basket of stocks related to that particular sector of the market.

While I'm not trying to deter you from investing your money however you wish, since you could be doing a lot worse with it - I recommend taking at least a portion of your money & trade some funds or even stocks yourself. When you do this, I find you become more 'invested' in where your money goes. I find you care more, and it's better to learn when you have a small amount of money, than loose a fortune when you are closer to retirement - like many people just experience in 08/09.

[lvpkr1009]

I don't use Fidelity but they are a fairly well known in the investment world. I'm not familiar with any of the plans they use, I tend to stay away for any plan or automatic investment because a broker is going to put you in funds that give them the best return AKA: they'll invest your money in funds with the highest fees or kickbacks.

Personally, I'd start off by trading Fidelity mutual funds manually. They will let you trade Fidelity branded funds for no transaction fee. That basically saves you $8 every time you buy & sell. Also, you can put your money in the sectors you want - and at the times you want.

Here is a list of 200+ mutual funds Fidelity offers that can be traded inside your account commission free. Most will have minimum initial investment (like $100 or $1000). Most will have early redemption fees, but the key thing to understand are the net/gross expense ratio. In general, they have fairly competitive fees but it's something you want to keep close eye on as you build your account up over the years.

https://www.fidelity.com/fund-screen...&ntf=N&mgdBy=F

Lastly, remember you are putting new money to work when markets are at all time highs. That's not the worst thing if you're 29, but managing your account yourself allows you to hold cash or sell out when markets get a little frothy. These investment banks want you to think noob's can't manage their own money - but that's false. Since you are young, I'd take an active approach managing your money now - so when you are 49 and have $500k+ in your account you know what you're doing. In 2008 - people got whacked because they had no control over their money.

Index funds will typically have lower expense ratios and a large number of holdings. They are designed to track something like the Nasdaq or DOW, and they are easy to track because most news outlets report how those index's did each day. Sector based funds typically have higher fees, a more focused group of holdings & a fancy name like "Capital Appreciation Fund" - As you get more into investing, you might like a certain sector, like banks, health care, foreign co's ... ect - then you can invest in a basket of stocks related to that particular sector of the market.

While I'm not trying to deter you from investing your money however you wish, since you could be doing a lot worse with it - I recommend taking at least a portion of your money & trade some funds or even stocks yourself. When you do this, I find you become more 'invested' in where your money goes. I find you care more, and it's better to learn when you have a small amount of money, than loose a fortune when you are closer to retirement - like many people just experience in 08/09.

[Pooh]

First thing is I would see if you can transfer your funds to Vanguard. I used to have my business 401k with Fidelity and I made the switch. If not no biggie. Invest in index funds tracking the S&P 500. This is the benchmark most large mutual funds are compared to and literally none of them can beat it over the long run especially given the fees in the mutual funds.

If this is a Self employed 401k then you can easily invest in anything. If its employee then you may not have access to the super low fee index funds. If that's the case then just invest in the fund that tracks the S&P. You are getting the 500 largest US companies so if anybody tells you you're not diversified tell them to f off. Stay the fuck away from bonds. They are inversely related to interest rates so when the rates start going up you will lose big money in bonds. Plus you're too young to invest in that crap.

[tony bagadonuts]

First thing is I would see if you can transfer your funds to Vanguard. I used to have my business 401k with Fidelity and I made the switch. If not no biggie. Invest in index funds tracking the S&P 500. This is the benchmark most large mutual funds are compared to and literally none of them can beat it over the long run especially given the fees in the mutual funds.

If this is a Self employed 401k then you can easily invest in anything. If its employee then you may not have access to the super low fee index funds. If that's the case then just invest in the fund that tracks the S&P. You are getting the 500 largest US companies so if anybody tells you you're not diversified tell them to f off. Stay the fuck away from bonds. They are inversely related to interest rates so when the rates start going up you will lose big money in bonds. Plus you're too young to invest in that crap.

I agree with Pooh 100%, don't even think about bonds until you're over 40. Maximize what you can put into it every month and you're good to go.

[4Dragons]

Fairly certain you are supposed to be in Colorado opening a dispensary instead of playing with 401k's.

[JimAfternoon]

My 401k through my employer is through fidelity. There are target date funds available but the fees are much more than the S&P index fund.

I'd like to have some of my funds in bonds, but all that's available are bond funds. It's my understanding that if rAtes go up, you will lose money in these funds. You don't have the option of holding treasuries until maturity and having a guaranteed small profit.

To me, this defeats the purpose. Rates can't go any lower, there's nowhere for them to go but up. So all of my funds are in the S&P index. Fidelity's index charges a higher fee than Vanguard's, but still relatively low at $1.30 per thousand. The target date fund charges almost 4x that iirc.

[Pooh]

My 401k through my employer is through fidelity. There are target date funds available but the fees are much more than the S&P index fund.

I'd like to have some of my funds in bonds, but all that's available are bond funds. It's my understanding that if rAtes go up, you will lose money in these funds. You don't have the option of holding treasuries until maturity and having a guaranteed small profit.

To me, this defeats the purpose. Rates can't go any lower, there's nowhere for them to go but up. So all of my funds are in the S&P index. Fidelity's index charges a higher fee than Vanguard's, but still relatively low at $1.30 per thousand. The target date fund charges almost 4x that iirc.

If you insist on bonds then invest in short duration....ie. less than 5 yr bonds and you may not get hit too hard.

[Buck Nasty]

I just dumped all mine in Vanguard 2050.

90% allocation to stocks.. Hmmmm.... Im not seeing that on my list.

If you're 29 then 90% to stocks is totally appropriate.

[OSA]

Okay so there is alot to digest here and considering I understand about 10% of what was said, I will be doing some fundamental research first.

I appreciate the advice and input and will update this thread soon with my decisions.

[Texter]

I assume you are doing a roth ira and not a 401k (one you do on your own, the other is through your employer), roth you can pretty much do whatever you want and a 401k limits you to whatever that plan offers.

I'd just jam half in an s&P 500 index fund, 25 % in a midcap and 15% in international and 10% in small cap. Pay attention to mgmt. and short term trading fees.

[Texter]

I'm no warren buffet but he'd advise just to jam it all in an index fund.

http://www.cnbc.com/id/101394085

[SrslySirius]

I've never used Fidelity, but I hear that they have a similar product to Vanguard. All I really cared about was diversity and low management fees, which is what I got.

[Cokehead]

Go meet a twink in the nyc financial district & ask him for advice in between ur head bobbing up and down.

[Pooh]

I've never used Fidelity, but I hear that they have a similar product to Vanguard. All I really cared about was diversity and low management fees, which is what I got.

Dump your 2050 and get it in the damn S&P already.