Author Topic: Asset Allocation Training from Fidelity at Work  (Read 4951 times)

schimt

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Asset Allocation Training from Fidelity at Work
« on: November 05, 2013, 07:43:20 PM »
I was skeptical, but excited to see if there was anything to learn from the class from a "Professional" at Fidelity. It was entertaining to say the least, and about 6 months ago before i started reading, i would have ate up everything she said.

   First when reviewing a funds past performance, looking at year, 5 year 10 year and LOF (lifetime of fund) she told us that it had a LOF of 12%, i tried to tell her that this was the average return per year since inception in 1964, but she said, no that is the gain over its life time. She even followed up with an example "if you invested $1000 in 1964 you would now have $1120...." then she realized that can't be right and changed her mind
   Second, she was not ok with my assets being 100% in stocks at age 27 and stated that I need to reallocate immediately!
   Third, she was trying to sell the freedom funds, where you tell them your age, they decide when you should be retiring and manage your allocations, for a fee of course. She used someone as an example in his early 40's, and he told her, but I plan to retire in 10 years, she proceeded to laugh and say good luck, you planning to hit the Lotto or Rob a Bank? Canít imagine what she would have said if I told her I plan to retire in 10 Ė 12 years at age 27.
   Last and my favorite, our plant manager asked if they had comparison for expense ratios and performance of funds to other companies such as Vanguard, and she immediately stopped him, and said, we don't talk about competitors, especially better ones...

That was entertaining and a waste of time, but reinforced the fact that many people are afraid to take control of their finances and don't know the potential by controlling spending and being a little smart with your money, the sky is the limit.

gooki

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Re: Asset Allocation Training from Fidelity at Work
« Reply #1 on: November 05, 2013, 08:21:09 PM »
Good to see she got called out a few times.
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Eric

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Re: Asset Allocation Training from Fidelity at Work
« Reply #2 on: November 05, 2013, 09:58:23 PM »
Wow.  Yeah, those are fun if you have a little time to kill in your day. 
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maryofdoom

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Re: Asset Allocation Training from Fidelity at Work
« Reply #3 on: November 06, 2013, 09:03:08 AM »
There's a benefits forum at my work today, since it's open enrollment time. There are retirement education sessions at 10 AM, noon, and 2 PM. Should I go to one and report back? I bet the advice will be similar.
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ocandelario

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Re: Asset Allocation Training from Fidelity at Work
« Reply #4 on: November 06, 2013, 11:41:08 AM »
Should I go to one and report back?
Please do.

maryofdoom

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Re: Asset Allocation Training from Fidelity at Work
« Reply #5 on: November 06, 2013, 12:52:25 PM »
Alas, I got shanghaied into lunch with a friend, so I missed it.
I was a fairy princess once. Everything was so nice and peaceful...until one day when it all went HORRIBLY WRONG.

schimt

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Re: Asset Allocation Training from Fidelity at Work
« Reply #6 on: November 06, 2013, 02:03:23 PM »
Alas, I got shanghaied into lunch with a friend, so I missed it.

Don't worry, highly doubt you missed anything. Talking about open enrollment, are you already in a high deductible medical plan with a HSA? I am giving that a shot for the first time this year.

GuitarStv

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Re: Asset Allocation Training from Fidelity at Work
« Reply #7 on: November 07, 2013, 09:20:17 AM »
We had a pension training session when I first started at my current company.  The first question I asked was how they handle portfolio re-balancing.  Then I had to explain what re-balancing was.  And that a portfolio is how you commonly refer to a grouping of investments.  Needless to say I was . . . underwhelmed by the quality of training we received.

jpo

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Re: Asset Allocation Training from Fidelity at Work
« Reply #8 on: November 07, 2013, 09:24:52 AM »
I went to one of these recently (CAPTRUST) through work. His basic talk was not bad for the average Joe. I had a 1:1 meeting and got some reasonable advice. I think he was the first one where I felt like he knew as much as I did.

maryofdoom

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Re: Asset Allocation Training from Fidelity at Work
« Reply #9 on: November 07, 2013, 09:43:58 AM »
We had a pension training session when I first started at my current company.  The first question I asked was how they handle portfolio re-balancing.  Then I had to explain what re-balancing was.  And that a portfolio is how you commonly refer to a grouping of investments.  Needless to say I was . . . underwhelmed by the quality of training we received.

Oh...oh, dear. That's terrible.
I was a fairy princess once. Everything was so nice and peaceful...until one day when it all went HORRIBLY WRONG.

pachnik

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Re: Asset Allocation Training from Fidelity at Work
« Reply #10 on: November 07, 2013, 09:48:13 AM »
We had a pension training session when I first started at my current company.  The first question I asked was how they handle portfolio re-balancing.  Then I had to explain what re-balancing was.  And that a portfolio is how you commonly refer to a grouping of investments.  Needless to say I was . . . underwhelmed by the quality of training we received.

Holy crap.  The people giving the pension training session didn't know what re-balancing and a portfolio were. 

schimt

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Re: Asset Allocation Training from Fidelity at Work
« Reply #11 on: November 07, 2013, 01:07:14 PM »
We had a pension training session when I first started at my current company.  The first question I asked was how they handle portfolio re-balancing.  Then I had to explain what re-balancing was.  And that a portfolio is how you commonly refer to a grouping of investments.  Needless to say I was . . . underwhelmed by the quality of training we received.

Does a pension have the ability to be rebalanced? My retirement plan at work is just 401k, so I don't know any better, but good to know for future reference. I was under the impression that a pension is managed by the company you work for, meaning the asset allocation is out of your hands...?

gooki

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Re: Asset Allocation Training from Fidelity at Work
« Reply #12 on: November 07, 2013, 01:17:36 PM »
Correct, but they should be doing re balancing for you. Or at least describe why they do/do not do it.
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GuitarStv

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Re: Asset Allocation Training from Fidelity at Work
« Reply #13 on: November 07, 2013, 04:16:11 PM »
We had a pension training session when I first started at my current company.  The first question I asked was how they handle portfolio re-balancing.  Then I had to explain what re-balancing was.  And that a portfolio is how you commonly refer to a grouping of investments.  Needless to say I was . . . underwhelmed by the quality of training we received.

Does a pension have the ability to be rebalanced? My retirement plan at work is just 401k, so I don't know any better, but good to know for future reference. I was under the impression that a pension is managed by the company you work for, meaning the asset allocation is out of your hands...?

Our pension is completely employee managed.  The employee picks the funds, the employee is in charge of rebalancing, the employee can't retire if their selected investments go tits up.  Kinda sucks, but at least there's some employer matching.

Hamster

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Re: Asset Allocation Training from Fidelity at Work
« Reply #14 on: November 07, 2013, 04:32:20 PM »
We had a pension training session when I first started at my current company.  The first question I asked was how they handle portfolio re-balancing.  Then I had to explain what re-balancing was.  And that a portfolio is how you commonly refer to a grouping of investments.  Needless to say I was . . . underwhelmed by the quality of training we received.

Does a pension have the ability to be rebalanced? My retirement plan at work is just 401k, so I don't know any better, but good to know for future reference. I was under the impression that a pension is managed by the company you work for, meaning the asset allocation is out of your hands...?

Our pension is completely employee managed.  The employee picks the funds, the employee is in charge of rebalancing, the employee can't retire if their selected investments go tits up.  Kinda sucks, but at least there's some employer matching.
I guess it depends on how you define pension. I think that colloquially at least, many of us consider pension to mean a defined benefit plan (i.e. employer gives you a certian percent of your salary per year after you retire).
Employee-directed defined contribution plans (e.g. 401k), are technically pensions, but aren't often referred to as such, in the US at least.