Author Topic: New 401K from work  (Read 1745 times)

StubbleToStart

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New 401K from work
« on: October 10, 2017, 02:57:36 PM »
Hey folks - I just started a new job, and they only offer a choice of about Fidelity 15 fidelity funds as options for my 401K pre-tax contributions. Nothing from Vanguard :(.  Any tips on how I should choose my funds? Lowest expense ratio? Just go with one of the target retirement date funds?  Any thoughts would be appreciated. Thank you!

dandarc

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Re: New 401K from work
« Reply #1 on: October 10, 2017, 02:59:16 PM »
If you want, post all of them with expense ratios and any other fees.  Fidelity offers some fine, low cost mutual funds - hopefully those are the ones on offer in your plan.

StubbleToStart

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Re: New 401K from work
« Reply #2 on: October 10, 2017, 03:23:04 PM »
Thanks so much. The list is below. I was hoping for index funds, but with the exception of the "total bond" fund, I don't think they are offered.

Fidelity Advisor Balanced M         1.14%       

Fidelity Advisor Dividend Growth M     1.14%               

Fidelity Advisor Equity Growth M     1.28%               

Fidelity Advisor Equity Income M     1.23%           

Fidelity Advisor Freedom 2040 M     1.25%           

Fidelity Advisor Freedom Income M         0.97%       

Fidelity Advisor Government Income M     0.76%           

Fidelity Advisor Growth Opportunities M     1.09%           

Fidelity Advisor Limited Term Bond M     0.76%           

Fidelity Advisor Mid Cap Ii M             1.3%   

Fidelity Advisor New Insights M         1.14%   

Fidelity Advisor Overseas M             1.56%   

Fidelity Advisor Small Cap M             1.55%   

Fidelity Advisor Strategic Dividend & Income M     1.3%           

Fidelity Advisor Strategic Income M         1.01%       

Fidelity Advisor Total Bond M         0.77   

Helvegen

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Re: New 401K from work
« Reply #3 on: October 10, 2017, 03:34:07 PM »
Ouch...

VoteCthulu

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Re: New 401K from work
« Reply #4 on: October 10, 2017, 04:18:23 PM »
And most of those have purchase fees on top of the high ERs.

I'd probably put everything in the balanced fund and start looking for a new job.

dandarc

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Re: New 401K from work
« Reply #5 on: October 11, 2017, 07:50:46 AM »
Oof.  Probably the balanced fund and a letter to your employer - this is not a good 401K.  You'd think they'd offer at least an S&P 500 fund at a more reasonable cost.

The usual advice - 401K to get any match, then I'd go to an IRA, then back to the 401K assuming there are significant tax savings to be had.  ERs are high, but unless you're planning on staying a long time, you're probably still better served by a match and/or the tax savings.

StubbleToStart

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Re: New 401K from work
« Reply #6 on: October 16, 2017, 06:16:52 AM »
Thanks, dandarc. Also, theres no match. It's a really small company. Sigh.

talltexan

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Re: New 401K from work
« Reply #7 on: October 16, 2017, 07:15:57 AM »
I don't know what other assets you have, but having access to the Small Cap or international funds might be useful, particularly if you're very young and far from retirement.

Lan Mandragoran

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Re: New 401K from work
« Reply #8 on: October 16, 2017, 09:03:56 AM »
Thanks, dandarc. Also, theres no match. It's a really small company. Sigh.

Yuck. Max out anything else you can first I spose :P. It's still probably better than taxable... I guess.