Author Topic: Fidelity 401K Fund help  (Read 1880 times)

athenslb57

  • 5 O'Clock Shadow
  • *
  • Posts: 1
Fidelity 401K Fund help
« on: December 03, 2016, 04:36:12 PM »
Newbie here and I'm currently invested in my company 401k follows:

FID FREEDOM K 2045  (FFKGX) Blended Investment - 87.31%

FID CONTRAFUND K  (FCNKX) Stock Investments   Large Cap - 6.65%

FID BLUE CHIP GR K  (FBGKX) Stock Investments   Large Cap - 3.98%

FID INTL DISCOVERY K  (FIDKX) Stock Investments International    - 2.06%

Based on the choices below what changes would you make? Here are my available funds to choose from:


FID 500 INDEX PR (FUSVX)   Stock Investments   0.05%
 FID BLUE CHIP GR K (FBGKX)   Stock Investments   0.70%
 FID CONTRAFUND K (FCNKX)   Stock Investments   0.61%
FID GROWTH & INC K (FGIKX)   Stock Investments   0.53%
FID STKSEL LGCAP VAL (FSLVX)   Stock Investments   0.81%
MFS VALUE R4 (MEIJX)   Stock Investments   0.65%
TRP DIV GROWTH (PRDGX)   Stock Investments   0.64%
FID GROWTH STRAT (FDEGX)   Stock Investments   0.91%
FID SEL DEFENSE (FSDAX)   Stock Investments   0.80%
FID VALUE K (FVLKX)   Stock Investments   0.73%
VANG MID CAP IDX INV (VIMSX)   Stock Investments   0.20%
ABF SM CAP VAL INST (AVFIX)   Stock Investments   0.82%
FID SM CAP DISCOVERY (FSCRX)   Stock Investments   1.01%
FID SM CAP IDX PR (FSSVX)   Stock Investments   0.07%
 FID INTL DISCOVERY K (FIDKX)   Stock Investments   0.86%
FID OVERSEAS K (FOSKX)   Stock Investments   0.91%
HRDG LVNR IS EMG MKT (HLMEX)   Stock Investments   1.31%
VANG TOTAL INTL STK (VGTSX)   Stock Investments   0.19%
FID BALANCED K (FBAKX)   Blended Investment*   0.46%
FID FREEDOM K 2005 (FFKVX)   Blended Investment*   0.49%
FID FREEDOM K 2010 (FFKCX)   Blended Investment*   0.53%
FID FREEDOM K 2015 (FKVFX)   Blended Investment*   0.56%
FID FREEDOM K 2020 (FFKDX)   Blended Investment*   0.58%
FID FREEDOM K 2025 (FKTWX)   Blended Investment*   0.61%
FID FREEDOM K 2030 (FFKEX)   Blended Investment*   0.65%
FID FREEDOM K 2035 (FKTHX)   Blended Investment*   0.67%
FID FREEDOM K 2040 (FFKFX)   Blended Investment*   0.67%
 FID FREEDOM K 2045 (FFKGX)   Blended Investment*   0.67%
FID FREEDOM K 2050 (FFKHX)   Blended Investment*   0.67%
FID FREEDOM K 2055 (FDENX)   Blended Investment*   0.67%
FID FREEDOM K 2060 (FDKNX)   Blended Investment*   0.67%
FID FREEDOM K INCOME (FFKAX)   Blended Investment*   0.44%
JANUS BALANCED T (JABAX)   Blended Investment*   0.83%
FID INTERMED BOND (FTHRX)   Bond Investments   0.45%
FID US BOND IDX PR (FSITX)   Bond Investments   0.05%
PIM TOTAL RT INST (PTTRX)   Bond Investments   0.47%
FMMT RETIRE GOV II (FRTXX)    Short-Term Investments   0.42%

Thanks


« Last Edit: December 03, 2016, 04:40:55 PM by athenslb57 »

Frankies Girl

  • Magnum Stache
  • ******
  • Posts: 2976
  • Age: 81
  • Location: The laboratory
  • Typical Ghoul Next Door
Re: Fidelity 401K Fund help
« Reply #1 on: December 03, 2016, 06:35:41 PM »
All of the ones you're in are higher expense ratios and are managed funds. The only one that I sort of like that you do currently hold is for someone that isn't good with general market volatility and/or wanted to be more hands off - the Freedom fund, which is a target date retirement fund that holds a mix of stock and bond that will perform an adjustment - glidepath - moving from weighted in stock to weighted in bond as the target date gets closer.

You don't state what your goals are, what your asset allocation is, and what your risk/understanding of the market is.

If it was me, I'd dump all the other investments and go 100% into FID 500 INDEX PR (FUSVX). It is an index fund based on the S&P exchange, and it has very low expense ratio. Or if you can figure out your asset allocation, you could go for the stock allocation with the FUSVX and then for bonds the FID US BOND IDX PR (FSITX). You really don't need a bunch of different funds.

If you are a bit more conservative and really don't want to have to think about rebalancing or learn more, then I'd say go 100% into the Freedom fund you've already got as it is very much a set it and forget it mix of stock and bond, and while the expense ratio isn't as good, it's not terrible.

Suggest you do some research to figure out how you want to invest, and how the market works, and what exactly is index investing.

http://jlcollinsnh.com/stock-series/
^can read on his site or get his book, but just about the best series you can read to gain a great understanding

https://www.bogleheads.org/wiki/Fidelity
^Vanguard is going to be the one most talked about on most of the DIY finance sites, but it is possible to do index investing using Fidelity (I have my entire portfolio with Fido and am very happy)

https://www.bogleheads.org/wiki/Main_Page
^Index investing bible

https://www.bogleheads.org/wiki/Investment_policy_statement
^Your investing blueprint

https://www.bogleheads.org/wiki/Asset_allocation
^and the breakdown of what you want to hold in your portfolio


Hope that helps!
« Last Edit: December 04, 2016, 10:02:06 AM by Frankies Girl »

Rubyvroom

  • Bristles
  • ***
  • Posts: 298
  • Location: Minnesota
Re: Fidelity 401K Fund help
« Reply #2 on: December 04, 2016, 07:13:47 AM »
FID 500 INDEX PR (FUSVX)   Stock Investments   0.05%
FID BLUE CHIP GR K (FBGKX)   Stock Investments   0.70%
 FID CONTRAFUND K (FCNKX)   Stock Investments   0.61%
FID GROWTH & INC K (FGIKX)   Stock Investments   0.53%
FID STKSEL LGCAP VAL (FSLVX)   Stock Investments   0.81%
MFS VALUE R4 (MEIJX)   Stock Investments   0.65%
TRP DIV GROWTH (PRDGX)   Stock Investments   0.64%
FID GROWTH STRAT (FDEGX)   Stock Investments   0.91%
FID SEL DEFENSE (FSDAX)   Stock Investments   0.80%
FID VALUE K (FVLKX)   Stock Investments   0.73%

VANG MID CAP IDX INV (VIMSX)   Stock Investments   0.20%
ABF SM CAP VAL INST (AVFIX)   Stock Investments   0.82%
FID SM CAP DISCOVERY (FSCRX)   Stock Investments   1.01%

FID SM CAP IDX PR (FSSVX)   Stock Investments   0.07%
FID INTL DISCOVERY K (FIDKX)   Stock Investments   0.86%
FID OVERSEAS K (FOSKX)   Stock Investments   0.91%
HRDG LVNR IS EMG MKT (HLMEX)   Stock Investments   1.31%

VANG TOTAL INTL STK (VGTSX)   Stock Investments   0.19%
FID BALANCED K (FBAKX)   Blended Investment*   0.46%
FID FREEDOM K 2005 (FFKVX)   Blended Investment*   0.49%
FID FREEDOM K 2010 (FFKCX)   Blended Investment*   0.53%
FID FREEDOM K 2015 (FKVFX)   Blended Investment*   0.56%
FID FREEDOM K 2020 (FFKDX)   Blended Investment*   0.58%
FID FREEDOM K 2025 (FKTWX)   Blended Investment*   0.61%
FID FREEDOM K 2030 (FFKEX)   Blended Investment*   0.65%
FID FREEDOM K 2035 (FKTHX)   Blended Investment*   0.67%
FID FREEDOM K 2040 (FFKFX)   Blended Investment*   0.67%
 FID FREEDOM K 2045 (FFKGX)   Blended Investment*   0.67%
FID FREEDOM K 2050 (FFKHX)   Blended Investment*   0.67%
FID FREEDOM K 2055 (FDENX)   Blended Investment*   0.67%
FID FREEDOM K 2060 (FDKNX)   Blended Investment*   0.67%
FID FREEDOM K INCOME (FFKAX)   Blended Investment*   0.44%
JANUS BALANCED T (JABAX)   Blended Investment*   0.83%
FID INTERMED BOND (FTHRX)   Bond Investments   0.45%

FID US BOND IDX PR (FSITX)   Bond Investments   0.05%
PIM TOTAL RT INST (PTTRX)   Bond Investments   0.47%
FMMT RETIRE GOV II (FRTXX)    Short-Term Investments   0.42%


Thanks

Above is how I'd view the fund choices.

As Frankies Girl pointed out, this all depends on what your goals are. I would suggest creating an Investment Policy Statement and then selecting from the 5 funds I've highlighted, according to your IPS. If it were me, I'd probably take the 500 index and bond index at a 90/10 ratio, or if you prefer to approximate the total U.S. stock market, you could choose a 500 index blend with the small and mid cap funds. I don't invest in international personally, but if that's important to you, you have a low cost choice there as well.