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| Vester |
 Posted: Wed Jan 04, 2006 8:14 am Post subject: Fidelity 401k, What am I looking at here? |
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Investing Sr. Associate
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I have a Fidelity 401k thru work. It looks like I can spread the money around by adding a percentage by whichever fund I want.
I would guess I should research these funds to give myself the best chance for success, but what really is this stuff? Should I go fully vested in a couple or spread it around more? Large Cap, Small Cap, International, Blended.....errrrrrrrrrr ok!
I'm sure there are others that have looked at this too without knowing what they are really doing so perhaps this post can help more people.
Any input is appreciated.
Stock Investments
LARGE CAP
ALL/BERN GTH & INC A
FID CONTRAFUND
SPARTAN US EQ INDEX
TCW GALILEO SEL EQ N
SMALL CAP
ABF SM CAP VAL PA
FIDELITY LOW PR STK
STI CLASSIC SM GR I
INTERNATIONAL
FID DIVERSIFIED INTL
Blended Fund Investments*
FID BALANCED
FID FREEDOM 2000
FID FREEDOM 2005
FID FREEDOM 2010
FID FREEDOM 2015
FID FREEDOM 2020
FID FREEDOM 2025
FID FREEDOM 2030
FID FREEDOM 2035
FID FREEDOM 2040
FID FREEDOM INCOME
FID PURITAN
Bond Investments
STABLE VALUE
FID MGD INC PORT II
INCOME
FID INTERMED BOND |
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| poornewb |
| Posted: Wed Jan 04, 2006 8:22 am Post subject: |
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Investing Manager
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I can tell you that im locked into fidelity funds for my 401k at my work, Looks like you have alot more choices than I do though.
The contrafund is good as is the Galileo and international fund.
I try and hold a position in at least 5 funds most of the time.
If you log into your account on fidelity you can get the online prospectus for each fund or just look at the research for each fund loaded and unloaded rates.
Fidelity doesnt have the best funds out there but I usually average about 12% a year return, except for this year my company match fund which is all in company stock and cant be moved till I have 30 years with the company was down 18% last year DOH!!!! |
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| Vester |
| Posted: Wed Jan 04, 2006 12:03 pm Post subject: |
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Investing Sr. Associate
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Thanks for the info!
I wonder how much 401k's vary from company to company. Why would it change? Seems like a good way for the broker to funnel funds where it needs them to have a boost. |
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| Dave Rathbun |
| Posted: Wed Jan 04, 2006 12:54 pm Post subject: |
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CFO
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| Company size has a lot to do with it. Smaller companies (at least in my experience) don't get the same wide variety of choices that larger companies do. |
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| poornewb |
| Posted: Wed Jan 04, 2006 2:35 pm Post subject: |
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Investing Manager
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Well I work for "can you hear me now" so I dont know how large is your company vester?
We just can really get the shaft sometimes on retirement, they did just tell all management employees after july 06 no more pensions or retirement insurance. |
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| efflandt |
| Posted: Wed Jan 04, 2006 5:01 pm Post subject: |
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Investing Manager
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Sometimes having too many choices makes it hard to decide. My 401k gives me 30 choices and I think they add a new fund or two each year. So I am currently diversified in only 6 of those choices that I feel are the best based on long and short term history and my own experience with them. I had to juggle a bit in 2005 to almost match what I did in 2004. Nothing in my 401k is in cash (MM) or bonds since neither pays much, but I do still have a sizable IRA CD.
That is not at Fidelity, but I did open an IRA (asset transfer) and Roth IRA at Fidelity last summer, and so many choices of funds and stocks can be somewhat bewildering. But it looks like you have some decent choices that you should be able to research and sort through without being overwelmed. Just don't put all your eggs in one basket. |
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| Im Not Warren Buffett |
| Posted: Wed Jan 04, 2006 5:30 pm Post subject: |
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CFO
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Vester,
How old are you/how long to you have until you plan on retiring? That should influence how aggressive you are in seeking returns. As ballpark figures for someone expecting to retire in 15-20 years, I would put about 15-25% into a bond fund, 25-35% into small cap or growth funds, and the rest into blended or value funds. In the coming year, I see large caps leading the way, because small caps have carried the market in previous years and I feel their star has risen.
Also, you appear to be doing alright with stocks, are you investing any yourself? |
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| Vester |
| Posted: Wed Feb 01, 2006 1:30 pm Post subject: |
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Investing Sr. Associate
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I just started investing for real again recently, but portfolio isn't too fat. I'm 28 and getting married in October. The savings is disappearing! Thanks for all the replies  |
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| efflandt |
| Posted: Wed Feb 01, 2006 5:37 pm Post subject: |
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Investing Manager
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I am re-evaluating my 401k holdings. All the funds I am in have a 10 yr average of at least 10% (and positive averages for other time periods), and MM rates had been so low in the past that I did not really hold any cash (and our only bond fund is weak govt and mortgage bonds).
But net gain (not counting contributions) accelerating $9.3k the month of January 2006 alone, after $19.6k for 12 months of 2005, has me wondering if or how long the rally will continue. So I am starting to skim a little off of the funds that grew over 7.5% in a month into the MM fund to either lock in some profit or have reserve cash to feed back in if things dip in summer and/or October again. But I have been very familiar with my 401k funds for many years.
The hazards of chasing gains of unfamiliar funds was rather pointedly apparent (like a stick in the eye) with a fund in my Roth IRA that had gained 23% YTD as of 6/30/05, but after I bought it in July, slipped to near zero YTD (down 18%). It may have grown 10-15% for the year, but for me was still down 10% after 6 months (1/2006). Fortunately my other mutual fund and stock mix made up for that lesson. At least I knew enough not to chase the growth funds in my 401k (with negative 5 yr return) that this month are doing slightly better than the funds I am in. |
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| stoogepid |
| Posted: Tue Feb 07, 2006 6:32 am Post subject: |
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Investing Sr. Associate
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| efflandt wrote: | I am re-evaluating my 401k holdings. All the funds I am in have a 10 yr average of at least 10% (and positive averages for other time periods), and MM rates had been so low in the past that I did not really hold any cash (and our only bond fund is weak govt and mortgage bonds).
But net gain (not counting contributions) accelerating $9.3k the month of January 2006 alone, after $19.6k for 12 months of 2005, has me wondering if or how long the rally will continue. So I am starting to skim a little off of the funds that grew over 7.5% in a month into the MM fund to either lock in some profit or have reserve cash to feed back in if things dip in summer and/or October again. But I have been very familiar with my 401k funds for many years.
The hazards of chasing gains of unfamiliar funds was rather pointedly apparent (like a stick in the eye) with a fund in my Roth IRA that had gained 23% YTD as of 6/30/05, but after I bought it in July, slipped to near zero YTD (down 18%). It may have grown 10-15% for the year, but for me was still down 10% after 6 months (1/2006). Fortunately my other mutual fund and stock mix made up for that lesson. At least I knew enough not to chase the growth funds in my 401k (with negative 5 yr return) that this month are doing slightly better than the funds I am in. |
Wow. Thats all I have to say. Wow. |
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| efflandt |
| Posted: Tue Feb 07, 2006 11:11 am Post subject: |
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Investing Manager
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Looking back, I think I made a wise move skimming 1/3rd of my accelerating January growth into MM before the end of the month, to lock in some profits and/or have something to feed back in if (when) things pull back (which seems to be happening this month).
I have not usually been so pro-active about managing my 401k. But investing some IRA money in actual stocks is starting to give me an eye for when the markets seem to be getting overly enthusiastic.
But a new investor should pick a variety of funds that do not closely relate to each other, that go up or down at different times, instead of all at once, so it will all even out without having to watch them constantly. If you just want to change proportions of funds, you can do that by adjusting contributions. If you want to get out of a fund entirely, move the money in stages (like dollar cost averaging), so you have better odds that at least some of the money will move at a favorable time. If you try to invest or move too much at a time, odds of picking the best time (without experience) are nil. |
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