FBIFX
FIDELITY FREEDOM INDEX 2040 FUND INVESTOR CLASS
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First make sure you have 3 months of liquidity on hand for your expenses, since you are not drawing a salary. Second, your portfolio of mutual funds is not very diverse and is “aggressively” long the biggest companies in America. All three funds are cap weighted so they’ll all have the same names which are dominated by tech stocks. FBIFX is the most diverse, with its exposures to bonds and international stocks. As a retail investor, you diversification choices are limited. It would be advisable to gain exposure to divergent investments strategies. Talk to a fidelity rep about that. Those are my thoughts and opinions.
One. Your math is wrong lol. Not even sure what fund you’re talking about, but 5k on 36k, even if you add the max for the next 10 years, nope, the internals won’t be 5k less. And no worries, Roth doesn’t have capital gains. So you’re good. You can switch. Your worries are how taxable accounts work, not ROTH. Next time put tickers so people can help. I assume you mean FFFFX, which you could’ve just changed to FBIFX for lower of .12. Vanguard is .08, which is no big deal from .12.
Fidelity has excellent TDFs and there’s no reason to go with anyone else . However, make sure you’re using the Fidelity Freedom **Index** fund They also have a confusingly and annoyingly similar named TDF, Fidelity Freedom Fund, which is much more expensive. Example: FFFFX - Fidelity Freedom® 2040 Fund. Expense ratio: .73 FBIFX - Fidelity Freedom® Index 2040 Fund Investor Class. Expense ratio: .12 They’re essentially the exact same thing in the index fund is fraction of the price
Yes. FBIFX will change the ratio as the target year approaches and possibly even for a few years after. The "index" vs non-index refers to how the component funds are designed. FBIFX is a collection of index funds, non-index TDFs use actively managed component funds. You can look at the composition of FQIFX, FBIFX, and FDKLX to see different points along the path.
Long term actively managed usually fall behind low cost indexing. You can control costs, not returns. You can look up whatever ratio calculators and see what the effect of an extra 0.62% is on your portfolio value over the next 15 years. >If so, should my eventual goal be to switch all my target date funds into FBIFX? If you decide to switch, no reason not to do it all at once.
Insight request from a relative newbie. I’ve got money in a rollover IRA in a 2040 Target Fund at Fidelity that I think I should have moved from long ago because of higher fees and an ok performance that seems to be comparable to lower cost Index fund equivalent. Is there any reason I shouldn’t if I wanted to stay with the convenience/risk profile of a 2040 Target Fund? Current fund: ARDVX has a 0.89 exp ratio. Considering: FBIFX which has a 0.12% exp ratio. Performance seems comparable. Is there anything else I need to be considering? I’ve had this in there from a past job and have never done any trades of any kind and really clueless on the logistics of this. If I’ve got 100K with ARDVX and wanted to do this on the Fidelity platform, would I just Sell all of that and then those funds would be available to then purchase 100k worth of FBIFX? Thanks for any insight!
Have you considered a single index target date fund at Fidelity, it will save you on fees and basically follow the bogleheads three fund portfolio. [https://www.bogleheads.org/wiki/Three-fund\_portfolio](https://www.bogleheads.org/wiki/Three-fund_portfolio) Examples of Fidelity Index target date funds: Fidelity Freedom® Index 2040 Investor (FBIFX) Fidelity Freedom® Index 2045 Investor (FIOFX) Fidelity Freedom® Index 2050 Investor (FIPFX) Fidelity Freedom® Index 2055 Investor (FDEWX) Fidelity Freedom® Index 2060 Investor (FDKLX) Fidelity Freedom® Index 2065 Investor (FFIJX) Vanguard's website is helpful if you are unsure of which target date year to select (the Fidelity index versions) are similar to the Vanguard one's. https://investor.vanguard.com/investment-products/mutual-funds/target-retirement-funds