FDEWX
FIDELITY FREEDOM INDEX 2055 FUND INVESTOR CLASS
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Need help with 401k - Why am I allowed to choose investments
If I'm starting to pay attention to asset allocation, should I ditch target date funds entirely?
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I'm 39 and trying to play catch up with my retirement portfolio. I currently have around $46,000 in my 401k which is managed by Fidelity. Roughly 9% is in bonds. The rest is in equities. I contribute 8% each paycheck with a 6% company match. I just opened a Roth IRA for the first time and maxed out 2025 and 2026. At the moment I have it 100% in FDEWX 2055 target date fund and around 8% is bonds. My question is, should I change anything here? Should I get bonds out of my Roth if I have already have some in my 401k and be more aggressive on growth?
I charted **FDEWX** and compared it to VOO. FDEWX is up 100% over 10 years. VOO is up 226% over the same 10 years. Both had similar % drawdowns in 2020 for covid and 2022 for inflation and interest rate increases. Same for 2018 and 2019. You would have doubled your money being in VOO. So is it more "aggressive" to be in VOO which is 100% equities vs a Target Date Fund? I don't think so. Looks like a more prudent to me given my risk tolerance and looking at past performance. At your age, I would definitely be more "aggressive". You do what you are comfortable with though.
Cool. Carry on and thanks for your service. FWIW I like FDEWX as a retirement fund. Low cost and no maintenance
Hi, I'm 30 years old and started investing about a year ago and still very much a beginner. I've had a 401k through my work and hysa. I've researched on my own about the stock basics and still very much a beginner. I've tried to invest as much as possible ($300-500/month) but also plan on putting down a down payment on a home this up coming year with my partner. I opened up a Roth last year and have a rollover Ira that embarrassingly enough, didn't know that I had and what it even was until I researched. My rollover already had 2k from my previous job and ive added about 3.5 k to it along with 3.8k into my Roth this year. Any thoughts or advice on my portfolio? Thank you in advance Rollover Cava 10.647 FDEWX 50.887 GOOGL 3.934 VOO 4.064 Roth COST 0.373 FXAIX 13.364 NVDA 10.879 QQQ 2.622
Find a fee-only CFP in your area. They are fiduciaries and are legally obligated to act in your best interest. You can meet with them 1-4 times per year and you pay a one-time fee per meeting. https://www.letsmakeaplan.org/find-a-cfp-professional EJ is going to charge you an ongoing AUM fee and may or may not be fiduciaries. Open a Fidelity account and put anything you don't need within 5 years in a target date index fund corresponding do your approximate retirement year. This is like the least complicated most hands off investment option. This will be something like FIPFX (2050), FDEWX (2055), FDKLX (2060), or FFIJX (2065). This all assumes you have a 6 month emergency fund in an interest bearing account.
Depending on your risk tolerance and health, I would recommend keeping your annual deductible as cash and investing the rest in a broad market index fund. If you want to add 1 more layer of safety, keep an additional year of deductible in CDs. I have Fidelity. My deductible is $2000. My breakdown: $2000 is cash (FDRXX) $2000 is 1 year CDs in case rates drop Remainder is in FDEWX. If I decide to add my family, I’ll just double the cash holding.
FDEWX Is their target date index fund, 0.12%. You're quoting the active fund. The active fund does slightly outperform the index one over a handful of periods. Target date funds are globally diversified, they aren't meant to outperform or match the S&P 500. They're amazing investments if you want all in one globally diversification and automatically follow a glide path towards retirement.
>but from all I read here it seems people warn against TDFs yet like Fdewx (low expense) A lot of people don't understand that low cost TDFs (like FDEWX) do exist. Or that not everyone can actually stomach being 100% in stock. Or that there's plenty of times where global diversification is beneficial. Some people don't agree with the bond strategy. Some argue that distant year ones shouldn't have any bonds, others may not like the glide path (personally, I think I'm leaning more towards bond tent than glide path for myself). >The performance on both these funds lacks behind the S&P. Comparison between a fully diversified portfolio (the TDF) to something that should only be considered as part of a fully diversified portfolio (S&P 500) is not a fair one, especially when the part just happens to be the part with the best recent performance (it isn't always like that, which is part of why diversification is a good thing). Target date funds usually use total market style coverage for the US, which means they hold smaller caps that haven't done as well recently, but have had plenty of times where they beat large caps (S&P 500). Every target date fund I'm aware of has global coverage (going global can both help increase returns and reduce volatility compared to 100% US (as mentioned above, that's been plenty of times that it was the US dragging behind). >Is there any reason not to sell them and go 100% into the beloved VT As I mentioned above: not everyone can actually stomach being 100% stock based, no matter what their age or timeline. The various investing subreddits see this all the time during even moderate downturns of people thinking of (or worse already have) selling to prevent further losses. >or VOO? Combine the previous paragraph with the exclusion of about 50% of the market. The left out part contains the best historical (and expected future) returns segment of the US market (small value). It would also mean taking on the uncompensated risk (extra risk that doesn't being the expectation of extra returns) of single country (revenue source is not the international exposure that actually matters, what does matter is capturing the imperfect correlation between markets of different countries and companies act far more like their home market).
I do both, my ROTH IRA is a target date fund (FDEWX.) Then I use the allocation of that to build a 3 fund portfolio in my taxable brokerage account (55% FSKAX, 35% FTIHX, and 10% FXNAX.)
38, USA Not a whole lot of time on my hands working, married, 2 kids. Have a 401K through work, with employer match at 5%, currently contributing 7%. Have 2 UGMA's for kids contributing $100 a month to each, only holding FZROX in there. I have a taxable account, with only ITOT in it, contributing $200 a month to that, while $200 stays in the SPAXX account for "just in case". have a HSA through work also, contribute $200 a month to that as well. My Roth is where I am iffy on, have been contributing full amount for the last 5 years. But have moved what's in the Roth around here or there. My question is, the Roth currently holds SCHD, FDEWX which is a target date fund, and FSKAX. Is it worth while to keep this target date fund in there? or just move all that into FSKAX which has out performed the target date fund for quite a while now. Both have almost the same amount contributed, while FSKAX has "grown" about $4000 more over the course of a few years. I try to keep everything "set it and forget it" and just check on each every other month. Just not sure if its worth the growth to keep the target date there, and move that money into FSKAX or not. Any info/help would be greatly appreciated.
Maybe dumb question- sorry! Did I sell myself short with FDEWX! I chose to invest my traditional IRA with this target-date fund through Fidelity. I wanted to set it and forget it. It’s been great. However, I want to diversify. I worry about overkill if I were to get an index fund or a REIT… what would you recommend?
Did I sell myself short with FDEWX? I chose to invest my traditional IRA with this target-date fund through Fidelity. I wanted to set it and forget it. It’s been great. However, I want to diversify. I worry about overkill if I were to get an index fund or a REIT… what would you recommend?
in my mid 30s and woefully behind on on retirement. I have a Fidelity Traditional IRA (from a rollover, am now self-employed) and had everything in FDEWX, a target based mutual fund for 2055. but realizing now I can afford to be as aggressive as possible until closer to retirement. Does it make sense to rebalance this to FSKAX entirely? Should I add an international fund, as well, like FZILX?
I guess I don't understand why you're paying off your mortgage so quickly. You're doing better than the average person out there, but you don't have much retirement to speak of, given your age. I would stop putting so much toward the mortgage, have an emergency fund, then all surplus cash goes to retirement accounts. You said you don't know what to invest in. If you're willing to educate yourself, read about Bogleheads two or three fund portfolio. If you don't want to educate yourself. Just buy a target date fund that will adjust over time. FDEWX would be a good choice if your account is at Fidelity.
This question is asked a lot (which is fine) but if this is your question, the answer is probably a target date fund. It’s a fund that has a balance of stocks and bonds, all pre-diversified, and balanced based on the assumption that those holding it will retire in a certain year. Look for indexed target date funds as they have lower fees. I have FDEWX in mine which is a good example.
I didn't invest a funded ROTH IRA (I'm a fucking idiot, I'm aware) after making a transition from regular payments to a lump sum. I have $18,205 not invested in a Roth IRA that I wanted to go to FDEWX. Just invest it all now?
Nothing wrong with investing in FDEWX. I do something similar (with Vanguard) for all my old 401k accounts which I consolidated into one. It's all sitting in Vanguard's 2050 index fund (I'm 38 by the way).
I’m rolling over a 401k from a previous job to a Fidelity rollover IRA and need to make selections on positions. Is there any reason not to just use a Fidelity Target Index fund such FDEWX (2055)? I’m 33 and have a separate 401k with my current employer that I’m maxing out. The rollover one has around $70k in it
Just a word of caution, they should look for target date index funds (like FDEWX) and avoid the actively managed target date funds with higher fees, which they will likely find if they search for "target date funds" without also including the word "index".
Check out target date funds. FDEWX. Or allocation ETFs. AOA, AOR.
Target date index funds for the year you plan to retire are the definition of set and forget. For me that's FDEWX.
Because I'm lazy and don't want to worry about rebalancing ever FDEWX. If I'm less lazy then I go FSKAX, FTIHX, FXNAX. 4 is too big of a number for my brain
You’re welcome. I use Fidelity. Their target date retirement funds (make sure you choose the ones that have index in the name) are relatively cheap, I think .11% is the expense ratio (FDEWX is the ticker). AOA is an ishares all in one etf. It’s basically a balanced portfolio in one etf. It will have domestic and international equities at roughly market weight and then bonds at 20%. They have less aggressive versions of that but at your age I wouldn’t recommend them. Also if you go with fidelity I think their version of the same thing (FFNOX) is a little better. There’s honestly not much difference tho so either would be great. And if you don’t open the account at fidelity you probably can’t (or shouldn’t) use fidelity mutual funds so AOA would be fine. Any of those will do exactly what a 3 fund portfolio would do but you pay a very little bit more for the convenience. At fidelity you can use the zero funds FZROX and FXILX for two of the three fund portfolio and pay no expense fees. Until you feel more comfortable designing your own portfolio I’d probably stick with the options above or at least copy their allocations. So for example if you wanted to copy FFNOX you could have 55% FZROX, 35% FZILX, and 10 % FXNAX which is Fidelitys total bond fund. I’d also recommend checking out the bogleheads sub as it has some great info to get you started.
wow, thanks so much for breaking it down! I guess im doing the right thing then. I am currently putting 10 percent into the 401k. I have a roth IRA with fidelity but i think i only contributed like 1k this year. My portfolio consists one that is on "auto pilot" - FDEWX 2055 and the rest are FXNAX FZILX FZROX
Personally I would go with basic and invest in a single Fidelity Freedom Index Fund. [https://www.reddit.com/r/personalfinance/wiki/iras/#wiki\_eli5.3A\_how\_should\_i\_invest\_within\_my\_ira.3F](https://www.reddit.com/r/personalfinance/wiki/iras/#wiki_eli5.3A_how_should_i_invest_within_my_ira.3F) You mentioned in a previous comment you are 32, I would look into Fidelity Freedom Index 2055 Fund (FDEWX): [https://fundresearch.fidelity.com/mutual-funds/composition/315793828](https://fundresearch.fidelity.com/mutual-funds/composition/315793828) ​ Additional info: Rollovers wiki: [https://www.reddit.com/r/personalfinance/wiki/retirementaccounts/rollovers/](https://www.reddit.com/r/personalfinance/wiki/retirementaccounts/rollovers/) Don't hesitate to call Fidelity if you have any questions, it's usually a good idea to call them and have them assist with the rollover. https://www.fidelity.com/building-savings/learn-about-iras/401k-rollover-options
Look at FDEWX, a target date index fund for people planning to retire in 2055. It's the "set it and forget it" option.
Thank you! In my Roth IRA I have FDEWX, so I think that may be ok.
>FDEWX That's 2055. >FFFGX That's 2045. FIOFX is the 2045 index one.
> I know we cannot give personalized financial advice Umm yes we can this is an internet forum ; its just up to you if you want to take it but your question is confusing, do you want to move away because you think it has too much exposure to china? Do you want to avoid china all together? It is a target date retirement fund , most all target dated funds hold some foreign stocks and china will be in there, do you want a target date fund that re-allocates to bonds the closer it gets to retirement date? With out knowing I would suggest FDEWX what is basically the index fund version of FFFGX but that will have some china exposure as well
>Roth IRA - Fidelity FDEWX - 50% FXAIX - 50% Over 40% of FDEWX is already the entirety of FXAIX, there's almost never reason to hold both. By holding both, your actually decreasing your diversification, by underweighting the US extended market (which actually had higher expected returns than the S&P 500) and ex-US markets, which do have periods of outperformance. While they're is an ER difference, 0.1% isn't all that big, especially when considering the additional diversification it provides and reduction of chances of behavioral mistakes. >branch out into things like FTEC. You already have FTEC fully covered by FDEWX and probably FXAIX. This almost sounds like performance chasing, which is often a good way to end up behind, not ahead.
You are likely over 30 years from retirement and probably at most 15 years from the start of your first part time job. That is most of your working years still ahead of you. You’ve got time on your side. FDEWX has an expense ratio of 0.12% while FXAIX has an expense ratio of 0.02%. That fact alone means FDEWX will have a lower expected return (it is 6 times more expensive to hold) not to mention that historically/theoretically equities out perform fixed-income assets like bonds over extended time frames. Personally I would go 100% FXAIX rather than a 50-50 split for the next 20 years at least. Keep your portfolio simple while retaining the most money (lowest expense), ideally making the most gains (highest equity position). Nothing is guaranteed here except those current expense ratios.
Lol try again, troll. FDEWX (2055 target date fund) is down 16.7% as of yesterday at close. VTSAX is down 17.7%. VTWAX is down 17.8%.
FDEEX - Fidelity Freedom 2055 Fund has an expense ratio of 0.75% Personally, if I was going the target date fund route I would go with Fidelity Freedom Index 2055 Fund (FDEWX) which has a 0.12% expense ratio. If you look at the holdings of FDEWX, it is basically a three fund portfolio. [https://fundresearch.fidelity.com/mutual-funds/composition/315793828](https://fundresearch.fidelity.com/mutual-funds/composition/315793828) If I was in your shoes I would look into bonds and how much you would like to hold at this point. If I wanted to hold bonds right now, I would probably go with the index target date fund. If I wanted to exclude bonds, then I would look into a three fund portfolio minus the bond fund. Good discussion with various viewpoints on bonds: https://www.bogleheads.org/forum/viewtopic.php?t=328019
Ah thank you. I'm making that correction to FDEWX then for comparisons sake.
The 3 fund is going to be cheaper than that target date fund (that's an actively managed one, not an index based one - that'd be FDEWX). ​ At your age, Fidelity and Vanguard target date funds would be closer to 54% US, 36% ex-US, 10% bonds. Vanguard's stays at 10% bonds until 25 years before the target date, Fidelity may be the same.
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
My 403b at work is changing and I am selecting new funds. I am 32 and earn about $100k/year. I have a pension where I put in 7%, matched 7%. I don't have much control over the investment options. It is the Wisconsin Retirement System. I have a Roth IRA with fidelity that is currently all in with FDEWX. I max this out. I have a 403(b) with Fidelity that I try to max out: split about $15K traditional $5K Roth. Currently my 403(b) is all in with FFLDX and will be changing soon. Here is my new lineup: [https://www.wisconsin.edu/ohrwd/benefits/download/403binvestmentlist.pdf](https://www.wisconsin.edu/ohrwd/benefits/download/403binvestmentlist.pdf) I am by no means an expert but I am questioning if I need the \~10% bonds that are included in the target date funds (I am looking at: VIVLX). What are your thoughts? Should I go with VIVLX or a mix of other funds? If a mix, which funds would you suggest? I am hoping to retire early depending on how my life pans out. Hopefully around 55. The only debt I have is a mortgage which I owe about $200K on.