FFFFX
FIDELITY FREEDOM 2040 FUND
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How do I prepare my portfolio for a market crash driven by an AI stock meltdown?
Preparing for an market crash driven by an AI stock meltdown, I decided to ask AI; and here it what it said
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In my opinion target date retirement funds (TDF) can be a sane, sensible choice for long term retirement investing. I am a Fidelity customer planning to retire in 2040 so for me, the best match would be FFFFX.
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
Probably something like a Fidelity Target Date Fund since it's like ~10 years from retirement. One stop shop: FFFFX
When I was 23 (now 35) I inherited about $1500, my stepdad sent me to "his guy" at fidelty who put it all into FFFFX(Fidelty Freedom 2040). I recently looked at it again for the first time in a decade. Its appreciated considerably but it looks like its underperformed compared to many other funds. My question is this, is it worth selling and pulling that money out and investing it with the rest of my portfolio on another platform (mix of index funds and JEPQ/JEPI) and take the tax hit or should I just let it ride in that fund regardless?
Yup. Backtesting SPY vs Fidelity 2040 Target Fund (FFFFX) from Oct 2000 to present, SPY has a CAGR of 7% vs. 5.1% for target fund. That's a massive difference, and they both had - 50% downturn at one point (I'm guessing around 2009).