FIPFX
FIDELITY FREEDOM INDEX 2050 FUND INVESTOR CLASS
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Looking to invest in individual stocks or sector ETFs for 3-5 years then re-invest that into a mutual fund. What taxes/penalties do I pay when I do that conversion/reinvesting?
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I do $400 monthly ROTH IRA FIPFX and $420 monthly in 401k ROTH FXIAX with half of it being matched by employer. I feel like FXIAX is not as diversified as I want it to be but at late thirties FIPFX/FXIAX is good enough for me. I should be more growth but I think the market is a bit bloated right now and throwing more at growth will crash eventually with the AI bubble meh whatever I’m cool with it until I learn more down the road soon.
FIPFX ROTH IRA + FXIAX with Nvidia on individual for me. :p
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.
Hey all, would love some investing advice in particular with RSU's vested from previous employer and overall portfolio breakdown. I know im too heavy in tech, but I work in tech and that what I know the best. Would love to gain insights and ideas on how to restructure this and just build better investment habbits/hygiene. Also want to prep for taxes... Thanks in advance! **About me**: 37, live in the US, single, work in tech, make about 300k a year + \~50-80k annually or so in RSU's depending on company performance including ESPP I max out my 401k, I buy 25k worth of ESPP with a 15% discount and I get the lowest price on a 6 month look back. I have put off doing a backdoor Roth due to procrastination or laziness or probably both? I live within or below my means for the most part... I have a townhouse I bought over 4 years ago and have some equity in it. I have about 700k in a non retirement brokerage account (portfolio breakdown below). \~300k is in HPE stock vested from my previous time there over a year ago and would like to diversify. Im thinking something more aggressive as its currently almost half of my brokerage account. Im debating VTI, VOO, VTSAX or maybe a split between a few? The rest of my non retirment holdings are also in tech or tech related stock since I work in the industry and thats where my experience is. Yep, not very diversified, so feel free to roast me for the lack of diversification! **Portfolio Breakdown :** Non Retirement: 700k - NVDA, SNOW, CRWD, UBER + a few others and could close out about 50-60k in losses to offset the earnings (not sure if thats wise, but putting it out there...) 401k : 200k in a FIPFX target date fund (I am debating changing to a more aggressive fund as I wont retire for atleast another 25-30 years?) Rollover IRA : \~100k in VTSAX 90k total in HYSA. What would you do ? ( Im leaning towards ETF's just for simplicity and growth, but will prob hold/gamble with a few tech stocks im very familiar with) Thanks in advance!
Not sure what you're looking at but going to M\* and looking at two different Fidelity TDF options: FIPFX (Freedom Index 2050 Investor Class - passively managed) - 19.91% return in 2023 and ranked in the 56th percentile. About 10% in bonds. FFFHX (Fidelity Freedom 2050 Fund - which is actively managed) - 20.46% return in 2023 and ranked in the 35th percentile. About 13% in bonds. So, a couple of questions/comments: 1) What is the ticker for the fund you're in? 2) Neither of those bond allocations would not be considered particularly high, even for a 2050 vintage. 3) If you really expected a well-diversified portfolio of large, mid, and small cap US stocks, international stocks, and bonds to outperform the S&P 500, you need to drastically reset your expectations going forward.
The ten year performance of FIPFX is 8.25%. While the 10 year performance of FSKAX is 11.9%.
>Should I keep FIPFX or change it to a TDF or something like FSKAX? FIPFX is a Target Date Fund
Age: 36 Location: Ohio, USA Salary: $70k with government pension Objectives: Travel money in 10 years, early retirement in 20 Current holdings: $15k BlackRock LifePath 2050 TDF (Traditional IRA), $2k VOO, $600 VXUS, $300 AVUV, $300 FIPFX TDF (Roth) Debt: $36k remaining mortgage, $11k remaining car loan, $10k credit card debt (interest free until May 2025) I loaded $15k into my traditional IRA until I realized Roth is probably better, so I'm redirecting my recurring payments into my Roth. I have it going into FIPFX at Fidelity. I'm maxing it out. In the meantime I also have $200/wk going into Robinhood for some traveling and fun before retirement. My current portfolio in Robinhood is 70% VOO, 20% VXUS, and 10% AVUV. Two questions: Should I keep FIPFX or change it to a TDF or something like FSKAX? And also, how does my Robinhood portfolio look? There's no bonds in there, but I'm willing to be a little risky because I have my pension and Roth to fall back on.
FFFHX .75% FIPFX .12% so touché to your index argument on cost. The better argument then would be is why do you need 10% bonds and 36% foreign when you aren’t retiring for 25-30 years. Like just let SPY or QQQ do their thing - they objectively keep winners, rip harder on the upside because of cap weighting, and (arguably in todays cash pile with tech) have the moat and money to sustain a lot of conditions.
So to get this straight you've been contributing money into your IRA's and just letting it sit as cash? Interesting Just pick a Fidelity target date fund and avoid anymore work. So say you're planning on retiring around 2050 you'd pick FIPFX. Just make sure its a Fidelity Freedom "INDEX" fund.
>401k: 100% FNSBX (I have limited options on fund selection) I assume you don't have the Freedom *Index* funds available. 0.65% ER isn't catastrophic, but it'd be nice to avoid if you could. Do you have any broad index funds that you could recreate the 2050 target date with for cheaper? >I know some would suggest more international, I have seen suggestions of everywhere from 20%-40%. I know 40% would track better with the world wide market but since I live in the US, I want to have a heavier US weight. Up to you, but that would almost make me want the opposite. In a really broad way, living in the US means you are already exposed more heavily to risks associated with the US economy. To the extent I thought about it, I'd probably want to diversify *away* from the US for that reason. In any event, I tend to use target dates as a basic measuring stick for composition. [Fidelity's 2050 funds](https://www.morningstar.com/funds/xnas/fipfx/portfolio) are about 36% ex-US. I'd use that as a baseline. >The one thing I keep bouncing back and forth between is whether to utilize FIPFX in our HSA / Roth IRAs or use the same index funds as we use in the brokerage account. FIPFX is certainly easier: no rebalancing needed and an auto-glide-path. However, if you plan on wanting a more custom mix (less international, say), your path seems fine also. I'm in a similar boat to you (only regular Freedom funds, no Freedom Index) in my 401k, but have decent (not perfect, but decent) other index fund options in there. That's my largest single nut, so I buy as balanced a mix as I can in there and then use the IRA/HSA to try and smooth it out to a target-date-fund-like mix.
Between my wife and I we have a 401k through my job, an HSA, two Roth IRAs and a brokerage account. We are maxing out the 401k, HSA and both Roth IRAs and putting extra money into the brokerage account. Currently we are on track with a goal to fully retire at 55 (60 at the absolute latest if something unexpected happens). What I have a question on is optimizing my plans and getting feedback on what we are investing in. I am approaching the set it and forget it stage after making some tweaks over the last year. Here is what we have: 401k: 100% FNSBX (I have limited options on fund selection) HSA / both Roth IRAs: 100% FIPFX Brokerage Account: 80% FSKAX, 20% FTIHX (at age 35 I will add 1% each year up to a maximum of 20% FXNAX which would result in a ratio of 64% FSKAX, 16% FTIHX and 20% FXNAX at age 55) I know some would suggest more international, I have seen suggestions of everywhere from 20%-40%. I know 40% would track better with the world wide market but since I live in the US, I want to have a heavier US weight. The one thing I keep bouncing back and forth between is whether to utilize FIPFX in our HSA / Roth IRAs or use the same index funds as we use in the brokerage account.
Fidelity has 2 separate TDF series: the higher cost freedom funds, and the lower cost freedom *index* funds. She should move into [FIPFX](https://fundresearch.fidelity.com/mutual-funds/summary/315793869), the Fidelity Freedom Index 2050 fund (ER 0.12%) >performance (sub 10% over 10 years) doesn’t seem that great to me You shouldn't expect more than 10% in long term returns. 8% is more realistic, or 6-7 if you're modeling conservatively. Don't try to chase funds with higher performance.
And FIPFX (the index target date fund) is down 18%. This is more about expensive fund managers underperforming the indexes, not about target date finds. Unfortunately Fidelity wants to make money and will push the expensive target date funds first unless you know to look for index versions.
Is there a good solid strategy to picking a retirement target date fund/index to invest in? My general strategy has been to target things with the lowest expense ratio and/or fees...and that's leading me to the FIPFX (Fidelity Freedom® Index 2050 Fund Investor Class). I'm aiming at the 2050s. Really just looking for guidance on how some of you picked your target date fund for the Roth IRA.
Raw returns isn't a fair comparison. If you were in FFFHX (a 2050 target date) why not just buy FIPFX instead (Fidelity's index-based, far lower fee, version)?
Well for starters don't buy the Vanguard target 2050 mutual fund in a Fidelity account. That has a $75 transaction fee. The Fidelity equivalent with no transaction fee would be [FIPFX](https://fundresearch.fidelity.com/mutual-funds/ratings/315793869)
Is VOO good to put in my Roth? I have most of it in FIPFX (target date fund) but want to diversify a bit.
You should ask your company to move into the INDEX version of those Target Date Funds. They have different ones for each year. [FIPFX 2050 Index](https://fundresearch.fidelity.com/mutual-funds/summary/315793869) [FFFHX 2050](https://fundresearch.fidelity.com/mutual-funds/summary/315792416) Otherwise you can just invest in Fid 500, the Fid Extd Market, and the Fid Intl.
The difference between those funds are minimal, they both follow a glide path in the same investments, only difference is one becomes a little more conservative sooner (more bonds) than the other. The target years are only a guide, consider selecting a target date fund according to how much equity exposure you want when you retire. [https://www.investopedia.com/terms/g/glide-path.asp](https://www.investopedia.com/terms/g/glide-path.asp) [https://institutional.fidelity.com/app/literature/item/9887468.html](https://institutional.fidelity.com/app/literature/item/9887468.html) [https://www.bogleheads.org/wiki/Target\_date\_funds](https://www.bogleheads.org/wiki/Target_date_funds) If you decide one of those two target date funds are the right one for you, I would make all future contributions into that one fund and leave the other alone since there isn't a big difference in investments between FIOFX and FIPFX.
Set it and forget it for the smart investor?! So I’m looking for index funds or target date funds to store in my Trad IRA forever. I don’t want to bother with the Trad IRA at all lol. Right now, I have both FIOFX and FIPFX (with Fidelity) in the IRA with 65K. I’m not sure if this is the most logical investment choice as I’m wondering if the funds are basically the same thing. Should I keep it as is, combine my money into one TDF, or are there better options out there for a set it and forget it for a Trad IRA? Suggestions, experiences, thoughts welcome. TIA!
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
Yes, FIPFX: [https://fundresearch.fidelity.com/mutual-funds/summary/315793869](https://fundresearch.fidelity.com/mutual-funds/summary/315793869)
Yes, FIPFX for your Roth IRA should be fine. Do you have a 401(k) at work? If so, what do you hold in that?