FXIFX
FIDELITY FREEDOM INDEX 2030 FUND INVESTOR CLASS
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Helping my Aunt with her retirement portfolio (~800k). Input welcome/appreciated.
Mentions
I do have 4K in FXIFX in my retirement account. I am gonna max it by end of year
I don't know much about these funds, but the assumption that they're "safer" is unwarranted. Looking at the trough in March 2020, these funds crashed just as hard as everything else. During bull runs, these funds have severely underperformed SPY or VTI over the past 5 years (25-55% vs 120% of SPY) or 10 years (120% vs. 320% SPY). The expense ratio of some of these funds are quite high, some are as much as 3 times VTI (FXIFX-0.12%). With worse performance and no safety during an economic downturn, I think you're being taken to the cleaner here. The option I usually recommend is to ride SPY and VTI regardless of your age group, at least until interest rate becomes respectable again. In your scenario, I think you need to realistic about your goals, which are at odds with each other: not much runway left until your retirement yet you want to be conservative in your portfolio choices. Some thing's gotta give. If I was in your situation, I'd consider the following options: (a) cut down hard on discretionary expenses **right now**; (b) invest in SPY or VTI **now with the assumption that you might have to hold on to most of it past your retirement date**; (c) make contingency plans for whether you can continue working past 67 if the market tanks.
We started late in investing because life happened and early on we were burdened by student loan, credit card debt along with a ridiculously high mortgage and need advice. We're both 56 years old and plan to retire at 67. We plan to max out both ROTHs, HSA, will have $5800 in SS income and contributing up to the company match on 401k. We'd like to invest in the following: FZROZ@60%, FZILX@20% and FSRNX@20% in one account. Then VYM, SCHD, SDY and HDV for high yield dividend ETFs in another. We're concerned that we won't have enough growth if we go with the recommended FXIFX and/or FIHFX but we can't afford to lose it all either. Any recommendations would be great. We're late to the retirement game but still want to live well.