ForumsSolo 401k – 5500-EZFidelity – which investment fund

Forums Solo 401k Solo 401k – 5500-EZ Fidelity – which investment fund

  • Fidelity – which investment fund

    2 Replies
  • Shahbaz Qavi

    Top SubjectMega Backdoor Roth Solo 401k,Solo 401k – 5500-EZ
    Top ForumsMega Backdoor Roth Solo 401k, Solo 401k – 5500-EZ

    Shahbaz Qavi

    Shahbaz Qavi

    Top SubjectMega Backdoor Roth Solo 401k,Solo 401k – 5500-EZ

    November 15, 2021 at 9:40 am

    Hello all,

    I wanted to get your recommendation on where to my put my money now that I have it transferred into a fidelity non prototype plan.

    I’m 37 years old and think have another 30 years to go. I had a vanguard 401K plan a while ago that was in a 2050 retirement account which was easy. I then had transferred into LPL account which was actively managed account but charging me 1%. And now finally i have a solo 401K and money being held in fidelity. I would like to keep it in an account where I dont have to do much (since I have no clue). For example before the recent election I moved from 90% stock/10% bond to 60% stock and 40% bond thinking the market will crash and market continued to improve. With that experience I figure its better to put money into an account and forget it.

    Now looking into fidelity they have too many options. I finally read the difference between index vs mutual funds.

    Any recommendations. I know everyone is in their own unique situation and have different knowledge/experience with such investments. I’m looking at low risk/low fee/hands off account and if they have amazing returns that helps also :). Sorry about the long post

    Thanks

    Shahbaz Qavi
  • Shahbaz Qavi

    Top SubjectMega Backdoor Roth Solo 401k,Solo 401k – 5500-EZ
    Top ForumsMega Backdoor Roth Solo 401k, Solo 401k – 5500-EZ

    Shahbaz Qavi

    Shahbaz Qavi

    Top SubjectMega Backdoor Roth Solo 401k,Solo 401k – 5500-EZ

    November 15, 2021 at 9:41 am

    It seems fidelity also has 2050 retirement index fund and 2050 retirement mutual funds??

    Shahbaz Qavi
  • Top SubjectSolo 401k Distributions,Solo 401k Contributions
    Top ForumsSolo 401k Distributions, Solo 401k Contributions

    Keshav K.
    Top SubjectSolo 401k Distributions,Solo 401k Contributions

    November 15, 2021 at 12:30 pm

    Since you want to keep things simple, a target date fund is a great idea in my opinion. Fidelity has actively managed target date funds and passively managed (index) target date funds. The former are named “Fidelity Freedom [year] Fund” and the latter are called “Fidelity Freedom Index [year] Fund” so be careful not to confuse them.

    If you are planning to retire around the year 2050 then FIPFX (Fidelity Freedom Index 2050 Fund) is a good choice. It is an index fund and it has an expense ratio of 0.12%. It is similar/comparable to Vanguard’s VFIFX (Vanguard Target Retirement 2050 Fund) which I assume is what you had in your previous 401(k).

    Keshav K.

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