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Any suggestions for the best Fidelity Fund for a 10K investment for a person (not me) who will be retiring in about 5 years? I guess I could put it all in the FMANDI Income model. But I am wondering if I should move the account to Vanguard and put it all in Vanguard Wellington. The Fidelity Funds all have higher expense ratios than Vanguard.
I'm trying to learn as much as I can about investments, but it takes awhile to absorb all of the information I'm taking in.
They are two very different allocation structures. I am invested in both one pre tax and the other after tax. At this point in the market is five years a long enough time horizon to be starting out with Wellington. This is new money going in so any significant losses will during the first few years be becoming from the original seed money. When you have had the investments for a long period of time your losses are really just house money or previous gains and not your original investment. That in the mind of some |(including me|) can make a difference.
At this point in the market is five years a long enough time horizon to be starting out with Wellington. This is new money going in so any significant losses will during the first few years be becoming from the original seed money.
That's what I think, too. For that short a time frame, VWELX may be too aggressive. Take a look at these:
Quote:
Taxable Bond Flows a Mix of Active and Passive
Fund flows were positive for taxable bond funds, and they were divided almost equally between active and passive, Lamy said.
At number two on the list of top-flowing funds is actively managed PIMCO Income(PIMIX). This fund has had stellar returns on an absolute and relative basis compared with its multisector-bond category, gaining over 8.6% for the trailing one-year period ended Dec. 31. Its risk-adjusted returns over long periods are very impressive, too, beating every one of its category peers over five- and 10-year periods.
"PIMCO recovered really well with PIMCO Income, which was a really good performer after their severe outflows from Total Return," Lamy said. (PIMCO Total Return had around $5.3 billion in outflows in 2017.)
Number nine on the list, Prudential Total Return Bond(PDBAX), is run by a well-resourced and experienced team and has outlegged its intermediate-term bond peers over both long and short periods. Jacobson pointed out that Prudential has improved the fund's pricing, which contributed to our decision to raise the fund's Morningstar Analyst Rating to Silver.
Then there's the tried and true Wellesley VWINX (60% bonds/40% equities). You can buy that in her current account. I've owned VWINX for years. Last year it returned 10% - amazing for that fund.
They are two very different allocation structures. I am invested in both one pre tax and the other after tax. At this point in the market is five years a long enough time horizon to be starting out with Wellington. This is new money going in so any significant losses will during the first few years be becoming from the original seed money. When you have had the investments for a long period of time your losses are really just house money or previous gains and not your original investment. That in the mind of some |(including me|) can make a difference.
^^Thread title is: Best Fidelity Fund for Retirement in than 5 years - so I assumed only a five-year time horizon.
There's a difference in needing all the $ in five years and leaving it in and taking 4% withdrawals. Investment strategies would probably be a little different.
Not a fan of target funds. Of the funds mentioned, Wellesley would be my choice or follow Fidelity Monitor's Income and Growth/Income models, perhaps allocating 50% to each. If you're going to leaving it in and take 4% withdrawals, I'd put it all in the Growth/Income model.
This is a SEP IRA that we will contribute to but my husband will have to start taking RMDs in 5 years. My husband is older than me and I won't be retiring for another 15 years. So we won't "need" this money. I want to invest it rather than put it in savings with almost no interest.
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