I currently have about $23k sitting in an IRA from a previous 401k rollover. That $23k is currently invested into a mix of Fidelity commission and transaction free ETFs which include IEFA, IJH, ITOT, IVV, IXUS, and a small bit of VNQ. The asset allocation graph shows this as "Most Aggressive" with 76% Domestic Stock, 23% Foreign Stock, and 1% short term. I'm 29 so I know Most Aggressive is probably what I'm looking for.
When I rolled over my 401k to this IRA I didn't really know what I was doing. I did some reading and learned about these ETFs and I thought since they were free that they would be a good idea. Overall it's done quite well in the 1.5 years the money has been sitting there.
I noticed there is a "FDEWX Fidelity Freedom Index 2055 Fund - Investor Class" and a "FDEEX Fidelity Freedom 2055 Fund". It looks like instead of buying shares like an ETF you just put in an amount of money and set it and forget it until the target date.
My question are:
1) Are these target dates a good idea? Since I'm not terribly savvy with stocks and bonds and what is risky and what is not risky, I like the idea of having a single target date fund managed for me where it starts off aggressive and as it gets closer to retirement it gets less risky (I think that's how they work anyway?)
2) What is the difference between the 2 target date funds I mentioned above?
3) Was putting my money into these ETFs a good idea? I plan on just leaving these regardless since $23k isn't that much in the grand scheme of things.
Any advice appreciated.
Submitted March 29, 2018 at 08:39AM by CaptainButterflaps https://ift.tt/2pKLX5d
