Fidelity retirement active management?
11-06-2018, 10:30 AM
#21
Gets Weekends Off
Joined APC: Jun 2015
Posts: 1,755
I think the idea with target date funds is it already is a basket of index funds; but it rebalances from overweight equities to overweight bonds and cash (decreasing risk) over the length of your career (known as the glide path). With dollar cost averaging over the length of a career, there may be periods when you have a down year (like 2018) - but who cares? You are buying in at a cheaper price. Over a 10-year period, you usually see 2 cruddy years, 2 great years, and 6 average years. If you don’t know what you’re doing, the target date fund is a great set-it-and-forget-it plan; the theory is time and low fees smooth out the returns to something respectable. The best advice I heard was save save save when you’are young, the best thing you can do is ACCUMULATE an army of dollar bills. When you have a big pot of money, you can tweak it later on and maximize efficiency.
YMMV, there is someone out there that does better, (let me save you the typing).
YMMV, there is someone out there that does better, (let me save you the typing).
11-06-2018, 11:07 AM
#22
Gets Weekends Off
Joined APC: Mar 2015
Position: stake holder ir.delta.com
Posts: 10,452
Financial engines has some free tools for us. They (not me, but I agree) recommend diversifying among low cost index funds targeted for time and risk tolerance. In the end its diversification and dollar cost averaging that give you the most reliable returns long term but you will still have scares and wins. Staying in the market is tough when your losing but continuing to buy locks in a lower price. I don't like to give advice but I guess I just did. 
Disclaimer: pilot financial advise, objects in mirror may be closer than they appear, YMMV, past performance may not indicate future returns, sea lawyer on duty, psychiatry $.05, I'm a non attorney spokes person, I'm not a doctor but I play one on TV, side effects include...
Disclaimer: pilot financial advise, objects in mirror may be closer than they appear, YMMV, past performance may not indicate future returns, sea lawyer on duty, psychiatry $.05, I'm a non attorney spokes person, I'm not a doctor but I play one on TV, side effects include...
11-06-2018, 11:43 AM
#23
Gets Weekends Off
Joined APC: Apr 2007
Posts: 4,613
The Fidelity managed accounts are the airline equivalent of checked luggage fees. Would you rather pay to check your 21" suitcase, because it's a premium service and you don't have to drag it through the airport, or would you select carry on and get consistently better results (never late, lost or damaged)? Let that sink in for a while, then read on.
With a hypothetical Fidelity account balance of $2 million, a 3/4% management fee is $15,000 per year. You are paying over a thousand dollars per month, just so you can tell your friends at a cocktail party you have an investment manager. The managed portfolios offered to 401k millionaires are a way to collect fees from the aspiring elites, not real wealth management. Chase is the master of this with their Private Client product. Fidelity and others are getting in on the game with their products. You can achieve similar results without the fees by using the Fidelity fund screener and reading Bogleheads and Morningstar once a quarter. Remember though, multiple funds doesn't guarantee diversity. You have to check what the holdings are.
When you are working with an amount exceeding $10M it might make sense to consider a multi-family office, not to be confused with multi-family real estate investing, although the former may recommend the latter. This is an entirely different class of wealth management that will include mutual funds, business and real estate investments, estate planning, tax planning, etc. It is this kind of image Fidelity and others are selling to their mutual fund clients.
With a hypothetical Fidelity account balance of $2 million, a 3/4% management fee is $15,000 per year. You are paying over a thousand dollars per month, just so you can tell your friends at a cocktail party you have an investment manager. The managed portfolios offered to 401k millionaires are a way to collect fees from the aspiring elites, not real wealth management. Chase is the master of this with their Private Client product. Fidelity and others are getting in on the game with their products. You can achieve similar results without the fees by using the Fidelity fund screener and reading Bogleheads and Morningstar once a quarter. Remember though, multiple funds doesn't guarantee diversity. You have to check what the holdings are.
When you are working with an amount exceeding $10M it might make sense to consider a multi-family office, not to be confused with multi-family real estate investing, although the former may recommend the latter. This is an entirely different class of wealth management that will include mutual funds, business and real estate investments, estate planning, tax planning, etc. It is this kind of image Fidelity and others are selling to their mutual fund clients.
Last edited by Gunfighter; 11-06-2018 at 12:16 PM.
11-09-2018, 01:20 AM
#24
Gets Weekends Off
Joined APC: Dec 2007
Posts: 5,591
The Fidelity managed accounts are the airline equivalent of checked luggage fees. Would you rather pay to check your 21" suitcase, because it's a premium service and you don't have to drag it through the airport, or would you select carry on and get consistently better results (never late, lost or damaged)? Let that sink in for a while, then read on.
With a hypothetical Fidelity account balance of $2 million, a 3/4% management fee is $15,000 per year. You are paying over a thousand dollars per month, just so you can tell your friends at a cocktail party you have an investment manager. The managed portfolios offered to 401k millionaires are a way to collect fees from the aspiring elites, not real wealth management. Chase is the master of this with their Private Client product. Fidelity and others are getting in on the game with their products. You can achieve similar results without the fees by using the Fidelity fund screener and reading Bogleheads and Morningstar once a quarter. Remember though, multiple funds doesn't guarantee diversity. You have to check what the holdings are.
When you are working with an amount exceeding $10M it might make sense to consider a multi-family office, not to be confused with multi-family real estate investing, although the former may recommend the latter. This is an entirely different class of wealth management that will include mutual funds, business and real estate investments, estate planning, tax planning, etc. It is this kind of image Fidelity and others are selling to their mutual fund clients.
With a hypothetical Fidelity account balance of $2 million, a 3/4% management fee is $15,000 per year. You are paying over a thousand dollars per month, just so you can tell your friends at a cocktail party you have an investment manager. The managed portfolios offered to 401k millionaires are a way to collect fees from the aspiring elites, not real wealth management. Chase is the master of this with their Private Client product. Fidelity and others are getting in on the game with their products. You can achieve similar results without the fees by using the Fidelity fund screener and reading Bogleheads and Morningstar once a quarter. Remember though, multiple funds doesn't guarantee diversity. You have to check what the holdings are.
When you are working with an amount exceeding $10M it might make sense to consider a multi-family office, not to be confused with multi-family real estate investing, although the former may recommend the latter. This is an entirely different class of wealth management that will include mutual funds, business and real estate investments, estate planning, tax planning, etc. It is this kind of image Fidelity and others are selling to their mutual fund clients.
Sent from my SM-N950U using Tapatalk
Thread
Thread Starter
Forum
Replies
Last Post
