Help with other funds

[GatorinGA]

My sister is leaving Government work and moving to the private sector. She has given me a list of the choices she has for funds for her 401K (they are alll Fidelity funds) and asked me my opinion. I am barely able to understand the TSP options we have, much less anything more intricate. If you are knowledgeable of these funds, and can weigh in with an opinion, I'd appreciate it. She is 37 years old and probably a good 25 years away from retirement, so she can stand to be pretty aggressive. Thanks!

 

[rokid]

GatorinGA

My wife has FDIVX (I Fund with some emerging markets), FLPSX (S Fund with a value orientation), and FUSEX (C Fund). I'd highly recommend all three.

Of course, if the funds are available, I'd recommend duplicating the F/C/S/I Funds with Fidelity index funds. In addition, if available, she should add a REIT index fund (10%) and an emerging markets fund (7% of the international stock allocation). Finally, if she wants to be aggressive, she should reduce her fixed income, i.e. F Fund, allocation, e.g. 10% total.

 

[GatorinGA]

I posted a poll and thought it would be attached to this thread, but it isn't. The only options she has are listed in the poll that I posted at the same time as this question. Thanks!

 

[tsptalk]

I see the poll ?? Are you not seeing it?

 

[GatorinGA]

Yes, I see it now, sorry about that.

 

[rokid]

Would you also post the ticker symbols for each fund?

 

[GatorinGA]

All I have from her are 6 sheets of paper with a little bit of information about each fund. I do not see a ticker symbol anywhere on the sheets, and I don't know enough about that to find them. Sorry..........

 

[GatorinGA]

Bump

 

[mlk_man]

Gator, if you're sister is looking to "set it and forget it", it's best that she diversify into each of the funds. Let me give you a little background on each:

The "Growth opportunites fund" will be invested in domestic large and mid-size cap companies. Similiar basically to a cross between our C and S funds.

The "Overseas fund" will be invested in foreign large and mid-size cap companies. Similar basically to our I fund.

The "Government investment fund" will be invested primarily in US government securities and is somewhat like our G fund although you won't be guaranteed a particular return like our G fund does. I pretty safe fund to be used mainly when one is approaching retirement or when the market is going down.

The "Equity income fund" will be invested primarily in income producing equity securities, ie, large companies that offer dividends. This fund will go up with the market and down, but will not be as volatile as the "growth fund" because of the dividend yields.


The "High Income Advantage Fund" will be invested in primarily high-yield, lower-rated corporate bonds (also known as junk bonds). This is similiar to our F fund although a bit more volatile because it invests in lower-rated corporate bonds while our F fund invests in investment-grade corporate bonds.

The "Prime fund" I am not familar with but I would assume it is similar to a money market type fund which is a fairly safe fund but would only offer minimal returns. Most likely 2 to 4% a year.

Hope this helps,

M_M

 

[GatorinGA]

Thanks Milk, that was great information!!