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lincoln16

Fidelity Destiny?

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Along with my 403 plan I wanted to start a shorter term investment-say 15-20 years (I am 30). I want to have some investment for college etc.... I heard about the Fidelity Destiny? program. Anyone know of this or know of any other good shorter term investments?

 

Thanks

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Along with my 403 plan I wanted to start a shorter term investment-say 15-20 years (I am 30). I want to have some investment for college etc.... I heard about the Fidelity Destiny? program. Anyone know of this or know of any other good shorter term investments?

 

Thanks

 

 

"shorter term investments" is no where near 15-20 years...in my view it is no more than 3 years. Have you looked at your state's college savings plan?

 

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Hey Lincoln...

Are you trying to pay for future college cost for yourself or paying for a future kid's education?

What is a short term for you?? 15-20 yrs for most are considered long term.

 

If you need the money within 2-3 years from now, a high yield money market fund or CD may be appropriate.

 

If you are planning for your kids college, check the state you are in. It may provide tax benefits.

Otherwise, a ROTH IRA may work too since the contribution is tax-deffered and any withdrawal up to the contribution will not be penalized. There are many factors as to how to go about planning your financial future - speak to a qualified person.

 

I know most of the post would disagree but sometimes you need to sit with an advisor and plan your future especially if you are not too familiar with investing...Sometimes doing it all alone may cost you in the long run...

 

I wasnt able to come up withe Destiny fund, For Fidelity, go to https://www.fidelity.com..

Good luck....

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http://www.savingforcollege.com run by Joe Hurley is THE 529 site on the web. It rates the different state plans based on whether you are a resident or out of state investor. Some states plans are bad, with high fees and few choices. Some states allow tax write offs for only their state plans, other states offer no write off, and one, at least (Arizona) offers a write off for any state's plan. If your state offers a write off you should consider it first. Utah, Iowa, and Nevada are considered some of the best for out of state investors. Vanguard runs all three. Fidelity runs Arizona's and it is quite good for both in state and out of state. Also stay away from the broker sold 529's. What a surprise, they tend to be really expensive and underperform compared to the direct sale plans! The states also usually have an admin fee that gets tacked on. Fidelity and Vanguard both have info on their sites about all of the state plans they administer. Most states have an age based option where you can pick your child's entry date into college and the portfolio is rebalanced to put more into bonds and cash and less into stock the closer they get to college.

 

For cash you need in the next 1-5 years consider a money market mutual fund, like the Vanguard Prime Money Market fund. It's paid over 5% in the last year and has an expense ratio of .24. It's not federally insured but there has been 1 failure of a money market fund since Merrill Lynch popularized them in the 1970's and it repaid .96 on the dollar. Remember inflation is a risk to consider too. Last year's inflation was over 4% so if you had your money in a regular savings account (<.5%) or even a credit union money market account (2%) you made a negative rate of return of between -3.5 to -2%.

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