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klingel33

Freedom Funds Or Pick Your Own Funds

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What is most of you opinions and or thought about Fidelity Freedom Funds versus picking your own funds? I was looking at the prospectus and it is kind of tough to tell which way to go.

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I vote going with the freedom funds. Why ? Simplicity. Looking back on the number of accounts I have accumulated over the years makes me think I wish I had that kind of option available when I was younger.

 

You can go crazy trying to find the perfect diversification mix. Why not let someone else do it for you.

 

Thats not to say you can't add an additional component through an IRA or taxable account if you want to further diversify.

 

Tony

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Fido Fund-of Funds (target retirement funds) are considered actively managed and the ER's are a little bit high because of this. The simplicity is nice but you should be able to mimick the allocation quite easily and minimize expenses, which is the overall goal.

If your plan offers Spartan Funds, I would really consider them. They offer the lowest prices in the industry, cheaper than Vanguard. They also have a fund-of-fund called Fidelity 4-1 index fund. Its about a 90/10 allocation but does not become more conservative as you near retirement, you would have to rebalance

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