vanguard target retirement fund vs. fidelity freedom fund
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Financial Planning - Financial planning in general. (Moderated) 

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Subject Author Date
vanguard target retirement fund vs. fidelity freedom fund Mike 07-04-2008
Posted by Mike on July 5, 2008, 7:04 am
> Risk doesn't necessarily mean high return.
>
> A retirement fund will have higher amounts of bonds than would be
> optimal for capital appreciation.

True. My Vanguard and Fidelity target funds are both IRAs, though, and
right now they have about 80-90% stocks or more.

I was thinking about sector investing. I might look into that, too.

Thanks,
Mike

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Posted by Ron Peterson on July 5, 2008, 11:51 am
> > Risk doesn't necessarily mean high return.

> > A retirement fund will have higher amounts of bonds than would be
> > optimal for capital appreciation.

> True. My Vanguard and Fidelity target funds are both IRAs, though, and
> right now they have about 80-90% stocks or more.

Do you have those funds in a brokerage account? If so, you would be
able to buy ETFs and individual accounts.

> I was thinking about sector investing. I might look into that, too.

I think that you need to have at least 20% in the energy sector with
current price increases.

--
Ron

--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.


Posted by Elle on July 5, 2008, 1:35 pm
> The Vanguard fund has a lower expense ratio,
snip
> I'm just
> really having trouble finding the time to research and
> monitor
> everything, despite my interest in learning and
> participating actively
> in investing; hence, I figured one of the targeted
> retirement funds
> would be a good choice.

A rational decision.

I would argue VTIVX's expense ratio is a lot lower; 0.19%
vs. the FFFFX's 0.78%. Compounding this difference adds up
to around 15% difference in final portfolio value over 35
years. From what you say, I would switch all to the Vanguard
fund. But if you don't, I do not expect it to make much
difference. Studies (and common sense) indicate that what's
most important to fuss over (once you have a reasonable
allocation) is saving for retirement regularly and
abundantly.

--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.


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