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I have a small employer that I have set up with a Simple IRA directly with Vanguard. Now Vanguard is farming out their Simple and 401K business to a firm called Ascensus. We are going to move the Simple business to Fidelity. The employees tend to not take a detailed understanding of finance and we look for simple fund of funds approach. I have always been a fan of FBALX Fidelity and retirement date funds are always a choice. I know we can buy funds from anyone but with over 200 Fidelity funds I would like to stay with simple choices that don’t have any transaction fees. What are your favorite Fidelity Funds? Thank you in advance.
Wayne Koppa
Grayling, MI
Fidelity has a low S&P 500 fund that I contributed to while funding my own 401K. Upsides: low fees, easy to understand, has done pretty well over the last 12 years. Generally it’s a bet on the United States economy’s capacity to grow, and that’s been a good bet.
Downsides are that the results of the last 12 years are not a guarantee for the next 12 and though it is a broad offering of U.S. companies, they are not the whole world, and thus the fund is not as broad as might be a good idea to own. Obviously it does not afford the stability of bonds, as would a target date fund.
David Johnson
Hey, Neighbor!
Matt
Leroy, MI
I don’t know whether Fidelity would allow a small plan to do this, but I’d restrict the choice to the Fidelity target-date funds that are built using index funds. I’m also a fan of this fund:
https://fundresearch.fidelity.com/mutual-funds/summary/31634R109
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