On Jan 31, 2:03 am, "teaks" <mark.teki...[at]gmail.com> wrote:
- quote -

Have you played with Fidelity's own asset allocation advice?

Ah. You've opened up some indepth subjects now. Your previous topic
was much easier to answer with "invest every dime you have!" Now
you're asking about fund choices (index versus managed) and asset
allocation. I could tell you % is your ideal choice/portfolio but it's
different for everybody. Here's just some reading for you to get you
started on the subject and let you slowly feel out what your choices
should be:

http://www.coffeehouseinvestor.com/Principles.htm
http://www.moneychimp.com/articles/i.../why_index.htm
http://www.fundadvice.com/articles/b...llocation.html

And when you're reading to go into the deep end:

http://www.ifa.com/12steps/

On Jan 31, 2:03 am, "teaks" <mark.teki...[at]gmail.com> wrote:
- quote -

On Jan 31, 4:03 am, "teaks" <mark.teki...[at]gmail.com> wrote:
- quote -

I see that two of your selections are A-class shares (That's what the
A near the end of the line indicates). Normally, those shares would be
sold with a load (sales charge). For example, the Franklin fund has a
load of 5.75%. Different share classes have different load structures.
Frequently, loads are eliminated for 401(k) accounts, but this is
something that you need to check on.

What are the other fund choices in your 401(k) plan?

Dave

teaks wrote:
- quote -

It is the 'overhead' or expense of that fund. Some funds are higher, as
high as 2% or more. That's more than 12 times the cost of the fund
you're looking at.
I wrote about the high costs of 401(k) accounts this month,
http://www.joetaxpayer.com/401rip.html
mostly to make the point that at some expense level, unmatched money is
better off in a non-401 account. You are nowhere near that for the fund
you mentioned, but be careful as the other funds likely have different
costs.

JOE

Hello everyone,

First of all, thank you to everyone who commented in my 'Fresh College
Grad' post - I found it very helpful! I have another question I want
to ask since I'm just diving into the real world - and my company's
401k plan.

My company goes through Fidelity and I am attempting to take my first
stab at asset allocation. I'm somewhat confused by the various types
of funds - large/mid/small cap. Also, I've read a lot about index
funds and I noticed that I can select a 'Spartan US Equity Index
Fund.' The management fee is 0.07% and the expense ratio is 0.10%.
Can someone shed some light on what these numbers imply? There are
also new Fidelity FreedomXX funds which I believe are managed by
Fidelity based on your expected retirement rate - any suggestions on
whether to go with one of these or to manage my own allocation?

Currently, this is what I'm thinking for allocation, any comments?
LARGE CAP - Spartan US EQ INDEX: 50%
MID CAP - FKLN SMMIDCAP GRTH A: 20%
SMALL CAP - RS PARTNERS A: 10%
INTERNATIONAL - FID DIVERSIFIED INTL: 20%

Thank you in advance.