401(K) investments with fidelity- need advice?

Question

My return this year has been just 6 % when the market is all time high. I am in a company plan managed by fidelity. I deally, I want atleast 10%. Also, should i get out of Fidelity Magellan?? Your help is appreciated

Answer 1

There's always a tradeoff between risk and returns. 10% is a high return, and thus will require a high level of risk. No investment I'm aware of returns a consistent 10% year after year.

My advice is to invest in Fidelity's Spartan index funds, if your plan allows it. You'll always get the same rate of return as the market, with very little expense overhead. Actively managed funds like Magellan have higher expense ratios and historically don't do much better, if at all, than index funds.

If your 401K is from a previous job, you can convert it to a traditional IRA and use it for any investment you want.

Answer 2

Well there are quite a number of things which are missing here.

You mention that your 401Kis managed byFidelity, but you don't go into what your options are within the plan. Can you dictate at all how your money is allocated and into what kind of things you can invest. My 401K is also through them and we have at 20 different options in which we can allocate some part of our funds.

You state that you feel the rate of return should have been higher because the marketis at an all time high? WHat market do you feel is at an all time high? In general the market is preforming good, but certainly not at all time high levels, and at certain times this year it has actually been fairly bad.

6% is not all that bad, but if you're not happy with it and think you can do better somewhere else, then go for it.

Answer 3

WHAT market is at an all time high? Are you NUTS?

6% is a good return right now. Your 401(k) is a LONG TERM investment, not a get rich quick scheme. that sounds like a GREAT return considering the current status of our economy.

Answer 4

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Answer 5

1

Answer 6

I believe you could do better than that by choosing investment as time fit
First check this book out first, Stock traders Almanac by JEFF HIRSCH

Yes you could learn invest by yourself. it is your money, you should know how to do with it. for starter check this site out.

http://www.pathtoinvesting.org/index_fla...
http://www.stockcharts.com
http://www.streettalklive.com section university. a lot amount of information. It will serve you well
I accumulate in good amount in 401k at the young age.I could share with you. when consider invest in stock market. you should consider basic 3 things:

fundamental analysis==(economic data,finincial health, management, business model, competetion)>>what to buy

technical analysis==(chart+indicator)>> when to buy

Sentiment/schycho analysis==>>mood of investor, Contrarian point of view.
Market cycle===>> check out book Trader Almanac by jeff hirsch will give you inside stuff
When you combine 3 thing, It is one of the powerful knowledge goinh with you for the rest of your live

At the age of 32. my 401k is amassed 75,000.00 and 30000.00 in taxble account. by follow simple rule