Comments on: Fidelity Cuts 529 Plan Fees, Changes Age-Based Asset Allocations

By: Fidelity Offers Index Fund-Based Target Retirement Funds » My Money Blog

Fidelity Offers Index Fund-Based Target Retirement Funds » My Money Blog — Sun, 16 Oct 2011 03:13:51 +0000

[...] is only an educated guess based on their new 529 portfolios, but their Fidelity Freedom Index 2040 Fund holdings might look like this, with a combined expense [...]

By: Sammy_M

Sammy_M — Sun, 06 Dec 2009 02:20:00 +0000

Jonathan, have you considered the VA VEST plan where you can get both TIPS and REITs for not much more expense (around 0.33)? A 529 is a great place to put these tax inefficient investments and it can free up other tax advantaged space (tIRAs, Roths).

By: Arun

Arun — Sat, 05 Dec 2009 19:39:20 +0000

Jonathan, big fan of your blog. I have Ohio CollegeAdvantage 529 Plan. I am resident of Virginia (i took advantage of $4000 in tax benefit Virgnia 529 plan but they do not offer CDs and their cost are higher compared to ohio plans). As In Ohio CollegeAdvantage 529 plan they are offering 5% CD (https://www.collegeadvantage.com/cas/fifththird_perform.aspx) i save there for safer savings. May i know why you prefer TIPS inside 529 plan? We do not need to pay tax on CD income inside 529 right? Are you expecting more than 5% on TIPs in returns?

By: indexfundfan

indexfundfan — Fri, 04 Dec 2009 00:06:57 +0000

I had the 2% card from reading your blog.

But now, there is no need to have the reward go into the 529 account. I changed it a couple of weeks back for it to go into mySmartCash account. I just received a credit today.

By: Jonathan

Jonathan — Thu, 03 Dec 2009 22:27:16 +0000

@Ione @Time – I’m not sure what happened. I can’t find it either, right now they are primarily in the 529 plans, which was probably fueled by states demanding it.

I could only find this article which mentions that they also exist in certain Fidelity-managed retirement plans.

@Robert – 19 years may be long enough for stocks to outperform bonds, but the ride could be also rough. For something that is save for 19 years then spend in 1-4 years, I’d personally rather invest conservatively and make steady measurable progress. I may expands to stocks but it would like 60/40 stock/bonds. For retirement, I’ve got decades to ride out and rebalance and withdraw and work a little if needed.

By: Kevin B

Kevin B — Thu, 03 Dec 2009 21:40:43 +0000

TIPS are a good call. The fed is trying it’s best to stoke the inflation fire and as usual will hold it is feel on the gas just a little too long. With the inevitability of a big uptick in inflation sometime in the next few year TIPS will be a very good place to be.

By: Robert

Robert — Thu, 03 Dec 2009 19:42:34 +0000

Jonnathan,

What’s the reason for investing in bonds? I ask this because you don’t have kids yet so that would put the investment horizon at a minimum of 19 years. The only thing I can think of is that the money is for you or your spouse to attend college.

By: More Money Thursday roundup: Credit card fees & shameless mortgage defaults | Manageabuck.com

Thu, 03 Dec 2009 19:00:30 +0000

[...] savings plan fees and changed its age-based allocations this month. My Money Blog offers a handy summary of the changes. [My Money [...]

By: Tim

Tim — Thu, 03 Dec 2009 14:51:16 +0000

Did they actually end up adding the freedom index funds? I can’t find them. What’s the symbol?

By: lone

lone — Thu, 03 Dec 2009 13:50:08 +0000

Has fidelity offered the Fidelity Freedom Index Funds that you had mentioned few months back? I looked up on their website, but was not able to find it. If the are offering these funds, could you please point to the correct link? Thanks.