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Fidelity Freedom 2040 ( MUTF:FFFFX )
My sister has been contributing to her 401k for several years now. She is only in 1 fund, the Fidelity Freedom 2040. As I take it, this fund automatically adjusts to accommodate the persons retiring in year 2040. She is 26 years old and will probably retire more than 10 years after this date.
Is this an ok fund for her to be in? Looking at the performance of the stock and associated fees, it seems in line with an index fund. Think she should diversify more or continue to contribute to this fund?
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sergik12
at 01:33pm on Sep 17, 2008
I’m not a financial advisor but i do understand what this fund is trying to do. For people who don’t know much about their 401K options and don’t plan to manage their 401K actively it’s probably a good think to still with the fund. Although FFFFX has underperformed the SP500 for every time period I look at so it’s tuff to justify going to with FFFFX when you can get the performance of the SP500 at a cheaper rate.
pbucelwicz
at 08:48am on Sep 19, 2008
She is going to consider: FSMAX
Pockets the S%P 500, and has a very low fee of .07%