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"Historically Stable Performers" fund category at FIDO

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  • If you are a Fund Collector like myself, this stuff is gold. I'll be adding more names to my collection.
  • @JD_co : Thanks for the link. Could some Fido fan tell me why Fido has 2005 &2010 retirement funds ? I would have thought the glide -path for these two would have them rolled, glided, into Retirement income by this time.
    Stay Kool, Derf
  • To see the Fidelity starting point page for....."Fund Strategies".

    HERE
  • msf
    edited June 6
    Derf said:

    Could some Fido fan tell me why Fido has 2005 &2010 retirement funds ? I would have thought the glide -path for these two would have them rolled, glided, into Retirement income by this time.

    From Fidelity: Allocating assets among underlying Fidelity funds according to a "neutral" asset allocation strategy that adjusts over time until it reaches an allocation similar to that of the Freedom Income Fund approximately 10 to 19 years after the target year. Ultimately, the fund will merge with the Freedom Income Fund."

    https://fundresearch.fidelity.com/mutual-funds/summary/315792689

    If you're asking why the runway is that long, that may be answered in this T. Rowe Price presentation of "to" vs. "through" glidepaths.

    Slide 16 presents longevity risk - the odds of at least one member of a 65 year old couple living thirty more years or longer ranges from 1/4 to 1/3. A 20/80 portfolio in a period of 2% bond yields isn't going to cut it for 30 years.

    Fidelity's glide path settles into this mix around age 85. See graph here:
    https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/mutual-funds/how-fidelity-freedom-funds-work.pdf

  • @msf : Thanks for the comeback. I'll check out more when time allows.
    A quick google turned this up from Vanguard.
    "The fund targets an allocation of 30% stocks and 70% bonds, according to Vanguard. This is also the allocation that all (Target Retirement Funds) are expected to assume within seven years after their designated retirement dates."

    Stay Kool, Derf
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