Fidelity Target Date Funds: An Ideal Choice for New Investors!

by | May 21, 2023 | Fidelity IRA | 22 comments




FIDELITY TARGET DATE FUNDS // Learn how to invest in Fidelity target-date funds, hands-down the EASIEST, NO-BRAINER way for beginners to start investing in the stock market! You can get started literally right after watching this video – Fidelity target-date funds are that simple to understand and buy.

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***BOOKS I RECOMMEND 📚***

I Will Teach You to Be Rich (hilarious how-to book on personal finance for millennials)

The Little Book of Common Sense Investing (Jack Bogle’s classic advice on index funds)

InvestED (step-by-step, millennial-friendly advice on how to pick stocks like Warren Buffett)

Unshakeable (this book = courage. blast ALL the fears & misconceptions you have about investing)

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Rich Dad Poor Dad (#1 selling personal finance book of all time… need I say more?)

Think and Grow Rich (the ultimate book on money mindset and wealth consciousness)

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YNAB (I literally can’t live without this budgeting app, so obsessed)

Wise (like Venmo but for international currencies – I use this app a LOT for my life in Mexico)

High-Yield Savings Accounts (don’t settle for 0% when you can get 3%+ on your savings)

Ledger Nano S (crypto storage hardware wallet, because “Not Your Keys, Not Your Crypto”!):

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This content is for education and entertainment purposes only. Rose does not provide tax or investment advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal.

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If you are a beginner in the world of investing, choosing the right type of mutual fund can be a daunting task. However, Fidelity Target Date Funds may be a perfect choice for you. Target date funds are designed specifically for investors who want to save for a particular goal, such as retirement, college, or a major purchase. Here are some reasons why Fidelity target date funds are perfect for beginners.

Diversification

One of the biggest benefits of target date funds is diversification. Fidelity target date funds invest in a mix of assets such as stocks, bonds, and other types of investments. This helps to reduce risk and provide consistent returns over a long period of time. The allocation of assets in the fund is managed by professional fund managers who regularly assess market conditions and adjust the fund’s holdings accordingly.

Ease of Use

Fidelity target date funds are incredibly easy to use. Investors simply need to select the fund that best aligns with their retirement or other investment goals. The fund does the rest, automatically adjusting the asset allocation as the target date approaches. This means that investors do not need to constantly monitor the fund or make changes to their investments.

Low Cost

Fidelity target date funds are also low cost, making them an attractive option for beginners. Compared to actively managed funds, Fidelity target date funds typically have lower expense ratios and other fees, which can save investors money over time. This means that more of an investor’s money is going toward their investment instead of fees.

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Performance

Fidelity target date funds have consistently performed well over the long term. By investing across a diversified range of assets, the fund is able to provide a stable rate of return that is often higher than other types of mutual funds. According to Morningstar, Fidelity’s 2030 target date fund has a five-year annualized return of 8.56%, which is higher than the industry average.

Conclusion

Fidelity Target Date Funds are a great investment option for beginners who are looking to save for a particular goal, such as retirement. With their diversification, ease of use, low cost, and consistent performance, Fidelity target date funds are a great way for beginners to start investing and grow their wealth over time.

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22 Comments

  1. Mark Keith

    She doesn't ask for comp. That should tell you that she's good

  2. Jen

    Hi I’m 50 yo. I have trowe 403. Can I continue targetfund . Planning to retire 65. With the unstable market now what do u recommend

  3. Billy in 4C

    Rose, is this a “set it and forget” kinda investing? Noob here starting to learn the language.

  4. Paul Dodson

    Thanks for the video and the advice!

  5. Ivy Nichols

    I'll be 65 in July, I just started listening to your channel the other day. I am totally lost I have never had investments before I only have $45,000 in savings earning nothing and I work full-time and only make 70 grand a year. I had to start my life over at 50 and have been trying to figure out how I'm going to make it. I guess the best bet for me is to invest some money in a Target fund I'm thinking maybe 2028. Any suggestions? Would feel like I'm 100 years behind on this. Life throws you a curve sometimes.

  6. Steve

    Today the 2025 fund exp ratio is .62% isn't that very very high?

  7. BIOMEKANIKAL DETAILING SUPPLIES

    So if you select a target dated fund .. can you keep adding money to this .? Let's say i invest 10,000.00 and next year I save 5,000 and I want to add this to it .. can this be done ?

  8. Rob T

    My target date is 2055, I manage my portfolio right now but put 10% in that fund. I plan to slowly increase each year in that 2055 fund but will let my growth funds compound until I retire.

  9. AmirTv

    fidelity doesn't have a target date fund for 2087 yet (born in 2002)…or I just cant find it

  10. tr3slech3s

    Plan on retiring around 52. Currently 28. My plan was out of $6K a month after taxes to invest $4K of it every month.

    1. $2K into VOO index fund
    2. $1K into QQQ index fund
    3. $500 into SCHD fund (Schwab etf)
    4. $500 into American Tower trust (real estate/digital company)

    Any thoughts on this would be appreciated.

  11. Carmen Lauren

    I saw Vanguard target fund of 0.08% which is actually lower than Fidelity’s. Am I wrong or did they change it after the video was uploaded?

  12. Thảo Nhi

    Can I buy a target retirement fund 2045 even I was born in the 90s?

  13. Angel

    Thanks so much Rose, I find all of your videos very helpful in understanding these topics, which are overwhelming at times, but you break things down incredibly. ❤

  14. ND inthecity

    Hi Rose, I am setting up my 403b and Fidelity index funds are available to me. Wondering if Target funds and other stocks/bonds should be part of my portfolio or Target funds alone? Thanks for clarifying.

  15. Tree

    Thank you so much, Rose. The target date funds really look attractive, but when I check out the Fidelity target date funds, the expense ratio is much higher, like0.75%. Does this make buying mutual funds myself a better choice?

  16. Redon Gega

    Awesome video, thank you!

  17. J Wells T.V.

    Great videos….love u and the info you are providing…my Fidelity target date is 2038

  18. Peacock Lady

    i dont think the link works anymore?

  19. Kyle L

    Any thoughts on the M1 Finance target date funds?

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