Using a fidelity 401k to manage your retirement savings is a great way to ensure that you can continue investing as you get older. Not only will you be able to invest in stocks, but you will also be able to diversify your investments and increase your returns. You will also have peace of mind knowing you can receive personalized planning and advice when needed.
Rebalancing
Whether you are rebalancing your fidelity 401k or not, you should make sure that you are following a proper investment strategy. This can involve several steps, but the overall goal is to ensure that your portfolio aligns with your goals.
The key to making sound investment choices is understanding your risk tolerance. In addition, you will want to diversify your investments among asset classes such as stocks, bonds, real estate, and precious metals. Finally, you will also want to be aware of the tax implications of your choices.
Many retirement plans offer financial advice and access to model portfolios. Talking with your benefits coordinator about these options is a good idea.
A good rebalancing strategy requires that you rebalance your portfolio regularly, and you can rebalance your fidelity 401k manually or by selling assets to bring your account back in line. This is an excellent time to do this since the stock market is up 25% year-to-date.
Personalized planning & advice
Personalized Planning & Advice for Fidelity 401k customers with at least $25,000 in investable assets offers unlimited financial coaching from a team of advisors. It also includes a customized financial roadmap to help you reach your goals. Its 0.50% annual fee is slightly higher than some competitors, but it’s still affordable.
In addition to offering a free online plan, Fidelity offers various other financial services. For example, it provides a free FDIC-insured cash management account. You can also open an investment account to trade stocks, bonds, and ETFs. You can also get personal financial coaching through Fidelity’s online and mobile platforms.
Fidelity also has a hybrid financial advisor. Its all-in cost is about 0.37%, a little higher than options at Vanguard or Schwab, but it’s less than the average cost for a financial advisor.
Although Fidelity’s Robo-advisor doesn’t provide tax-loss harvesting, it has a solid track record of producing good returns in the short term. It slants towards large-cap U.S. companies, and you can choose between an aggressive or moderate approach to investing. You’ll also be able to view portfolio recommendations without signing up.
Cryptoassets
Earlier this year, Fidelity Investments unveiled two new crypto-related ETFs. The company also announced a 401(k) plan that lets workers invest in crypto. In addition, the company will allow employees to use their savings to purchase bitcoin.
A Fidelity spokesperson said the 401 (k) plan would give millions of people a chance to invest in crypto. The investment will be offered through a plan account called the Digital Assets Account. It will be held on the custody platform of the Fidelity Digital Assets division.
The Department of Labor’s Employee Benefits Security Administration has been closely monitoring plans offering cryptocurrencies. In addition, it has urged employers to consider their employees’ best interests.
The DOL said there is no clear way to measure the risk-return profile of crypto assets, so investors should be cautious. In addition, the guidance states that a plan fiduciary must protect the retirement savings of its participants. However, it also warns that the market for cryptocurrencies is not yet mature, and the value of these assets can fluctuate.
Rollover to an IRA
IRAs allow you to invest in various types of investments, which can be a great way to prepare for retirement. However, you should be aware that investing involves some risk.
One way to get your money into an IRA is to roll over it over. You can either do an indirect rollover, where you send your old account funds to your new account, or a direct rollover, where you send your money directly to the new IRA provider.
Indirect rollovers can have some tax complications. For example, you may have to pay current income taxes if you hold the money for longer than 60 days. And you may have to pay a 10% early withdrawal penalty. You will also have to replace your former employer’s withholding on your check.
To roll over your 401k, you must contact your previous employer’s HR department. You can do this over the phone or through the internet. You will have to provide your data, such as your social security number, to verify your identity.
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