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Best choices for Fidelity bond fund options

Posted: Tue Jun 24, 2014 11:24 am
by dergon
Hello there-

I am beginning to look into making changes to my asset allocation (have until now been 100% equities) and want to choose some bond funds.

I have Fidelity 403b, 457b and 401a holding $300k, $200k, and $120k respectively. This represents about 21% of my portfolio, the rest being in Schwab brokerage accounts.


I'm currently 47 with a guess-timate time horizon of 13 years (age 60) before I start making withdrawal of any $$.


I'd like to get your opinion opinions on the best choices Fidelity offers in bond funds to beginning getting my asset allocation set.

Thanks for your help in advance.



(( will happily edit the above if more info needed))

Re: Best choices for Fidelity bond fund options

Posted: Tue Jun 24, 2014 11:26 am
by livesoft
Use bond index funds. Search for Fidelity Spartan and Spartan Advantage on the Fidelity web site. Here is one ticker: FSITX, there are others.

It is possible that you do not have access to all Fidelity index funds in your 403(b), 401(a), and 457 plans.

Re: Best choices for Fidelity bond fund options

Posted: Tue Jun 24, 2014 11:28 am
by dergon
Absolutely.

I should have specified that I want to go Spartan to keep expense down. I am looking for best options within the Spartan group

Re: Best choices for Fidelity bond fund options

Posted: Tue Jun 24, 2014 11:30 am
by Johm221122
Do you have any stable value or guaranteed funds available? Have you considered Spartan U.S. bond index ?

John

Re: Best choices for Fidelity bond fund options

Posted: Tue Jun 24, 2014 11:32 am
by livesoft
dergon wrote:Absolutely.

I should have specified that I want to go Spartan to keep expense down. I am looking for best options within the Spartan group
They are all best options depending on the risk level and duration that you desire. Do you want Treasuries? Corporates? A mix? Total US bond? Short-term? Intermediate-term? Pick what you want and either the Spartan fund exists or it doesn't. If it doesn't exist, you will have to make a different choice.

If in doubt, pick FSITX.

Re: Best choices for Fidelity bond fund options

Posted: Tue Jun 24, 2014 11:38 am
by dergon
Johm221122 wrote:Do you have any stable value or guaranteed funds available?

John
The 401a and 403b can be self directed into any Fidelity offering. The list on the 457b is a bit narrower with the only bond option being PIMCO Total Return Fund Institutional Clas (PTTRX) and then all of the target date funds which I presume have a heavy mix of bonds in the near -date ones --- but I don't know anything about them.

Re: Best choices for Fidelity bond fund options

Posted: Tue Jun 24, 2014 11:47 am
by Johm221122
dergon wrote:
Johm221122 wrote:Do you have any stable value or guaranteed funds available?

John
The 401a and 403b can be self directed into any Fidelity offering. The list on the 457b is a bit narrower with the only bond option being PIMCO Total Return Fund Institutional Clas (PTTRX) and then all of the target date funds which I presume have a heavy mix of bonds in the near -date ones --- but I don't know anything about them.
Stick to the index funds, sometimes people have access to extremely attractive fixed income products in retirement plans

John