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401K plan suggested by Fidelity

By Terry Savage on February 06, 2023 | Investments

Hi Terry, I am 60years old and planning on retiring in 7 years. I have an aggressive portfolio right now but Fidelity is suggesting i change all of my funds past and future to a fidelity’s PuritanK6 fund. Are you familiar with this? i saw there were a lot of companies in the top 10% of the fund are tech stocks that have been hit kind of hard recently. Would you recommend this fund?
Thank you

Terry Says

And WHO “at Fidelity” made this suggestion? Were you hooked up with an “advisor” –and if so, what was the fee? Although the fund itself is low cost, you’re correct that it is a volatile fund. It’s a large-cap growth fund — and growth has meant technology in recent years. But you know how volatile that category has been!

This fund has outperformed its category but not without some wild swings. It has existed only about 3 years, and has less than $1b in assets.

Maybe think about something more conservative such as Fidelity’s high dividend fund? Or move some money to Vanguard and their highly-rated Equity/Income fund??



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