IS A MAJORITY OF RETIREMENT FUNDS INVESTED IN FIDELITY TARGET DATE FUNDS A SAFE WAY TO PROTECT MY PORTFOLIO. IS THIS DIVERSIFIED ENOUGH?
Terry Says: It’s a good start — but it’s not enough! Here’s a link to a column I recently wrote, that will explain the issue more fully. Basically, a real discussion is more about your need for income in retirement, your risk tolerance, your expected longevity — and a withdrawal strategy. You don’t give your age, or your planned retirement age. But Fidelity offers advice on not only getting TO retirement, but through retirement, making withdrawals that will make your money last as long as you do. So a Target Retirement Fund is a good start — but if you’re younger it will push you into more equity exposure (which could be a bit daunting whenever the next correction comes) and it doesn’t really give you a plan if you’re closer to retirement.