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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: SilentZ who wrote (214472)	1/8/2005 9:52:11 PM
From: combjelly	Respond to of 1573928

"And if those funds decrease in value or are at a low point during that given year?" Or the market goes through a protracted bear market. Bear markets tend to last about 20 years. If one starts about the same time as one starts to work, that can have a major impact on future returns. And there is no reason why a bear market couldn't last longer...

To: SilentZ who wrote (214472)	1/8/2005 9:55:08 PM
From: RetiredNow	Read Replies (1) \| Respond to of 1573928

Check out the Fidelity Freedom funds and see what they are all about. Then we can talk more about it. Basically, the way they work is they start out aggressive with more invested in stocks. Then as it approaches the retirement year you have chosen, it automatically reallocates to favor bonds and cash. By the time you have reach retirement, you have the optimal allocation from which to pull money out, which means large portions of cash, bonds, and only a little stocks. Fidelity has them in 5 year increments. So if you are retiring in 2010, you buy Fidelity 2010. If you are retiring in 2035, then you buy that year's fund. These are the types of investments that I already have available through my employer's 401(k) and I suspect these will be favored in any personal ss account, since they are autopilot and are low risk, horizon-based funds.