I know this is off topic but I’m just curious if anyone is using Fidelity’s Financial engine to manage their 401K and if so what is your opinion. Thanks
16 replies (most recent on top)
I use it, and they have increased my portfolio substantially- awesome service.
Tools like FE work in normal market environments, but when the market is going up 1000 one day and down 1000 the next, they really are of limited value at protecting your gains... It's just an algorithm based on PAST RESULTS, this is the biggest issue with any of these automated investing tools they all base their suggestions off of the past, and I hate to break it to you the past is no guarantee of the volatile future. Especially if you plan on retiring in the next 10-15 years.. or less.. Bottom line stay on top of your investments, don't panic, but also don't become so complacent and think stuff will always bounce back , it doesn't the run up from 2008 to today, was all because of funny money QE and money printing by the Fed, they shot there load, with interest rates going to near zero that's no longer a driver of economic growth, invest accordingly
I use it. When the market tanked over the last week my 401k remained at pretty much the same level. In 2001 when markets ranked I list 15k. A small fee is worth it.
LOL, I love it when folks say "fees" are too high. I Ama financial professional on the side, when someone say "product a fees are too high" I ask them 1) too high as compared to what? 2) if product a helps you reach your goals, wouldn't you pay for that?
Notice VZ while not having the lowest prices continue to grow? why? reliability etc. People are willing to pay more for something if it does fro them what they want it to do.
it seems like their fees are pretty high so that they can tell you to move more money to bonds as you get older.
FE’s 1st advice, dump t stocks and diversify.
Look it really depends how comfortable and willing you are to manage your own 401k. People range from very capable to scared to death. They are cheaper than what's out there, but you are still paying them something. Do the math. It doesn't really add up to much for most folks.
Personally I am on a trial with them for about a year or so to see how they do against me with my old 401k (also with Fidelity) and will cut them at some point if I see fit. I am leaning this way, but I am perfectly comfortable making my own investment decisions.
In a nutshell, if you are comfortable investing, they don't offer much. If unsure, try them out as you can cut them at any time if you learn enough to do it on your own.
Financial Engines are the worst.....Have been planning to go to Fidelity near-term and get rid of them asap. Friends managing their own 401K at T are doing much better than I who have used them for the past few years.....Also they are charging more than they said....I just looked on the internet this weekend for feedback and reviews from external folks using them and reviews were not good. On my to do list...
They don't insure anything. And if you are taking financial advice from a maroon on the radio, what does that say about you?
Fidelity's management could be an improvement, but only if you compare it to that category of behavior.
Yes, they have doubled my money in the last two years !
I use them and I love it. Best financial decision I ever made. In 2008/2009 I listed to a mo–n on the radio and moved my 401k to cash locking in my loses. I lost out on the run up between 2009 and 2015. I turned it over to them and never regretted it. The rich pay people to take care of their money why shouldn’t you?dont lived to id–ts who talk about making others rich. If you manage your money yourself and you lost 30% how would you feel if you would have lost less? Consider it insurance for your retirement.
You can use their services for free. Input all of your pertinent goals, objectives, risk tolerance and time horizon. They will provide you with a portfolio recommendation that you can implement for free. They even provide a link that will take you to you 401k plan to rebalance you current holding and to make adjustments to your future investment elections. No need to pay .35% to have then do this simple steps on your behalf. In summary, take the free advice and execute the plan yourself.
If you enjoy forking your hard earned money over to the Johnson family, it's just swell.
Billionaires can never have enough, you know.
They reviewed my 401k and told me it's exactly how they would have set it up, study up on asset allocation and rebalancing and save on the expenses.
I have and so far I’ve been pleased. Of course this is coming from the standpoint of someone who had really s—ed at managing my own account.
Yes!