Fidelity 2065 Target Date Fund: A Path to Retirement Security

For those saving for retirement, target date funds offer a convenient way to diversify their investments and potentially grow their savings over time. One popular target date fund is the Fidelity 2065 Target Date Fund (Fidelity Advisor Freedom Index 2065 Target Date Fund).

What is a Target Date Fund?

Target date funds are mutual funds that automatically adjust their asset allocation, or the mix of investments within the fund, as they approach a certain retirement date. The asset allocation is designed to become more conservative as the target date nears, reducing the potential for losses while still offering the potential for growth.

The Fidelity 2065 Target Date Fund

The Fidelity 2065 Target Date Fund invests in a mix of stocks, bonds, and other assets, with an emphasis on stocks. The fund has a high investment allocation to international stocks, which makes it more suitable for investors who are willing to take some degree of risk. As the fund approaches the target date of 2065, it will gradually reduce its exposure to stocks and increase its allocation to bonds.

Fees and Expenses

The Fidelity 2065 Target Date Fund has an expense ratio of 0.5%, which is average for target date funds. The expense ratio is a percentage of the fund's assets that is used to cover the costs of operating the fund.

What are the benefits of investing in the Fidelity 2065 Target Date Fund?

• Automatic asset allocation: The fund automatically adjusts its asset allocation as the target date nears, reducing the need for investors to make frequent adjustments.
• Diversification: Target date funds are diversified across multiple asset classes, which can reduce the overall risk of the investment.
• Professional management: The fund is managed by a team of experienced investment professionals.
• Low fees: The expense ratio of the fund is competitive with other target date funds.

What are the risks of investing in the Fidelity 2065 Target Date Fund?

• Stock market risk: The fund invests in a significant amount of stocks, which are subject to market volatility. The value of the fund can fluctuate significantly, especially in the short term.
• Bond market risk: The fund invests in some bonds, which are subject to interest rate risk. The value of the fund can decline if interest rates rise.
• Inflation risk: The fund is not immune to the effects of inflation, which can erode the value of savings over time.

Is the Fidelity 2065 Target Date Fund right for me?

The Fidelity 2065 Target Date Fund is suitable for investors who are saving for retirement and who have a target retirement date of around 2065. The fund is appropriate for investors who are comfortable with some degree of risk and who are not planning to access their retirement savings before the target date.

How to Invest in the Fidelity 2065 Target Date Fund

You can invest in the Fidelity 2065 Target Date Fund through a variety of channels, including:

• Fidelity's website
• Fidelity's mobile app
• A financial advisor

Tips for Investing in the Fidelity 2065 Target Date Fund

• Start investing early: The sooner you start investing, the more time your savings will have to grow.
• Make regular contributions: Regular contributions can help you build your nest egg faster.
• Rebalance your portfolio regularly: As your investment goals change, you should rebalance your portfolio to ensure that it remains aligned with your risk tolerance and time horizon.
• Seek professional advice: A financial advisor can help you develop a personalized retirement plan and investment strategy.

Common Mistakes to Avoid When Investing in the Fidelity 2065 Target Date Fund

• Investing too much too soon: If you are not comfortable with the risk associated with the fund, you should reduce your investment amount or consider a more conservative investment option.
• Investing too little too late: If you wait until you are close to retirement to start investing, you may not have enough time to build a substantial nest egg.
• Not rebalancing your portfolio: As your investment goals change, you should rebalance your portfolio regularly to ensure that it remains aligned with your risk tolerance and time horizon.
• Accessing your retirement savings before the target date: If you access your retirement savings before the target date, you may have to pay taxes and penalties.

Conclusion

The Fidelity 2065 Target Date Fund is a good option for investors who are saving for retirement and who have a target retirement date of around 2065. The fund is a diversified investment that can potentially help investors grow their savings over time. However, it is important to understand the risks associated with investing in the fund and to make sure that it is right for your individual circumstances.