Replace List from the Investment Plan

Aug 6th, 2022
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How to Replace List from the Investment Plan

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hi everyone thank you for joining me today Im going to be walking you through how to change your investment allocations in your fidelity 401k first of all everyones 401 k plans are going to be different so this is going to vary between people and their company and what their company has to offer in terms of 401 k plans my 401 K is through fidelity so thats what Ill be walking you through in this video most 401 KS at your company are going to automatically invest you in whats called a target date fund target date funds are essentially a fund of funds its actively managed to select a group of mutual funds that is deemed appropriate for your retirement age target date funds definitely have some advantages especially if you want a really hands-off approach in terms of your 401 K allocations if youre automatically sending investments into your target date fund from your employers paycheck its going to automatically invest in an asset mix that is deemed appropriate for you target da

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Saving money typically implies putting an amount aside for later use without facing any risk of losing its value. Investments, on the other hand, take into account a long-term approach for a specific financial goal. The most foundational difference between savings and investment plans is a risk.
A 401(k) is a retirement savings and investing plan that employers offer. A 401(k) plan gives employees a tax break on money they contribute. Contributions are automatically withdrawn from employee paychecks and invested in funds of the employees choosing (from a list of available offerings).
No matter what the commercials say, there are only three basic categories of investment: ownership, lending, and cash equivalents. They are products that are purchased with the expectation that they will produce income, or profit, or both.
A fundamental macroeconomic accounting identity is that saving equals investment. By definition, saving is income minus spending. Investment refers to physical investment, not financial investment. That saving equals investment follows from the national income equals national product identity.
Consider securities like stocks, bonds and mutual funds, long-term options like 401(k) plans and IRAs, bank savings accounts or CDs, and 529 plans for education savings.
Every financial goal needs its own investment plan. Asset allocation, tax strategy, risk profiles, liquidity requirements are different for each goal. In general goals can be broken down by time, short-, medium- and long-term goals. These goals are short term, they require safe and liquid investments.
A financial plan is sometimes referred to as an investment plan, but in personal finance, a financial plan can focus on other specific areas such as risk management, estates, college, or retirement.
The biggest difference between saving and investing is the level of risk taken. Saving typically results in you earning a lower return but with virtually no risk. In contrast, investing allows you the opportunity to earn a higher return, but you take on the risk of loss in order to do so.

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