Tuesday, February 23, 2010

Made my 2009 SEP IPA retirement contribution to Fidelity Freedom Fund 2025 (FFTWX)

Being self-employed, I set up a SEP IRA retirement account last year. My accountant is finishing up my taxes and finally gave me "the number" for my maximum SEP IRA contribution for tax year 2009. I transferred the money yesterday from my Fidelity core brokerage account and this morning placed the order to use the fresh cash to buy more of the Fidelity Freedom Fund 2025 (FFTWX) target date fund.

I am not entirely thrilled with this fund (expenses, performance, overhead, allocation, etc.), but it does meet my primary objective of being an investment that I can "fire and forget" and "leave on autopilot". It will incrementally (and automatically) shift the asset allocation from stocks to bonds and cash as I progress towards retirement age.

For now, that works fine for me. My retirement portfolio is still quite modest in size, so it simply doesn't warrant a major investment of my time to manage it at the present time. Maybe five or ten years from now (assuming I continue to get work) it will finally be a large enough "nestegg" to be worth me managing the money and asset allocation myself.

I also put money into my ROTH IRA account, also in the Fidelity Freedom Fund 2025 (FFTWX) target date fund.

I am presently 55 (almost 56) and expecting that I will need to work until I am 70 to have even a minimal "nestegg" to live on as a supplement to my Social Security income. I have a spreadsheet that tells me that I can retire in... 5,176 days (14.18082 years.) That would be in the year 2024.

-- Jack Krupansky


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