Asset Allocation @ Fidelity - Rough notes

Fidelity NetBenefits®

http://netbenefits.com/verizon

Also, download the NetBenefits® App in your Smartphones

For help with your 401k Plan questions and service requests, call our Verizon 401(k) Plan Savings Service Center at:

1-888-457-9333 from 8:30am to Midnight ET

For assistance with retirement planning, investment support and guidance

Reach out to one of our Fidelity Financial Wellness Coaches at:

1-800-603-4015 M-F 8:30 am-9:00 PM ET

Or you may also book an 1-on-1 appointment online at:

http://go.fidelity.com/appointment

from Jesus Molina to All Attendees:

Verizon- “Finding the Right Mix & Asset Allocation”- On Demand Workshop:

https://www.brainshark.com/fidelityemg/Verizon_FindtheRightMix

https://netbenefits.fidelity.com/workshopregistration

Agenda :

Finding the right mix

Volatility - emotional decisions - pitfall

You have to be confident that you’re in right place even during volatility

Self directed, 

Planning and guidance consultants use the tools in net benefits

Strategy

1. Short term investments / cash - low risk , preserve principle - money market fund / mm portfolio / treasury bills, gold
2. Fixed income - bonds / IoUs - fixed rate of return - interest. Bond is a loan. Interest rate goes low, bonds are in a good place. 3-5% - fluctuates . Different types of maturity
3. Stocks - large companies - 10% , small companies - 11 - 12 % - Verizon does not have many options for stocks , so they give you opps to invest in funds - large / rest / international. Growth / high risk / high fluctuation - In Mar 2020, stock market troughed . S&P - went down from 3300 to 2200 in 4-5 weeks. You need to have a time horizon

Fidelity- “Guide to Diversification” Viewpoint:

https://www.fidelity.com/viewpoints/investing-ideas/guide-to-diversification

Fidelity- Market Volatility Resource Page- “Strategies for Uncertain Times”: 

https://www.fidelity.com/viewpoints/market-and-economic-insights/uncertain-times

The above link is updated every day and there are strategists there

“Navigating Market Volatility” On-demand Workshop:

This workshop will review what is happening in the markets and why - and help answer questions such as "Should I move my investments to cash right now?" and "If I don't yet have a plan for situations like this, where do I start?" 

https://www.brainshark.com/fidelityemg/NMV03242020

Fidelity- Researching Funds with Mutual Fund Library:

https://www.fidelity.com/learning-center/media/researching-funds-mutual-fund-library

Why does Verizon give only 26 plans? Each company chooses what it thinks is right for it’s employee best interest. 26 professionally managed across all asset classes. Overseen by Verizon’s company.

How has the market has done in last few years 

Fidelity - research - S&P , nasdaq - benchmarks.

A lot of variation - correction - hospitality , energy, travel, leisure

Not every company went out of business - some actually thrived

Historically , we know as long as economy is resilient and there is new innovation , things will eventually get better

We have had 28 corrections in 50 years. ‘Bull market rally’ 

“Stock market is a device that transfers money from the impatient to the patient.” - Warren Buffet

See how stocks, bonds, short term grows but also note inflation

Verizon LTI - equity awards - Stock together 

Verizon “Stock Together” Program:

 https://www.verizon.com/about/careers/stock-together

Focusing on Verizon 401K 

2 main principles 

Even Warren - impossible and futile to time a correction. You need to be comfortable with that kind of risk. 

Diversify

Rebalancing is key to maintaining risk levels over time.

Conservative , growth , aggressive

Target date fund - 2045 / they already factor in risk based on year.

Inside of these funds, there are 1000s of stocks, funds

Individual funds

• Index funds, small cap, international , actively managed funds outside of benchmark

Cryptocurrency - outside of 401k you can work with another platform or in brokerage you can track

Roth - paying tax upfront . 

View this workshop to learn if Roth contributions may be right for you. 

http://www.brainshark.com/fidelityemg/roth

Fidelity- “9 Compelling reasons to consider a Roth”:

https://www.fidelity.com/learning-center/personal-finance/retirement/nine-reasons-roth

Roth modeller calculator

Fidelity net benefit - asset class / sources 

Go to investments - here you will see all your Verizon plan options - click the fund - you will see the morning star profile - return / fees 

Research your funds here

Investment guide - Planning and guidance center

Investment strategy review - retirement as a case - when retire , when live

Get help? / manage your investments?

Model portfolio

Asset allocation suggestions

Risk tolerance - model portfolio - you can rebalance the portfolio

Exchange multiple funds

One time / quarterly / yearly

Rebalance at least once a year

Fidelity Survey Link:

https://survey.bostonrt.com/p/fidelity/workshop/survey.asp?chan=2&top=12&pres=5302&evid=482115&seg=2&client=891&DoL=1&DT=080520211400&hy=2

from Jesus Molina to All Attendees:

Verizon- “Finding the Right Mix & Asset Allocation”- On Demand Workshop:

https://www.brainshark.com/fidelityemg/Verizon_FindtheRightMix

Withdraw funds from 401K without loan? - under 59.5, can’t

Once you leave Verizon, you can roll it over, distributions, tax consequences.

Wh to check aggressive - summary

Why rate of return include contributions? Statement section.

Personal rate of return - based on when it’s going 

For assistance with retirement planning, investment support and guidance

Reach out to one of our Fidelity Financial Wellness Coaches at:

1-800-603-4015 M-F 8:30 am-9:00 PM ET

Or you may also book an 1-on-1 appointment online at:

http://go.fidelity.com/appointment

Expense ratio

Index funds - low fee

Active managed fund - high fee

Calculator - 401K contribution calculator

Does not tell you whether you are saving enough and whether it will stay 

Conservative estimate - no more than 8% per year

Fidelity “Contribution Calculator”:

https://nb.fidelity.com/public/nb/401k/tools/calculators/contributioncalculator

from Jesus Molina to All Attendees:

Fidelity NetBenefits®

http://netbenefits.com/verizon

Also, download the NetBenefits® App in your Smartphones

rollover on 401K - double tax?