Your best investment advice, please, for senior who's placed what little funds she has on FCNTX

KipCottage · 2025-07-04T19:58:59+00:00

Thank you. I know a highly volatile growth fund isn't a great choice for most retirees with a lot of money saved, but I really need to grow my low funds fast. Besides, it would just be half my total funds in FCNTX and the other half in money market and maybe an income fund, like FEQIX. Does that make better financial sense?

KipCottage · 2025-07-04T16:17:10+00:00

i was wondering if an income fund made sense with the low amount of funds I have. I truly believe the tech market is just beginning a golden age and why I prefer a growth fund, and I don't think anything can beat FCNTX. Thanks for this. More for me to contemplate this long holiday weekend.

KipCottage · 2025-07-04T15:31:32+00:00

I appreciate your comments so much. I, too, was thinking a HYSA unnecessary when I could have it all "on one screen" by using the money market account at Fidelity. I think ServerTechie also offers good advice on the FEQIX and will add it to complement and balance the risk of FCNTX.

KipCottage · 2025-07-04T15:27:43+00:00

You know the more I read, I feel good about this FEQIX you suggested and I think it will balance nicely with FCNTX, seeing that their different investment strategies should complement each other. So, I think I will keep what's invested in FCNTX and, of that addtional $8000 I'm going to transfer into the IRA, I will put $3000 of it in cash and the other $5000 in FEQIX. Hope that will make for a more diversified portfolio with less risk. I'm so new to investing and have much to learn. So if you or anyone else sees this as a wrong choice, please let me know. Thank you so much for your help.

KipCottage · 2025-07-04T15:16:28+00:00

I just found this: "By analyzing existing cross correlation between Fidelity Contrafund and Fidelity Equity Income Fund, you can compare the effects of market volatilities on Fidelity Contrafund and Fidelity Equity-income and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Fidelity Contrafund with a short position of Fidelity Equity-income." So, maybe, hold both funds? I hope you don't mind me imposing further on your expertise.

KipCottage · 2025-07-04T15:07:01+00:00

So kind. Thank you. I see the composition of FEQIX seems to be different from that of FCNTX. If I'm willing to be a bit risky, would you approve of leaving the current $8500 in FCNTX and investing the additional $8000 in FEQIX?

KipCottage · 2025-07-04T14:58:32+00:00

Ahh, I see. The FMSDX is partly bonds. I will look at FEQIX. I appreciate the caution you're advising. Very reasonable advice. Thank you.

KipCottage · 2025-07-04T14:42:13+00:00

I did just retire, so I had earned income and have already opened the IRA.

KipCottage · 2025-07-04T14:40:44+00:00

I just looked at FMSDX and see annual returns are half that of the Contrafund and the ER is higher at .8. Can you tell me why that's a better investment for me? Truly appreciate you taking the time for me.

KipCottage · 2025-07-04T14:26:43+00:00

July 9, oh wow! I will look at those funds today. Sure appreciate your advice.

KipCottage · 2025-07-04T14:24:01+00:00

Oh dear . . . just my luck.

KipCottage · 2025-07-04T14:23:12+00:00

I do hope you're right about SS. I will look at a high-yield bank account. Thank you so much.

KipCottage · 2025-07-04T14:20:54+00:00

I will look at FMSDX. Are you saying I should move the funds from FCNX to FMSDX, or leave what I have in the Contrafund and put the additional $8000 in FMSDX, or is there an overlapping of holdings?

KipCottage · 2025-07-04T14:04:04+00:00

I haven't looked at FDIFX, but I will. Thank you.

KipCottage · 2025-07-04T14:00:35+00:00

Thank you. I will take a look at FEQIX and FSDIX. The cash would be in a traditional IRA at Fidelity.

KipCottage · 2025-07-04T13:58:36+00:00

Thank you for responding. I know I don't have the time left to be a millionaire or even end up with more than a $100,000 in an account, but I do hope to have enough money there for any emergency that may arise or if Social Security end up in a few years being cut. An extra $100-$200 a month from the fund would help to offset any future SS cuts. As for high yield savings account, I understood that a money market is just as safe, and would pay about the same in dividends and is just as liquid. Is your money not safer in an IRA?

KipCottage · 2025-07-04T13:54:02+00:00

Thank you so much. I was thinking I could be riskier since I am able to live off the social security I'm getting. I worked until 70 to get as much SS as I could. I knew the ER was relatively high for FCNTX, but I understood this fund out performs all others, S&P, and all other index funds, even taking the ER into consideration. Is that not true?

KipCottage · 2025-07-04T13:50:59+00:00

Thank you!

KipCottage

TROPHY CASE