If you will live for 20 years after retirement and the estimated return for your investment portfolio is 5% annually at that time, how will you decide your retirement plan? You should first think about how many years you will live, how much money you will spend year after retirement, and how your investment style is, such as risk-averse or risk-taking. Then, you set your investment objective and decide your retirement age. Finally, try to form your portfolio by selecting funds from either the “Fidelity 401(k) plan” or “Hines 401(k) plan” and allocating your assets, and evaluating your possible returns and risk. There are no fixed rules for the choice of your portfolio. However, you will not benefit by only investing in one or two funds.

Will your portfolio achieve your target by the age of retirement?

Current Age: 26 years

Retirement Age: 65 years

Live for 20 years

165k spending yearly after retirement  

Portfolio :

FID EQ DIV INCOME
(FEQTX) 08/21/1990  
Stock
Investments Large Cap 5.70% 14.08% 9.98% 11.52%

FID 500 INDEX (FXAIX)

02/17/1988  
Stock
Investments Large Cap -0.32% 16.42% 13.37% 14.38%

 

FID BLUE CHIP VALUE
(FBCVX) 06/17/2003  
Stock
Investments Large Cap 6.72% 11.21% 8.03% 11.17%

 

FID DIVIDEND GR
(FDGFX) 04/27/1993  
Stock
Investments Large Cap 0.00% 12.41% 9.82% 11.80%

Fees:

FID EQ DIV INCOME (FEQTX) 08/21/1990	Stock Investments	Large Cap	0.58%
FID 500 INDEX (FXAIX) 02/17/1988	Stock Investments	Large Cap	0.015%
FID BLUE CHIP VALUE (FBCVX) 06/17/2003	Stock Investments	Large Cap	0.58%
FID DIVIDEND GR (FDGFX) 04/27/1993	Stock Investments	Large Cap	0.49%