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Author: capgains00 One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76237  
Subject: Fidelity's "Income Replacement" Funds Date: 10/10/2007 6:47 PM
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Any thoughts on Fidelity's new so called Income Replacement mutual funds? I've been reading up and trying to get my head around how they work. The notion of the funds periodically liquidating themselves to make payouts to the shareholders is kind of odd. Seems like essentially a convenience angle here.
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Author: 2old4bs Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 59650 of 76237
Subject: Re: Fidelity's "Income Replacement" Fu Date: 10/13/2007 12:27 PM
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If by 'convenience angle' you mean that Fidelity is doing the work that you could do on your own, yes, I believe that's what this is all about. Based on what I heard in the video, these funds will consist of a basket of other Fidelity funds, so you're paying expenses for the underlying funds, as well as the fund/s you're in. And the balance of the underlying funds becomes more conservative over time.

They seem to have some of aspects of a variable rate annuity, without the annuity, but note that there are no guarantees.

I for one don't see any value in having Fidelity do this for me. I'd rather control my own destiny. But I do understand that some folks are willing to pay extra to have the details handled by someone else--I'm more hands-on than that.

2old

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