Benefits Plans - 457(b) Deferred Compensation Plan: Fidelity Investments
What is Fidelity Investments?
Fidelity Investments was founded in 1946 by Edward C. Johnson II and today is the largest mutual fund company in the world. Fidelity is one of the nation’s top providers of 403(b) retirement savings plans for not-for-profit organizations, including colleges and universities, healthcare institutions, foundations, and charitable organizations. The University of Michigan added Fidelity Investments to its retirement plan in 1989.
What are my investment choices with Fidelity?
Fidelity Investments offers over 100 mutual funds, including domestic and international stock funds, bond funds, money market funds and real estate funds. In addition, numerous Select Portfolio Funds are available that allow you to invest in highly specialized sectors of the U.S. economy.
Two ways to invest with Fidelity Investments
- Freedom Index Class W
The default investment fund designation for Fidelity Investments is automatically a Freedom Index Fund Class W. Your date of birth will be included with your enrollment data that will be sent to Fidelity in order to determine the Freedom Index Fund Class W that is appropriate for you based on your age. Each fund is a diversified portfolio of Fidelity mutual funds, including stocks, bonds, and money market funds targeted to a specific retirement date.
The Fidelity Freedom Index Funds available through the University of Michigan plans are offered as Class W shares. Class W is the share class with the lowest management fees Fidelity offers for the Freedom Funds. The low fees mean that more of your money goes to purchasing investments and you keep a higher percentage of the potential returns generated, which can help you reach your retirement goals faster.
- Fidelity Freedom Index 2010 Fund: Class W
- Fidelity Freedom Index 2015 Fund: Class W
- Fidelity Freedom Index 2020 Fund: Class W
- Fidelity Freedom Index 2025 Fund: Class W
- Fidelity Freedom Index 2030 Fund: Class W
- Fidelity Freedom Index 2035 Fund: Class W
- Fidelity Freedom Index 2040 Fund: Class W
- Fidelity Freedom Index 2045 Fund: Class W
- Fidelity Freedom Index 2050 Fund: Class W
- Create a Custom Portfolio
You can create your own custom-made portfolio by allocating your contributions among the various Fidelity mutual funds. Fidelity will mail you a welcome packet after you have been enrolled with information on the many Fidelity mutual funds you may choose from if you do not want a Freedom Fund.
To find out more about your fund choices with Fidelity Investments:
- Visit: www.netbenefits.com/uofm
- Call Fidelity at 1-800-343-0860
- Meet with an investment professional at the Fidelity Ann Arbor office by calling for an appointment at 1-800-642-7131