Fidelity to Offer Target Date Index Funds

I caught this from Jonathan over at MyMoneyBlog and was extremely happy to see it.

If you’re needing to set up a Solo 401k (a great deal if you’re self-employed because you can contribute the maximum as an employee and then do a profit-share as the employer up to 25% of your W2 wage — not to exceed $49,000 in 2009), Fidelity is a great option.

However…their Target Date retirement funds (a la Vanguard) did not include index funds. I was dismayed, but went ahead with their “equivalent” fund.

Now, based on this report, they’ll be offering Target Date funds that are based on a passive (less expensive) investing strategy using index funds.

For any YNAB+ members out there, this comes at a great time given last night’s presentation.