Switching Investment Strategies: A Guide For Fidelity Users

If you're looking to change your investment plan with Fidelity, there are a few different options available to you. You can change your investment elections, which can be done daily, by logging on to NetBenefits at www.401k.com or calling Fidelity. You can also modify your 403(b) contribution by visiting www.netbenefits.com/atwork and following the instructions. Additionally, you can transfer all or part of an account to Fidelity from another financial firm without needing to sell your holdings. This can be done online and typically takes 3-5 business days to complete.

Changing 529 plan investment instructions

An asset allocation is how and where the money you contribute to your plan in the future is allocated and invested (future asset allocations), and how and where your plan's existing assets are allocated and invested (current asset allocations). As you get closer to paying for college, or if your plan's beneficiary changes, you may want to change your future asset allocations and/or your current asset allocations.

On the 529 Plan Investment Instructions page, you will need to select the account and have the beneficiary's name, Social Security number, and date of birth available.

You can change your current asset allocations twice per calendar year (or upon a change of beneficiary). For example, you can change from a static portfolio to an age-based portfolio.

Your changes for future investment allocations will be in effect the next time you contribute to your 529 college savings plan account.

Your current asset allocation change:

• If requested before 4 p.m. ET, it will receive that day's closing price
• If requested after 4 p.m. ET, it will receive the next business day's closing price
• Applies to your entire portfolio: you can't choose to exchange only part of your portfolio

If you've chosen eDelivery, you'll receive an email confirmation in 1–2 business days. If you don't use eDelivery, you'll receive a statement in the mail within 3–5 business days.

Modifying 403(b) contributions

A 403(b) is a retirement plan for employees in health care, education, and other tax-exempt organisations. It allows you to set aside money for retirement directly from your paycheck, which you can then invest in assets like mutual funds and annuities. 403(b)s also come with tax benefits.

• Log in to your account: Visit www.401k.com to log in to your NetBenefits® account. If you are a first-time user, click "Register Now" and follow the instructions to set up your account.
• Access your account: Call 1-800-835-5095 to speak with a representative or use the automated voice response system, available 24/7. You can also visit www.401k.com to access your account.
• Change your contribution rate: Once you have accessed your account, you can modify your contribution rate by selecting the appropriate menu option. Remember that the contribution limit for 403(b) plans is $22,500 in 2023, $23,000 in 2024, and $23,500 in 2025. If you are age 50 or older, you are eligible for an additional catch-up contribution of $7,500 in each of these years.
• Review and confirm: After making changes to your contribution rate, carefully review the confirmation statement to ensure its accuracy. You are responsible for notifying Fidelity of any corrections.

By following these steps, you can effectively modify your 403(b) contributions to align with your retirement goals and take advantage of the tax benefits offered by these plans.

Transferring assets to Fidelity

Before You Start

Firstly, download a digital statement from your current firm so that you can refer to important account information. You may need to upload a copy of this to complete the transfer process.

Most transfers take 3-5 business days to complete, but some requests may take longer. If your current firm accepts electronic requests, the transfer will take around 5 days to process. Transfer requests that must be mailed may take 2-4 weeks to complete.

How a TOA Works

• You submit your transfer request.
• Fidelity provides your request directly to your firm.
• Your firm processes the request and sends your assets to Fidelity.
• Your assets are deposited into your Fidelity account.

Additional Information

• You may be asked to provide additional documentation as part of the transfer process if you have experienced a major life event, such as marriage, divorce, or the loss of a loved one.
• If your transfer includes assets that must be sold first, or if you have pending activity, your current firm may send those assets once they are settled. In this case, your assets will be transferred to Fidelity in batches, and you may see a balance with your current firm until the transaction is completed.
• While Fidelity does not charge a fee for TOAs, other institutions may.
• Fractional shares of equities cannot be transferred electronically between brokerage firms. You can either sell your fractional shares before the transfer or initiate a full transfer and have the sending firm liquidate and sweep the proceeds of any fractional shares.
• Some assets may be ineligible to transfer in-kind, such as money markets and other proprietary funds. These assets may need to be liquidated before the transfer.
• If you are transferring an employer plan, like a 401(k), to a new employer, you will need to check with them before making any decisions, as not all employers will accept a rollover from a previous employer's plan.

Changing investment elections

As your needs and goals can change over time, the Plan allows you to change your investment elections daily. A change made before the close of the stock market on a business day will generally be effective the following business day.

You can change your investment elections in the following ways:

• Transfer money between investment funds daily
• Change how your future contributions will be invested
• Change or transfer your current investment funds
• Set up a Brokerage Window Account

To make these changes, log on to NetBenefits® at www.401k.com or call Fidelity at 1-800-835-5095. You will receive a confirmation statement of your changes. Be sure to check the statement for accuracy, as you are responsible for notifying Fidelity of any corrections.

To see your account or make changes anytime, call 1-800-835-5095 to speak with a representative or use the automated voice response system, 24 hours a day, 7 days a week. You can also visit NetBenefits® at www.401k.com. First-time visitors can click "Register Now" and follow the instructions to set up their accounts.

The following services are also available to you any time through an automated system by calling 1-800-835-5095. Enter your Social Security number and password, then select the menu option for the service you want. These services are also accessible through NetBenefits® at www.401k.com:

• Account balances (total and by fund) and vested balance
• Outstanding loan balances
• Contribution, disbursement and loan repayment history
• Download forms (online)
• Investment Information
• Investment fund descriptions, prices and performance
• Order or access fund prospectuses (online)
• Access Financial Engines
• Change your password
• Change your contribution rate
• Change investment elections
• Transfers between funds
• Set up the automatic increase feature
• Set up the automatic rebalancing feature
• Select/update your beneficiaries
• Request duplicate or detailed summary statements
• Request trade confirmations

Rebalancing your portfolio

Understanding Rebalancing

Rebalancing involves adjusting your portfolio's asset allocation to maintain your desired level of risk and return. Over time, your portfolio's performance and market movements can cause your initial asset allocation to shift. By rebalancing, you're essentially buying or selling assets to return your portfolio to its intended allocation.

Steps to Rebalance Your Portfolio:

• Log in to Your Account: Visit NetBenefits.com and log in to your Fidelity account. Once logged in, click on your workplace account and select the "Investments" tab to begin the rebalancing process.
• Review Your Current Allocation: Before making any changes, it's essential to understand your current portfolio composition. Utilize the "Positions" tab on Fidelity.com, which displays the "% of Account" for each of your investments. This information will help you calculate the necessary adjustments.
• Calculate the Rebalance: Determine how much you need to buy or sell of each asset to return your portfolio to your desired allocation. You can do this manually, or you can seek guidance from a financial advisor.
• Make the Necessary Trades: Once you've calculated the required adjustments, you'll need to place the trades manually. Remember that buying and selling assets may incur transaction costs, so consider these expenses when rebalancing your portfolio.
• Set Up Recurring Investments (Optional): If you prefer a more hands-off approach, Fidelity offers a Recurring Investments feature. This allows you to automate your trades on a weekly, biweekly, or monthly basis. While it doesn't automatically rebalance your portfolio, it provides a convenient way to regularly adjust your investments.
• Consider Advanced Modeling and Rebalancing Tools: Fidelity provides advanced portfolio construction and management tools, such as household rebalancing, tax-aware capabilities, and asset class modelling. These tools can help support your firm's distinct investment strategies and streamline the rebalancing process.
• Review and Monitor Your Portfolio: Regularly review your portfolio to ensure it remains aligned with your investment goals. Market fluctuations and economic conditions can impact your asset allocation over time. Therefore, periodic rebalancing may be necessary to stay on track.

Remember, rebalancing your portfolio is an essential part of maintaining your investment strategy. By following these steps, you can take a proactive approach to managing your investments and work towards achieving your financial objectives.

Frequently asked questions