4. Rebalance Your Portfolio 1-800-544-5704. - Fidelity Investments · 2018-07-21 · 4. Rebalance...

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Dear <Name>,

Congratulations! You’ve been using your Fidelity Income Management Account® (IMA) for some time now, and we hope you’ve benefi ted from the convenience of its many features.

This Annual Review summarizes the activities you conducted through the IMA last year. To help keep your fi nances on track, use this information to assess the past 12 months’ activity and budget your upcoming year in retirement accordingly. The four steps to preparing for the year ahead are:

1. Review Last Year—How did your asset withdrawal and total assets compare with your plan? To help answer this question, we present the past year’s actual fi nances in comparison with your plan.

2. Update Your Plan—Assess whether to make any changes to your Plan of Record so that your IMA will track these new values over the next year. A checklist is provided to help evaluate whether your plan requires updates.

3. Replenish Your IMA—Check your IMA spending balance. Calculate the spending and emergency funds you require for the next 12 months. A summary of actual withdrawals is included for reference.

4. Rebalance Your Portfolio—Check your asset allocation and, if necessary, consider adjusting invest-ments to attain the selected target asset mix. A comparison of your asset allocation with your target asset mix is provided in this report.

Your Fidelity Representative can answer any questions about your IMA annual review, and help you with any updates to your retirement income plan. To arrange a consultation, please call 1-800-544-5704.

On behalf of all of us here at Fidelity, thank you for allowing us to help you ensure your retirement stays on track.

Sincerely,

James BurtonSenior Vice PresidentBrokerage and Cash Management ServicesFidelity InvestmentsFidelity Brokerage Services LLC

P.S. Please update your Plan of Record within 60 days so that your IMA reporting can refl ect your current retirement fi nances. Please note that we consider your Plan of Record out of date if no updates have been made over an 18-month period.

The Income Management Account is provided by Fidelity Brokerage Services and is intended to help you manage your investments and fi nances in one consolidated brokerage investment account. The account can be linked to and is designed to coordinate with the Retirement Income Plan created using Fidelity’s Retirement Income Planner, which is developed and offered by Strategic Advisers, Inc., a registered investment adviser and a Fidelity Investments company. You may use the Income Management Account to implement the Retirement Income Plan you received from your Retirement Income Planning interaction with Strategic Advisers.

Fidelity Brokerage Services, Member NYSE, SIPC445635.2.1 1.818990.103 IMA-ANNLET-0408

Table of Contents

Summary.............................................................................................................3

Step 1: Review Last Year...............................................................................4

Step 2: Update Your Plan...............................................................................8

Step 3: Replenish Your IMA............................................................................9

Step 4: Rebalance Your Portfolio..................................................................11

Steps to Help You Stay on Track.....................................................................13

Income Management Account (IMA) Glossary...............................................15

Important Legal Information............................................................................17

For Illustrative Purposes Only

1 The tool’s illustrations result from running a minimum of 250 hypothetical market simulations. The market return data used to generate theillustration is intended to provide you with a general idea of how asset mixes have performed historically. Our analysis assumes a level ofdiversity within each asset class consistent with a market index benchmark that may differ from the diversity of your own portfolio. Pleasenote that the projections do not reflect the impact of any transaction costs or management and servicing fees (except variable annuities); ifthese had been included, the projected account balances would have been lower.IMPORTANT: The projections or other information generated by Fidelity’s Retirement Income Planner regarding the likelihood of variousinvestment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. Resultsmay vary with each use and over time.

Welcome to the Annual Review of your Fidelity Income Management Account® (IMA). We’veprepared this review to serve as a snapshot of where you currently stand in relation to your plannedincome, investments, and expenses. Your review also offers checklists and analyses so that you’ll bebetter able to stay on track and live the kind of retirement you want. A glossary of IMA terms is alsoincluded at the end to assist you.

By creating a retirement plan that works in tandem with your IMA,1 you’ve developed a solid approachfor helping make your money last. This review is meant to help you monitor and manage your plan toget the most from it, and your retirement.

SUMMARY

Your Income Management Account® Annual Review at a Glance

Asset Withdrawal Rate: The percentage difference between your actual and planned assetwithdrawal amount is -92.5%. This represents a greater than 10% difference from your plan. Werecommend you revisit your Retirement Income Plan and update your spending and income tounderstand the overall impact on your ability to make your assets last throughout your planningperiod.

Asset Withdrawal Amount: Over the last 12 months, your Actual Asset Withdrawal was$29,651.79 lower than your Planned Asset Withdrawal. You should remain within 10% of yourplanned amount. See Step 1.

Spending Reserves: You are likely to need to add $0 to your Income Management Account tocover your expenses for the next 12 months plus maintain a 6-month spending reserve. See Step3.

Asset Allocation: The percentage of your Retirement Income Portfolio represented by domesticand foreign equities is 56%. If the total equity percentage of your allocation is more than 10%under or over the equity allocation you selected in your Target Asset Mix you should considerrebalancing. As long as this is within 10 percentage points of your Target Asset Mix (if applicable)of 50%, you do not need to rebalance immediately. See Step 4.

3QUESTIONS? CALL 1-800-544-5230

Prepared for: JOE SAMPLE September 2005 — August 2006


We will now go through the 4 steps of your annual review to prepare for the year ahead. Thesesteps include (1) reviewing your activity over the past year, (2) making any necessary updates to yourPlan of Record, (3) replenishing your spending reserves and (4) rebalancing your retirement portfolioas necessary.

Step 1: Review Last Year

The graph below shows your spending by month, along with the non-investment income yougenerated and any assets you withdrew compared to your planned asset withdrawal amount.

Spending

Non-investment Income

Actual Asset Withdrawal

Planned Asset Withdrawal

Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug0

500

1000

1500

2000

2500

3000


Cash Flow


$0 —

$3,000 —

$2,500 —

$2,000 —

$1,500 —

$1,000 —

$500 —


The table below annualizes the information in the cash flow chart above. We believe that if youractual asset withdrawal did not exceed your planned amount by 10%, your plan fairly accuratelyreflected your behavior over the past year. If it did exceed your planned amount by more than 10%,we believe you may want to revise your Plan of Record to update your income and expenseassumptions. By updating your Plan of Record, you will have a more realistic understanding of yourability to make your assets last throughout your retirement. If the percentage difference is negative,that means your asset withdrawal is less than planned. You can access your Plan of Record by goingto Fidelity.com/incomeplanner and clicking the "Retirement Income Planner" tool.

Step 1: Review Last Year (Continued)


Non-InvestmentIncome Spending

ActualAsset Withdrawal

September $0.00 $0.00 $0.00

October $0.00 $0.00 $0.00

November $0.00 $0.00 $0.00

December $0.00 -$2,388.21 -$2,388.21

January $0.00 $0.00 $0.00

February $0.00 $0.00 $0.00

March $0.00 $0.00 $0.00

April $0.00 $0.00 $0.00

May $0.00 $0.00 $0.00

June $0.00 $0.00 $0.00

July $0.00 $0.00 $0.00

August $0.00 $0.00 $0.00

12-Month Average $0.00 -$199.01 -$199.01

Table 1: Annual Cash Flow Summary Sep 2005 — Aug 2006

Non-Investment Income $0

Spending -$2,388

Actual Asset Withdrawal & Rate -$2,388 (0.2%)

Planned Asset Withdrawal & Rate -$32,040 (2.4%)

% Difference (Actual-Planned/Planned) -92.5%




The chart below shows your monthly Retirement Income Portfolio ending balances and averageasset withdrawal rates. Changes month to month reflect the effects of market action, deposits,and withdrawals to your account. The annualized percentage of this balance that was withdrawnin each month is shown by the yellow line. For comparison, we have also plotted your plannedasset withdrawal rate. We believe that if your actual asset withdrawal did not exceed yourplanned amount by 10% or more, your plan fairly accurately reflected your behavior over the pastyear. If it did exceed your planned amount by more than 10%, we believe you may want to reviseyour Plan of Record to update your income and expense assumptions. You can access your Planof Record by going to Fidelity.com/incomeplanner and clicking the "Retirement IncomePlanner" tool.

Retirement Income Portfolio Balance and Asset Withdrawal Rate

Retirement Income Portfolio Balance

Annualized Asset Withdrawal Rate

Planned Asset Withdrawal Rate

Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug0

266567

533133

799700

1066267

1332833

1599400

Por

tfolio

Bal

ance



— 2.6%

— 2.2%

— 1.8%

— 1.3%

— 0.9%

— 0.4%

— 0.0%

Ass

etW

ithdr

awal

Rat

e

$0 —

$1,599 K —

$1,333 K —

$1,066 K —

$800 K —

$533 K —

$267 K —


Table 2 below shows a summary of the activity in your Income Management Account over the past 12months.

1 Information about Annuities is provided by Fidelity Investments Life Insurance Co. as a service to you at your request. Assets not atFidelity are provided solely as a service to you at your request. Assets in accounts held outside Fidelity Brokerage Services may notbe covered by SIPC (Securities Investor Protection Corporation). You can obtain information about these accounts by calling theinstitution holding these accounts. Fidelity Workplace Savings amounts exclude BrokerageLink assets, which are reported with theretail account holding them.



Table 2: Summary of IMA Activity1 Sep 2005 — Aug 2006

Beginning Balance (September 1, 2005) $3,470.40

Non-Investment Income $0.00

Dividend & Interest Income $98.13

Additions from Your Portfolio $2,541.00

Spending -$2,388.21

Reinvestments to Your Portfolio $0.00

Change in Market Value $0.00

Ending Balance $3,721.32


% Change in Portfolio Balance (excluding Asset Withdrawals) 2.9%


If it has been more than 12 months since you updated your Plan of Record.

If you’re concerned about any of the red or yellow Key Risks displayed in your Plan of Record.

If your actual asset withdrawal amount or rate exceeded your planned amount or rate by morethan 10%.

If you expect a change in any expenses, income or other budget item of more than 10% in thenext year.

If you purchased long-term care or Medigap insurance that is not part of your Plan of Record.

If there has been a change in health that may influence your life expectancy.

If you have manually entered assets that have not been updated in the last 3 months.

Step 2: Update Your Plan

Do I Need to Update My Plan of Record?

Your Plan of Record1 presents your most recently saved Retirement Income Plan of Record. Werecommend that you review/update your Plan of Record if you meet any of the following scenarios.

Checklist

You can update your Plan of Record by accessing your Retirement Income Plan onFidelity.com/incomeplanner, where you can make the necessary change to your plan andclick the Update Your Plan of Record button provided.

If you’ve experienced a death in the family, please call Fidelity’s Inheritor Servicesat 1-800-544-0003, Monday – Friday from 8:00 a.m. – 6:30 p.m. ET, for assistanceupdating necessary accounts.

1 The Income Management Account is provided by Fidelity Brokerage Services LLC and is intended to help you manage your investmentsand finances in one consolidated brokerage investment account. The account can be linked to and is designed to coordinate with theRetirement Income Plan created using Fidelity’s Retirement Income Planning tool, which is developed and offered by Strategic Advisers,Inc, a registered investment adviser and a Fidelity Investments Company. You may use the Income Management Account to implementthe Retirement Income Plan you received from your Retirement Income Planning interaction with Strategic Advisers.




Step 3: Replenish Your IMA

Check your IMA spending balance and calculate the spending and emergency funds youmay need for the next 12 months.

Do you have an adequate emergency fund and spending balance for the next 12 months?

If you are pursuing this approach, consider a Minimum Balance alert on your IMA if youdon’t already have one. You can sign up by going to the Research tab on Fidelity.com andclick on Alerts and then select Account Balances and Activity. For your convenience, thesealerts are available via phone, Web, or electronic devices, such as PDAs and cell phones.

TIP

1 The Consumer Price Index (CPI) is for the 12-month period of this review based on the historical monthly Consumer Price Index (CPI)data from the U.S. Department of Labor Statistics.



1. Income Management Account Balance (August 31, 2006) $3,721

2. Average monthly asset withdrawal amount (last 12 months) -$199

3. Adjustment for inflation over the past year (change in CPI — 3.8%)1 $7

4. Estimated monthly asset withdrawal amount next year -$206

5. 12 Months of estimated asset withdrawal -$2,478

6. Estimate of 18 months of withdrawal (6 mos. Emergency + 12 mos.) -$3,718

7. Addition needed $0

If you prefer to replenish in order to cover a different number of months of spending, use thefollowing formula:

(-$206 X # of months) - $3,721 = Addition needed


Step 3: Replenish Your IMA (Continued)

Please note that these estimates are based on your actual asset withdrawal over the last 12 months.If you expect your non-investment income to change because you are starting to receive SocialSecurity or pension payments or because you are stopping part-time work or anticipate otherchanges, you should adjust your asset withdrawal amount as necessary to reflect these changes. Ifyou anticipate your spending to change significantly, it would be wise to make adjustments to yourPlan of Record for these changes as well.

When it’s time to fund your account, you can go to Portfolio Review on Fidelity.com or call yourFidelity Representative for help while assembling the cash you need for your immediate needs.




Step 4: Rebalance Your Portfolio

It’s important to review your investment mix at least annually to make sure it still meetsyour objectives. The two charts below contain the current asset allocation of your portfolioversus the target asset mix you selected in your latest Plan of Record. Remember, the decisionsyou make in rebalancing your portfolio can affect not only your asset allocation but can have taxconsequences as well. Therefore, we suggest that you evaluate your Plan of Record and, ifappropriate, update it before making any investment decisions.

Analysis

Our analysis compares your current portfolio to the selected target asset mix and considers theequity allocation of each portfolio. If there is a greater than 10% difference, a warning messagewill be provided.

Interpreting Your Analysis

Your Current Portfolio

Your Current Portfolio:$1,433,087.45



Asset Allocation — Based on the information you provided and our records, your RetirementIncome Portfolio equity asset allocation is within 10% of what you planned.

44.31% Domestic Equities11.93% Foreign Equities32.86% Bonds

8.29% Short Term0.00% Unknown2.61% Other

Target Asset Mix:Selected: Balanced

45.00% Domestic Equities5.00% Foreign Equities

40.00% Bonds10.00% Short Term

Adjust Asset Allocation1

If you choose to move your current portfoliocloser to your selected target asset mix, considerthe following2:

Domestic Equities: Increase 0.7% ($9,888)

Foreign Equities: Decrease 6.9% ($99,312)

Bonds: Increase 7.1% ($102,322)

Short Term: Increase 1.7% ($24,505)

Unknown: N/A

Other: N/A

1 Asset Allocation does not ensure a profit or guarantee against a loss.2 Selling investments within a taxable account may have tax consequences. You may incur fees or expenses when buying and selling

investments.


Step 4: Rebalance Your Portfolio (Continued)

If the equity portion of your asset allocation, domestic plus foreign, is within 10% of your TargetAsset Mix (TAM), rebalancing is probably not essential at this time unless you have more than 5%of your holdings in any single individual security. We refer to this as a “concentration risk” andrecommend that you consider selling part of this security to bring it below this 5% threshold.

To rebalance your portfolio, you can go to Portfolio Review on Fidelity.com or call your FidelityRepresentative.

If your retirement situation has changed, before rebalancing your portfolio, you may want torevisit the Retirement Income Planning tool and change your TAM based on the events ofthe past 12 months to make sure it is in line with your objectives.




If you haven’t completed the checklist in Step 2, complete it first. If you need to update yourRetirement Income Plan you should do that before taking the next actions. Use the checklist andlast year's activity to help identify what data you should update.

Take these steps to help you stay on track

A. Update your Plan

B. Calculate your replenishment needs

Next, calculate the additional spending and emergency funds you are likely to need over the next12 months. If you’ve updated your Retirement Income Plan, use the first-year asset withdrawalamount to calculate the replenishment needs. Step 3 provided more details on these calculations.

C. Rebalance and withdraw the funds you need to replenish

Check your asset allocation and if it is off track, consider adjusting investments and/or usingwithdrawals to attain your selected Target Asset Mix. During this step you should make thewithdrawals needed to replenish your IMA.

Additional Considerations

To get the most accurate and comprehensive reporting on your retirement finances youshould consider including all the assets you plan to use in retirement in your RetirementIncome Plan of Record. You can simply enter the total asset amounts and their asset allocationin the Retirement Income Planning tool when you update your plan. Or, for more comprehensivereporting, you can use Fidelity’s Full View®, which automatically updates the account value andasset allocation of these accounts in your plan, subject to Full View’s terms and conditions. Ofcourse, these Full View assets would need to be added to your Plan of Record after adding themto Full View. You may also want to consider transferring your non-Fidelity assets to Fidelity inorder to simplify your recordkeeping and management.

Take Advantage of Convenient IMA Features to Simplify Your Retirement

• Fidelity offers a variety of automatic withdrawal options that makes managing your retirementeasier including sweeping dividend and interest received in your Fidelity accounts into your IMA.

• Alerts to notify you of important financial events to stay on track and when action is required. Youcan choose how you would like to receive these alerts, whether by phone, email, or electronicdevice.




Take these steps to help you stay on track (Continued)

• Cash Management Features: Features available include free Fidelity BillPay® service, checkwriting,debit/ATM cards, and a rewards credit card. Consider signing up now on Fidelity.com.

• Get expert asset management assistance. Fidelity Freedom Funds® can eliminate the burden ofannually rebalancing your Retirement Income Portfolio by keeping your assets in an asset allocationappropriate to your retirement horizon. Portfolio Advisory ServicesSM provides even more activemanagement of your portfolio including both rebalancing and withdrawal services.

You can obtain help in considering any of these actions by logging on to Fidelity.com

or calling your Fidelity Representative at 1-800-FIDELITY.

As a reminder, you can easily stay on top of your retirement plan with the unique Income ManagementAccount online monitor on Fidelity.com. This is an electronic dashboard, where timely and relevantdata about your financial situation is available on demand. You can review your online monitor bylogging into Fidelity.com, go to Accounts & Trade > Portfolio, and clicking "Summary" in the IMAaccount drop-down menu.

A Final Word

Performance of the Freedom Funds depends on that of their underlying Fidelity funds. These funds are subject to the volatilityof the financial markets in the U.S. and abroad and may be subject to the additional risks associated with investing inhigh-yield, small-cap and foreign securities.Fidelity Portfolio Advisory Service® is a service of Strategic Advisers, Inc., a registered investment adviser and FidelityInvestments company.



Make sure you’ve completed all of the steps of this Review and Action Plan. If you have any questions,please let us know. We’re here to help you and provide further help when you need it.

Remember, if there’s been a change in your financial situation or more than 12 months have passedsince updating your Retirement Income Plan of Record, you should update your Plan of Record bylogging on to Fidelity.com/incomeplanner. If you would like help, you can contact a FidelityRetirement Income Planner by calling 1-800-544-5230.

Together we’ll work to help make sure the retirement you planned for stays on track.


Allocation of your Retirement Income Portfolio reports how your holdings are diversified amongdifferent types of investments including stocks, bonds, short term, unknown, and other. Classes ofholdings, including underlying holdings of mutual funds and deferred annuities, are based oninformation from independent providers of financial information including Morningstar, Inc. A morecomplete description of this process is described in the Income Management Account User Guide.If you have included manually entered or Full View account data in your Retirement IncomePortfolio, this data may be out of date or incorrect. To the extent such data is included in yourportfolio, the current asset allocation reported and the comparison of that asset allocation to yourPlan of Record target asset mix may not be accurate. Be sure that you are fully satisfied with theaccuracy of non-Fidelity financial data prior to taking any action based on the asset allocationreported. Information in this section comparing your current actual asset allocation and the TargetAsset Allocation you selected and saved with your Retirement Income Plan of Record comparesonly the stock (foreign and domestic) portion of the allocations. The comparison does not includethe bonds or short-term portion of these asset allocations.

Asset Withdrawal. The process of drawing on your Retirement Income Portfolio to fund yourretirement. It is calculated by subtracting your spending from your non-investment income.

Asset Withdrawal – Actual. Represents actual non-investment income less actual spending. Ifthe number is positive it represents a surplus rather than a withdrawal.

Asset Withdrawal – Planned. This is the amount you planned to withdraw based on yourRetirement Income Plan of Record.

Asset Withdrawal – 12-Month Average. This is an average of your monthly asset withdrawal forthe most recent 12 months. Averaging helps reduce the distortion in reporting that can occur dueto normal monthly variations in actual spending and income amounts.

Asset Withdrawal Rate – Annualized is calculated by annualizing (multiplying by 12) your AssetWithdrawal – 12-Month Average and dividing that number by your Retirement Income Portfolio’sending value for the current period, which can be impacted by things like market fluctuations, anddeposits as well as withdrawals from your Retirement Income Portfolio.

Asset Withdrawal Rate – Planned. Fidelity’s Retirement Income Planning Tool calculated thisannualized asset withdrawal rate based upon information in your Plan of Record. This does notmean that it is a sustainable rate. To assess the risks of this asset withdrawal rate, you shouldrevisit your Retirement Income Plan.

Asset withdrawal rate is influenced not only by your asset withdrawal amount but also the value ofyour Retirement Income Portfolio, which is affected by market fluctuations and other changes youmake to your account (like additions or withdrawals you may have made from outside accounts).

Income Management Account (IMA) Glossary




Income Management Account (IMA) Glossary (Continued)

Non-investment Income represents the dollar amount of inflows that did not come from your IMARetirement Income Portfolio, including income from pensions, Social Security, income annuities, andother sources.

Plan of Record refers to the Retirement Income Plan data you asked Fidelity to use for comparisonpurposes. You can view your Retirement Income Plan of Record from the Online Monitor. You canupdate your Plan of Record by entering new information in the Retirement Income Planning tool andelecting to save this in the Plan of Record.

Retirement Income Portfolio refers to the set of accounts and underlying assets you indicated youplan to use to fund your retirement. You designate the accounts you choose to plan with and monitor inthe Retirement Income Planning tool and establish a Retirement Income Portfolio when you enroll inthe IMA. All the accounts in your Retirement Income Portfolio are listed on your IMA Report.

Spending represents all the outflows from your IMA except transfers to other accounts in your IMARetirement Income Portfolio. Spending may include checks, bill payments, debit card purchases, andother withdrawals. Spending also includes Fidelity Money Line® transfers out of your IMA (such as intoyour bank).




Independent sources provide the holdings data this tool uses to classify financial assets.

Stock Data — Compustat, an independent company not affiliated with Fidelity Investments,provides individual stock data.

In the case of individual securities held within a workplace savings account, the tool determines theindustry sector of the individual security using the same parameters as the third-party vendorproviding underlying holdings data for publicly available mutual funds. In the rare instance wheresuch data is unavailable from the third-party vendor, Strategic Advisers, Inc., a registeredinvestment adviser and Fidelity Investments company, determines the industry sector usingpublicly available information. If the information is unavailable, the holdings will be classified as“unknown.”

Mutual Fund Data — An independent third-party vendor, Morningstar, Inc.* , supplies datamonthly (including asset allocation, equity industry sector, equity style, and foreign vs. domesticclassifications) for publicly available mutual funds. As a result, the data is only as current as theinformation supplied to Morningstar by third parties and may be up to 12 months old.

In some cases (e.g., newer funds), Morningstar may not have holdings information and thereforesuch funds are classified as “unknown.” In other cases, Morningstar may not recognize all of theholdings within a mutual fund. In these cases, Morningstar provides analysis only on therecognized portion of the fund. In this case, the unrecognized holdings are classified as “unknown.”

For workplace savings customers, Fidelity affiliates, plan sponsors and external money managers,quarterly performance data is provided for proprietary mutual funds and other pooled investmentoptions unique to certain retirement plans (such as commingled pools or separate accounts). Ifcurrent quarterly holdings are unavailable, the latest available data is used. In the event this data isalso unavailable, the assets will be classified as “unknown.”

Investment information provided to Strategic Advisers, Inc. is not based on contemporaneous data.Strategic Advisers, Inc. is not responsible for the accuracy of data provided by third parties.

Bonds — Standard & Poor's®, Moody’s and Fitch provide credit rating and duration information onindividual bonds. Morningstar provides credit rating and duration information on bond funds. Lipper,Inc., provides sector information on bond funds.

What does the asset allocation chart show?

This chart shows you how your assets are distributed among several major asset classes includingdomestic stocks, foreign stocks, bonds, short-term securities (cash equivalents, CDs, moneymarket funds, etc.), other, and unknown. The “other” category includes nonasset class holdings(e.g., derivative securities, options, warrants, precious metals, Real Estate Investment Trusts(REITs) in some of your investments as well as 529 plan college investment trust holdings. The“unknown” category represents investments you may have whose details are unknown orunavailable to Fidelity.

Important Legal Information

Where does Portfolio Analysis get its data on investments?




Important Legal Information (Continued)

This chart also shows you how much of your investments that are classified as equity stock investmentsare in the U.S. stock market and how much are overseas in foreign markets. Your foreign exposure isthe proportion of your portfolio composed of equity securities issued outside the U.S. (refer back toasset allocation chart).

In general, portfolios holding more assets overseas face greater risk due to uncertain political andeconomic conditions abroad. Diversified portfolios may typically hold up to 15 to 20 percent of theirassets in foreign markets.

Asset allocation may significantly affect the returns on investment portfolios. In general, stocks offergreater growth potential over the long term but entail greater risk of volatility and losses especially overthe short term. Conversely, short-term assets such as CDs or money markets carry less risk butgenerally yield lower return.

To manage risk, your portfolio should contain a mix of investments consistent with your financialsituation, your investment objectives, your risk tolerance and other factors, such as how soon you’llneed access to cash. You should also take into consideration any unique circumstances that mightapply to your situation when deciding upon an appropriate asset allocation. Understanding where youstand on these factors will help you develop an appropriate investment strategy.

Before investing, consider the funds’ investment objectives, risks, charges, and expenses.Contact Fidelity for a prospectus containing this information. Read it carefully.

Fidelity Brokerage Services, Member NYSE, SIPC

1.818989.102IMA-ANNPOD-1006




445635.2.0

4. Rebalance Your Portfolio 1-800-544-5704. - Fidelity Investments · 2018-07-21 · 4. Rebalance...

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Transcript of 4. Rebalance Your Portfolio 1-800-544-5704. - Fidelity Investments · 2018-07-21 · 4. Rebalance...