Why is short term included in my index fund?

Investing
#1

I invested in an Index Fund with Fidelity. More specifically a target date index fund FDKLX (Fidelity Freedom Index 2060 Investor) as I’m truly using this as a means to save for my four year old son for college. Based on the course the assets in the account should be 54% US Stocks, 36 International and 10% Bonds. During the day time it shows 26% short term and then at night it goes back to the suggested percentages. Is this normal or did I choose an incorrect account. I did not notice a Target Date Investment Fund for his age which would be 2082.

Please help, is this normal for the numbers to fluctuate short term, unknown and other throughout the day and the US Stock and International to remain the same? Did I Pick the correct Target Date Index fund based on his age?

#2

Hey @Deme!

This link shows that FDKLX is indeed about 54% US, 36% Non-US and 10% bonds. When you say:

Where are you seeing that?

For what it’s worth picking a 2060 fund for your four year old’s college is OK, but if you plan on spending the money in 14ish years (when he’s 18, not 65!) you might want to pick a 2035 target date fund?

#3

I normally see the 26% when I check my account during the day but at night maybe after the market closes it tends to go back.

Thanks I was given misinformation on the target date year. Is it possible to just move the funds over to the 2035 Target fund or do I have to sell what I have in the current fund and then close and open a new one?

#4

That’s really strange and I’ve never heard that before… I’m not sure I can answer without seeing more and it might be a good question to call Fidelity.

How sure are you that this money will be used for your child’s school? What type of account is it in? Have you considered opening a 529? Calling Fidelity my be able to help with that question too. I’ve got the basics on investing for kids here:

#5

All of the funds will be used for college. I’m operating on the premise that college might not be the typical career route in 2035, which is why I’m staying away from any accounts that are solely for college. Should he choose to become an entrepreneur or a financial influencer lol, I’d like him to have access to those funds to do so.

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