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Asset Allocation Funds: Fidelity Income Replacement FundsSM

Fidelity Income Replacement FundsSM combine the power of professional asset management with professionally managed withdrawals to help turn part of your savings into regular monthly payments.*

Reasons to consider Fidelity Income Replacement Funds

  • Convert savings into monthly payments that attempt to keep pace with inflation, using the Smart Payment Program® (SPP).
  • Asset allocation and payments are professionally managed according to a specific time horizon.
  • Any remaining assets can be transferred to your heirs.
  • Use mortality-based optimization with a proprietary roll-down strategy.

Find Income Replacement Funds

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Fidelity Income Replacement Funds FAQs

Find a Fidelity Income Replacement Fund

  1. Estimate the dollar value of the monthly payments you’d like to receive OR the dollar amount of your initial investment.
  2. Identify the number of years for which you’d like to receive monthly payments.
  3. The estimator will select the appropriate fund and calculate either the required initial investment or the amount of your first year’s payments.
  • Fidelity Income Replacement Funds are designed to allow you to withdraw savings from your account over a set period of time, at which point all principal and investment gains will have been withdrawn.
  • Payments are calculated based on a schedule of increasing annual target rates, as shown in the prospectus. This schedule may change in the future.
  • Monthly payments remain constant within a particular calendar year, but will fluctuate from year to year based on the annual target rate, the number of shares owned, and the performance of the underlying investments. Payments do not reflect the most recent closing net asset value.
  • As with any mutual fund, withdrawals will reduce your account balance, and future returns are not earned on money that has been withdrawn.

Important information about this estimator

This estimator is for illustrative purposes only and is not indicative of any investment. This exhibit is not intended to project or predict the present or future value of an actual holding. Past performance is no guarantee of future results. Monthly payments are calculated based on a schedule of annual target payment rates determined by the Fund's advisor, Strategic Advisers, Inc., a registered investment advisor and a Fidelity Investments company, and disclosed in the prospectus. The dollar amount of the monthly payment will remain the same each month of a given calendar year, except for the final monthly payment which may vary in connection with the liquidation of the Fund. Actual monthly payments may vary slightly due to rounding. Buying additional shares of a Fund or selling shares outside the SPP generally will increase or decrease, respectively, the dollar amount of a shareholder's monthly payments. The dollar amount of the monthly payment generally will fluctuate from one year to the next due to a number of factors. Not intended to represent the performance of any Fidelity fund.

Questions?

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

Important information about the Smart Payment Program

Each Income Replacement Fund's investment objective is intended to support a payment strategy through the Smart Payment Program ("SPP"). Monthly payments may not keep pace with inflation and will fluctuate year over year. Monthly payments will result in the gradual liquidation of an investment in the Fund by its horizon date. As with any mutual fund, withdrawals will reduce the investment balance and future returns are not earned on amounts withdrawn. The Funds and SPP may not be appropriate for all investors. Please consult the Funds' prospectus for more details.
* Performance of the Fidelity Income Replacement Funds depends on that of their underlying Fidelity funds. These funds are subject to the volatility of the financial markets in the U.S. and abroad and may be subject to the additional risks associated with investing in high yield, small-cap, and foreign securities.

Please note that the Fidelity Income Replacement Funds and the Smart Payment Program may not be appropriate for all investors. For example, depending on the time horizon, income needs and tax bracket, participation in the Smart Payment Program might not be appropriate for younger investors not currently in retirement, in IRAs or other tax-advantaged accounts for those investors under 59 1/2, or for participants in employer-sponsored plans. Investors who hold a Fidelity Income Replacement Fund within a tax-advantaged retirement account and who elect to participate in the Smart Payment Program should consult their tax advisers to discuss tax consequences that could result if payments are distributed from their core account prior to age 59 1/2 or if they plan to use the Smart Payment Program, in whole or in part, to meet their annual minimum required distribution. In addition, use of the Smart Payment Program may be restricted in employer-sponsored plans by the terms of the governing plan documents and/or at the discretion of the plan administrator. Review the information provided carefully with your financial adviser before deciding whether a Fidelity Income Replacement Fund is right for you.

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