 |
|
|
|||||
| « Previous thread | Next thread » |
I have a 401k plan at work. I really do not like the way it is being
managed. Specifically, the fund choices are not great.
The most outrageous, is that the _money market fund_ is charging us
over 1% of asset value for "management". I think that it is obnoxious,
as they likely do not do much, and the returns certainly do not
compare to the expense of the management.
I have been with the Co. for a few years and accumulated a reasonable
amount of $$, most of which is in that god damn money market fund.
By now, the amount of money in the 401k account is enough to matter.
So, in short, I am pissed off.
Is there something, short of leaving my employer, that I can do? Such
as close the 401k and move it to IRA, and then reopen? I like my job
and would not leave, but I hate feeding those greedy bastards for
nothing in return.
By the way, I think that the 401k plans are greatly contributing to
financial instability, by giving essentially random people (fund
managers) control over large amounts of money that is not theirs. And
OPM (other people's money) always is a source of dumbest financial
decisions due to misalignment of interests.
--
Due to extreme spam originating from Google Groups, and their inattention
to spammers, I and many others block all articles originating
from Google Groups. If you want your postings to be seen by
more readers you will need to find a different means of
posting on Usenet.
http://improve-usenet.org/
--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
In article <U...@g...com>,
Ignoramus23721 <i...@N...23721.invalid> wrote:
> I have a 401k plan at work. I really do not like the way it is being
> managed. Specifically, the fund choices are not great.
>
> The most outrageous, is that the _money market fund_ is charging us
> over 1% of asset value for "management". I think that it is obnoxious,
> as they likely do not do much, and the returns certainly do not
> compare to the expense of the management.
>
> I have been with the Co. for a few years and accumulated a reasonable
> amount of $$, most of which is in that god damn money market fund.
>
> By now, the amount of money in the 401k account is enough to matter.
>
> So, in short, I am pissed off.
>
> Is there something, short of leaving my employer, that I can do? Such
> as close the 401k and move it to IRA, and then reopen? I like my job
> and would not leave, but I hate feeding those greedy bastards for
> nothing in return.
You have to quit in order to do a roll-over. If you try to take
the money out on your own, you end up feeding the IRS a big part
of it.
Another option is to start a grass-roots effort to get the
employees to demand that the company change to a new 401K
manager. If it is a smaller company, you might be able
to make a case directly with the big boss by showing him
or her how much money each month they are throwing away
in these fees. Do a future value calculation to show
how this could be millions over 25 years.
The other strategy is to contribute the minimum to the
401K to get your match (if you have one), then max out
your IRA options. After that, consider tax efficient
funds such as a broad index fund. As long as the fund
doesn't trade in and out of securities, you don't get
nailed with taxes along the way.
-john-
--
====================================================
==================
John A. Weeks III 612-720-2854 j...@j...com
Newave Communications http://www.johnweeks.com
====================================================
==================
--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
Ignoramus23721 wrote:
> Is there something, short of leaving my employer, that I can do? Such
> as close the 401k and move it to IRA, and then reopen? I like my job
> and would not leave, but I hate feeding those greedy bastards for
> nothing in return.
As John said, unless you leave the job, there's no good option for
withdrawing the funds. Unless you put in money on an after-tax basis.
The Bogelheads wiki has a page on trying to get your company to improve
the 401(k).
<http://www.bogleheads.org/wiki/index.php/How_to_Cam
paign_for_a_Better_4
01%28k%29_Plan>
Brian
--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
On 2008-10-03, Default User <d...@y...com> wrote:
> Ignoramus23721 wrote:
>
>
>> Is there something, short of leaving my employer, that I can do? Such
>> as close the 401k and move it to IRA, and then reopen? I like my job
>> and would not leave, but I hate feeding those greedy bastards for
>> nothing in return.
>
> As John said, unless you leave the job, there's no good option for
> withdrawing the funds. Unless you put in money on an after-tax basis.
>
> The Bogelheads wiki has a page on trying to get your company to improve
> the 401(k).
>
><http://www.bogleheads.org/wiki/index.php/How_to_Ca
mpaign_for_a_Better_4
> 01%28k%29_Plan>
Brian, my employer is well versed in financial matters. So I suspect
that the reason why they chose this mutual fund company, is less than
benign. It was not done out of ignorance, I am sure.
But I will try to ask some questions.
i
--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
| « Previous thread | Next thread » |
Short-term Fund purchasing advice...
Financial Guru: Buy-and-Hold a Thing of the Past
Another suicide due to financial crisis.
FDIC Insurance Question Re IRA
fishy home closing cost in houston, tx
where to put money that isn't a bubble
selling a house in houston tx, 7% tax? fishy
Web Sites That Graph Bond Market Prices Over Time?
Up