i could talk to my boss about moving us out of merrill lynch to a company that wont rape us on fees and offers reasonable expense ratio products. i wonder how big of a pain in the ass it is to make a switch for a 15 person business.
That's outrageous. Is your 401K your only retirement account? If not, you could increase your bond percentage in your Roth, etc, and go all stocks in your 401K. Your overall bond percentage of all retirement accounts should typically be 10-20% at your age, depending on your aversion to risk. Getting a bond index with a 1%+ E.R. is a complete waste of investing, IMO.
I dont necessarily think its Merrill Lynch fucking you. It may be that your employer has chosen those options. I have a merrill lynch 401k through my employer and we have 14 equity/stock options with most of them having expense rations below .5, and the S&P index option has a .03 expense ratio (Northern Trust Collective S&P 500 Equity Index Fund)
Frankly, 1.34% for a HY fund is better than 1.0% for a short duration fund. The fee on the short duration fund is going to eat up the indicated yield of 3.55% on that fund. I show 0.94% expense ratio on the A shares of Lord Abbett High Yield and for a 401k I would think you should be in the institutional shares which are 0.75%. I don't know the ins and outs of 401k administrators but it seems like they're charging something on top of it which is probably part of the problem with all your fees appearing high.
Moving isn't a big deal. With a company that size they can also select the fund and the default plans too. They can choose to add in a REIT, vanguard funds etc.
ok just spoke with our rep for like 30 minutes. the problem is we don't have enough in our 401k as a group (less than 500k apparently) to get the really awesome low expense ratio large cap or index funds. and we likely wont have access to that unless we get a few million more in our 401k. .36% black rock s&p is the best they have. They about to have a van guard international fund that is .19% which will be better at least. They said once I get to 25k i can self broker but they charge 1.2% fee and I still won't have access to the awesome stuff. She said something I dont understated something about we only have R shares and don't have A shares. Don't have institutional shares. But basically our plan isn't big enough to get the awesome low expense ratio large cap and index funds.
i asked her this and she basically said that wasn't true that the fee on that stuff was basically deminimus and they make the biggest fee on self brokered plans
I was also wondering if this were the case. The company that I am with that has the good options employs over 45,000 people.
I'm doing so with my 68 yo mother to maintain her allocation ratio goals as her equities keep climbing, but not with my 36 yo self.
That makes sense. Class A shares have a front-end fee but lower annual fees because of the money the fund company made on the initial transaction. Y shares are for institutional money so they don't have a front end fee and they have low annual fees because of the large dollar amounts required to do Y shares. The R shares are structured to be like Y shares (no front end, no back end fee if you sell) but because they don't have the same amount of money behind them like Y shares the annual fee is higher.
Merrill is basically losing money servicing you. Your boss is probably friends with the FA and thought they were doing them a favor. You wont get institutional shares until you are in a fee based platform - edit: not sure what the 401k group threshhold is for that
It doesnt matter who handles your 401k, it is just hard to service a 15 person company. Im not sure what your match is, but that's the only reason to stay with your company's.
that fucking sucks. my wife has about 40+ choices and can log in and change her allocation/$ amts and whatever at any time, for free
5% and i'm maxing out my contributions. if i could get like a 5-10% roi and minimize my ER that would be ideal
So in terms of rolling over my 401(k), for somebody with minimal knowledge in the field, and would prefer to just let it sit and forget about it, is Vanguard the top choice? My buddy who's been kinda shitty with me when I told him I didn't want to invest with him, told me do a Vanguard target date fund or the Wellington fund.
The simplest answer is definitely a vanguard target retirement fund. It will slowly make your investment more conservative over time as you approach your set retirement date target.
Vanguard has low fees (kind of their thing) and the target retirement funds will auto adjust the risk as you get closer to retirement. It's where my money is.
You need to move your account. That is absolute bullshit. Try CUNA, they are set up like vanguard as a mutual company inwhich the shareowners own the company
Commentary on the recent run up in SPX http://www.zerohedge.com/news/2017-...ltdown-here-reason-markets-inexplicable-surge http://finance.yahoo.com/news/p-500-futures-trying-sense-134842425.html
Back to the HSA discussion. I just started a new health care plan that is high deductible, so I signed up for the HSA plan. My employer puts $500 into it each year and I am contribution a little from each paycheck. Its run through BofA. I currently have everything in the "Cash Balance." Is it worth it to start to transfer into the "investment balance" once I hit the baseline ($1,000)? Is there any penalty for moving it back into the cash account? Basically wondering if I should wait until I basically have my deductible, or close to it, in my cash account before transferring any to the investment account?
I know little about HSA's, but do the earnings/losses have any tax implications? Seems like if you have cash in other accounts to cover your deductible, and no require minimum cash account balance, then why not invest.
I don't have BofA but I would be surprised if there was a penalty for moving back and forth between cash and investments. The answer to your question depends on your financial situation, how you want to use the account and how conservative you want to be. The absolute best use of the account is to put money in and invest it for the longest period of time. However, that requires for you to have enough money to be able to pay your deductible out-of-pocket. If you can't, you can certainly put the initial investments in a short-term (short duration) bond fund which minimizes the risk. Then as your balance in the investments portion grows (assuming your contributions exceed your expenses) you can start to get more aggressive with the investments.
Nooope. Dont know dick about that shit beyond to reset my modem and router and wait 30 seconds and we are all gonna have ear cancer in our 60s But i can read a financial statement ok
Just wondering because Avaya filed, and that had been predicted over the last 3 months. Avaya hadn't denied it either so they'll definitely pick up some market as a result. Guessing that in combination with the financial statement is a good recipe.
They crushed it in earnings and have a shit ton in $ overseas to bring back when tax reform happens. Its not that complicated
Used to be licensed and sold a lot of 401k plans from 2006 - 2009 (not the best time to graduate and obtain a Series 7). Small plans through a traditional broker are fucked on pricing. As someone else said, a plan like your employer's isn't really worth a broker's time. I'd have your boss check out a company like Betterment. I use them for most of my personal taxable money. They came out with a 401k service a year or so ago. https://www.bettermentforbusiness.com/pricing/ https://www.betterment.com/resource...ss-the-best-401k-for-employers-and-employees/
You get invested in the better ER stuff - that's the point. If it works like their individual account, you'll develop a target asset mix and they'll select the appropriate ETFs to fulfill your investment objectives. Rebalancing is done automatically. I've got an 80/20 mix and they have me in the following: VTI, IVE, VOE, VBR, VEA, IEMG, MUB, LQD, BNDX, VWOB. Looks like they charge a 10bps management fee - which is as cheap as you'll find anywhere. All the info is in the links I provided. Read through it and play around - it'll be educational for you.
New to this thread, buddy sent me a text asking to look into ETJ, Eaton Vance Risk-Mngd Dvrsfd Eqty Inc Fd. Has a $0.093 monthly dividend on a 9.51 stock. Seems out of whack to plop some money in there and just let the dividends carry you to a 10+% return. I wasn't going to invest anything cause there seems to be a catch somewhere, so trying to help him out and see if someone here could help me out. Even with it's slight downward trend, that dividend is enough to cover marginal drops in stock price. Am I crazy here?
Will add another, looking at buying some CDEV, Centennial Resource Development out of Denver. O&G startup convinced Mark Papa (ex-EOG CEO) to get back in the game. Has a target price of $25-26, sitting at 18.21 currently. Buddies got in at around $11 lucky bastards, but still think there is upside. All of their acreage is in the Permian, which has multiple landing zones and very lucrative wells.
Per the slide deck my gf sent from her Big 4 firm about tax reform, expected to be repatriated at 7%. You have mail, swim.
may be early 2018, but GOP will do it through reconciliation (O'care first) and 7% holy shit, i think anything under 15 is a huge win
Don't have to bring it back, but have to pay tax of (she said 7%) one time. Maybe repatriation wasn't the right word. As anti-DJT as I am, it sounds great and a good start. My hope is its budget neutral -or- deficit reducing.
well right, but why have financial engineering and ireland and crazy ass tax havens but for waiting for something like this. apple doesnt need 100b in the bank when they could be spending it on cool shit
I would imagine anything not truly needed overseas will be repatriated. Especially if you're paying 7% regardless.