Comments on: Bad Company 401k? There May be Other Options

By: Miranda

Miranda — Mon, 01 Mar 2010 15:29:09 +0000

Thanks for stopping by. You make a great point, Joe, that index funds can be one of the best ways to go. And Bob makes a good suggestions to speak with your plan administrator to gauge the amount of self-directed investments you can make. .-= Miranda´s last blog ..5 Retirement Regrets =-.

By: Ken

Ken — Mon, 01 Mar 2010 11:07:22 +0000

Great tips...it's also important to remember that each spouse can have a Roth IRA. .-= Ken´s last blog ..Weekend Edition =-.

By: Bob

Bob — Mon, 01 Mar 2010 05:35:33 +0000

One account feature available to many people, but they’re unaware of, is the ability to shift their money from one fund to another, within the plan. A lot of folks also don’t realize that their plan may let them allocate different portions to different funds. Check with your administrator, and make sure you’re aware of all the possibilities offered. You could be leaving money on the table, otherwise.

By: Weekend Linkage – February 28, 2010

Weekend Linkage – February 28, 2010 — Mon, 01 Mar 2010 02:58:02 +0000

[...] Bad Company 401k? There May be Other Options [...]

By: JoeTaxpayer

JoeTaxpayer — Sat, 27 Feb 2010 14:41:41 +0000

Index funds (whether in the form of mutual funds or ETFs) are available in the sub .10% (a tenth of 1%) cost per year.
A simple way to view this is to look at what you hope to gain from the 401(k) savings. For most people, after the match, of course, they are saving money from a 25/28% tax bill in the hope of having it taxed at 15% after retirement.
If the 401(k) expenses are near 1%, it doesn’t take many years to wipe out that potential 10% or 13% savings.

The link above was a great start, but it doesn’t spell out the fees or fund expenses. Until congress forces this information to be readily disclosed, you need to ask your plan administrator for these fees.