Search found 736 matches
- Thu Jul 19, 2012 5:42 pm
- Forum: Personal Finance (Not Investing)
- Topic: Ameriprise auto insurance
- Replies: 6
- Views: 1405
Re: Ameriprise auto insurance
It makes sense to shop for the best rate. I am a member of Costco. On October 28, 2011, I bought a 2012 model car. Ameriprise had the best quote for it. However, after six months when the renewal notice arrived Ameriprise wanted to double my premium. So, I switched to another company. With a safe driving record I was able to get insurance from 21st Century for half the cost that Ameriprise wanted. Good luck!
- Sat Jul 14, 2012 7:52 am
- Forum: Investing - Theory, News & General
- Topic: 401(k) Cost - Has your employer improved your plan? How?
- Replies: 10
- Views: 1504
Re: 401(k) Cost - Has your employer improved your plan? How?
To make it easier for employers, employees, and experts to communicate with each other, the United States Department of Labor has a glossary at http://www.dol.gov/ebsa/publications/wyskapr.html#glossary Here are the definitions for some of the most common terms used: Plan Document – A written instrument under which the plan is established and operated. Plan Administrator – The person who is identified in the plan document as having responsibility for running the plan. It could be the employer, a committee of employees, a company executive, or someone hired for that purpose. Plan Fiduciary – Anyone who exercises discretionary authority or discretionary control over management or administration of the plan, exercises any authority or control ...
- Mon Jul 02, 2012 10:32 am
- Forum: Investing - Theory, News & General
- Topic: 401(k) Cost - Has your employer improved your plan? How?
- Replies: 10
- Views: 1504
401(k) Cost - Has your employer improved your plan? How?
As of July 1, 2012, your employer should have received the newly mandated disclosures. Has your employer improved your plan? If so, how?
Note: Most plan participants (you) will begin receiving the newly mandated information no later than August 30, 2012, and then annually thereafter.
Edited twice on 07/02/2012 to include a poll.
Note: Most plan participants (you) will begin receiving the newly mandated information no later than August 30, 2012, and then annually thereafter.
Edited twice on 07/02/2012 to include a poll.
- Mon Jul 02, 2012 8:47 am
- Forum: Personal Investments
- Topic: 401(k): DOL's FAQ page regarding cost disclosures
- Replies: 2
- Views: 628
401(k): DOL's FAQ page regarding cost disclosures
Today is the BIG day! The following questions are from from the United States Department of Labor Web site: Q: When will I see these disclosures? A: Plan fiduciaries (your employer) will start to receive the newly mandated disclosures on July 1, 2012 . Note: Most plan participants (you) will begin receiving the newly mandated information no later than August 30, 2012 , and then annually thereafter. Q: Who do I contact if I have additional questions? A: For questions related to private sector retirement plans, please contact an EBSA Benefits Advisor online at http://www.askebsa.dol.gov or by calling toll free 1.866.444.3272. More frequently asked questions are posted at the United States Department of Labor Web site: http://www.dol.gov/ebsa/...
- Sat Jun 30, 2012 9:01 am
- Forum: Investing - Theory, News & General
- Topic: your family is losing 155k from Wall Street fees on 401k
- Replies: 40
- Views: 5362
Re: your family is losing 155k from Wall Street fees on 401k
Rob5TCP, thank you for posting this article! It would be a mistake for employers and employees not to pay attention to articles like this one.
- Sat Jun 30, 2012 7:57 am
- Forum: Personal Investments
- Topic: Setting up a 401k
- Replies: 7
- Views: 1528
Re: Setting up a 401k
This is a great deal. The fund lineup would clearly meet my needs. Unfortunately I know some of my partners are NON-Indexers who would throw a fit about lack of actively managed options. Fiduciaries are obligated to avoid acting purely in self interest :annoyed even when we're really saving people from themselves sometimes. Thanks for the info! You probably won't be able to convince your partners that index funds are the way to go, but here is something that your partners need to understand: Failing to properly select and monitor managed mutual funds is a violation of your fiduciary duty! No one will sue you for selecting a menu of low cost index funds only--it is NOT a violation of your fiduciary duty. Just think about it. Not one expert ...
- Fri Jun 29, 2012 7:06 pm
- Forum: Personal Investments
- Topic: Help with small business 401(k)
- Replies: 5
- Views: 962
Re: Help with small business 401(k)
So, how do I go about solving this? I'm waiting for EF to call me back but I guess they don't provide any employee education themselves or act as a TPA. Remember, education is NOT advice. If the education is general, the provider of investment education is not a fiduciary. Employee Fiduciary will show you what you need to give to the participants. Note: Employers may hire a service provider to provide general financial and investment education, interactive investment materials, and information based on asset allocation models. Again...if the education is general in nature, the service provider is NOT a fiduciary. However, it gets tricky because the decision to hire an investment adviser or a provider offering investment education is a fidu...
- Fri Jun 29, 2012 12:59 pm
- Forum: Personal Investments
- Topic: Setting up a 401k
- Replies: 7
- Views: 1528
Re: Setting up a 401k
I've read the Wiki topic "Setting up a 401k" and past threads and trying to learn as much as possible. I've contacted Employee Fiduciary for info. Also looking at Fidelity and Vanguard Small Business options. Still need some guidance (without yet involving the current advisor).... Good for you! The companies you named will answer your questions, and they will walk you through the process of setting up the plan. Easy! Regarding selecting a menu of investments for the plan, you will save time on managing and monitoring the plan if you keep the menu simple. How? Select a diversified mix of not more than eight, low cost, index funds. Perhaps the folks who post here will help you select a menu of index funds for the plan. Just show us...
- Tue Jun 26, 2012 1:05 pm
- Forum: Personal Investments
- Topic: 401k Plan Fees as presented by Prudential to our Trustees
- Replies: 6
- Views: 2991
Re: 401k Plan Fees as presented by Prudential to our Trustee
If you cannot convince the committee to look at a lower cost plan this year, just continue to drip on them.emre1000 wrote:Once you add in the fund expenses, the cost surges to 2%+. That is if the plan administration fees don't come from some sort of revenue sharing agreement that I'm not aware of. That's why I'm trying to determine at this point because that will determine if our plan fees total are 1.13% or 2.07%, or so.
- Tue Jun 26, 2012 10:50 am
- Forum: Personal Investments
- Topic: 401k Plan Fees as presented by Prudential to our Trustees
- Replies: 6
- Views: 2991
Re: 401k Plan Fees as presented by Prudential to our Trustee
Good for you! Imagine how different things would be if more employees asked the questions that you have been asking.emre1000 wrote:I'll pose the question to our HR person, she said to run all question through her.
By having a conversation with her about the things that livesoft mentioned as well as how she feels about index funds, you will learn more about what matters most to the committee. Also, you can ask how she feels about the new rules on cost disclosure. What cost information have the service providers given her? Will she allow you to read the cost disclosure statement?
Best wishes,
Frank
- Thu Jun 21, 2012 4:14 pm
- Forum: Investing - Theory, News & General
- Topic: 401K Fiduciary Liability Removal
- Replies: 6
- Views: 1317
Re: 401K Fiduciary Liability Removal
I am trying to separate the general issue of how a sponsor should interact with an advisor who is a having 3(38) fiduciary with the more specific question of whether an hourly-fee advisor from the Garrett Planning Network can serve the same 3(38) fiduciary function as an advisor from one of the established 401K companies. The answer is important, since an hourly-fee advisor from the GPN should cost the employer/sponsor much less than the 401K company advisors who typically charge about 1% of AUM for this service. I reviewed a few sites associated with GPN but did not see this question answered. Tip: Call GPN's main phone line and ask them to connect you with an adviser who will act as a 3(38) adviser and work for an hourly fee. If you cann...
- Thu Jun 21, 2012 8:46 am
- Forum: Investing - Theory, News & General
- Topic: 401K Fiduciary Liability Removal
- Replies: 6
- Views: 1317
Re: 401K Fiduciary Liability Removal
A point of considerable interest would be whether the advisors from the Garrett Planning Network (GPN) can also remove liability from the plan sponsor/trustee, as our employer might consider using the GPN if their coverage extended to removing liability from the sponsor/trustee. No, as was pointed out above, the plan sponsor (employer) cannot completely eliminate its fiduciary liability because the plan sponsor is responsible for the prudent selection and monitoring of the 3(38) investment manager. Also, hiring an adviser can get tricky. So, here is what you need to know: If you want to hire a 3(38) adviser, it makes sense to hire one who already agrees with your strategy of investing in low cost index funds. But after you hire the adviser...
- Fri Jun 15, 2012 8:18 am
- Forum: Personal Investments
- Topic: Selecting 401K Provider For New Firm
- Replies: 22
- Views: 2329
Re: Selecting 401K Provider For New Firm
Oh, I almost forgot. If you do not want to be a fiduciary, you should put it in writing that your role will be research only. That way the named fiduciary and whoever else wants to be a fiduciary is responsible for making every decision...as it should be.lawman3966 wrote:I have read the Wiki on campaigning for a better 401K provider, but did not see this aspect of the liability issue discussed therein. In any case, this situation is different in that there currently is no 401K plan, and the partners have given me about a week to propose a provider.
Edited on 06/15/2012 to correct a typographical error.
- Thu Jun 14, 2012 9:01 am
- Forum: Personal Investments
- Topic: Selecting 401K Provider For New Firm
- Replies: 22
- Views: 2329
Re: Selecting 401K Provider For New Firm
Well said! No one will sue the employer for selecting a diversified mix of low cost index funds and hiring a low cost TPA. Plus, it requires less time to do everything yourself than it does to hire an expert and monitor him or her!JamesSFO wrote:My $0.02 on all of the ERISA responsibility was nobody was going to be very successful at suing us for breaching our fiduciary responsibility for picking a plan that had a fixed set of funds available to ALL small businesses that had a mix of low ER funds across a variety of sectors plus good target date choices.
- Thu Jun 14, 2012 8:34 am
- Forum: Personal Investments
- Topic: Selecting 401K Provider For New Firm
- Replies: 22
- Views: 2329
Re: Selecting 401K Provider For New Firm
It would be helpful to hear from anyone who's used this approach and whether it allayed fears of management with regard to the fiduciary issue. When you talk with your employer, please keep this in mind: If an employer does not know which mix of investments and which TPA will serve employees well, it's not possible for him or her to know who to hire or how much to pay for the service. First, educate the employer so that he will be able to identify the paradoxes, myths, false statements, or half-truths that advisers may use in a presentation. I am considering presenting one option that will include using EF as the plan TPA, and an hourly-fee advisor from the Garrett Planning Network to provide the advising service. After you educate the emp...
- Wed Jun 13, 2012 11:57 am
- Forum: Personal Investments
- Topic: Selecting 401K Provider For New Firm
- Replies: 22
- Views: 2329
Re: Selecting 401K Provider For New Firm
Would appreciate any input regarding (a) the importance of the provider being a 3(38) fiduciary; c) whether there is any actual change in the liability of the mgmt by having a provider that is a 3(38) fiduciary; and (d) whether 3(38) fiduciary status is the highest fiduciary standard. I ask this because I don't want to be vulnerable to the assertion that some high-fee provider offers "better" fiduciary service/liability protection than a 3(38) fiduciary does. The following Web site does a good job of explaining ERISA section 3(38): http://www.401khelpcenter.com/mh/MH_unscrambling.html (Read number 4, which explains being a 3(38) fiduciary.) Whether or not a service provider is a fiduciary, your best bet to manage the risk of bein...
- Sat Jun 09, 2012 8:31 am
- Forum: Personal Investments
- Topic: Highway robbery in 401k
- Replies: 48
- Views: 8372
Re: Highway robbery in 401k
I finally became eligible for their 401k plan and received the documentation from Hartford. Interestingly, I read that Hartford was recently sued for fees in their 401k, but I guess it hasn't changed their structure for the better. Until there are more informed employers and employees who have learned to think like the folks who post here, 401(k) and 403(b) plan costs will continue to be high for most employees! New laws, rules, and regulations will not prevent certain sevice providers from charging employers and employees more than a plan and its investments should cost. Many employers think that they are reducing their fiduciary risk by hiring a service provider--who has an inherent conflict of interest--to be a co-fiduciary. But it is a...
- Sun Jun 03, 2012 7:42 am
- Forum: Investing - Theory, News & General
- Topic: Frustration with 401k
- Replies: 15
- Views: 2982
Re: Frustration with 401k
Like most CFOs, he's focused on managing the company's books and not necessarily on how to save the average employee $100 or $200 a year. They did, after all, get a new broker and it seems like we are getting a better plan than the old one (crossing my fingers). Sure, I'd like Employee Fiduciary. But I just don't see it happening. As for the petition, I just don't feel confident about doing that. I don't want to be a gadfly and I'm not sure how well this would blow over. Employers do whatever they want for their own reasons. And until they see how setting up a simple, low cost, 401(k) plan that has a menu of index funds will save everyone time and money nothing will change. All that you can do with employers who still don't get it even wit...
- Sat Jun 02, 2012 2:03 pm
- Forum: Investing - Theory, News & General
- Topic: Frustration with 401k
- Replies: 15
- Views: 2982
Re: Frustration with 401k
When the OP said that the new 401k disclosure rules can't come soon enough, it prompted me to find more information. Here is the Dept of Labor summary of the new rules that will become effective July 1. Fact Sheet - Final Regulation Relating to Service Provider Disclosures Under Section 408(b)(2) In contrast to the 401k plan described by the OP, here is how Vanguard will deal with this; Fee Disclosure Q&A Thank you for posting this important information. It's a reminder that there are two important dates: 1. July 1, 2012, for plan sponsor fee disclosure. 2. August 30, 2012, for participant fee disclosure notices. By the way, did you you read the answer to question #4? In their answer, Vanguard pointed this out: "Because of the amo...
- Fri May 25, 2012 7:32 am
- Forum: Personal Investments
- Topic: American Funds for 401k?
- Replies: 6
- Views: 3104
Re: American Funds for 401k?
1. Which company does the 401k representative work for?
2. Who would you use for recordkeeping and administration?
3. Would index funds that cost not more than 0.07 to 0.25% per year be included in the menu? Which index funds would be used?
4. Do you have a list of all the costs involved?
2. Who would you use for recordkeeping and administration?
3. Would index funds that cost not more than 0.07 to 0.25% per year be included in the menu? Which index funds would be used?
4. Do you have a list of all the costs involved?
- Thu May 03, 2012 7:21 am
- Forum: Investing - Theory, News & General
- Topic: Can you list ways that experts cheat on performance?
- Replies: 0
- Views: 497
Can you list ways that experts cheat on performance?
When talking with relatives, friends, employers, and experts about investment performance it's helpful to know how to use a time-weighted return. Why? It compares apples to apples! In the thread "Setting up a 401(k) plan," I listed a few ways that experts pretend that the investment performance on their investment picks is better than what it actually is. In this thread, please chime in on other ways that experts try to fool people. For instance... 1 - Cherry-picking investments that the adviser didn't even own back then. 2 - Cherry-picking time frames. 3 - Including deposits in investment performance, which is the mistake that the story below points out. (Regarding 401(k) plans, many experts point to how much the account has grow...
- Wed May 02, 2012 10:06 pm
- Forum: Investing - Theory, News & General
- Topic: Small business 401k help...
- Replies: 5
- Views: 1112
Re: Small business 401k help...
Also, regarding your statement "They also need to be convinced that ML isn't able to beat the new provider on returns, despite the high investing costs," it's like this: Many experts either pretend that their firm has a long-term track record of beating a mix of index funds in performance and hope you won't ask to see it , or they'll cherry-pick investments that they didn't even own during the selected time period. Cherry-picking time frames is another way that many experts try to fool people. See? Hope this helps. Please keep us informed! P.S. At http://www.bogleheads.org/forum/viewtopic.php?f=10&t=95783 I started a thread that points out another way that experts who consult on 401(k) and 403(b) plans try to fool employers an...
- Wed May 02, 2012 5:49 pm
- Forum: Investing - Theory, News & General
- Topic: Small business 401k help...
- Replies: 5
- Views: 1112
Re: Small business 401k help...
Am I on the right track? You are on the right track. Good for you! Our managing partners want to decrease costs, but are unwilling to take on any fiduciary risk. Ask Employee Fiduciary how much they will charge to be a Co-Fiduciary. They also need to be convinced that ML isn't able to beat the new provider on returns, despite the high investing costs. (The partners are not Bogleheads yet!) All you can do is to give it your best shot by keeping your presentation simple. For instance, you can say this: Did you know that not one expert has ever picked a mix of managed mutual funds that beat a diversified mix of low cost index funds, long term? If someone claims that they have the secret sauce to beat the market, ask to see their long term tra...
- Wed May 02, 2012 8:49 am
- Forum: Investing - Theory, News & General
- Topic: Small business 401k help...
- Replies: 5
- Views: 1112
Re: Small business 401k help...
You have already asked this same question at http://www.bogleheads.org/forum/viewtop ... 0#p1372330 .
Please Try the ideas that we gave you, and keep us updated on your progress. Okay?
Please Try the ideas that we gave you, and keep us updated on your progress. Okay?
- Tue Apr 24, 2012 8:33 am
- Forum: Personal Investments
- Topic: Small business 401k help
- Replies: 14
- Views: 2216
Re: Small business 401k help
Employee Fiduciary signs on as a plan fiduciary, but to transfer investment advice liability you have to have an ERISA 3(38) fiduciary. The investment advice provisions were part of the Pension Protection Act of 2006. You have to have a written agreement which delegates the responsibility for monitoring and selection of investment options. The plan fiduciary still is responsible for selecting, monitoring, and replacing the investment manager as necessary. In practice you can provide low cost, index funds pretty easily but with ERISA plans you need to make sure you have a process, follow it, and document! Well said! The bottom line is that a fiduciary cannot give away his fiduciary duties to anyone. Here is what the DOL has to say about thi...
- Sun Apr 22, 2012 1:59 pm
- Forum: Personal Investments
- Topic: Small business 401k help
- Replies: 14
- Views: 2216
Re: Small business 401k help
Hi HonoluluGator, I, too, hope that you will become a partner. I also hope that you can persuade the four partners to fix your 401(k) plan. You asked if there is a ballpark figure for the total cost of having ML manage your 401k. Tip: Do not use ballpark figures when talking with the partners. Instead, do this: - First, ask for a meeting with the four partners. At the meeting open up the wound and pour salt in it. For instance, in your presentation use actual numbers regarding how much YOU are paying for the plan and its investments and how much it will cost you and the firm, long term. That way you will have their attention and they will have a better chance of getting it regarding how much the current 401(k) plan is costing them and the c...
- Sun Apr 22, 2012 8:57 am
- Forum: Personal Investments
- Topic: Small business 401k help
- Replies: 14
- Views: 2216
Re: Small business 401k help
Second question... Other than the expense within each fund, what other expenses does ML charge typically? - First, find out if the 401(k) plan was setup by using a variable annuity. If so, in addition to the fund expenses it will also have a surrender fee, mortality charge, and termination fee. - If your plan was not set up by using a variable annuity, in addition to the fund expenses the plan probably has a wrap fee. Wrap fees can be as high as 3.00%, per year. Are these overpriced too? - ML fees are probably too high, but you can easily confirm that by asking Employee Fiduciary to compare the plan you could have through them to the plan you currently have. Is there an estimate of what % of our investments they are getting? - Please clari...
- Sat Apr 21, 2012 9:12 am
- Forum: Personal Investments
- Topic: Small business 401k help
- Replies: 14
- Views: 2216
Re: Small business 401k help
HonoluluGator wrote:What are some recommendations for the best 401k administrators for small businesses like us?
You can get a list of service providers at this thread: http://www.bogleheads.org/forum/viewtop ... 5#p1158145
Yes.HonoluluGator wrote:Employee Fiduciary looks interesting, are they good?
- Thu Apr 12, 2012 11:15 am
- Forum: Investing - Theory, News & General
- Topic: Company 401k Meeting - What questions to ask.
- Replies: 27
- Views: 3906
Re: Company 401k Meeting - What questions to ask.
After the meeting, him and I continued the discussion about low cost funds and the cut he takes along with the cut ADP takes. Finally got out of him that ADP take 0.3 - 0.5% and he takes 0.2-.5% depending upon the fund. So a base S&P index fund expense of 0.18% ends up close to 0.7%. This thread and your update regarding the meeting will help others who want to know which questions they should ask at 401(k) and 403(b) plan meetings.Thank you! Livesoft had some great questions that every employee should ask their employer: 1. Who are the fiduciaries to our 401(k) plan? Can you tell us all their names? 2. Can you please explain what a fiduciary is? 3. Do the fiduciaries know what it means to be fiduciary? 4. How do fiduciaries act in our...
- Wed Apr 11, 2012 8:26 pm
- Forum: Personal Investments
- Topic: 403b Setup is being more difficult than it should be...
- Replies: 4
- Views: 585
Re: 403b Setup is being more difficult than it should be...
Also, your organization has a contact person at Fidelity--ask your HR supervisor to call that contact person. Let HR know that it's their job to give participants the necessary paperwork to sign up for an account at Fidelity.
It's like this. Sometimes there may be only one person at an organization who actually understands the process well enough to walk you through it. But with the information given by your contact person at Fidelity, any person in HR can get educated on the process and walk you through it.
Edited on 04/12/2012 to make the first sentence more clear.
It's like this. Sometimes there may be only one person at an organization who actually understands the process well enough to walk you through it. But with the information given by your contact person at Fidelity, any person in HR can get educated on the process and walk you through it.
Edited on 04/12/2012 to make the first sentence more clear.
- Wed Apr 11, 2012 4:40 pm
- Forum: Personal Investments
- Topic: 403b Setup is being more difficult than it should be...
- Replies: 4
- Views: 585
Re: 403b Setup is being more difficult than it should be...
Ask Fidelity's retirement plan division to contact your organization's HR Supervisor. Because Fidelity wants your business, they will work it out and show you what to do!
- Wed Apr 11, 2012 2:50 pm
- Forum: Personal Investments
- Topic: 403b - When are fees too high?
- Replies: 14
- Views: 6215
Re: 403b - When are fees too high?
Always compare what you have to what you could have given the size of your plan. Where employers and employees go wrong is they waste time comparing their 401(k) or 403(b) plan to the cost of the average plan. If your employer made that mistake, you, too, will have a plan that costs more than it should.Radnog wrote:I've been wondering how my 401k stands up against others.
--Example of a low cost plan:
1. Recordkeeping and administration costs not more than $30.00, per year, per eligible employee. How much do you pay?
2. Index funds cost not more than 0.07 to 0.25% per year. How much do you pay for your investments?
See?
- Wed Apr 11, 2012 11:00 am
- Forum: Personal Investments
- Topic: Discussed company 401K with fiduciary
- Replies: 11
- Views: 1655
Re: Discussed company 401K with fiduciary
Yes, but many employers don't have the skills to figure out which costs and conflicts of interest have NOT been disclosed by the service providers.jerome99 wrote:Is there a clear cut answer to exactly what amount of transparency will be required?
Service providers not in compliance as of July 1 will be in violation of ERISA’s prohibited transaction rules and subject to penalties under the Internal Revenue Code.jerome99 wrote:Is June 1 the new date?
- Wed Apr 11, 2012 8:55 am
- Forum: Personal Investments
- Topic: Discussed company 401K with fiduciary
- Replies: 11
- Views: 1655
Re: Discussed company 401K with fiduciary
Yep! No matter how hard employees try, they can't lead a fiduciary who refuses to even listen to their good advice. By the end of this year we will find out if the new cost disclosure rules have teeth!pkcrafter wrote:...and how it will keep him from getting sued.
Paul
- Tue Apr 10, 2012 5:18 pm
- Forum: Personal Investments
- Topic: Discussed company 401K with fiduciary
- Replies: 11
- Views: 1655
Re: Discussed company 401K with fiduciary
This fiduciary does not believe that a low cost plan that has a mix of index funds is the way to go! Some day he may change his mind, but at this time he believes that managed mutual funds will outperform index funds, long term. And he likes American Funds.
All you can do at this point is to keep dripping on him--show him how a low cost plan will save him time and money and how it's likely that a mix of index funds will outperform a mix of managed funds, long term.
All you can do at this point is to keep dripping on him--show him how a low cost plan will save him time and money and how it's likely that a mix of index funds will outperform a mix of managed funds, long term.
- Tue Apr 10, 2012 12:55 pm
- Forum: Investing - Theory, News & General
- Topic: Company 401k Meeting - What questions to ask.
- Replies: 27
- Views: 3906
Re: Company 401k Meeting - What questions to ask.
What are the questions that I should ask that can help steer the company to better/lower cost options? Ask your employer if he will consider the possibility that the plan costs way more than it should. For thirty-employees, your company can get a mix of truly low cost index funds and recordkeeping and administration from Employee Fiduciary for only $30.00, per year, per eligible employee. Easy! Next, point this out: If the only reason for using ADP's expensive 401(k) plan is that ADP does the payroll, it would be a violation of the employer's fiduciary duty not to always act in the employees' best interests. Edited on 04/10/2010 to fix the last sentence. I added the word "not" so that the sentence will say what I originally inten...
- Tue Apr 10, 2012 9:11 am
- Forum: Investing - Theory, News & General
- Topic: [need help designing a] 401k Website
- Replies: 8
- Views: 1023
Re: [need help designing a] 401k Website
Always remember this: The employee is the genius.ABetter401k wrote:We'd like to build this site with a better user experience than you get at your bank, Vanguard or Schwab.
Start with a simple Web site that you think the employees can easily learn from. Next, talk with the employees...ask them what they are learning about selecting a mix of index funds and what they think the benefits of having a low cost plan are.
You can also ask the owners of this Web site for permission to link to this site. That way employees can post here.
- Mon Apr 09, 2012 5:02 pm
- Forum: Personal Investments
- Topic: 403(b) Plan Documents for a Church - Where to start?
- Replies: 1
- Views: 468
Re: 403(b) Plan Documents for a Church - Where to start?
Start with Employee Fiduciary at http://www.employeefiduciary.com/. If they can't help you, they may be able to give you some guidance.
Best wishes,
Frank
P.S. For the record I don't consult on plans anymore, nor am I paid in any way, shape, or form by anyone...I don't have any conflicts of interest.
Best wishes,
Frank
P.S. For the record I don't consult on plans anymore, nor am I paid in any way, shape, or form by anyone...I don't have any conflicts of interest.
- Mon Apr 09, 2012 4:49 pm
- Forum: Investing - Theory, News & General
- Topic: 401(k) - Why do employers still trust bad advice?
- Replies: 47
- Views: 4711
Re: 401(k) - Why do employers still trust bad advice?
Just thought you might like to see a summary of all of your answers regarding why you think that employers still trust bad advice. If you can think of other reasons, please feel free to post them because it will help those employees who plan to lobby their employer to improve the 401(k) or 403(b) plan. 1 - Don't care,don't know better or cheapest option. 2 - The employer, to protect itself legally, had paid a highly respected law firm to provide investment guidelines for the plan. Any attempt to deviate from those guidelines was just not permissable. 3 - Perhaps they don't believe the arguments I make, or perhaps I did not make a good enough case. They totally depend on the recommendations of the Prudential representative that "service...
- Sat Apr 07, 2012 9:46 am
- Forum: Investing - Theory, News & General
- Topic: 401(k) - Why do employers still trust bad advice?
- Replies: 47
- Views: 4711
Re: 401(k) - Why do employers still trust bad advice?
As I mentioned in an earlier post my wife's company has a plan with an ER of 1-1.5%. The company has about 100 employees and the total invested is about 5 million. Given that the board wants to continue to pay 0 (nil, nada, zip) for the plan perhaps the ER is not all that bad. Your paying 3k per employee so it makes sense the ER is less. Below is some info regarding Vanguard provide services to smaller companies. Vanguard Aims at Small Companies With Low-Cost 401(k)s By ANN CARRNS Vanguard says it will begin offering low-cost 401(k) packages for smaller companies later this year. Vanguard says the packages will target plans with assets of less than $20 million and will include record keeping, participant education and call-center support. ...
- Fri Apr 06, 2012 10:47 am
- Forum: Investing - Theory, News & General
- Topic: 401(k) - Why do employers still trust bad advice?
- Replies: 47
- Views: 4711
Re: 401(k) - Why do employers still trust bad advice?
Hi bilbobogle,bilbobogle wrote:I actually administer a 401K for a 50 person company - 90% of employees with Bachelors or above, avg salary 100K.
Your story is a good one, thank you for posting it. Since you were not born with the knowledge of how to set up a simple, low cost, plan, how did you acquire that knowledge? What clicked in your mind to make you want to set up your plan that way?
Edited on 04/07/2012 to correct a typographical error.
- Fri Apr 06, 2012 10:28 am
- Forum: Investing - Theory, News & General
- Topic: Reform/Abolish the Employer 401k
- Replies: 33
- Views: 5422
Re: Reform/Abolish the Employer 401k
Funny! I think you are saying that it would probably be easier for bogleheads to convince their employer to make the organization's 401(k) and 403(b) plan low cost and simple than it would be to get Congress to act. If that's what you are saying, I agree!sscritic wrote:Let's make things as complicated as we can so that the world will see bogleheads as a refuge in a storm. More storm, more refuge!
- Fri Apr 06, 2012 10:07 am
- Forum: Investing - Theory, News & General
- Topic: Proxy for Mutual Fund Shares in 401k - Standard or Unusual?
- Replies: 1
- Views: 486
Re: Proxy for Mutual Fund Shares in 401k - Standard or Unusu
None of the service providers want the liability of voting the proxies. It means the employees who own those mutual funds must vote, or not.Saving$ wrote:I guess I always figured since the mutual funds are inside the 401k, either the servicer, the administrator or the employer got to vote the proxies.
- Fri Apr 06, 2012 8:48 am
- Forum: Investing - Theory, News & General
- Topic: Reform/Abolish the Employer 401k
- Replies: 33
- Views: 5422
Re: Reform/Abolish the Employer 401k
Congress makes law, therefore you need to make your case to your representatives in the Senate and House of Representatives and let them run with it. Draft a simple letter asking for what you want. That way anyone who wants to send it to their state's representatives can do so.etm wrote:We just need to find the right representative to take up the issue. If anyone wants to work on this with me (drafting a letter, etc) you can contact me. The more Bogleheads help on this, the greater the odds we will find a representative who might want to look into this and perhaps write legislation.
- Thu Apr 05, 2012 10:17 am
- Forum: Investing - Theory, News & General
- Topic: [need help designing a] 401k Website
- Replies: 8
- Views: 1023
Re: [need help designing a] 401k Website
I read your entire post, but need you to clarify what you want do. The kind of Web site you set up will probably depend on this: Are you planning to charge employers and employees a fee to set up their plan and manage it. Or are you planning to charge employers and employees to educate them on what the "perfect" 401(k) plan looks like?ABetter401k wrote:A few of my finance buddies are looking to move out of capital markets and into retail finance. We think there's a great opportunity to offer the perfect 401k plan building on the Bogle principles.
- Thu Apr 05, 2012 10:08 am
- Forum: Investing - Theory, News & General
- Topic: 401(k) - Why do employers still trust bad advice?
- Replies: 47
- Views: 4711
Re: 401(k) - Why do employers still trust bad advice?
If employers would only learn what a low cost plan looks like they would know who to hire to provide the recordkeeping and administration and menu of index funds.Instead, what do they do? Well, as a first step they waste time by meeting with service provider after service provider. Next, they select either the best of the average or the best of the expensive plans because, to them, the plan that they selected looked like the best option.dhodson wrote:Thats one of the problems of needing advice.....Its hard for you to know if its good or bad since if you did know then you likely wouldnt need advice.
But that still does not answer this question: Why aren't employers getting the education that they need to know what a low cost plan looks like?
- Wed Apr 04, 2012 10:28 am
- Forum: Investing - Theory, News & General
- Topic: 401(k) - Why do employers still trust bad advice?
- Replies: 47
- Views: 4711
Re: 401(k) - Why do employers still trust bad advice?
Hi; News report: ABB Mismanagement Cost 401(k) Plan $35.2 Million, Judge Says - Bloomberg ABB Ltd. (ABBN)’s U.S. unit and its retirement plan managers cost plan participants more than $35 million through breaches of fiduciary duty, a U.S. judge ruled. Hi Barry, Thank you for posting this article. Employers can prevent this from happening to their organization by setting up a system of checks and balances whereby a new CEO, president, CFO, treasurer, or HR supervisor who is the named fiduciary will know exactly how to manage and monitor the plan to keep plan costs low. The article at wiki, Setting up a 401(k) plan and the thread at http://www.bogleheads.org/forum/viewtopic.php?p=808263#p808263 shows employers how to set up an effective syst...
- Tue Apr 03, 2012 8:44 am
- Forum: Investing - Theory, News & General
- Topic: 401(k) - Why do employers still trust bad advice?
- Replies: 47
- Views: 4711
Re: 401(k) - Why do employers still trust bad advice?
An employer-sponsored retirement plan is an employee benefit , and not an employee entitlement . Well said! To a certain extent, I get frustrated about general complaining of employer plans, because you (general you) have no right to the plan to begin with. Your employer is generous enough to give you the opportunity for tax-sheltered space - if you don't like what is offered by the plan, don't use it.! Good point! First of all, it would be a mistake for an employee to say something inappropriate and risk being perceived as a complainer. A better way of doing things would be to try to find out why your employer is trusting bad advice. If you can do that, you may be able to figure out a way to talk to your employer and make your case. If th...
- Mon Apr 02, 2012 2:41 pm
- Forum: Investing - Theory, News & General
- Topic: 401k plan fund offerings
- Replies: 1
- Views: 194
Re: 401k plan fund offerings
Who makes the decision to offer particular funds within the plan? Is it people on our side of things or the service provider/plan sponsor? The named fiduciary(s) for your plan make all of decisions. They have a duty to act in the employees' best interests! Your employer appointed the named fiduciary(s). I have a question about how the funds are selected to go into a particular 401k plan. It's likely that the named fiduciary(s) use an Investment Policy Statement (IPS) that they have drafted with the help of an expert. Unfortunately, experts who sell high cost plans use the IPS and a "Watch List" to create the illusion that they have the secret sauce to pick winners. If your employer has fallen for that trick it will be difficult t...
- Mon Apr 02, 2012 12:35 pm
- Forum: Investing - Theory, News & General
- Topic: 401(k) - Why do employers still trust bad advice?
- Replies: 47
- Views: 4711
Re: 401(k) - Why do employers still trust bad advice?
The new disclosure rules regarding the cost of a plan and conflicts of interest does apppear to be an opportunity for the low cost TPAs who do the right thing.TN_INVEST wrote:Since the employers aren't chomping at the bit to switch, maybe the low-cost plans ought to get ought there and get some of those plans. Ought to be like taking candy from a baby (if only it were that simple).
Two challenges that they have are:
1. They must find a way to get the attention of employers who have plans that cost more than they should.
2. The employer has to arrive at the conclusion that switching to a low cost plan will be easy and that it will require very little of his time and money. (People do things for their own reasons!)