Search found 736 matches

by fcirullo
Sat Mar 02, 2013 3:17 pm
Forum: Personal Finance (Not Investing)
Topic: 401(k) - I need your help with ideas for a wiki article.
Replies: 25
Views: 2361

Re: 401(k) - I need your help with ideas for a wiki article.

peppers wrote:What about a vesting Schedule? My plan requires an individual to be with the company three years before the company match is vested.
I'm not sure what you have in mind. Please elaborate.
by fcirullo
Sat Mar 02, 2013 3:10 pm
Forum: Personal Finance (Not Investing)
Topic: 401(k) - I need your help with ideas for a wiki article.
Replies: 25
Views: 2361

Re: 401(k) - I need your help with ideas for a wiki article.

krayzbone227 wrote:I was referring to 401(k) vs 401(k)/Profit Sharing vs Profit Sharing as 3 different iterations, with your interest perhaps just on the first two.
Please cobble a short paragraph that says what you think employers and employees need to know about this topic. Okay?
by fcirullo
Sat Mar 02, 2013 3:03 pm
Forum: Personal Finance (Not Investing)
Topic: 401(k) - I need your help with ideas for a wiki article.
Replies: 25
Views: 2361

Re: 401(k) - I need your help with ideas for a wiki article.

Can you go into a little more detail and explain where the revenue sharing money comes from? A few years ago, my MegaEmployer's 401(k) plan provider was suing the fund managers for improper revenue sharing (they were revenue sharing among each other). I couldn't find out the details, nor the result, but all I was concerned about was - is this out of my returns? Hi LadyGeek, Yes, it is the investor who pays the myriad of mutual fund fees! And those fees do lower your annual returns. Share classes such as A, B, C, D, etc., plus the 12b-1 fee can create the illusion that a 401(k) plan that has revenue sharing costs the participants less than another 401(k) plan that only has a menu of low cost index funds with no revenue sharing. Informed pla...
by fcirullo
Fri Mar 01, 2013 8:31 pm
Forum: Personal Finance (Not Investing)
Topic: 401(k) - I need your help with ideas for a wiki article.
Replies: 25
Views: 2361

Re: 401(k) - I need your help with ideas for a wiki article.

For this particular wiki article, I would like to keep as simple as possible by simply showing employers and employees how to set up, manage, and monitor a 401(k) plan--fast. I believe you are talking about a "Combo Plan” that combines a Defined Contribution (401k Profit Sharing) Plan and Defined Benefit Pension Plan. Right?
by fcirullo
Thu Feb 28, 2013 1:33 pm
Forum: Personal Finance (Not Investing)
Topic: 401(k) - I need your help with ideas for a wiki article.
Replies: 25
Views: 2361

Re: 401(k) - I need your help with ideas for a wiki article.

How about making mention of Revenue Sharing? Great idea! Would saying something like this help to make your points about revenue sharing? Revenue sharing is money that plan providers receive from many of the 401(k) plan's mutual funds. Revenue sharing can be given back to the plan participants, or it can used to offset administration fees. Fiduciaries should consider the consequences of failing to disclose how revenue sharing is used to help pay for the plan's expenses. Therefore, it would be a mistake not to ask for a Revenue Sharing table that shows which funds have revenue sharing and how those fees are used. I might have missed it but one of the benefits for an employer of having a 401k is that it will help attract and keep better and ...
by fcirullo
Tue Feb 26, 2013 10:57 am
Forum: Personal Finance (Not Investing)
Topic: 401(k) - I need your help with ideas for a wiki article.
Replies: 25
Views: 2361

401(k) - I need your help with ideas for a wiki article.

I need your help with ideas that can improve the wiki article Setting up a 401(k) plan . Now that you are getting annual fee disclosures and quarterly statements from service providers that show how much money you pay for the 401(k) plan, do you have any ideas that should be included in the Wiki article Setting up a 401(k) plan ? Note: The idea of the article is to show employers how to set up, manage, and monitor a truly low cost 401(k) plan. But the idea is also to show employees what a low cost plan really looks like so that they can communicate to their employer ideas on how to improve their current 401(k)plan. Any ideas that you can provide on helping employers and employees to be aware of and actually find this article would be apprec...
by fcirullo
Thu Feb 21, 2013 11:34 am
Forum: Personal Finance (Not Investing)
Topic: Setting up a 401(K) plan
Replies: 293
Views: 72076

Re: Setting up a 401(K) plan

jsiegrist, yes it is typical for an adviser to charge an asset based fee.

However, if you can negotiate a flat fee or a per participant fee it would be in your best interests to do so.

Regarding a benchmark for plan advisers, your question gave me an idea to do a poll on what others believe is a reasonable fee to pay. The poll is at the following thread: http://www.bogleheads.org/forum/viewtop ... 0&t=111500

Regarding the thread that has the poll, I provided some additional information about benchmarks.

Best wishes,

Frank

Edited on 02/21/2013 to make the meaning of the last sentence more clear.
by fcirullo
Thu Feb 21, 2013 10:52 am
Forum: Investing - Theory, News & General
Topic: 401(k) - How much is reasonable to pay for advice?
Replies: 9
Views: 1416

401(k) - How much is reasonable to pay for advice?

Note: If you feel as I do that people who don't need investment advice should be able to opt out of paying a fee for advice you can vote for that. And you can also vote for what you think would be a reasonable fee for people who do want investment advice. What prompted me to do this poll was as question that I got: At the thread Setting up a 401(k) plan at http://www.bogleheads.org/forum/viewtopic.php?p=1620011#p1620011, I got a great question from jsiegrist. jsiegrist noted that there is a benchmark for hiring a TPA and asked if there is a similar benchmark for hiring a plan advisor. jsiegrist also asked if it's typical for plan advisors to charge an asset-based fee. Below is some additional information for jsiegrist: It's difficult to es...
by fcirullo
Thu Feb 21, 2013 10:02 am
Forum: Personal Investments
Topic: 401K help
Replies: 9
Views: 2453

Re: 401K help

Hi Mark, I got your private message and replied to it by asking for the information shown below. Because it will take a day or so for my message to arrive in your in box, I answered your question again, here. To answer your question regarding which company would be better to go with than Morgan Stanley it would be helpful for you to provide the following information: 1. Which index funds are included in the universe of funds that participants can select from? Also, how much is the expense ratio for each of the index funds? 2. How much does the company pay for the plan, each year? 3. How much does each participant pay for the plan, each year? 4. Which, if any, of the investments have a surrender fee? 5. I know that Morgan Stanley is the advi...
by fcirullo
Tue Feb 12, 2013 4:02 pm
Forum: Personal Investments
Topic: 401K with "No Out of Pocket Expenses"
Replies: 6
Views: 3576

Re: 401K with "No Out of Pocket Expenses"

Oh, I almost forgot. They do say that recordkeeping services are from ING Institutional Plan Services, but they don't say if ING Institutional Plan Services bills separately for recordkeeping and administration or if they are paid from the expenses shown on this Web site: http://www.abaretirement.com/fees/basic-fees
by fcirullo
Tue Feb 12, 2013 3:27 pm
Forum: Personal Investments
Topic: 401K with "No Out of Pocket Expenses"
Replies: 6
Views: 3576

Re: 401K with "No Out of Pocket Expenses"

My first question is whether anyone can shed light as to whether the above Expense-Ratio fee is the only fee charged by this provider. Apparently, this 401(k) plan was designed for lawyers who define "No out of pocket expenses for the firm and no out of pocket expenses for participants" the same way. Here are the real fees for their plan: http://www.abaretirement.com/fees/basic-fees Secondly, I wonder whether anyone other than me feels that the term "no out of pocket expenses . . to participants" is appropriate in view of the 0.9% fund expense ratios. It' would be considered deceptive marketing for anyone but these lawyers who apparently use the phase the same way. Note - Their Web site says the following: The ABA Retir...
by fcirullo
Mon Feb 11, 2013 11:20 am
Forum: Personal Investments
Topic: Need help with selecting 401k plan provider
Replies: 8
Views: 3582

Re: Need help with selecting 401k plan provider

Do you know BenefitGuard? No, but on the surface they look competive, and they claim that they don't have any hidden fees. http://benefitguard.com/pricing/ Employee Costs at BenefitGuard Monthly Fee: $16.00 Average Investment Portfolio Expense Ratio: 0.24% Investment Mgmt. & Custodial Fees: 0.04% Independent Fiduciary Protection: 0.55% Total Annual Cost on $75,000 balance: $813.00 Employer Costs at BenefitGuard Ongoing Annual Costs: $0.00 One-Time Setup and Conversion Fee: $0.00 First Time Tax Credit: ($0.00) Total Setup Fees: $0.00 Again, you won't know which provider is right for your company until you do a side by side comparison that shows what matters most to you in a plan. First, compare investments and costs because nothing is m...
by fcirullo
Sun Feb 10, 2013 8:24 am
Forum: Personal Investments
Topic: 403b Question: Individual vs. Group Custodial Agreement?
Replies: 5
Views: 1468

Re: 403b Question: Individual vs. Group Custodial Agreement?

Ask HR what this change will mean for you in terms of contributions, investments, and costs. Or call the Fidelity 403(b) specialists at 1.866.418.5173, and ask the same questions. http://workplace.fidelity.com/403b.html
by fcirullo
Thu Feb 07, 2013 3:42 pm
Forum: Personal Investments
Topic: Need help with selecting 401k plan provider
Replies: 8
Views: 3582

Re: Need help with selecting 401k plan provider

You've done a good job of researching providers!

Tip: Narrow your list of providers to three providers that offer the index funds that you want in the plan. Next, choose the provider that has the lowest cost.

Or, using the providers you mentioned, show us a side by side comparison complete with costs and the index funds you want to use in the plan.
by fcirullo
Fri Jan 25, 2013 7:23 am
Forum: Personal Investments
Topic: New 401(k) "Save the Max" Calculator
Replies: 27
Views: 9022

New 401(k) "Save the Max" Calculator

New 401(k) "Save the Max" Calculator
Use FINRA's new 401(k) calculator to maximize your contributions in 2013.

http://apps.finra.org/calcs/1/max401k

About the Financial Industry Regulatory Authority
The Financial Industry Regulatory Authority (FINRA) is the largest independent regulator for all securities firms doing business in the United States. FINRA's mission is to protect America's investors by making sure the securities industry operates fairly and honestly.
by fcirullo
Thu Jan 24, 2013 11:46 am
Forum: Investing - Theory, News & General
Topic: How do they do it? [poor 401k selections]
Replies: 20
Views: 2245

Re: How do they do it? [poor 401k selections]

What’s most important about a 401(k) plan? Its investments, right? Employers who have an awful plan believe that they have the skill to hire an expert who can pick a mix of managed mutual funds that will beat a core mix of low cost index funds, long term. Therefore, they are not satisfied with selecting a menu of low cost index funds that are guaranteed to match the market's performance less their cost!
by fcirullo
Wed Jan 09, 2013 5:48 pm
Forum: Personal Investments
Topic: 401K Vendor
Replies: 10
Views: 864

Re: 401K Vendor

steve401 wrote:Does anyone know a vendor that is reasonably priced and falls into this range?
As mentioned above, Employee Fiduciary is that range, and you may be able to negotiate a fee in that range with Fidelity. Ask livesoft if he can give you the name of someone at Fidelity that you should contact. Remember, you can negotiate fees with any vendor!

The following link will show you a few more recordkeepers and administrators, but most of them do charge above the $30.00, per year, per eligible employee range you are looking for: http://www.bogleheads.org/forum/viewtopic.php?t=81170
by fcirullo
Thu Dec 06, 2012 7:09 am
Forum: Personal Finance (Not Investing)
Topic: 401(k) - Satisfied that costs YOU pay are being disclosed?
Replies: 23
Views: 2483

Re: 401(k) - Satisfied that costs YOU pay are being disclose

So I started with a new employer this August and had my first 401k contributions in September, but have received no quarterly reports, only weekly "summaries" and see no info on the website, including in the "Plan Documents" so as far as I can tell I have 0 info on fees. It's not likely that you have zero fees or expenses. For instance, find out who pays for the cost of each fund that you invest in. Next, find out who pays for plan-related expenses. For questions about the rule, contact EBSA's Office of Regulations and Interpretations at 202-693-8500. The following is from the fact sheet that was developed by the U.S. Department of Labor and the Employee Benefits Security Administration. Website: http://www.dol.gov/ebsa...
by fcirullo
Tue Dec 04, 2012 4:42 pm
Forum: Personal Finance (Not Investing)
Topic: 401(k) - Satisfied that costs YOU pay are being disclosed?
Replies: 23
Views: 2483

Re: 401(k) - Satisfied that costs YOU pay are being disclose

Should I have got something by now? Yes! By now, all fees and expenses that you paid for your 401(k) or 403(b) plan should have been disclosed. Ask your employer to give you the disclosure statement that should have been given to employees on or before August 30, 2012. Unless your employer got an exemption, below is the timeline that employers had to comply with: 1. Plan fiduciaries (employers) got the newly mandated disclosures from the service providers on or before July 1, 2012. 2. Next, participants (employees) got the mandated information from their employer on or before August 30, 2012. Note: Going forward, employees will get updated fee disclosure information annually. 3. Finally, or or before November 14, 2012, participants got a s...
by fcirullo
Tue Dec 04, 2012 8:53 am
Forum: Personal Finance (Not Investing)
Topic: 401(k) - Satisfied that costs YOU pay are being disclosed?
Replies: 23
Views: 2483

Re: 401(k) - Satisfied that costs YOU pay are being disclose

What's interesting about this poll is that fifty-five percent of knowledgeable investors said they are not satisfied that all of the costs that they pay have been disclosed. Wow! It appears that many employers still do not get it that setting up a 401(k) plan or 403(b) plan that has a low cost recordkeeper and administrator and a menu of low cost index funds is the way to go because there is less of a chance of being sued and it requires less time to manage and monitor a plan that is simple. For instance, it requires less time to select and monitor a mix of index funds than it does a mix of managed funds. Plus, it's likely that a mix of index funds will outperform a mix of managed funds, long term. Also, it requires less time to select a re...
by fcirullo
Thu Nov 22, 2012 10:12 am
Forum: Personal Investments
Topic: Help needed to change my employer's 403b administrator
Replies: 11
Views: 1566

Re: Help needed to change my employer's 403b administrator

Would there be the possibility of my employer having a contract with the 403b/401k administrator that won't allow for there to be more than one administrator (competition)? They haven't mentioned this but maybe this is one of the reason that they are reticent to change. Ask your employer if there is any reason why they would not switch to a different administrator who could save them time and money. Perhaps I could do some of the footwork for my employer? First, ask your employer if they would give it an honest look if you showed them how easy it would be to switch to a different administrator who would slash the time it requires to manage the plan, charge less for recordkeeping and administration, and allow employees to keep more of their...
by fcirullo
Wed Nov 21, 2012 8:38 am
Forum: Personal Finance (Not Investing)
Topic: 401(k) - Satisfied that costs YOU pay are being disclosed?
Replies: 23
Views: 2483

401(k) - Satisfied that costs YOU pay are being disclosed?

By November 14, 2012, all fees and expenses that you paid for the 401(k) plan should have been disclosed. Are you satisfied that every cost that you paid was disclosed? If you could make any change that you wanted to your organization's 401(k) or 403(b) plan, what changes would you make regarding recordkeeping and administration? investments? The following is from the Fact Sheet for the Final Regulation Relating to Service Provider Disclosures Under Section 408(b)(2) at http://www.dol.gov/ebsa/newsroom/fs408b2finalreg.html : "The first quarterly statement must then be furnished no later than November 14, 2012 (i.e., 45 days after the end of the third quarter (July through September), during which initial disclosures were first required...
by fcirullo
Wed Oct 17, 2012 7:18 am
Forum: Investing - Theory, News & General
Topic: Updated List: 401(k) Plan Recordkeepers and Administrators
Replies: 0
Views: 2288

Updated List: 401(k) Plan Recordkeepers and Administrators

The wiki article Setting up a 401(k) plan has an updated list of low cost recordkeepers and administrators (service providers) who can include a menu of index funds in your plan. Also, the article shows you the how to request a proposal. - To read the wiki article click on this link: Setting up a 401(k) plan - Next, scroll down to Request for Proposal . - Next, click on the link Who else wants to know how to lobby for a lower cost 401(k) The following is from the wiki article mentioned above: Request for proposal (RFP) Put together a list of low cost 401(k) Plan service providers (recordkeepers and administrators) who will include a menu of index funds in your plan: Example: Who else wants to know how to lobby for a lower cost 401(k) . Ask ...
by fcirullo
Tue Oct 16, 2012 4:50 pm
Forum: Personal Investments
Topic: Employee Fiduciary 401k vs. Costco/Intuit 401k
Replies: 29
Views: 11431

Re: Employee Fiduciary 401k vs. Costco/Intuit 401k

Robby, thank you for showing us how the plans work! The following theads show you as the contact person for the Costco 401(k) plan.

In the Wiki article Setting up a 401(k) plan under Forum Discussions you can access the folllowing threads:
1. Who else wants to know how to lobby for a lower cost 401(k): http://www.bogleheads.org/forum/viewtop ... 5#p1158145
2. Employee Fiduciary 401k vs. Costco/Intuit 401k: http://www.bogleheads.org/forum/viewtop ... 5#p1428345

Edited on 10/16/2012 to correct a typographical error.
by fcirullo
Sat Oct 13, 2012 11:02 am
Forum: Personal Investments
Topic: Employee Fiduciary 401k vs. Costco/Intuit 401k
Replies: 29
Views: 11431

Re: Employee Fiduciary 401k vs. Costco/Intuit 401k

Intuit is no longer co-branding this 401(k). No real change to the plan. It just no longer has the Intuit logo on it. This 401(k) has always been a partnership between The Online 401(k) and Costco. Hi Robby, Thank you for the information. I have a few questions: - 1. How does Costco's plan with your company as the TPA differ from The Online 401(k)? - 2. Who is the contact person for Costco's 401(k) plan, and what is the telephone number? What is the URL for Costco's 401(k) plan? - 3. Currently we show Jason Gross as the contact person for The Online 401(k). Should we show you as the new contact person on the following list of service providers? Costco 401(k) plan Note: The Online 401(k) is the TPA/Recordkeeper for the 401(k) plan that Cost...
by fcirullo
Mon Oct 08, 2012 5:51 pm
Forum: Personal Investments
Topic: 401(k) provider recommendations for small business
Replies: 28
Views: 8588

Re: 401(k) provider recommendations for small business

NoNonsense wrote:We've had good success with BenefitGuard.com. They are like the Online 401(k) and Employee Fiduciary price-wise but have much better service than either.
Thank you for sharing this information. Would you mind giving us the details? For instance, how much do you pay per employee for recordkeeping and administration? Is there an adviser fee? What other expenses do you pay?
by fcirullo
Fri Oct 05, 2012 5:47 pm
Forum: Personal Investments
Topic: 401(k) provider recommendations for small business
Replies: 28
Views: 8588

Re: 401(k) provider recommendations for small business

I don't get to make the final decision but they're letting me help steer the ship. Well done, good for you! My only suggestion would be that you document everything including the fact that you are doing research only and not participating in any of the decisions. That way you won't accidentally become a fiduciary. A fiduciary makes decisions and can be held personally liable. Details are at the United States Deparment of Labor Web site http://www.dol.gov/ebsa/publications/401kplans.html#.UG9iRk3BG8A From the United States Deparment of Labor Web site: "Fiduciary Responsibilities - Many of the actions needed to operate a 401(k) plan involve fiduciary decisions. This is true whether or not you hire someone to manage the plan for you or d...
by fcirullo
Fri Oct 05, 2012 10:06 am
Forum: Personal Investments
Topic: 401(k) provider recommendations for small business
Replies: 28
Views: 8588

Re: 401(k) provider recommendations for small business

StarmanDeluxe wrote:We're currently with a local provider that subcontracts through Nationwide. The fund selection is terrible; every fund is actively-managed and expense ratios start at 1%. Our 401(k) plan administrator charges another 1.05% on top of that, so fees on any given fund are at least 2%.
If you do hire a low cost provider such as Employee Fiduciary, which costs is the employer be willing to pay? Note: Every cost can be passed on to the employees just like it is with Nationwide. Also, what is your role? Are you one of the decision-makers, or are you an employee who was asked to do research only?
by fcirullo
Thu Oct 04, 2012 5:03 pm
Forum: Personal Investments
Topic: 401(k) provider recommendations for small business
Replies: 28
Views: 8588

Re: 401(k) provider recommendations for small business

StarmanDeluxe wrote: I'm hoping we end up with a provider (like Employee Fiduciary) that doesn't charge asset-based fees.Thanks!
Given your plan's assets and number of participants the two providers you mentioned would be fine. What happened that caused your employer to be interested in switching providers?
by fcirullo
Sat Sep 29, 2012 9:53 am
Forum: Personal Finance (Not Investing)
Topic: Researching 401(k) providers / Getting my employer to switch
Replies: 12
Views: 2120

Re: Researching 401(k) providers / Getting my employer to sw

Does anyone know how to find out what other providers would be able to offer a company of our size? The following thread has a list of low cost 401(k) plan providers that service both small and large plans: Who else wants to know how to lobby for a lower cost 401(k) plan at http://www.bogleheads.org/forum/viewtopic.php?t=81170 . Also, you should read the following wiki article before you talk with the service providers and your employer: http://www.bogleheads.org/wiki/Setting_up_a_401k_plan . Why read this particular article on Setting up a 401(k) plan? Because...when you know what a truly low cost 401(k) plan looks like you will know the right questions to ask the service providers. Knowing how to talk with your employer will make your pr...
by fcirullo
Thu Sep 20, 2012 5:49 pm
Forum: Investing - Theory, News & General
Topic: 401k fees
Replies: 28
Views: 4239

Re: 401k fees

kaby wrote:I don't want to see that money wasted by benefiting plan administrators instead of our staff. I'm totally convinced that adding low-cost funds to a plan is a good idea....I honestly don't know why any CEO would not want to hear a good idea.
Yep! And employees who learn what a low cost plan looks like can present their ideas properly. My only caution is that employees should read what livesoft, lawman3966, and others have pointed out. That way they will go into the meeting with their eyes wide open and not make the mistake of saying the wrong things.
by fcirullo
Thu Sep 20, 2012 4:25 pm
Forum: Investing - Theory, News & General
Topic: [Poll] My Defined Contribution Workplace Retirement Plan...
Replies: 21
Views: 1665

Re: [Poll] My Defined Contribution Workplace Retirement Plan

This is an interesting poll question. Thank you for asking it. So far, what I see in the results is this: Even with the advantage of economies of scale and having the costs disclosed to them, many employers are still doing a poor job of managing and monitoring their company's 401(k) plan.
by fcirullo
Wed Sep 19, 2012 6:26 pm
Forum: Investing - Theory, News & General
Topic: 401k fees
Replies: 28
Views: 4239

Re: 401k fees

I guess my point here is that perhaps CEO's are reluctant to mess with 401k programs (it's not their money, after all) but if they did go down the indexing road that I did with our company investing, they too, may be a lot more receptive to importing their findings to your 401k plan.....just a thought. Congratulations on your decision to improve the plan! As mentioned above...Employee Fiduciary, Fidelity, Vanguard, and Costco's 401(k) plan would be good choices. Remember, you can negotiate cost with the service providers. For employees who want to know if they should talk with the CEO about the 401(k) plan, it would be helpful to know how you see the role of a CEO. For instance, many employees who have talked with HR or the CFO feel that n...
by fcirullo
Mon Sep 17, 2012 3:14 pm
Forum: Personal Investments
Topic: Building Vanguard 401k for Company - Review
Replies: 36
Views: 2988

Re: Building Vanguard 401k for Company - Review

IlliniSigEp wrote:I have convinced my company to move its 401k plan to Vanguard.
Well done. Congratulations!
by fcirullo
Thu Sep 13, 2012 2:11 pm
Forum: Investing - Theory, News & General
Topic: "Is the Fiduciary Standard a Joke?"
Replies: 24
Views: 2710

Re: "Is the Fiduciary Standard a Joke?"

From the article, Is the Fiduciary Standard a Joke? "Eventually, the client received a letter that no public action would be taken against this CFP."

The CFP board’s Disciplinary and Ethics Commission who decided to do nothing about this case is the joke, not the Fiduciary Standard. This case proves that even the experts who take an oath won't stop giving themselves reasons to do whatever they want to do at the moment!
by fcirullo
Sun Sep 09, 2012 11:41 am
Forum: Investing - Theory, News & General
Topic: Ray Lucia charged by SEC - "Buckets of Money" Sep 5, 2012
Replies: 136
Views: 17581

Re: Ray Lucia charged by SEC - "Buckets of Money" Sep 5, 201

Nothing can change this simple fact of retirement investing. No amount of the backtesting, bucketizing or hand-waving can change this. Nobody knows what the maximum withdrawal rate will be, or how to structure and manage a portfolio to guarantee that it works. BTW, this kind of thing is not uncommon. Take an unsolvable problem, like building a perpetual motion machine, and come up with a machine that is so complex, that it appears that it might work. Obviously, no machine can work, because it would violate the 1st Law of Thermodynamics. But the complexity in the design, coupled with people's desire for a solution, allows for a willing suspension of disbelief. In other words, gullible people will fall for it every time. Well said! Sooner or...
by fcirullo
Sun Sep 09, 2012 9:05 am
Forum: Personal Investments
Topic: Employee Fiduciary 401(k) Plan Termination
Replies: 12
Views: 2706

Re: Employee Fiduciary 401(k) Plan Termination

I, too, thank you!

Some of the folks at Employee Fiduciary read these posts, and your feedback can help them provide a better service. Be that as it may, Employee Fiduciary may not be able to give us their side of this story and tell us who they think should be blamed because it would be a mistake not to keep information about a client confidential.
by fcirullo
Fri Sep 07, 2012 12:26 pm
Forum: Investing - Theory, News & General
Topic: Ray Lucia charged by SEC - "Buckets of Money" Sep 5, 2012
Replies: 136
Views: 17581

Re: Ray Lucia charged by SEC - "Buckets of Money" Sep 5, 201

From the SEC release: “Lucia and RJL left their seminar attendees with a false sense of comfort about the Buckets of Money strategy,” said Michele Wein Layne, Regional Director of the SEC’s Los Angeles Regional Office. “The so-called backtests weren’t really backtests, and the strategy wasn’t proven as they claimed.” Coming up with the marketing phrase "Buckets of money" was cleaver, but making those claims was dumb! Back in the day when people were Stock Brokers (There were no Financial planners), everyone was trained to say something like this: Mr./Mrs. prospect, you can put all of your eggs in one basket and watch that basket very carefully, or you can take my advice and diversify by putting your money into three baskets. ----...
by fcirullo
Fri Sep 07, 2012 8:34 am
Forum: Investing - Theory, News & General
Topic: Poll - Have you received the fee disclosure information?
Replies: 22
Views: 3097

Re: Poll - Have you received the fee disclosure information?

Reminder: The first quarterly statement must be furnished to you no later than November 14, 2012. As of today, fifteen people voted that they have not received the fee disclosure information. Ask your employer if the plan has an exemption. Note: If you received the fee disclosure information after you voted "No," the software will allow you to change your vote. Tip: If you want to learn how to set up a low cost 401(k) or 403(b) plan, this wiki article has step by step instructions: Setting up a 401(k) plan If you want to campaign for a better 401(k) or 403(b) plan, this wiki article will show you how to get your employer to hear you out: How to Campaign for a Better 401(k) Plan Thank you for your participation in the poll. Your c...
by fcirullo
Sat Sep 01, 2012 5:28 pm
Forum: Investing - Theory, News & General
Topic: Poll - Have you received the fee disclosure information?
Replies: 22
Views: 3097

Re: Poll - Have you received the fee disclosure information?

Does this apply to 457(b) plans as well? -- Tet They, too, may be exempt. but you'll need to ask HR. Let us know what you find out. Okay? The IRS Web site at http://www.irs.gov/Retirement-Plans/IRC-457(b)-Deferred-Compensation-Plans does not mention fee disclosure for IRC 457(b) Deferred Compensation Plans. It says this: Plans of deferred compensation described in IRC section 457 are available for certain state and local governments and non-governmental entities tax exempt under IRC 501. They can be either eligible plans under IRC 457(b) or ineligible plans under IRC 457(f). Plans eligible under 457(b) allow employees of sponsoring organizations to defer income taxation on retirement savings into future years. Ineligible plans may trigger ...
by fcirullo
Sat Sep 01, 2012 5:03 pm
Forum: Investing - Theory, News & General
Topic: Poll - Have you received the fee disclosure information?
Replies: 22
Views: 3097

Re: Poll - Have you received the fee disclosure information?

retiredjg wrote:Frank, just a clarification please. I am retired, but still have money in the TSP. Should I be expecting to get such a statement?
It's possible that the TSP has an exemption from disclosure. My son has money in the TSP, but I won't see him until tomorrow. I found a telephone number (1-877-968-3778) at their Web site at https://www.tsp.gov/participantsupport/ ... tTSP.shtml . Perhaps you have a different number to get your questions answered.
by fcirullo
Sat Sep 01, 2012 4:54 pm
Forum: Investing - Theory, News & General
Topic: Poll - Have you received the fee disclosure information?
Replies: 22
Views: 3097

Re: Poll - Have you received the fee disclosure information?

Sidney wrote:Beyond that, we start to drift into discussions about future legislation or policy which tends to get threads locked.
True! Thank you for the reminder.
by fcirullo
Sat Sep 01, 2012 12:35 pm
Forum: Investing - Theory, News & General
Topic: Poll - Have you received the fee disclosure information?
Replies: 22
Views: 3097

Re: Poll - Have you received the fee disclosure information?

Many employers still have a 401(k) or 403(b) plan that costs more than it should even though the DOL and EBSA reminded employers (plan sponsors) of their fiduciary duty: "The final rule provides that the investment of plan assets is a fiduciary act governed by the fiduciary standards in ERISA section 404(a)(1)(A) and (B), which require plan fiduciaries to act prudently and solely in the interest of the plan's participants and beneficiaries." You can read about what's required of plan sponsors here: http://www.dol.gov/ebsa/newsroom/fsparticipantfeerule.html My opinion is that in addition to providing a fee disclosure statement, plan sponsors (employers) should also be required to show exactly how they are are acting solely in the i...
by fcirullo
Thu Aug 30, 2012 12:04 pm
Forum: Investing - Theory, News & General
Topic: Poll - Have you received the fee disclosure information?
Replies: 22
Views: 3097

Poll - Have you received the fee disclosure information?

401(k) Poll - Have you received the fee disclosure information? Reminder: Most plan participants, employees, will begin receiving fee disclosure information no later than August 30, 2012, which is today. The first quarterly statement must be furnished to you no later than November 14, 2012, which is 45 days after the end of the third quarter. Has your employer made any changes to your plan as a result of the fee disclosure that employers received from the service providers on July 1, 2012? If you want to answer the poll question at the following thread or change your previous answer, it will be interesting to see how many employers have taken steps to cut plan costs: ---- Previous 401(k) poll question: Have any changes been made to your 40...
by fcirullo
Tue Aug 28, 2012 12:02 pm
Forum: Investing - Theory, News & General
Topic: 401(k) risk
Replies: 22
Views: 3181

Re: 401(k) risk

Apparently, there is a serious problem in the process used by the Rapid ERISA Action Team (REACT) . At the U.S. Department of Labor's Web site it says this: "Under REACT, when a company has declared bankruptcy EBSA takes immediate action to ascertain whether there are plan contributions that have not been paid to the plans' trusts, to advise all affected parties of the bankruptcy filing, to provide assistance in filing proofs of claim to protect the plans, the participants, and the beneficiaries, and if necessary, to seek the appointment of an independent fiduciary to distribute plan assets to participants and beneficiaries." Well, it was in December, 2008, that Penn Specialty filed for Chapter 7 bankruptcy — liquidation, and noth...
by fcirullo
Tue Aug 28, 2012 8:52 am
Forum: Personal Investments
Topic: The Madoff option in a 401(k) plan
Replies: 33
Views: 3823

Re: The Madoff option in a 401(k) plan

Livesoft, thank you for posting this information! You immediately saw ALL of the red flags. Your wife is lucky to have your great advice.
livesoft wrote:According to the summary statement, it had a return of about 8% in 2008 and has never lost money since inception many years ago.
This kind of language is a sales pitch that has always worked on people who don't know that index funds are the way to go. It works because it assures people that the investment is safe, it has a high return, and it has tax advantages if it's in a 401(k) plan!
by fcirullo
Sat Aug 18, 2012 7:26 am
Forum: Investing - Theory, News & General
Topic: Have any changes been made to your 401(k) or 403(b) plan?
Replies: 6
Views: 2116

Have any changes been made to your 401(k) or 403(b) plan?

Have any changes been made to your 401(k) or 403(b) plan? If so, what changes were made?

If you want help with setting up a new plan or improving your current plan, read this article:
Setting up a 401(k) plan

If you want to campaign for a better plan, read this article:
How to Campaign for a Better 401(k)

- Note: Plan fiduciaries, employers, got the newly mandated disclosures from service providers on July 1, 2012.

- Note: Most plan participants, employees, will begin receiving fee disclosure information no later than August 30, 2012, and then annually thereafter. The first quarterly statement must be furnished to you no later than November 14, 2012, which is 45 days after the end of the third quarter.
by fcirullo
Thu Aug 16, 2012 1:34 pm
Forum: Investing - Theory, News & General
Topic: 401(k) and 403(b) fee disclosure
Replies: 10
Views: 6472

401(k) and 403(b) fee disclosure

Wondering when you will see the fees that you have been charged for your 401(k) or 403(b) plan? Employee Benefits Security Administration Frequently Asked Questions at http://www.dol.gov/ebsa/faqs/faq-disclosures.html Q: When will I see these disclosures? A: Most plan participants (you) will begin receiving the newly mandated information no later than August 30, 2012, and then annually thereafter (Details are below). Plan fiduciaries (your employer) got the newly mandated disclosures on July 1, 2012. 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. Details regard...
by fcirullo
Wed Aug 08, 2012 8:13 am
Forum: Personal Investments
Topic: 401k - Request for Proposal (RFP) - Employee Fiduciary
Replies: 6
Views: 2665

Re: 401k - Request for Proposal (RFP) - Employee Fiduciary

I am starting the process of asking my employer to switch from ING Retirement 401k to another provider. Good for you! - 1. Which funds would you recommend be included if we moved to Employee Fiduciary? For several reasons, a core menu of low cost index funds is the way to go. Keep the menu of funds simple (not more than eight to ten funds). The folks here have already given you some great ideas. In your presentation, remember to show employees at your company why it requires less time to select and montor index funds than it does managed funds, why a mix of low cost index funds are likely to beat a mix of managed funds in performance long term, and why it's easier to educate employees when a plan has a menu of index funds. - 2. Is there an...
by fcirullo
Wed Aug 01, 2012 6:11 pm
Forum: Investing - Theory, News & General
Topic: Am I a fiduciary?
Replies: 4
Views: 1287

Re: Am I a fiduciary?

Are all the partners considered fiduciaries or only the partner who is the administrator of the plan and whose name is on the plan? If you are not named in any of the plan documents and you do not make any of the decisions, it's likely that you are not a fiduciary. Ask your company's general counsel how the partnership was set up. And ask if you have unlimited personal liability for a court judgment if the plan loses in a lawsuit. If we elect an investment committee that looks over or suggests mutual funds, would those members be considered fiduciaries? Not if the committee puts it in writing that it does research only and does not make decisions regarding which vendors to hire and/or which investments to include in the plan's menu. That w...