I am starting the process of asking my employer to switch from ING Retirement 401k to another provider.
We have a small health-care related practice with less than ten 401k participants and around 400k in total assets.
I have researched the bogleheads forum and have learned a great deal about the key steps to approach an employer to make a switch.
I am about to ask my employer to request a Request for Proposal from Employee Fiduciary. ( http://www.employeefiduciary.com/rfp.htm
My practice currently has the funds listed below in ING Retirement 401k:
1. ING Fixed Account
2. Bond ING PIMCO Total Return Portfolio (0.88% expense ratio)
3. Asset Allocation
ING Index Solution 2015 Portfolio (0.80%)
ING Index Solution 2025 Portfolio (0.79%)
ING Index Solution 2035 Portfolio (0.80%)
ING Index Solution 2045 Portfolio (0.81%)
ING Index Solution 2055 Portfolio (0.81%)
4. Balanced - American Funds American Balanced Fund® - Class R-3 (0.97%)
5. Large Cap Value
American Funds Washington Mutual Investors FundSM - R-3 (1.03%)
ING Russell™ Large Cap Index Portfolio - Class S (0.66%)
6. Large Cap Growth
American Funds The Growth Fund of America® - Class R-3 (0.99%)
Fidelity® Advisor New Insights Fund - Institutional Class (0.96%)
ING FMR SM Diversified Mid Cap Portfolio - Service Class (0.91%)
ING Russell™ Mid Cap Index Portfolio - Class S (0.68%)
ING Russell™ Small Cap Index Portfolio - Class S (0.73%)
Pioneer Mid Cap Value Fund - Class Y (0.95%)
Wanger USA (0.98%)
American Funds EuroPacific Growth Fund® - Class R-3 (1.15%)
American Funds New Perspective Fund® - Class R-3 (1.15%)
1. Which funds would you recommend be included if we moved to Employee Fiduciary?
A key employee is "resistant to change" and asked me if the Vanguard funds through Employee Fiduciary were "just as good" as the ING funds.
I want to identify the best funds you'd suggest for portfolio diversification, the number of funds to include (10-20?), sectors, etc.
2. Is there another 401k servicer you would suggest to contact for an RFP?