Ted Valentine wrote:Do you know if EF does "safe harbor" 401k's? Do you know if there are any difficulties in transferring a safe harbor plan?
xerty24 wrote:Does EF let you do ETF investing, as well as just mutual funds? I thought I recalled something about this when I was reading a bit on EF. I'd be interest to know more about how it works, transaction fees, etc.
I know there are better ETFs in some categories like emerging markets (VWO) than their are mutual funds.
I'm in the process of converting my company's safe harbor over to EF. No problems -- other than me being a bit behind on doing the legwork with too many other deadlines to deal with.
stratton wrote:The only missing item that fits the plans investment philosophy might be a TIPS fund.
grok87 wrote:thanks for the very complete description. Now if only I could get my company to switch from Fido to Vanguard.
Is the minimum for Vanguard really $3M. I thought it was $10 M.
savermike wrote:I hope that a few people in your organization sooner or later realize how much has been done for them by the plan change.
helot wrote:Quick question, though. Why did you choose the Vanguard index fund offerings over the Fidelity offerings considering the latter are less expensive?
leaonard wrote:Also, if you feel up to it, would you mind giving one more update on your 401k in 1 year or so? I am interested in feedback you get on whether employees recongnize the value of the plan. Does it have an impact on turnover, job satisfaction, etc? Also, other issues that come up that you have to solve.
Again, very, very nicely done.
orrgroup wrote:Dalbar research shows that average investor equity returns in 20 years are 4% when active funds are 10% and index funds are 12%. Something has to be going on in these twenty years to keep investor's from earning the returns that are duly theirs. And that something is investor behavior. Thus, behavioral management is needed and a good advisor can do that for a fee that is well worth it.
orrgroup wrote:Sorry about the alphabet soup mixup. I hadn't looked at the plan in years.
I wouldn't mind doing an analysis on the funds. Do you have a website that lists the performances?
Yes, we are DFA.
orrgroup wrote:SO, I have been perusing the TSP site. Its interesting that there is data posted there, but none, at least that I can find, that shows 3 yr history, annualized. Obviously this can be calculated manually with the various returns given, but what a pain. You would think their site does this for you.
I am a principal at Employee Fiduciary. We handle many, many plans with 100% Vanguard funds or nearly 100% Vanguard Funds. We also handle many plans for DFA approved advisors, with DFA Funds, who use us for daily recordkeeping and TPA services. I am familiar with 401(k)ASP. It is inaccurate to state that we have less functionality and inaccurate to state that our fees are the same. We offer full service, daily recordkeeping and compliance. Since 2005, we've guaranteed the lowest total cost, full service plans in the nation. We provide our clients with dedicated plan administrators, toll free help line, same day trading, same day contribution processing, full document and plan design support, ERISA help from staffers that include those who serve on the technical advisory board for qualified plans for AICPA. We receive referrals--based on merit alone--from two of the three largest mutual funds companies, have no proprietary fund requirements, have been written up in Forbes and touted by the editors of Money Magazine.
If you're interested, I'd be happy to provide you with testimonials from many happy DFA advisors and their clients whom we jointly serve.
This Board is a great forum to discuss the relative merits of Vanguard Funds vs. other approaches, and to discuss different service providers that offer companies access to low cost funds but please be accurate with your representations of these other service providers.
Laura wrote:Thank you for looking at past returns but since they have no bearing on future returns they are basically useless. At the same time, comparing an 80/20 Lifecycle fund to some unknown asset allocation in another 80/20 fund is also basically useless. Are they identical? I doubt it. How much international? What type of bonds? etc, etc, etc. These are games that are played frequently to show out performance but that argument doesn't fly on this website. Sorry.
We debate endlessly on the value premium and whether it is risk based, behavioral, both, or neither. So far, despite our best efforts, we have failed to reach a satisfactory conclusion that everyone agrees on. Oh well, at least we have something to talk about besides the market ups and downs.
Dan Kohn wrote:Everything has still been good with Employee Fiduciary. Once you get the plan set up, it takes very little effort over time.
lawman3966 wrote: The people I need to persuade in this matter are busy, and I'll need to have my ducks in a row if and when I choose to bring this matter up. I can't afford to seem like a pest by serially suggesting different alternatives to our current enrich-the-insurance-company 401K scheme.
Thanks in advance for any info you can provide on this point.
Lethal wrote:I am looking into EF for our small law firm's 401k. We currently have a very high cost plan and a RIA from Merill Lynch who doesn't seem do much since helping to put our new plan together in Dec. '07. I trying to figure out the best way to select funds for our plan and to get education and investment advice for our employees when we make the plan switch. EF told me that there is an over the phone advising service to help select funds for a flat $600 fee.
We only have about 15 participants and ML never comes in to the office and I don't believe any of our employees have ever called them for their services. I don't think they have done anything in the past 2 years to earn their 0.5% fee (maybe more?). I'm leaning towards getting rid of the advising service since we don't seem to use it, but I'm not sure on how to move forward setting up a new plan or how to handle the financial/investment advice.
Dan Kohn wrote:They charge $25 per employee with a minimum of $1500.
Sunny Sarkar wrote:Dan Kohn wrote:They charge $25 per employee with a minimum of $1500.
What about transaction costs? 401k accounts are naturally high transaction accounts due to DCA from every paycheck.
You can hire a company to provide the education. Or it's easy to provide it yourself after you learn what's important about a plan and what is not.
Would you like to learn how to provide the education yourself? Or learn how to hire someone to provide it?
Lethal wrote: Mainly need assistance or suggestions on the new plan setup process and selecting new funds. Once it is set up and our employees choose their new fund allocation they probably wouldn't need much help since they never use our current adviser at Merrill.
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