Search found 270 matches

by StevenNJ1
Wed May 14, 2014 4:27 pm
Forum: Personal Investments
Topic: My first 401K Plan ... Help Needed Please.
Replies: 49
Views: 6284

Re: My first 401K Plan ... Help Needed Please.

I am curious about this "401k (adds at least $5.6k/yr, + employer match of $5.6k = $11.2k/yr total= ~ 50% of annual new money ) 25%, American Funds Growth Fund of America (RGABX), ER 1.41% 25%, American Funds Bond Fund of America (RBFBX), ER 1.36%" I noticed that my Target date fund has a...
by StevenNJ1
Wed May 14, 2014 3:04 pm
Forum: Personal Investments
Topic: Co-worker made a dumb mistake with 401k transfer???
Replies: 28
Views: 2893

Co-worker made a dumb mistake with 401k transfer???

My co-worker transferred her money from old job's 401k to our current 401k plan where she does NOT contribute anything. $7K just sits there. Money just stays there in something like a Target date fund. Negative part is that funds we have in our 401k are expensive (1.5% avg). Is she wasting money kee...
by StevenNJ1
Tue May 13, 2014 5:00 pm
Forum: Investing - Theory, News & General
Topic: Stock Market to Plunge? What a friend said.
Replies: 78
Views: 8114

Re: Stock Market to Plunge? What a friend said.

ok, i got the point. :-) topic closed. thank you.
I was just curious if someone else shared same feeling that market is overheated right now.
by StevenNJ1
Tue May 13, 2014 4:09 pm
Forum: Investing - Theory, News & General
Topic: Stock Market to Plunge? What a friend said.
Replies: 78
Views: 8114

Re: Stock Market to Plunge? What a friend said.

livesoft wrote:Yes, this is completely true. Now is a great time to sell everything.
you being sarcastic? :-)
by StevenNJ1
Tue May 13, 2014 3:55 pm
Forum: Investing - Theory, News & General
Topic: Stock Market to Plunge? What a friend said.
Replies: 78
Views: 8114

Stock Market to Plunge? What a friend said.

Maybe a bit speculative but my co-worker said that stocks, it seems are about to take a dive. When I asked what would trigger it (unlike 2000 being a dot com bubble and 2008 real estate ... what is the factor now), his answer was that the government is cutting down on printing money and thus this ca...
by StevenNJ1
Mon May 12, 2014 5:19 pm
Forum: Personal Investments
Topic: My first 401K Plan ... Help Needed Please.
Replies: 49
Views: 6284

Re: My first 401K Plan ... Help Needed Please.

Going back to 401K plan .... should I stick with a target date? or is there a better way to diversify? Don't get ahead of yourself. Before selecting funds, you need to decide: (1) on a desired asset allocation; and (2) whether you will be funding the 401k just enough to get the match, or more. I wo...
by StevenNJ1
Mon May 12, 2014 2:10 pm
Forum: Investing - Theory, News & General
Topic: 401k, IRA, Trad ... Are we saving up to pay Medical Bills?
Replies: 7
Views: 941

Re: 401k, IRA, Trad ... Are we saving up to pay Medical Bill

ok, so then it is correct ... this money we save up will be used for healthcare ... I am sure medical insurance at age 70+ is going to be very expensive ... one surgery can mean 10% if not more of your 30yr retirement savings. You're leaving out every day living expenses. Health insurance may be ex...
by StevenNJ1
Mon May 12, 2014 1:39 pm
Forum: Investing - Theory, News & General
Topic: 401k, IRA, Trad ... Are we saving up to pay Medical Bills?
Replies: 7
Views: 941

Re: 401k, IRA, Trad ... Are we saving up to pay Medical Bill

ok, so then it is correct ... this money we save up will be used for healthcare ... I am sure medical insurance at age 70+ is going to be very expensive ... one surgery can mean 10% if not more of your 30yr retirement savings.
by StevenNJ1
Mon May 12, 2014 12:56 pm
Forum: Investing - Theory, News & General
Topic: 401k, IRA, Trad ... Are we saving up to pay Medical Bills?
Replies: 7
Views: 941

401k, IRA, Trad ... Are we saving up to pay Medical Bills?

Maybe it's a weird question or even a discussion, but ... everyone is concerned about saving up enough for the retirement, but is it just a way for Gov't to avoid paying your medical bills, social security and all other benefits that non wealthy get? I mean, being 70, 80 yrs old... for sure at some ...
by StevenNJ1
Fri May 09, 2014 3:28 pm
Forum: Personal Finance (Not Investing)
Topic: What our company's 401k Advisor said about 1.5% Fees
Replies: 115
Views: 27488

Re: What our company's 401k Advisor said about 1.5% Fees

I'll be sure to use those funds for comparison .... but you're saying that my previous funds have no place to be compared at all? Meaning ... I shouldn't even show those comparisons? Right, don't show those for comparison. For example, VTSMX is a Total Stock Market fund and close to 100% stock whil...
by StevenNJ1
Fri May 09, 2014 3:10 pm
Forum: Personal Finance (Not Investing)
Topic: What our company's 401k Advisor said about 1.5% Fees
Replies: 115
Views: 27488

Re: What our company's 401k Advisor said about 1.5% Fees

Having been through something like this at my work, I second what others have said about adding on some index funds, rather than trying to get rid of the current menu and replacing them with index funds. Also, as others have said, be ready for the adviser to come out swinging. After all, he'll see ...
by StevenNJ1
Fri May 09, 2014 2:52 pm
Forum: Personal Investments
Topic: My first 401K Plan ... Help Needed Please.
Replies: 49
Views: 6284

Re: My first 401K Plan ... Help Needed Please.

It will help if we consider your retirement/long term savings and the house money as separate issues. . . . . . I have no idea how long I am going to be staying with current employer. I've been working there for over 4 years now, but no one knows how things will turn out a month or a year from now....
by StevenNJ1
Fri May 09, 2014 2:39 pm
Forum: Personal Finance (Not Investing)
Topic: What our company's 401k Advisor said about 1.5% Fees
Replies: 115
Views: 27488

Re: What our company's 401k Advisor said about 1.5% Fees

Having been through something like this at my work, I second what others have said about adding on some index funds, rather than trying to get rid of the current menu and replacing them with index funds. Also, as others have said, be ready for the adviser to come out swinging. After all, he'll see ...
by StevenNJ1
Fri May 09, 2014 2:35 pm
Forum: Personal Finance (Not Investing)
Topic: What our company's 401k Advisor said about 1.5% Fees
Replies: 115
Views: 27488

Re: What our company's 401k Advisor said about 1.5% Fees

So .... I am now named the advocate to our 401k plan. Our meeting with our 401k adviser takes place 2 weeks from now. preparing powerpoint slides and possible question and answers .. I am trying to foresee what the adviser may say to combat my presentation. He may say ... your fees are higher becau...
by StevenNJ1
Fri May 09, 2014 12:09 pm
Forum: Personal Finance (Not Investing)
Topic: What our company's 401k Advisor said about 1.5% Fees
Replies: 115
Views: 27488

Re: What our company's 401k Advisor said about 1.5% Fees

So .... I am now named the advocate to our 401k plan. Our meeting with our 401k adviser takes place 2 weeks from now. preparing powerpoint slides and possible question and answers .. I am trying to foresee what the adviser may say to combat my presentation. He may say ... your fees are higher becaus...
by StevenNJ1
Thu May 08, 2014 4:27 pm
Forum: Personal Finance (Not Investing)
Topic: What our company's 401k Advisor said about 1.5% Fees
Replies: 115
Views: 27488

Re: What our company's 401k Advisor said about 1.5% Fees

what I am curious to know is ... is the CFOs argument valid? Are we paying high fees (an no way around this) because our total asset as a company is low? Because not many people contribute, etc??? is this a dead end??? No he isn't. I'm at a ~50 person firm and we switched to Employee Fiduciary with...
by StevenNJ1
Thu May 08, 2014 11:04 am
Forum: Personal Finance (Not Investing)
Topic: What our company's 401k Advisor said about 1.5% Fees
Replies: 115
Views: 27488

Re: What our company's 401k Advisor said about 1.5% Fees

Look at it this way. Your safe withdrawal rate is 4 %. You are paying 1.5 % per year. It doesn't matter that you aren't withdrawing yet. That 1.5 % fee is 37.5 % or your withdrawal. In other words, the advisor is taxing you 37.5 %. And you thought your government taxes were high! If you plan on wor...
by StevenNJ1
Thu May 08, 2014 11:02 am
Forum: Personal Finance (Not Investing)
Topic: What our company's 401k Advisor said about 1.5% Fees
Replies: 115
Views: 27488

Re: What our company's 401k Advisor said about 1.5% Fees

also ... is it fair to compare these 2 bonds funds

Vanguard Total Bond Market Index Adm
American Funds Bond Fund of Amer R2

i want to show a chart of bonds and how a 0.20% compares vs 1.39%
by StevenNJ1
Thu May 08, 2014 10:00 am
Forum: Personal Finance (Not Investing)
Topic: What our company's 401k Advisor said about 1.5% Fees
Replies: 115
Views: 27488

Re: What our company's 401k Advisor said about 1.5% Fees

Look at it this way. Your safe withdrawal rate is 4 %. You are paying 1.5 % per year. It doesn't matter that you aren't withdrawing yet. That 1.5 % fee is 37.5 % or your withdrawal. In other words, the advisor is taxing you 37.5 %. And you thought your government taxes were high! If you plan on wor...
by StevenNJ1
Wed May 07, 2014 1:49 pm
Forum: Personal Finance (Not Investing)
Topic: What our company's 401k Advisor said about 1.5% Fees
Replies: 115
Views: 27488

Re: What our company's 401k Advisor said about 1.5% Fees

:-) thanks to all (HardKnocker, simpleton, pkcrafter and others) great info. Loving this forum for all the great advise. So .......... latest outcome this morning ... CFO stopped me this morning after watching that video about "Retirement Gamble" you guys suggested. ... he said it's proba...
by StevenNJ1
Wed May 07, 2014 9:39 am
Forum: Personal Finance (Not Investing)
Topic: What our company's 401k Advisor said about 1.5% Fees
Replies: 115
Views: 27488

Re: What our company's 401k Advisor said about 1.5% Fees

what I am curious to know is ... is the CFOs argument valid? Are we paying high fees (an no way around this) because our total asset as a company is low? Because not many people contribute, etc??? is this a dead end???
by StevenNJ1
Wed May 07, 2014 8:59 am
Forum: Personal Finance (Not Investing)
Topic: What our company's 401k Advisor said about 1.5% Fees
Replies: 115
Views: 27488

Re: What our company's 401k Advisor said about 1.5% Fees

:-) thanks to all (HardKnocker, simpleton, pkcrafter and others) great info. Loving this forum for all the great advise. So .......... latest outcome this morning ... CFO stopped me this morning after watching that video about "Retirement Gamble" you guys suggested. ... he said it's probab...
by StevenNJ1
Tue May 06, 2014 4:56 pm
Forum: Personal Finance (Not Investing)
Topic: What our company's 401k Advisor said about 1.5% Fees
Replies: 115
Views: 27488

Re: What our company's 401k Advisor said about 1.5% Fees

Is this B.S.? Just spoke to our American Funds advisor about my plan. . . . . . his response .......... you aint getting those funds under 401k with those low expense rates. If you did, those rates would be MUCH MUCH higher. . . . . . so he is saying that because our company size is small, we are g...
by StevenNJ1
Tue May 06, 2014 3:54 pm
Forum: Personal Finance (Not Investing)
Topic: What our company's 401k Advisor said about 1.5% Fees
Replies: 115
Views: 27488

Re: What our company's 401k Advisor said about 1.5% Fees

So it appears that adviser is an "INDEPENDENT" adviser we hired to help us manage and he is NOT from American Funds. our company size is about 120 employees. Not all are contributing. Our CFO's response is ... you're still getting a great deal here ... we match 4% and that's almost unheard...
by StevenNJ1
Tue May 06, 2014 3:12 pm
Forum: Personal Finance (Not Investing)
Topic: What our company's 401k Advisor said about 1.5% Fees
Replies: 115
Views: 27488

Re: What our company's 401k Advisor said about 1.5% Fees

he did get nervous :-)

so he is saying that because our company size is small, we are getting the best that's out there.

true????
by StevenNJ1
Tue May 06, 2014 3:12 pm
Forum: Personal Finance (Not Investing)
Topic: What our company's 401k Advisor said about 1.5% Fees
Replies: 115
Views: 27488

What our company's 401k Advisor said about 1.5% Fees

EDIT Thanks to all that gave such great feedback. I now have about 15 slides to share in our upcoming meeting with CFO, HR and 401k Advisor. In that presentation you may see me quoting many of you. You can view it here https://www.dropbox.com/s/kh60bt98muy2wuu/111%20ret%20plan%20%28short%29.pptx [l...
by StevenNJ1
Tue May 06, 2014 10:25 am
Forum: Personal Investments
Topic: How to pitch better 401K to Employer??? Ours is pretty bad.
Replies: 22
Views: 2359

Re: How to pitch better 401K to Employer??? Ours is pretty b

yep, I am going to show them the 5 min video part that talks about fees. As a suggestion from other members here, I am also going to show comparison of growth of some of our funds VS some low cost ones. Here is what I am comparing ... please see if this chart makes sense. We are being offered only A...
by StevenNJ1
Tue May 06, 2014 9:57 am
Forum: Personal Investments
Topic: How to pitch better 401K to Employer??? Ours is pretty bad.
Replies: 22
Views: 2359

Re: How to pitch better 401K to Employer??? Ours is pretty b

Very interesting ... I am definitely using that chart you provided in PDF ... one question .... the 1.5% expense fee ... it's 1.5% on all 401k balance or just on earnings? When using a calculator, even at 0% growth, I still saw a difference based on fee %, so that means it's 1.5% on balance in 401 n...
by StevenNJ1
Tue May 06, 2014 8:58 am
Forum: Personal Investments
Topic: How to pitch better 401K to Employer??? Ours is pretty bad.
Replies: 22
Views: 2359

Re: How to pitch better 401K to Employer??? Ours is pretty b

What I did notice is that American funds, listed all their options here http://retire.americanfunds.com/about/funds/index.htm when I check out the same funds they offer us, the expense fees on the site are much lower than in our booklet. So, does that mean that their fees are really adjustable? Mean...
by StevenNJ1
Mon May 05, 2014 2:22 pm
Forum: Personal Investments
Topic: How to pitch better 401K to Employer??? Ours is pretty bad.
Replies: 22
Views: 2359

Re: How to pitch better 401K to Employer??? Ours is pretty b

So, our 401k meeting got scheduled for tomorrow with CFO and HR Manager ... should be fun. My argument is going to be that our 401k fees are very high. At 1.5% avg, that's usually twice as much as a decent 401k? I'll show them this calculator http://www.dinkytown.net/java/CompareFees.html and use th...
by StevenNJ1
Mon May 05, 2014 9:22 am
Forum: Personal Investments
Topic: How to pitch better 401K to Employer??? Ours is pretty bad.
Replies: 22
Views: 2359

Re: How to pitch better 401K to Employer??? Ours is pretty b

So I am about to go today to talk about the 401k cheaper options ... current avg expense is at 1.5% ... what's the realistic % we can expect to get from these funds? Vanguard Total Stock Market Index Fund Investor Shares (VTSMX) Vanguard Total Bond Market Index Fund Investor Shares (VBMFX) Vanguard ...
by StevenNJ1
Sat May 03, 2014 8:15 am
Forum: Personal Investments
Topic: My first 401K Plan ... Help Needed Please.
Replies: 49
Views: 6284

Re: My first 401K Plan ... Help Needed Please.

I brought up a fact that we have high expense funds to the EVP of the company. We'll be talking about this issue with CFO on monday. Maybe our 401K will change for the better. Best of luck. Maybe best to ask for the addition of just 1 or 2 low expense total market type index funds. Or if someone is...
by StevenNJ1
Sat May 03, 2014 5:38 am
Forum: Personal Investments
Topic: How to pitch better 401K to Employer??? Ours is pretty bad.
Replies: 22
Views: 2359

Re: How to pitch better 401K to Employer??? Ours is pretty b

I have no idea how the 401K works for or against an employer. Who pays or benefits, etc. However, our 401K is with company American Funds and it's pretty bad. Not only is selection bad but average expense is at around 1.50%. Spoke to our head of accounting and she suggested to get some info to pitc...
by StevenNJ1
Fri May 02, 2014 8:33 pm
Forum: Personal Investments
Topic: My first 401K Plan ... Help Needed Please.
Replies: 49
Views: 6284

Re: My first 401K Plan ... Help Needed Please.

I brought up a fact that we have high expense funds to the EVP of the company. We'll be talking about this issue with CFO on monday. Maybe our 401K will change for the better. Best of luck. Maybe best to ask for the addition of just 1 or 2 low expense total market type index funds. Or if someone is...
by StevenNJ1
Fri May 02, 2014 4:56 pm
Forum: Personal Investments
Topic: My first 401K Plan ... Help Needed Please.
Replies: 49
Views: 6284

Re: My first 401K Plan ... Help Needed Please.

Isn't it kinda risky to do 50x50? Little diversification. I understand that each one of these is pretty diverse but still ... you sure? :-) . . . . . Same as above ... just one fund? Look at all three accounts together as a single unified portfolio, rather than look at each account in isolation, pl...
by StevenNJ1
Fri May 02, 2014 4:29 pm
Forum: Personal Investments
Topic: How to pitch better 401K to Employer??? Ours is pretty bad.
Replies: 22
Views: 2359

Re: How to pitch better 401K to Employer??? Ours is pretty b

The simplest solution is to ask for some low-ER funds be added to the existing mix. Like the Vanguard funds that make up a 3-Fund Portfolio. That way the 401k provider is not threatened, and those in the know will be able to save money. nice .... we're actually going to point this out to the CFO on...
by StevenNJ1
Fri May 02, 2014 2:31 pm
Forum: Personal Investments
Topic: My first 401K Plan ... Help Needed Please.
Replies: 49
Views: 6284

Re: My first 401K Plan ... Help Needed Please.

It will help if we consider your retirement/long term savings and the house money as separate issues. . . . . . For the retirement and long term accounts , I would suggest an asset allocation around 75/25 stocks/bonds, with about 30% of stocks in international. That works out to about: 25% bonds; 2...
by StevenNJ1
Fri May 02, 2014 1:30 pm
Forum: Personal Investments
Topic: How to pitch better 401K to Employer??? Ours is pretty bad.
Replies: 22
Views: 2359

How to pitch better 401K to Employer??? Ours is pretty bad.

I have no idea how the 401K works for or against an employer. Who pays or benefits, etc. However, our 401K is with company American Funds and it's pretty bad. Not only is selection bad but average expense is at around 1.50%. Spoke to our head of accounting and she suggested to get some info to pitch...
by StevenNJ1
Fri May 02, 2014 9:29 am
Forum: Personal Investments
Topic: My first 401K Plan ... Help Needed Please.
Replies: 49
Views: 6284

Re: My first 401K Plan ... Help Needed Please.

StevenNJ1 , you currently have $120K in taxable not earmarked for retirement, nothing in an IRA, and something in your 401k. Would you be willing to set aside any of that taxable $120K for retirement purposes? If so, how much? How much do you currently have in the 401k? I can't figure a portfolio u...
by StevenNJ1
Thu May 01, 2014 3:52 pm
Forum: Personal Investments
Topic: How Ignorant am I? 5yr on Job, No 401k. 100K collecting dust
Replies: 41
Views: 7209

Re: How Ignorant am I? 5yr on Job, No 401k. 100K collecting

Regarding 100K collecting dust ....... I am surprised no one suggested placing that money into Vanguard mutual funds accounts like VTSAX, VIMAX, VFIAX .... consistent return of 20% back ... even 10% would have been better than nothing. :-) There is no such thing as consistent 20% returns in stocks....
by StevenNJ1
Thu May 01, 2014 1:26 pm
Forum: Personal Investments
Topic: How Ignorant am I? 5yr on Job, No 401k. 100K collecting dust
Replies: 41
Views: 7209

Re: How Ignorant am I? 5yr on Job, No 401k. 100K collecting

Regarding 100K collecting dust ....... I am surprised no one suggested placing that money into Vanguard mutual funds accounts like VTSAX, VIMAX, VFIAX .... consistent return of 20% back ... even 10% would have been better than nothing. :-)
by StevenNJ1
Thu May 01, 2014 1:18 pm
Forum: Personal Finance (Not Investing)
Topic: Life Term Insurance? 32 yrs old. [Help requested]
Replies: 41
Views: 4009

Re: Life Term Insurance? 32 yrs old. [Help requested]

The fact that you had a parent die of a heart attack prior to age 60 is a huge factor. Only a couple of top-rated insurance companies will give you their best rate as a result of that fact, at least that's what both Accuquote and an independent insurance agent told me five years ago when I was shop...
by StevenNJ1
Thu May 01, 2014 10:46 am
Forum: Personal Investments
Topic: My first 401K Plan ... Help Needed Please.
Replies: 49
Views: 6284

Re: My first 401K Plan ... Help Needed Please.

all very interesting points .... makes me feel like a shmuck for pulling out last minute out of doing a $5,500 for 2013 contribution before April 16th because I didn't have 401K in 2013 and could have written off this contribution. I pulled out last minute just because I didn't want to put $5,500 in...
by StevenNJ1
Thu May 01, 2014 10:04 am
Forum: Personal Finance (Not Investing)
Topic: Life Term Insurance? 32 yrs old. [Help requested]
Replies: 41
Views: 4009

Re: Life Term Insurance? 32 yrs old. [Help requested]

thanks to all of you for your great feedback. much appreciated. Will get on this thing right away. Actually started reading a well known book "The Last Lecture" and that reminded me of how fast and unexpected things like health are. I am your age and I my wife and I just got life insurance...
by StevenNJ1
Wed Apr 30, 2014 12:26 pm
Forum: Personal Investments
Topic: My first 401K Plan ... Help Needed Please.
Replies: 49
Views: 6284

Re: My first 401K Plan ... Help Needed Please.

I guess my 401K is a bit boring to play around with :-)

My HR today told me that rates of 1.6% is a norm these days. This after I said that our company's 401K plan is not too exciting.
by StevenNJ1
Wed Apr 30, 2014 11:09 am
Forum: Personal Finance (Not Investing)
Topic: Life Term Insurance? 32 yrs old. [Help requested]
Replies: 41
Views: 4009

Re: Life Term Insurance? 32 yrs old. [Help requested]

so if my age is great for insurance and my health is good now (one negative is that my father past away due to heart attack at age 55...i am sure they'll take a note on that) .... does it make sense to pay more and get 30yr? Someone once told me that best insurance is life insurance because your fam...
by StevenNJ1
Wed Apr 30, 2014 8:43 am
Forum: Personal Finance (Not Investing)
Topic: Life Term Insurance? 32 yrs old. [Help requested]
Replies: 41
Views: 4009

Re: Life Term Insurance? 32 yrs old. [Help requested]

Really appreciate all the advice. So things I now know .... 1) Better to go with a "reputable" insurance company. Costs should still be low but going with a known name is better. Fidelity, Statefarm, Metlife, libertymutual? 2) Consider 1mil instead of 500K. 3) Think about getting term life...
by StevenNJ1
Tue Apr 29, 2014 2:38 pm
Forum: Personal Investments
Topic: My first 401K Plan ... Help Needed Please.
Replies: 49
Views: 6284

Re: My first 401K Plan ... Help Needed Please.

ok .... good info.
I don't spend too much, I do however like seeing balance grow and thus I think I live well below my means.

Going back to 401K plan .... should I stick with a target date? or is there a better way to diversify?

thank you
by StevenNJ1
Tue Apr 29, 2014 1:01 pm
Forum: Personal Finance (Not Investing)
Topic: Life Term Insurance? 32 yrs old. [Help requested]
Replies: 41
Views: 4009

Re: Life Term Insurance? 32 yrs old. [Help requested]

Steven, When my wife and I were about 30 with a infant, we both bought $500k in 20 year level term life. So, I think your idea is excellent. :) Twenty years of coverage from 32 to 52 should be relatively cheap, as the rates start to spike if you cover your late 50s into your 60s. If you happen to d...
by StevenNJ1
Tue Apr 29, 2014 12:37 pm
Forum: Personal Finance (Not Investing)
Topic: Life Term Insurance? 32 yrs old. [Help requested]
Replies: 41
Views: 4009

Re: Life Term Insurance? 32 yrs old. [Help requested]

great info ...

seems like Fidelity and USAA have identical rates,. $49/mo for a 20yr $500K policy.
are terms usually different per provider or is it fairly simple ?
which one to choose?

thanks