Worst 401K funds ever. What to do?
Worst 401K funds ever. What to do?
Hi all, new user just made this account to ask this one question and show you what funds my employer decided to offer lol.
My employers 401K funds are probably the worst you have seen, if someone's is worse then me you win a prize. All the expense ratios are above 1.50%. so I won't list them. What should I do? Not contribute and go open my own vanguard or fidelity?
Here they are:
Eaton Vance Inc Fund Of Boston R Bond
Jpmorgan Core Bond R2 Bond
Davis New York Venture R Large Cap
American Century Equity Income R Large Cap
American Funds Gr Fd Of Amer R1 Large Cap
American Funds New Perspectiv R1 International
Franklin Mutual Global Disc R International
Allianzgi NFJ Dividend Value R Large Cap
Victory Sycamore Small Co Opp R Small Cap
Goldman Sachs Sm/MidCap Growth R Mid Cap
Nuveen Mid Cap Index R3 Mid Cap
American Funds Cp Wld Gr Inc-R1 International
American Funds Inc Fd Of Amer R1 Asset Allocation/Balanced
BlackRock Global Allocation R Asset Allocation/Balanced
BlackRock LifePath 2020 A Asset Allocation/Balanced
BlackRock LifePath 2030 A Asset Allocation/Balanced
BlackRock LifePath 2040 A Asset Allocation/Balanced
BlackRock LifePath 2050 A Asset Allocation/Balanced
BlackRock LifePath Retirement A Asset Allocation/Balanced
Ivy Science And Technology R Specialty
MFS Research International R2 International
Oppenheimer Gold And Spec Min R Specialty
Oppenheimer Real Estate R Specialty
Pioneer Strategic Income R Bond
The Hartford Total Return Bd R3 Bond
My employers 401K funds are probably the worst you have seen, if someone's is worse then me you win a prize. All the expense ratios are above 1.50%. so I won't list them. What should I do? Not contribute and go open my own vanguard or fidelity?
Here they are:
Eaton Vance Inc Fund Of Boston R Bond
Jpmorgan Core Bond R2 Bond
Davis New York Venture R Large Cap
American Century Equity Income R Large Cap
American Funds Gr Fd Of Amer R1 Large Cap
American Funds New Perspectiv R1 International
Franklin Mutual Global Disc R International
Allianzgi NFJ Dividend Value R Large Cap
Victory Sycamore Small Co Opp R Small Cap
Goldman Sachs Sm/MidCap Growth R Mid Cap
Nuveen Mid Cap Index R3 Mid Cap
American Funds Cp Wld Gr Inc-R1 International
American Funds Inc Fd Of Amer R1 Asset Allocation/Balanced
BlackRock Global Allocation R Asset Allocation/Balanced
BlackRock LifePath 2020 A Asset Allocation/Balanced
BlackRock LifePath 2030 A Asset Allocation/Balanced
BlackRock LifePath 2040 A Asset Allocation/Balanced
BlackRock LifePath 2050 A Asset Allocation/Balanced
BlackRock LifePath Retirement A Asset Allocation/Balanced
Ivy Science And Technology R Specialty
MFS Research International R2 International
Oppenheimer Gold And Spec Min R Specialty
Oppenheimer Real Estate R Specialty
Pioneer Strategic Income R Bond
The Hartford Total Return Bd R3 Bond
Re: Worst 401K funds ever. What to do?
If an employer match is offered, at least do that much.
Re: Worst 401K funds ever. What to do?
I assume people will want to know more information, such as your tax bracket and other tax advantaged accounts you may have access to, such as an IRA or an HSA. For me personally, I'd probably still max out my 401k even at those expense ratios. But I've never had to do the math.
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Re: Worst 401K funds ever. What to do?
How long do you plan to be with that employer?
My wife's new employer has a similar terrible alignment, but she is unlikely to stay with the company for very long, so there is a rollover in our near future.
My wife's new employer has a similar terrible alignment, but she is unlikely to stay with the company for very long, so there is a rollover in our near future.
Re: Worst 401K funds ever. What to do?
You will win a prize if it is the worst 401k ever, we have seen some atrocious fund choices and prices. But we can help you make the most of it.
Unfortunately for you for the extra work it will take, we DO need to you to take the time to add the expense ratios so we can see for ourselves and use the info to make the most of the possibilities. We can not simply look up the ERs because employer funds sometimes add fees, or get better pricing than generally available to the public.
Do you have any other holdings this will be in addition to ?
Fortunately, we can help you make the most of the offerings and offer suggestions on talking to your employer about adding better options.
Lafder
Unfortunately for you for the extra work it will take, we DO need to you to take the time to add the expense ratios so we can see for ourselves and use the info to make the most of the possibilities. We can not simply look up the ERs because employer funds sometimes add fees, or get better pricing than generally available to the public.
Do you have any other holdings this will be in addition to ?
Fortunately, we can help you make the most of the offerings and offer suggestions on talking to your employer about adding better options.
Lafder
Re: Worst 401K funds ever. What to do?
The traditional advice here at BH is as follows:
1. 401K to get any match that your company provides
2. Maximum IRA contributions (if your income is low enough to qualify), $5500 per spouse.
3. Additional savings into your 401K
If you keep the money in taxable then the taxes will likely eat up more than the 401K fees, even with a 1.5% ER.
1. 401K to get any match that your company provides
2. Maximum IRA contributions (if your income is low enough to qualify), $5500 per spouse.
3. Additional savings into your 401K
If you keep the money in taxable then the taxes will likely eat up more than the 401K fees, even with a 1.5% ER.
It's not an engineering problem - Hersh Shefrin | To get the "risk premium", you really do have to take the risk - nisiprius
Re: Worst 401K funds ever. What to do?
I looked up a few of your funds and ERs are high, but less than 1.5% -- American Funds Gr Fd Of Amer R1, ER 1.42All the expense ratios are above 1.50%
Can you provide the listed expense ratio for this fund? It may be that they have included some of the administrative expenses in the ER. It also looks like your plan does not have to comply to ERISA standards.
Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.
- StormShadow
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- Joined: Thu Feb 09, 2012 5:20 pm
Re: Worst 401K funds ever. What to do?
Woof. That sucks.kaveh2k wrote: All the expense ratios are above 1.50%.
I'd contribute to the match (if you have one), and thats it. I'd choose the cheapest equity fund available. I'd also quietly lobby your fellow co-workers to petition for a better selection of funds.
Otherwise, max out your IRA, pay off your loans, and then... frankly... contemplate taxable investments and take advantage of tax loss harvesting.
You could focus on the other stuff like:
Emergency fund squared away?
Have/need term life insurance?
Employment has an HSA with not-so-crummy investment selection?
529 for a kids education?
Side business to set up a solo 401k?
- StormShadow
- Posts: 1005
- Joined: Thu Feb 09, 2012 5:20 pm
Re: Worst 401K funds ever. What to do?
Well, not necessarily. Most of the Vanguard stock funds generate relatively few dividends.David Jay wrote: If you keep the money in taxable then the taxes will likely eat up more than the 401K fees, even with a 1.5% ER.
Some folks advocate allocating low dividend yielding index funds such as total stock market/total int'l stock in taxable and just place high dividend yielding funds like REITs/bonds in tax-sheltered instruments like IRA/401k.
Re: Worst 401K funds ever. What to do?
I work for a tiny company, and our 401K has very limited fund selections, with pretty high expense ratios (all American Funds). That being said, I have most of my money/contributions in Growth Fund of America. That seems to be fairly similar to an S&P 500 fund in performance. Not much I can do about it, and want to take advantage of the 401K space.
Good luck!
Good luck!