Not great 401k options w TransAmerica - Please help!!

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Topic Author
yourrealdad
Posts: 7
Joined: Tue Mar 14, 2017 1:05 pm

Not great 401k options w TransAmerica - Please help!!

Post by yourrealdad » Fri Jan 11, 2019 2:13 pm

Hi all! :sharebeer

I am 30 years old - just putting enough in my 401k now to get the maximum match (5% me, 4% match), but with TA we have pretty limited fund options and high fees. Please let me know which of the available offerings you think are best to have my account in.

I have a Roth IRA through Vanguard (2060 Target Date) that I will be trying to max out annually, and my wife has far better 401k offerings through her job. Just looking to improve what I've got going with this account. I think it is more complicated now than it needs to be at the moment.

Please let me know if I should change the layout below. My current allocation to each on the left. Any input or insight greatly appreciated!

Bonds
(0%) Stable Value Core Option
(0%) AEGON Bond Ret Opt - Exp Ratio 1.84%
(8%) Transamerica High Yield Bond Ret Opt - Exp Ratio 2.18%

Large Cap
(0%) State Street Russell Large Cap Value Index Ret Opt - Exp Ratio 1.80%
(8%) Transamerica Large Cap Value Ret Opt - Exp Ratio 2.16%
(8%) American Funds Fundamental Investors Ret Opt - Exp Ratio 2.07%
(8%) Transamerica Partners Stock Index Ret Opt - Exp Ratio 1.84%
(0%) Franklin Growth Series Ret Opt - Exp Ratio 2.14%
(0%) State Street Russell Large Cap Growth Index Ret Opt - Exp Ratio 1.80%

Small/Mid Cap
(0%) Transamerica Small/Mid Cap Value Ret Opt - Exp Ratio 2.33%
(0%) State Street S&P Mid Cap Index Ret Opt - Exp Ratio 1.80%
(17%) Pioneer Select Mid Cap Growth Ret Opt - Exp Ratio 2.21%
(5%) Franklin Small Cap Value Ret Opt - Exp Ratio 2.32%
(9%) Fidelity Advisor Small Cap Ret Opt - Exp Ratio 2.30%

International Stocks
(25%) Transamerica International Equity Ret Opt - Exp Ratio 2.28%

Multi-Asset / Other
(12%) TA BlackRock Lifepath Index Retirement Ret Opt - Exp Ratio 1.87%
(0%) TA BlackRock Lifepath Index 2020 Ret Opt - Exp Ratio 1.87%
(0%) TA BlackRock Lifepath Index 2025 Ret Opt - Exp Ratio 1.87%
(0%) TA BlackRock Lifepath Index 2030 Ret Opt - Exp Ratio 1.87%
(0%) TA BlackRock Lifepath Index 2035 Ret Opt - Exp Ratio 1.87%
(0%) TA BlackRock Lifepath Index 2040 Ret Opt - Exp Ratio 1.87%
(0%) TA BlackRock Lifepath Index 2045 Ret Opt - Exp Ratio 1.87%
(0%) TA BlackRock Lifepath Index 2050 Ret Opt - Exp Ratio 1.87%
(0%) TA BlackRock Lifepath Index 2055 Ret Opt - Exp Ratio 1.87%

lakpr
Posts: 2115
Joined: Fri Mar 18, 2011 9:59 am

Re: Not great 401k options w TransAmerica - Please help!!

Post by lakpr » Fri Jan 11, 2019 2:45 pm

How about putting everything in the Stable Value option? Looks like it has 0 expense ratio

Otherwise I agree it does not make sense to contribute beyond the company match. Wow what a horrible plan!!

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StormShadow
Posts: 725
Joined: Thu Feb 09, 2012 6:20 pm

Re: Not great 401k options w TransAmerica - Please help!!

Post by StormShadow » Fri Jan 11, 2019 3:23 pm

I would kindly ask the financial planner at your organization to come up with some cheaper index fund options.

Companies are getting sued because of this.

snailderby
Posts: 234
Joined: Thu Jul 26, 2018 11:30 am

Re: Not great 401k options w TransAmerica - Please help!!

Post by snailderby » Fri Jan 11, 2019 3:40 pm

Those expense ratios are painful, but out of that list, I would probably go with the BlackRock LifePath Index 2055 fund and/or the State Street S&P Mid Cap Index fund. The BlackRock target-date fund will give you broad exposure to large-cap U.S. and international stocks. The State Street fund is more of a personal preference, but I like midcaps (and the S&P indices in particular).

Topic Author
yourrealdad
Posts: 7
Joined: Tue Mar 14, 2017 1:05 pm

Re: Not great 401k options w TransAmerica - Please help!!

Post by yourrealdad » Fri Jan 11, 2019 3:54 pm

snailderby wrote:
Fri Jan 11, 2019 3:40 pm
Those expense ratios are painful, but out of that list, I would probably go with the BlackRock LifePath Index 2055 fund and/or the State Street S&P Mid Cap Index fund. The BlackRock target-date fund will give you broad exposure to large-cap U.S. and international stocks. The State Street fund is more of a personal preference, but I like midcaps (and the S&P indices in particular).
Thank you! I can't avoid the fees at the moment, so I would rather just consolidate to whatever in this list looks like the best fund. Much appreciated.

BoggledHead2
Posts: 149
Joined: Tue Jun 12, 2018 6:50 pm

Re: Not great 401k options w TransAmerica - Please help!!

Post by BoggledHead2 » Fri Jan 11, 2019 4:07 pm

You may be better off maxing out anyway, getting a tax break now + be able to roll over / transfer the account down the road to something with much lower fees

I’m in a similar scenario, best ER my plan has is slightly over 1% ... I max anyway to ultimately transfer to another plan or traditional IRA down the road

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