Nver2Late wrote: ↑Sat Nov 18, 2023 12:54 pm
I agree with limiting what you share to the specific 401k.
However, I used this type of meeting to establish a dialog with the 401K administrator that I then subsequently leveraged to request changes to funds, fees, etc. to improve the benefit of the 401k plan over the years. Of course these were likewise sent up the chain of command through the GM to the CFO, but it did result in positive changes over time.
Wish this would work with our SIMPLE IRA administrator. He won't listen to me - I told him I wanted index funds, nope, he chose a company with managed funds only.
But he makes the board of trustees happy, because he holds their hand. And the employees pay for that thru his AUM and high ER funds. I lobbied for other providers ( Fidelity, Schwab, Vanguard) while they were in the planning process, but nope, let's go with the guy we know, working for Wells Fargo, because we are afraid to do it on our own... (I offered to take on those duties, but they were afraid of the appearance of conflict of interest as I'd be a participant, but mostly - what about when you leave?)
I planned to print out my Vanguard statement and Excel sheets and just tell him I am comfortable with my current investment selections in my 401k.
Is the 401k advisor's concern a legitimate reason to question my investment policy statement/choices? Am I off-base?
Do not provide copies of your financial statements.
This person is not legally obligated, with fiduciary duty, as your financial advisor. Therefore they have no need to see your other financial statements or positions. Imagine if that gets into an unknown third party's hands?
Rather:
- reply politely in an email noting that you have a much larger portfolio of retirement savings and the 401k is only part of that. I wouldn't be specific but "less than 1/4 of my total investments" is probably OK
- if they insist on meeting just reiterate the points
Probably they need something for their files that they have done this, and an email back from you might cover it.
beachmom wrote: ↑Sat Nov 18, 2023 8:28 am
My company's 401k administrator/financial advisor called me to express concern over my investment choices in the 401k. I have a lot in Fidelity Advisor A. He wondered if I checked my account (!) and was aware that when interest rates rise bond funds lose value. I agreed to meet with him on Monday when he is on site at my company.
My overall investment goals are 65% stocks 35% bonds which I think is pretty aggressive for a 58 year old. What the advisor does not know is that my 401k is a very small part of my overall portfolio (401k is 7% of total portfolio). I don't have a lot of tax deferred space.
I have added some nominal treasury bonds to my portfolio as interest rates have risen, but I do like the simplicity of the total bond fund.
Currently my total portfolio is 67.4 % stocks, 20.3% Vanguard total bond and the Fidelity Advisor A fund, and 8.34% Treasury bills, notes, I-bonds and CDs. About 4% is in Vanguard federal money market VMFXX because a treasury bill recently reached maturity and I have not reinvested yet. I planned to do some treasury notes and some more total bond fund (this will horrify him). Yes that is sort of a lot to have not invested, but it's been less than a month and the VMFXX is yielding over 5%.
My 401k as a percentage of total portfolio:
Fidelity Advisor Bond A: 5.89%
500 Index: 1.13%
new investments into 401k are going 80% 500 index, 20% bond. these are the lowest fee options in the 401k.
I planned to print out my Vanguard statement and Excel sheets and just tell him I am comfortable with my current investment selections in my 401k.
Is the 401k advisor's concern a legitimate reason to question my investment policy statement/choices? Am I off-base?
My last company had such an offer (but they didn't contact me - it was a voluntary sign up that went out to all employees). I met with the person to see what they would have to say about my 401k fund choices - I explained I had significant outside investments and believed in index fund investing (I never shared specifics and he never asked for any). The advisor said he believed in index investing too. I also had the advisor double check my math to make sure I would capture the full company match (I always like to max out my 401K as early in the year as possible - but had to slow it down to make sure I captured the full company match). There were no hard sells or even questioning of my strategy. The advisor seemed to have nothing to gain in the discussion but maybe that was because he sensed I wasn't going to bite if he was allowed to sell services or something to me. It certainly wasn't clear he was. It was a very pleasant call although I didn't get much out of it.
Experiences may vary. In my case the advisor had no visibility into what I was invested in. If they had started with detail on what my current investment choices were I may have been less willing to take the meeting.
It wasn't clear to me but I suspect he was charging my company for each call taken as my company touted the free sessions as an employee benefit.
beachmom wrote: ↑Sat Nov 18, 2023 8:28 am
My company's 401k administrator/financial advisor called me to express concern over my investment choices in the 401k. I have a lot in Fidelity Advisor A. He wondered if I checked my account (!) and was aware that when interest rates rise bond funds lose value. I agreed to meet with him on Monday when he is on site at my company.
My overall investment goals are 65% stocks 35% bonds which I think is pretty aggressive for a 58 year old. What the advisor does not know is that my 401k is a very small part of my overall portfolio (401k is 7% of total portfolio). I don't have a lot of tax deferred space.
I have added some nominal treasury bonds to my portfolio as interest rates have risen, but I do like the simplicity of the total bond fund.
Currently my total portfolio is 67.4 % stocks, 20.3% Vanguard total bond and the Fidelity Advisor A fund, and 8.34% Treasury bills, notes, I-bonds and CDs. About 4% is in Vanguard federal money market VMFXX because a treasury bill recently reached maturity and I have not reinvested yet. I planned to do some treasury notes and some more total bond fund (this will horrify him). Yes that is sort of a lot to have not invested, but it's been less than a month and the VMFXX is yielding over 5%.
My 401k as a percentage of total portfolio:
Fidelity Advisor Bond A: 5.89%
500 Index: 1.13%
new investments into 401k are going 80% 500 index, 20% bond. these are the lowest fee options in the 401k.
I planned to print out my Vanguard statement and Excel sheets and just tell him I am comfortable with my current investment selections in my 401k.
Is the 401k advisor's concern a legitimate reason to question my investment policy statement/choices? Am I off-base?
I find the topic heading confusing.
The OP feels that they have been caught out doing something wrong with the consequence that they are called in before the authorities to be punished for their transgression. The connotation is also one of being treated as a child by adults in authority.
beachmom wrote: ↑Sat Nov 18, 2023 8:28 am
My company's 401k administrator/financial advisor called me to express concern over my investment choices in the 401k. I have a lot in Fidelity Advisor A. He wondered if I checked my account (!) and was aware that when interest rates rise bond funds lose value. I agreed to meet with him on Monday when he is on site at my company.
My overall investment goals are 65% stocks 35% bonds which I think is pretty aggressive for a 58 year old. What the advisor does not know is that my 401k is a very small part of my overall portfolio (401k is 7% of total portfolio). I don't have a lot of tax deferred space.
I have added some nominal treasury bonds to my portfolio as interest rates have risen, but I do like the simplicity of the total bond fund.
Currently my total portfolio is 67.4 % stocks, 20.3% Vanguard total bond and the Fidelity Advisor A fund, and 8.34% Treasury bills, notes, I-bonds and CDs. About 4% is in Vanguard federal money market VMFXX because a treasury bill recently reached maturity and I have not reinvested yet. I planned to do some treasury notes and some more total bond fund (this will horrify him). Yes that is sort of a lot to have not invested, but it's been less than a month and the VMFXX is yielding over 5%.
My 401k as a percentage of total portfolio:
Fidelity Advisor Bond A: 5.89%
500 Index: 1.13%
new investments into 401k are going 80% 500 index, 20% bond. these are the lowest fee options in the 401k.
I planned to print out my Vanguard statement and Excel sheets and just tell him I am comfortable with my current investment selections in my 401k.
Is the 401k advisor's concern a legitimate reason to question my investment policy statement/choices? Am I off-base?
I find the topic heading confusing.
The OP feels that they have been caught out doing something wrong with the consequence that they are called in before the authorities to be punished for their transgression. The connotation is also one of being treated as a child by adults in authority.
And principal can also connotate money in such discussions. All the more reason for clarity, rather than a gotcha eyeballs lookn kind of thing.
ETA - I've received this call before. My 403b is almost all fixed income. In my follow up conversation with the plan advisor, I just stated my 403b fit in to my household's overall investment asset allocation and I had no concerns. No discussion of other account locations, contents, or values. No further questions followed, so I took the opportunity to ask the advisor about how funds get added to our plan and the possibility of after tax contributions. Apparently I was one of just a few people who have ever asked.
It was a cordial conversation, and the advisor called me back ~6 months later to let me know an after tax/Roth conversion option was being added for the next plan year.
