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Started By
Message
Why are 401k platforms so far behind other retirement plans?
Posted on 7/28/16 at 4:14 pm
Posted on 7/28/16 at 4:14 pm
The other thread had me take a quick look, and dang my head hurts just from 5 minutes of trying to log in, find what miserably few options I have, and then geez opening up the specific fund and analyzing them is a completely horrible experience.
Schwab that I use for my Roth and SEP-IRA is infinitely better, but yet 401ks probably have much more users on an exponential scale. I actually enjoy checking on my Schwab investments.
How has someone not come in and completely revitalized the 401k market? Its well past time?
How is it that I have like 10 investment options now with my 401k but almost infinite with my SEP? I feel like if they made it more user friendly more people would contribute more of their money, and gasp they would make more.
Schwab that I use for my Roth and SEP-IRA is infinitely better, but yet 401ks probably have much more users on an exponential scale. I actually enjoy checking on my Schwab investments.
How has someone not come in and completely revitalized the 401k market? Its well past time?
How is it that I have like 10 investment options now with my 401k but almost infinite with my SEP? I feel like if they made it more user friendly more people would contribute more of their money, and gasp they would make more.
This post was edited on 7/28/16 at 4:16 pm
4
Posted on 7/28/16 at 4:25 pm to baldona
its pretty simple, companies get kickbacks for having shitty high fee funds.
My fidelity interface is easy to use, but the funds not so great.
My fidelity interface is easy to use, but the funds not so great.
Posted on 7/28/16 at 4:27 pm to Hawkeye95
Pretty much this. Companies want to offset/decrease (however you want to look at it) the operating expenses of offering and managing the plan to it's employees.
Posted on 7/28/16 at 4:34 pm to Hawkeye95
quote:
My fidelity interface is easy to use, but the funds not so great.
Does your Fidelity 401k come with BrokerageLink? My wife's did and I was able to get around the plan options
Posted on 7/28/16 at 4:35 pm to TigerDeBaiter
The higher fees are one thing. To a degree I understand that.
But mostly I'm talking about how un user friendly they are. Not that changing my percentages and what not is difficult, but actually looking at the funds and comparing them. My company has now been through 3 different providers and they are all the same. They are at least 10 years behind technologically than your modern equities trading website.
But mostly I'm talking about how un user friendly they are. Not that changing my percentages and what not is difficult, but actually looking at the funds and comparing them. My company has now been through 3 different providers and they are all the same. They are at least 10 years behind technologically than your modern equities trading website.
Posted on 7/28/16 at 4:56 pm to baldona
Yeah, I hear you. Probably still to keep cost down, but it is frustrating. I got to the point we're I'd make my own spreadsheets to sort the horrible offerings because the functionality was terrible. Not to mention the fees!
My previous employers used Transamerica and Mass Mutual. Both had horrible interfaces.
I'm on my own now and use Vanguard and Schwab. Both much better but still both could use some better query/sorting options.
My previous employers used Transamerica and Mass Mutual. Both had horrible interfaces.
I'm on my own now and use Vanguard and Schwab. Both much better but still both could use some better query/sorting options.
Posted on 7/28/16 at 6:59 pm to Hawkeye95
quote:If you have evidence of a company doing that you should report that company.
its pretty simple, companies get kickbacks for having shitty high fee funds.
There are some pretty hefty whistle blower rewards for reporting companies who willfully violate ERISA. And a company getting a "kickback" for offering high commission investment options is definitely a violation of ERISA.
My guess is, based on your posting history, you're just making shite up and have no clue if what you wrote is true or not but you thought it made you sound intelligent. It does the opposite.
Posted on 7/28/16 at 10:00 pm to LSURussian
I'd say kickbacks is not the right word. But why else are the fees so high and offerings so limited?
It's to help reduce the cost of managing the plan. They make more money on the funds than the servicing side, no? Why would they not offer low fee options?
It's to help reduce the cost of managing the plan. They make more money on the funds than the servicing side, no? Why would they not offer low fee options?
Posted on 7/29/16 at 12:08 am to TigerDeBaiter
Idk
I have seen a considerable shift to adding Vanguard funds in both my 401k and HSA investment choices.
I have seen a considerable shift to adding Vanguard funds in both my 401k and HSA investment choices.
Posted on 7/29/16 at 12:19 am to Volvagia
I am finally adding the brokerage link to our company's 401k plan after years of lobbying and asking our 3rd party advisor to add more funds. The only answer I ever received about not having more funds is that we "already offer a funds for each style. It didn't matter if funds were on a watch list for underperforming according to their BS scorecard system, I had to start tracking them on my own and finally had enough data to question/show them that the funds they were cycling us in and out of were not good funds. In general, they are lazy imo and don't want more funds to research and thus track.
Posted on 7/29/16 at 5:31 am to Volvagia
Riddle me this
Why does my vanguard total stock fund in my 401k have a 1.07 expense ratio
Why does my vanguard total stock fund in my 401k have a 1.07 expense ratio
Posted on 7/29/16 at 7:53 am to TigerDeBaiter
quote:The fees within funds offered by an employer are the same if you buy those funds in your 401(k) or in your own IRA.
But why else are the fees so high and offerings so limited?
As far as limited investment options, most plans that I've seen offer a diverse selection of options with the full range of investment objectives.
The administrative fees an employer must pay to the plan provider are somewhat based on how many investment options are offered. The higher the number of investment options, the higher the administrative fees.
quote:Every plan I've seen have at least one "low fee option" such as index funds.
Why would they not offer low fee options?
If an employer is only offering high fee funds or is not offering a diverse investment selection, then a valid complaint can be made to the Dept of Labor who oversees ERISA compliance issues. This DOL site lists the responsibilities of a plan administrator
ERISA holds the management of a company personally liable if they do not follow the basic standards of conduct and may have to personally restore any losses plan participants experience due to improper use of the plan's assets. That's a very strong incentive for the people in charge of the plan to operate it properly.
Posted on 7/29/16 at 9:06 am to LSURussian
The S&P fund in my 401k has a fee of...0.01%
1 hundredth of 1 percent. That is better than I could find on broker sites. Then we have administrative fees of 9 dollars a quarter. Not bad at all in my opinion.
1 hundredth of 1 percent. That is better than I could find on broker sites. Then we have administrative fees of 9 dollars a quarter. Not bad at all in my opinion.
Posted on 7/29/16 at 9:28 am to LSUtoOmaha
quote:Excellent!
1 hundredth of 1 percent. That is better than I could find on broker sites. Then we have administrative fees of 9 dollars a quarter. Not bad at all in my opinion.
How many investment options do you have to choose from?
Posted on 7/29/16 at 9:39 am to baldona
I am pretty ignorant on this stuff, so I just looked.
My company uses fidelity and when I started my 401k contributions, I just threw it to the Vanguard target retirement fund. It has a gross expense ratio of 0.06%.
My company uses fidelity and when I started my 401k contributions, I just threw it to the Vanguard target retirement fund. It has a gross expense ratio of 0.06%.
Posted on 7/29/16 at 10:20 am to Teddy Ruxpin
quote:
Does your Fidelity 401k come with BrokerageLink? My wife's did and I was able to get around the plan options
fricking brilliant. I have it, its just completely buried! thanks a ton.
Posted on 7/29/16 at 10:23 am to LSURussian
Probably 30 or so
Posted on 7/29/16 at 10:28 am to LSURussian
quote:
My guess is, based on your posting history, you're just making shite up and have no clue if what you wrote is true or not but you thought it made you sound intelligent. It does the opposite.
my guess is you are a fricking moron
LINK
quote:
Mutual fund companies often pay a kickback (euphemistically called "revenue sharing") to be included as an investment option. Most index funds, exchange-traded funds and passively managed funds don't pay revenue sharing, so including them would require the company to kick in some cash to cover the overhead. That is unlikely to occur.
Posted on 7/29/16 at 10:36 am to Hawkeye95
quote:
fricking brilliant. I have it, its just completely buried! thanks a ton.
No problem! You're right, they really do bury it. I almost added that fact to the post. Glad it helped.
Fyi if you use Mint or Personal Capital, I've found that when you move your money into that BrokerageLink bucket, Mint picks it up but Personal Capital does not.
This post was edited on 7/29/16 at 10:38 am
Posted on 7/29/16 at 10:49 am to baldona
quote:
The other thread had me take a quick look, and dang my head hurts just from 5 minutes of trying to log in, find what miserably few options I have, and then geez opening up the specific fund and analyzing them is a completely horrible experience.
Schwab that I use for my Roth and SEP-IRA is infinitely better, but yet 401ks probably have much more users on an exponential scale. I actually enjoy checking on my Schwab investments.
My company had the wisdom and foresight to use Vanguard. No complaints.
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