I missed the communication that all my well-performing mutual funds would be mapped to a couple of ETFs, a target date fund and a generic bond fund. My well diversified portfolio that's averaged 12% annually, wiped clean by the geniuses running this ship like it's the Titanic. No more individual fund choices unless you go with the self directed brokerage account option, which I will be doing.
Nearly $500k between me and my spouse completely trashed by the geniuses on the 10th floor.
Communication was poor but it’s a positive development. Actively managed mutual funds have higher internal fees and almost always underperform simple indices over time. They’re a parasitical racket and have no business showing their face in workers’ retirement plans. Pick an appropriate basket of the low-cost index funds and rebalance semiannually. Ignore the solicitations to upcharge you for “help” managing your 401k. Heap as much as you possibly can into it, ignoring market swings.
It was communicated, but very very poorly. Someone on my team fully read the message that showed up in the Empower site (the envelope icon to the left of your initials in the upper right hand corner) and then you had to click on a link to actually see what they were doing. (It may have been lightly mentioned in Amplify 1 time as well). She shared the message with the rest of our team and we then all reacted as we felt necessary. Since I am post 59.5 I will probably transfer a big chunk of it to my Jones account, but some will go to Schwab to purchase CES and ETF they will not let me purchase internally.
@OP I opened the Schwab self directed option but haven’t invested there yet. Seems you can invest in just about anything on the menu- stocks, etfs, options. But makes me wonder if we will have restrictions there. We’re supposed to report it on outside accounts, so compliance will see what we’re doing.
@b1 Just the 401k. They changed the eligible plan investments that we can choose from within the 401k. Removed funds were mapped to the closest fund remaining in the new lineup. They took away a lot of third party mutual funds, many of which had great historical performance.
@b4 Target date funds typically underperform and will put your retirement at risk. Be careful and do your own research. I understand the expense ratio is lower than the Growth Focused fund but that was also underperforming fund. All the internal funds underperformed. The blue chip funds were amazing the last 5 years.
I'm ok with it...the new Vanguard target date funds are diversified and have a .03% expense ratio vs the old 'Growth Focus' which was around .40%
Just our 401k, right, not other holdings like IRA, etc?
Cluster
Crazy move. Almost 80% of my holdings were mapped to one S&P500 fund. Go check your allocations!
Everything they touch, turns to sh!+. Are they just doing things maliciously at this point?