What's the expense ratio on your 401k funds?

[GrandTheftAutumn]

I think I'm getting robbed.

I just took a closer look at my employer's 401k fund options.
The one with the lowest expense ratio is just below 0.5% for a S&P500 fund.
If I want to invest in a fund that's close to NASDAQ, it's a little over 1%.
Their target retirement fund options is awful.

What's your plans expense ratio like?

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[WVUPharm2007]

Yeah, you're getting robbed.

At CVS, they just use Vanguard.

Here's the options:

Vanguard - Fund Comparative Chart

retirementplans.vanguard.com

The S&P fund is called the "Core Equity Fund." It's at 0.04%

 

[PharmDBro2017]

Mostly vanguard funds
0.03%
0.04%
0.06%
0.07%

 

[RXDOC1986]

If it's a current employer 401K, you are locked in. Contribute the max, get the match, and wait until they are the ex-employer and move the money.

 

[mentos]

0.03%

 

[confettiflyer]

That’s absolute robbery, I think my average is like 0.1%, with most of it being in ultra low 0.02-0.03% funds or something.

There’s no way to do a self directed brokerage option? Even if they charge $25 per transaction, it would be worth it in the long run.

 

[sunnyandseventytwo]

I think I'm getting robbed.

I just took a closer look at my employer's 401k fund options.
The one with the lowest expense ratio is just below 0.5% for a S&P500 fund.
If I want to invest in a fund that's close to NASDAQ, it's a little over 1%.
Their target retirement fund options is awful.

What's your plans expense ratio like?

Name and shame. Is it American Funds?

 

[GrandTheftAutumn]

Name and shame. Is it American Funds?

Some company that's not named Vanguard or Fidelity.
Seriously, probably some small retirement plan management that no one really uses.

 

[GrandTheftAutumn]

Well goddamnit, am I the only one here with an awful retirement plan?

 

[GrandTheftAutumn]

That’s absolute robbery, I think my average is like 0.1%, with most of it being in ultra low 0.02-0.03% funds or something.

There’s no way to do a self directed brokerage option? Even if they charge $25 per transaction, it would be worth it in the long run.

I'll ask if I can just put my money in SPY instead of their garbage funds

 

[WVUPharm2007]

I'll ask if I can just put my money in SPY instead of their garbage funds

Sounds to me like you need to talk to your HR director. Are they aware of how **** their 401k offerings are?

 

[Splenda88]

Mine is also highway robbery.... 0.28

 

[CarpetTable45]

At least you do not have to suffer this with HSA. Remember to transfer all HSA funds not held at Fidelity to Fidelity (fidelity.com/toa) at least once per year, even if you do not change employers. Just leave $25 or so in the employer's HSA custodian account so it does not cause you trouble.

 

[mentos]

At least you do not have to suffer this with HSA. Remember to transfer all HSA funds not held at Fidelity to Fidelity (fidelity.com/toa) at least once per year, even if you do not change employers. Just leave $25 or so in the employer's HSA custodian account so it does not cause you trouble.

My HSA has Vanguard funds, I can just leave them right?

 

[Rockinacoustic]

Ironically, my HSA has the best investment options of all my employer retirement plans

 

[sunnyandseventytwo]

How are all of you eligible for HSAs? Does your employer only offer a high deductible plan or are you choosing it over other options? I've never worked anywhere that offered one.

 

[mentos]

How are all of you eligible for HSAs? Does your employer only offer a high deductible plan or are you choosing it over other options? I've never worked anywhere that offered one.

HDHP with HSA is an option and a traditional PPO is also an option. CVS offers it so it's pretty common now. Every employer should offer HSA. It costs the employer less and the employees pay less and save more, it's a win win. Most employers give a free $500-1,000/year contribution.

My HSA has about 50k in it from saving through the years. If I had a PPO this whole time, I'd have nothing saved up since I rarely go to the doctor outside of annual physicals. I'd actually have less than nothing since a PPO has a higher premium than HDHP. Even though the plan is high deductible, medical bills are still discounted with the plan. If I had a medical emergency then I only pay up to the out of pocket maximum and I can tap into that 50k for that, tax free.

Contributions, earnings, AND withdrawals are tax free. Roth IRA or 401k only has some of those benefits. If you don't need it for medical expenses after you retire, you can use the funds for anything just like an IRA. You can use the HSA card for medical bills, OTC items, same as an FSA card except the funds don't expire and roll over each year, they are yours to keep.

 

[CarpetTable45]

Why?

Because Fidelity is free and its investment options are superior to any other HSA custodian. For example, you can YOLO on individual stocks, since HSAs are the most tax advantaged account, I think it makes the most sense to gamble in them.

And it takes your employer out of the picture. Were it possible, I would transfer my 401k funds too (if not already at Schwab/Fidelity/Vanguard).

 

[CarpetTable45]

HDHP with HSA is an option and a traditional PPO is also an option.

HDHP is an IRS designation for a qualifying plan with certain deductibles/out of pocket maximums that makes a person eligible to make tax advantaged HSA contributions.

Publication 969 (2023), Health Savings Accounts and Other Tax-Favored Health Plans | Internal Revenue Service

www.irs.gov

PPO/EPO/HMO are types of plans, any of which theoretically could be HDHP if they met the IRS criteria. All of my HDHP HSA eligible plans have been PPO for the past 15+ years.

Health insurance plan & network types: HMOs, PPOs, and more | HealthCare.gov

Get tips on comparing & choosing a health plan that make the process simpler There are different types of health insurance plans that meet different needs. Some examples include HMO, EPO, PPO, and POS plans.

www.healthcare.gov

 

[WVUPharm2007]

HDHP with HSA is an option and a traditional PPO is also an option. CVS offers it so it's pretty common now. Every employer should offer HSA. It costs the employer less and the employees pay less and save more, it's a win win. Most employers give a free $500-1,000/year contribution.

My HSA has about 50k in it from saving through the years. If I had a PPO this whole time, I'd have nothing saved up since I rarely go to the doctor outside of annual physicals. I'd actually have less than nothing since a PPO has a higher premium than HDHP. Even though the plan is high deductible, medical bills are still discounted with the plan. If I had a medical emergency then I only pay up to the out of pocket maximum and I can tap into that 50k for that, tax free.

Contributions, earnings, AND withdrawals are tax free. Roth IRA or 401k only has some of those benefits. If you don't need it for medical expenses after you retire, you can use the funds for anything just like an IRA. You can use the HSA card for medical bills, OTC items, same as an FSA card except the funds don't expire and roll over each year, they are yours to keep.

I don't take the HSA with CVS. I have very specific family medical needs and taking the HSA plan basically would cost me like $3000-4000 more dollars per year.

 

[confettiflyer]

I use Lively for HSA, which uses Schwab as the underlying brokerage firm.

 

[GrandTheftAutumn]

Sounds to me like you need to talk to your HR director. Are they aware of how **** their 401k offerings are?

Who knows, I wouldn't be surprised if I'm the first one to catch this. Perhaps the plan costs company less at the expense of fees employees have to pay. I probably should try to talk to HR about this. But I need to study up on this matter so I'll know what I'm talking about.

 

[mentos]

Who knows, I wouldn't be surprised if I'm the first one to catch this. Perhaps the plan costs company less at the expense of fees employees have to pay. I probably should try to talk to HR about this. But I need to study up on this matter so I'll know what I'm talking about.

I worked at a company with crappy 401k funds before. Someone complained and they offered Vanguard funds the next year.

 

[owlegrad]

It was harder to track down than I expected, but it turns out that the "Total Annual Operating Expenses After Fee Waiver and/or Expense Reimbursement = 0.26%" for the target date fund I invest in my employer's 403(b) account. Doesn't seem that bad to me?

 

[Splenda88]

It seems like one can rollover their 401k while still employed. If that is the case, I will do that next year once my 401k gets to a certain amount. I probably will rollover to Fidelity in put it in FXAIX.

Rolling over 401(k) while still employed

Are there financial benefits to working while in retirement? Learn how your earnings could affect Social Security benefits so you can make an informed decision.

www.ameriprise.com

 

[confettiflyer]

It seems like one can rollover their 401k while still employed. If that is the case, I will do that next year once my 401k gets to a certain amount. I probably will rollover to Fidelity in put it in FXAIX.

Rolling over 401(k) while still employed

Are there financial benefits to working while in retirement? Learn how your earnings could affect Social Security benefits so you can make an informed decision.

www.ameriprise.com

I don’t think this is common, but I’m open to surprises. I used the COVID waiver to withdraw $100k and redeposit at Vanguard.