My son, 28 is ready to start retirement savings. HIs company offers 8 funds through Hartford most with heavy load and expense charges: SEI Stable Asset, RIDFX, AGTHX, AWSHX, ITHAX, GTAGX, GSSSX, and TEMFX. He would prefer to use no load, low expense funds. Does he have a better choice?
He should double-check with his HR department and/or the plan administrator to see whether the loads are waived. This is often the case for load funds available through many 401(k) plans, although it's not universal. He can also complain to HR about the selection of funds in the plan, but if it's a small company they may not be able to do much about it.
Of the funds listed above, I'd say the no-brainer decision is to put
100% into RIDFX. It's a one-stop-shopping balanced fund, very highly rated by Morningstar, and those are no-load shares with the expense ratio a very low 0.33%. He should contribute enough to get the full employer match. If he has leftover money to save, fund a Roth IRA and use that to fill out his portfolio with funds more to his liking.-Sandra the cynic
mac, check out the excellent user forums at
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