401k options

Oct 03, 2008 2 Replies

I have a 401k plan at work. I really do not like the way it is being managed. Specifically, the fund choices are not great.



The most outrageous, is that the _money market fund_ is charging us over 1% of asset value for "management". I think that it is obnoxious, as they likely do not do much, and the returns certainly do not compare to the expense of the management.



I have been with the Co. for a few years and accumulated a reasonable amount of $$, most of which is in that god damn money market fund.



By now, the amount of money in the 401k account is enough to matter.



So, in short, I am pissed off.



Is there something, short of leaving my employer, that I can do? Such as close the 401k and move it to IRA, and then reopen? I like my job and would not leave, but I hate feeding those greedy bastards for nothing in return.



By the way, I think that the 401k plans are greatly contributing to financial instability, by giving essentially random people (fund managers) control over large amounts of money that is not theirs. And OPM (other people's money) always is a source of dumbest financial decisions due to misalignment of interests.


As John said, unless you leave the job, there's no good option for withdrawing the funds. Unless you put in money on an after-tax basis.

The Bogelheads wiki has a page on trying to get your company to improve the 401(k).

Brian

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Brian, my employer is well versed in financial matters. So I suspect that the reason why they chose this mutual fund company, is less than benign. It was not done out of ignorance, I am sure.

But I will try to ask some questions.

i

-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.

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