• Go to page :
  • 1 2
  • Text Only
goobs555 said: Yes, they suck in short as their fund fees are too high.

Gross Expense - Advisor - Type
1.15% - Principal Global Investors - Money Market Sep Acct
1.30% - Principal Global Investors - Bond and Mortgage Sep Acct
1.74% - Principal Real Estate Inv - U.S. Property Sep Acct
1.45% - Principal Global Investors - Principal LifeTime Strategic Income Separate Account
1.49% - Principal Global Investors - Principal LifeTime 2010 Separate Account
1.56% - Principal Global Investors - Principal LifeTime 2020 Separate Account
1.57% - Principal Global Investors - Principal LifeTime 2030 Separate Account
1.58% - Principal Global Investors - Principal LifeTime 2040 Separate Account
1.59% - Principal Global Investors - Principal LifeTime 2050 Separate Account
0.90% - Principal Global Investors - Large Cap Stock Index Sep Acct
0.90% - Principal Global Investors - Mid-Cap Stock Index Sep Acct
0.90% - Principal Global Investors - Small-Cap Stock Index Sep Acct

In addition to Principal we get these options as well.

2.52% - Russell Investment Group - Russell LifePoints® Balanced Strategy Separate Account
2.34% - Russell Investment Group - Russell LifePoints® Conserv Strategy Separate Account
2.65% - Russell Investment Group - Russell LifePoints® Eqty Growth Strat Separate Account
2.57% - Russell Investment Group - Russell LifePoints® Growth Strategy Separate Account
2.42% - Russell Investment Group - Russell LifePoints® Moderate Strategy Separate Account
1.52% - AllianceBernstein LP - LargeCap Value Sep Acct
1.50% - T. Rowe Price Associates, Inc. - Large-Cap Blend Sep Acct
1.50% - T. Rowe Price Associates, Inc. - LargeCap Growth I Sep Acct
1.76% - Dimensional/Vaughan Nelson - SmallCap Value II Sep Acct
1.76% - Fidelity (Pyramis Global Adv) - Mid-Cap Growth II Separate Account
1.76% - Goldman Sachs/LA Capital Mgmt - Mid-Cap Value I Sep Acct
1.76% - UBS/Emerald/Essex - SmallCap Growth II Sep Acct
1.88% - Fidelity (Pyramis Global Adv) - International Sep Acct

For me, none of the funds offer stand out from a return v. expense standpoint. So my personal allocation is split 4 ways amongst the 3 different index funds offered by Principal plus the Fidelity international fund.



Oh wow, about 80% of the funds listed above are being offered to us as well (even the non-principal ones), I wonder if it is the same financial advisor that also "advised" your company to go with principal

I know it is painful to say the least to be paying .90% in expenses on an Index fund when you know what Vanguard and Fidelity can do for you. It is a fact that these funds are guaranteed to be about 1% point below the index and possibly more because of the tracking errors.

Btw, do you know if the advisor class of shares have any upfront loads or other redemption fees?

A question, if anyone is still following this thread....

I left my job back in late June, so I still have about a month to decide whether I want to rollover my 401(k). There's a pretty substantial balance (a result of 7 years of working), so I'm not sure I want to monkey with it, although I'm not thrilled about the plan options.

I'm self employed now, and was going to start a a Sep-401(k). My two questions:

- Can you roll over a 401k into a Sep-401(k)? The only advantage there would be I can pick a provider that has funds I like, and I'd have all my money in one place.

- If you roll a 401k into an IRA, are there any penalties taxwise? Any limits? I thought about rolling into an IRA and putting some of the money there into more conservative (less risky) investments, waiting out a small dip in the market then putting it back into index funds.

Thanks in advance for any help!

rj2828 said: Can you roll over a 401k into a Sep-401(k)? The only advantage there would be I can pick a provider that has funds I like, and I'd have all my money in one place.The symbol on the left is not a letter, sir? There's no Sep-401(k). There's the SEP IRA, SIMPLE 401(k) (which is pretty unusual), and solo (or self-employed) 401(k) (which is really just the same thing as any other 401(k)). I'm guessing you have the latter, and, yes, you can roll over money into one, unless the specific one doesn't accept rollovers (which would be unusual).
- If you roll a 401k into an IRA, are there any penalties taxwise? Any limits?No and no.

Nmelapsos said: Here's some other differences that I can think of:

...

2) Expense ratios- usually 401k funds will have a lower expense ratios than regular individual mutual funds 'cause they invest on a more institutional level.
That may be true for large, well-run companies, but most employers I know of have plans that actually cost more because the sponsors charged employers a lot less in set-up fees. This is especially true for plans run by insurance companies, and in one example I know of the cheapest funds were 0.5% a year (and they were index funds), plus the 401K tacked on an extra 1.5% in expenses.

now bigger advantage is that if you now rollover your 401K to traditional IRA and in 2010 you can rollover to Roth IRA irrespective of your income limit

prikindel said: not sure if it's still the case, but it used to be several years ago that 401k was protected against your creditors, while IRA was not. I know that was going to change but not sure if it did.

My impression is that while IRA creditor protection has been increased very significantly in recent years, 401K creditor protection is still more bulletproof.
You need to successfully file for bankruptcy to protect the IRA assets (including a 401K rollover into an IRA) while 401K assets are protected w/o having to do that.

Questions...

If you roll over 8000 from a 401k to a Traditional IRA this year can you still contribute 4000 to the IRA for your contribution for this year? And will it still be tax deductable at the end of the year?

Thanks.

maddogchen said: Questions...

If you roll over 8000 from a 401k to a Traditional IRA this year can you still contribute 4000 to the IRA for your contribution for this year? And will it still be tax deductable at the end of the year?

Thanks.

A rollover has absolutely no effect whatsoever on the amount of your regular annual contribution or the deductibility of your annual contribution.

If you would have been eligible to contribute $4000 and deduct it before you did the rollover, you will still be eligible to contribute and deduct after you do the rollover.

kaneohe said: prikindel said: not sure if it's still the case, but it used to be several years ago that 401k was protected against your creditors, while IRA was not. I know that was going to change but not sure if it did.

My impression is that while IRA creditor protection has been increased very significantly in recent years, 401K creditor protection is still more bulletproof.
You need to successfully file for bankruptcy to protect the IRA assets (including a 401K rollover into an IRA) while 401K assets are protected w/o having to do that.


They both are protected equally up to 1 million dollors,they had a land mark case about this a few years back,and the judge ruled that IRA's to have same protection as 401k's up to 1 million dollors.

Publication Date: 01-JUN-05
Delivery: Immediate Online Access
Author: Kess, Sidney

Thirteen years ago the U.S. Supreme Court confirmed benefits held in qualified retirement plans are protected from creditors in case of bankruptcy (Patterson v. Shumate, S.Ct., 504 U.S. 753 (1992)). Now the court has extended this protection to funds held in IRAs.

The Employer Retirement Income Security Act (ERISA) of 1974 created broad protection from creditors' claims for benefits in employer-sponsored retirement plans (e.g., profit sharing, 401(k) and pension plans). Essentially, a plan participant's creditors have no access to benefits in these plans in case of bankruptcy or otherwise.

Rousey v. Jacoway, No. 03-1407 (April 4, 2005),

The Court unanimously held that a married couple in a Chapter 7 bankruptcy case could shield their IRA assets from their creditors as exempt property under the Bankruptcy Code. The Court reasoned that because IRAs are like other benefit plans (such as pension plans, 401(k) plans, and other similar benefit plans that provide for payments because of "illness, disability, death, age or length of service"), they are entitled to the same exempt status that these other benefit plans already have under federal bankruptcy law.

The decision applies to the 16 states and the District of Columbia that don't have their own laws that protect IRAs: Alaska, Arkansas, Connecticut, Hawaii, Michigan, Minnesota, New Hampshire, New Jersey, New Mexico, Pennsylvania, Rhode Island, South Dakota, Texas, Vermont, Washington and Wisconsin. Wherever you may be located,

IRAs are now federally protected from your creditors when you file for bankruptcy the same as pension plans,401ks etc..

before 2005,it was pretty much state by state laws about IRA protection,but this ruling made it a uniform nationwide federal policy.

The only thing is the court ruling only protects IRAs up to 1 million dollors.



Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.

Thanks for visiting FatWallet.com. Join for free to remove this ad.

TRUSTe online privacy certification

While FatWallet makes every effort to post correct information, offers are subject to change without notice.
Some exclusions may apply based upon merchant policies.
© 1999-2014