Comments on: Ten Things Your 401K Provider Won’t Tell You, Part 1 http://www.myretirementblog.com/ten-things-your-401k-provider-wont-tell-you-part-1.html Retire happy, healthy and wise. Thu, 20 Nov 2008 17:38:44 +0000 http://wordpress.org/?v=2.6.3 By: Robert http://www.myretirementblog.com/ten-things-your-401k-provider-wont-tell-you-part-1.html#comment-6244 Robert Fri, 06 Apr 2007 23:50:46 +0000 http://www.myretirementblog.com/ten-things-your-401k-provider-wont-tell-you-part-1.html#comment-6244 My 403b plan takes my money on payday and it may take over two weeks for the funds to hit my account. The number of days varies widely. Another strange observation is the funds seem to get invested at Fidelity only on market peaks and or days with upward share price movement, meaning less shares issued per dollar contributed. What's the chance of that if it is "random". My 403b plan takes my money on payday and it may take over two weeks for the funds to hit my account. The number of days varies widely. Another strange observation is the funds seem to get invested at Fidelity only on market peaks and or days with upward share price movement, meaning less shares issued per dollar contributed. What’s the chance of that if it is “random”.

]]> By: Ray http://www.myretirementblog.com/ten-things-your-401k-provider-wont-tell-you-part-1.html#comment-5286 Ray Sat, 31 Mar 2007 20:44:06 +0000 http://www.myretirementblog.com/ten-things-your-401k-provider-wont-tell-you-part-1.html#comment-5286 Hi, How about this one: the provider says they cut checks for return of excess contributions on March 14 and withdrew them from participants' accounts on that date. They say they mailed them on the 16th. As of the 31st of March none of the partcipants has received a check. Two problems: the provider (say, for example, Payflex Retirememt Services - not quite their real name) has use of the funds for at least an extra two weeks, denying the participants any earnings during that time, and the funds are taxable to the recipients for 2006 because they took them out of the accounts pre-March 15, 2007 - the cutoff date - irrespective of when received. I think this kind of abuse of "float" by payroll services should be preventable by some means - what could someone do aside from changing providers? Thanks! Ray Hi,

How about this one: the provider says they cut checks for return of excess contributions on March 14 and withdrew them from participants’ accounts on that date. They say they mailed them on the 16th. As of the 31st of March none of the partcipants has received a check.

Two problems: the provider (say, for example, Payflex Retirememt Services - not quite their real name) has use of the funds for at least an extra two weeks, denying the participants any earnings during that time, and the funds are taxable to the recipients for 2006 because they took them out of the accounts pre-March 15, 2007 - the cutoff date - irrespective of when received.

I think this kind of abuse of “float” by payroll services should be preventable by some means - what could someone do aside from changing providers?

Thanks!
Ray

]]> By: retirehappy http://www.myretirementblog.com/ten-things-your-401k-provider-wont-tell-you-part-1.html#comment-4539 retirehappy Tue, 27 Mar 2007 13:27:06 +0000 http://www.myretirementblog.com/ten-things-your-401k-provider-wont-tell-you-part-1.html#comment-4539 Hi Shadox, I was merely summarizing the 10 things articles and adding a little commentary of my own, I would think that you'd be hard pressed to find a 401k provider that suffered from ALL of these failings but it's important to see what aspects your plan could be slipping towards. I agree with you in that no one plan is THIS bad but the potential is there and consumers need to be educated on where they can be scammed, even if they never will be scammed. Thanks for reading! Hi Shadox,
I was merely summarizing the 10 things articles and adding a little commentary of my own, I would think that you’d be hard pressed to find a 401k provider that suffered from ALL of these failings but it’s important to see what aspects your plan could be slipping towards. I agree with you in that no one plan is THIS bad but the potential is there and consumers need to be educated on where they can be scammed, even if they never will be scammed.

Thanks for reading!

]]> By: fivecentnickel.com http://www.myretirementblog.com/ten-things-your-401k-provider-wont-tell-you-part-1.html#comment-4165 fivecentnickel.com Sun, 25 Mar 2007 03:16:15 +0000 http://www.myretirementblog.com/ten-things-your-401k-provider-wont-tell-you-part-1.html#comment-4165 <strong>Weekly Roundup - 03/23/07...</strong> Here’s a quick look at some of the articles that caught my eye over the past week… Jim writes about the possibility that no-free balance transfers from Citi might be coming to an end. So… There’s not better time to apply for a 0% bala... Weekly Roundup - 03/23/07…

Here’s a quick look at some of the articles that caught my eye over the past week…

Jim writes about the possibility that no-free balance transfers from Citi might be coming to an end. So… There’s not better time to apply for a 0% bala…

]]> By: Shadox http://www.myretirementblog.com/ten-things-your-401k-provider-wont-tell-you-part-1.html#comment-4048 Shadox Sat, 24 Mar 2007 02:38:50 +0000 http://www.myretirementblog.com/ten-things-your-401k-provider-wont-tell-you-part-1.html#comment-4048 I am sorry, but I (respectfully) disagree with many of the points you make in this article. You clearly mean well, but as someone who participates in my company's 401(k) management plan I think you misunderstand some of the elements in the 401(k) process. Yes, there are serious problems with 401(k) plans - such as excessive fees, poor fund choices and so-called "wrap charges", but unless you are working for a seriously mean company your company is probably not charging you more for your investments than it is being charges yourself. Many 401(k) administrators lack knowledge and training. But few if any would set up their own target retirement accounts. If nothing else, the liability that they would be exposed to would deter them from doing so. I will write a post about some of the issues with 401(k)s in my own blog in the next few days. In the mean time, you may be interested to check out <a href="http://moneyandsuch.blogspot.com/2007/03/people-dont-care-about-retirement.html" rel="nofollow">this recent post</a> about a recent survey regarding 401(k) that I conducted in my company. BTW, I am a regular reader of your blog and enjoy it a great deal. I am sorry, but I (respectfully) disagree with many of the points you make in this article. You clearly mean well, but as someone who participates in my company’s 401(k) management plan I think you misunderstand some of the elements in the 401(k) process.

Yes, there are serious problems with 401(k) plans - such as excessive fees, poor fund choices and so-called “wrap charges”, but unless you are working for a seriously mean company your company is probably not charging you more for your investments than it is being charges yourself.

Many 401(k) administrators lack knowledge and training. But few if any would set up their own target retirement accounts. If nothing else, the liability that they would be exposed to would deter them from doing so.

I will write a post about some of the issues with 401(k)s in my own blog in the next few days. In the mean time, you may be interested to check out this recent post about a recent survey regarding 401(k) that I conducted in my company.

BTW, I am a regular reader of your blog and enjoy it a great deal.

]]>