Comments on: Why are my 401(k) Unit Values Different? http://www.lifeofaninvestor.com/stock-investing/why-are-my-401k-unit-values-different/ My journey through stock, real estate and life investing Thu, 02 Sep 2010 20:29:40 -0600 http://wordpress.org/?v=2.8.6 hourly 1 By: john oreilly http://www.lifeofaninvestor.com/stock-investing/why-are-my-401k-unit-values-different/comment-page-1/#comment-1249 john oreilly Wed, 24 Mar 2010 12:07:56 +0000 http://www.lifeofaninvestor.com/?p=361#comment-1249 This is a common problem in 401(k) plans overall. You've seen the tip of the iceberg. Fee transparency is very poor in the vast majority of 401(k) plans. ERISA - the guidelines that regulate 401(k) is very weak and allows these shenanigans to exist without penalty. Several attempts have been made to tighten up ERISA to no avail. Best thing to do - ask your plan sponsor: 1) I want a better 401(k) plan with funds that do not pay 12b-1 fees. (12b-1 fees are kickbacks that create conflicts of interest among the vendors that provide the plan for you. 2) I want a better 401(k) plan with institutional class, low expense ratio, passively managed funds. 3) I want a real investment advisor to build my portfolio for me, matched to my risk tolerance, using these institutional fund building blocks. 4) I want an advisor that walks the fiduciary talk by taking on ERISA section 3-21 adn 3-38 fiduciary liability in writing. (Which helps your plan sponsor be relieved of a lot of liability. Remember this is YOUR MONEY - SPEAK UP - your retirement dollars are being mistreated right now. Until you get into a plan as described, you are probably reaching the long term potential growth that you could have. 99% of you reading this, are in a poor plan. This is a common problem in 401(k) plans overall. You’ve seen the tip of the iceberg. Fee transparency is very poor in the vast majority of 401(k) plans. ERISA – the guidelines that regulate 401(k) is very weak and allows these shenanigans to exist without penalty. Several attempts have been made to tighten up ERISA to no avail. Best thing to do – ask your plan sponsor:

1) I want a better 401(k) plan with funds that do not pay 12b-1 fees. (12b-1 fees are kickbacks that create conflicts of interest among the vendors that provide the plan for you.
2) I want a better 401(k) plan with institutional class, low expense ratio, passively managed funds.
3) I want a real investment advisor to build my portfolio for me, matched to my risk tolerance, using these institutional fund building blocks.
4) I want an advisor that walks the fiduciary talk by taking on ERISA section 3-21 adn 3-38 fiduciary liability in writing. (Which helps your plan sponsor be relieved of a lot of liability.

Remember this is YOUR MONEY – SPEAK UP – your retirement dollars are being mistreated right now. Until you get into a plan as described, you are probably reaching the long term potential growth that you could have. 99% of you reading this, are in a poor plan.

]]> By: Gary Duell http://www.lifeofaninvestor.com/stock-investing/why-are-my-401k-unit-values-different/comment-page-1/#comment-1239 Gary Duell Thu, 04 Mar 2010 21:28:37 +0000 http://www.lifeofaninvestor.com/?p=361#comment-1239 I've come up against the same issue with The Standard. Seems like an attempt to conceal expenses & fees and make it difficult to do cross comparisons with competing funds. I’ve come up against the same issue with The Standard. Seems like an attempt to conceal expenses & fees and make it difficult to do cross comparisons with competing funds.

]]> By: master shake http://www.lifeofaninvestor.com/stock-investing/why-are-my-401k-unit-values-different/comment-page-1/#comment-1224 master shake Tue, 02 Feb 2010 03:32:22 +0000 http://www.lifeofaninvestor.com/?p=361#comment-1224 Agreed with the above poster. I too have a JH account with the very same issue. Some of these 'unit values' differ greatly from the ticker symbol provided on the fund information page. From the layout of the site, it would appear that they are actually offering the fund itself and do not draw much attention to what you are actually investing your hard earned money. How is the 401k investor to know exactly where his finances are heading with this model. Say Agreed with the above poster. I too have a JH account with the very same issue. Some of these ‘unit values’ differ greatly from the ticker symbol provided on the fund information page. From the layout of the site, it would appear that they are actually offering the fund itself and do not draw much attention to what you are actually investing your hard earned money.

How is the 401k investor to know exactly where his finances are heading with this model. Say

]]> By: Where is my ticker http://www.lifeofaninvestor.com/stock-investing/why-are-my-401k-unit-values-different/comment-page-1/#comment-1220 Where is my ticker Tue, 26 Jan 2010 22:17:44 +0000 http://www.lifeofaninvestor.com/?p=361#comment-1220 I have had the same issue with a JH account I have. My concern is that they provide a ticker symbol that is publicly listed and quoted -- and the prospectus for that symbol relates to the non-JH sold fund. If the share units and cost are not the same as they are for the prospectus fund, then how do we know and compare the costs/expenses shown for the fund? Seems to me there is a lack of transparency and the opportunity for hidden costs and expenses - since there is no publicly available info on these rebundled funds. I have had the same issue with a JH account I have. My concern is that they provide a ticker symbol that is publicly listed and quoted — and the prospectus for that symbol relates to the non-JH sold fund. If the share units and cost are not the same as they are for the prospectus fund, then how do we know and compare the costs/expenses shown for the fund?

Seems to me there is a lack of transparency and the opportunity for hidden costs and expenses – since there is no publicly available info on these rebundled funds.

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