Company 401k Plans

Top 530. May 24, 2001 4:49 PM

» Joe_Hreha - Re: Re: Re: Re: Retiring and drawing on your 401(k)s

In response to message posted by Rick_Meigs:

Thanks for all the help. Everywhere I check says that if I retire from both, I can begin payments from both. I really appreciate you and Rande's help.

Until next time,

Joe

-- posted by Joe_Hreha

Top 531. May 24, 2001 4:52 PM

» Rande - Re: Re: Re: Re: Re: Retiring and drawing on your 401(k)s

In response to message posted by Joe_Hreha:

The least we could do for someone who served his country for twenty years in the Marine Corps, protecting the rest of us. Hope you have a great retirement -- you deserve it.

Semper Fidelis

-- posted by Rande

Top 532. Jun 12, 2001 2:15 PM

» repete7750 - Re: SPD Distribution Requirements

Are these requirements the same for a 403)b) plan with 900 employees?

-- posted by repete7750

Top 533. Jun 12, 2001 3:18 PM

» repete7750 - pooled investment

must a plan inform the participants their investment in an available mutual fund will be maintained as a "pooled investment" with dividends distributed to the participants as of the distribution date rather than dividend declared date

-- posted by repete7750

Top 534. Jun 15, 2001 12:07 AM

» JenL_2 - 401(k) Plan Change-overs

Ugh - just got something in the mail about a new 401 (K) plan for our company. I work from home in WA so often am not privy to what's going on at the main office in CA....but knew they were having some kind of 401(k) presentation last week. So I called our HR to find out whazzup. It seems we are tranferring our 401(k) plan over to the 401(k) plan of the company that purchased us last year. Our 401(k) account is going to be frozen for several months during the changeover. If we enroll in the new plan before June 22 we can continue to have contributions made from our paychecks during the changeover period, otherwise we lose out on several months 401(k) contributions.

I haven't received the packet yet, but when I called HR they said they would send it ASAP. They read me the funds - mostly Fidelity and Vanguard - seems like a pretty balanced assortment to choose from. That's the plus.

Here's the minus....the new plan has a reduced employee maximum to 16%, whereas before we were able to contribute 22%. But here's a plus - the old plan had 5% company matching....the new plan does also, plus an extra bonus company matching of 1% at the end of the year, if we meet our company profit margin goals.

A minus is I have to drop my Dodge & Cox Balanced fund (DODBX), which has been the best performing fund in the portfolio in 2000-2001. Hope the alternative fund is as good.

Another Big minus is I have to drop the Nasdaq fund (RYOCX) that I've been DCAing into since mid Dec. They will probably transfer it into the new plan Agressive Growth Fund, but who knows if it will mirror the performance of the Nasdaq once it starts going again.

But I'm not too worried. Have been around the block a few times.....our company has been bought and sold quite a few times.....and each time we got a new 401(k) plan......but you know....in the end it has always works out OK!......Jen

-- posted by JenL_2

Top 535. Jun 15, 2001 1:03 PM

» rasputin - Re: 401(k) Plan Change-overs

In response to message posted by JenL_2:
Hey Jen, as you may remember, our company uses Vanguard for our 401k. They allow us to select a certain number of non-Vanguard funds (from a long list of available funds). Assuming you'se guys have the same option, your HR people, CFO and/or CEO probably do the selecting for the company. It might be interesting to see the list from which the non-Vanguard, non-Fidelity funds are chosen. Maybe they'd let you have some input as to the funds they pick.

-- posted by rasputin

Top 536. Jun 15, 2001 6:19 PM

» JenL_2 - Re: 401(k) Plan Change-overs

In response to message posted by rasputin:

Thanks Ras - Until I get the info packet I really don't know much about the plan except that it's got both Vanguard and Fidelity funds. Apparently it's the established 401(k) plan for the company that bought us last year, and they're just getting around to rolling us into the plan now. It would be nice to be able to select from a long list of funds, but we'll see what's offered. See ya in chat......Jen

-- posted by JenL_2

FASMX, DODBX, VWINX YTD, 3 YR, 5 YR Performance

Top 537. Jul 8, 2001 11:05 PM

» JenL_2 - Re: 401(k) Plan Change-overs

In response to message posted by rasputin:

OK Ras - Here's the list of funds we have to choose from in my new 401(k) plan:

Fidelity Short Term Fixed Income Fund

Vanguard Total Bond Market Index Fund Institutional Shares

Fidelity Asset Manager
This is the hybrid fund - not as good a performer as my former Dodge & Cox Balanced or even the Vanguard Wellesley, but then maybe a good time to transfer out of a better performing fund into a poorer performing fund....never know!

Vanguard Institutional Index Fund - Plus Shares

IDEX JCC Growth Fund

Vanguard International Growth Portfolio

The company stock

At the end of July all the money in my former 401(k) funds will be converted to these funds proportionately. So far I've chosen the Fido Short Term Fixed, Fido Asset Manager, and the Vanguard Inst Index Fund for any new contributions. Any suggestions?

Here's a 401(k) article from 7/6 WSJ:

For 401(k) Retirement Plans, Boom Times May Be Over

By CHRISTIANE BIRD

After years of steady growth, the boom times may be over for the popular 401(k) retirement plans, according to Cerulli Associates, the Boston research firm.

In a paper released Friday, Cerulli noted that the plans are under attack from three directions: Assets under management are shrinking due to volatile stock markets, new plan growth is slowing, and participation levels are beginning to peak.

Last year, 401(k) assets shrank for the first time ever, losing $72 billion, thanks to troubled equity markets. In contrast, in seven of the 15 years between 1986 and 2000, 401(k) assets grew by 25% or more annually.

Cerulli noted that much of the growth of 401(k) plans in recent years was due to the bull market. Between 1995 and 2000, about $846 billion, or 80%, of the $1.1 trillion increase in 401(k) assets was the consequence of market appreciation, Cerulli said.

The growth rate in new 401(k) plans also has declined, to about 8% in 2000 from about 15% annually in the mid-1990s. Cerulli projects this growth rate to decline to about 4% by 2006.

Similarly, the number of new participants signing up for 401(k) plans increased by only 7.2% in 2000 -- about half the annual increase seen in the late 1980s. Cerulli expects growth in the number of participants to level out to around 5% by 2006.

Also slowing is the rate at which new assets are being added to 401(k) plans, the report said. Net inflow into the plans is projected to remain flat at approximately $40 billion between now and 2006.

An aging work force also will lead to distributions growing at a faster pace than contributions. In 2000, for every dollar contributed to a 401(k) plan, 74 cents were distributed to retirees and job changers. By 2006, Cerulli estimates this figure will grow to 83 cents.

Service Providers Struggling

"The prospect of slower growth in 401(k) assets could not come at a worse time for 401(k) service providers," the report stated, as "many providers are struggling with unprofitable administrative platforms." Over the last few years, many providers' asset-based revenues have shrunk due to increased competition from other managers and products, and self-directed brokerage accounts.

Cerulli therefore expects many 401(k) providers to reconsider whether they will stay in the 401(k) marketplace. In addition, the need for scale will lead to more consolidation among the remaining players, the research company said.

Meanwhile, as distributions from 401(k) plans are rising, investors are moving their money into Individual Retirement Accounts. Cerulli estimates that in 2000, 77% of assets distributed from 401(k) plans -- or $142.6 billion -- were deposited in rollover IRAs. Between 2000 and 2006, Cerulli expects more than $1.4 trillion to move from 401(k) plans into rollover IRAs.

Asset managers have been taking note, Cerulli said, with many rapidly developing products and services to serve this growing pool of investors.

Subscribe to WSJ Online @ http://www.wsj.com

......Jen

-- posted by JenL_2

Top 538. Jul 14, 2001 2:32 PM

» blltnyc - Fighting for a better 401(k)

Hi--

I'm a reporter with a national personal finance magazine and I'm working on a story about 401(k) plans. I'm looking to talk to people who have taken a proactive step to try and make their 401(k) plan better--by educating fellow employees, starting an email campaign, or storming the HR office--whatever it took to improve their plan.

Perhaps you were sick of being forced to have so much of your contribtutions tied up in company stock. Or perhaps you hate your fund options or their high fees, you couldn't contribute enough because of employer-imposed limits, or you had had a hard time getting your money rolled over when you left a job. Maybe you don't have a 401(k) at all and you're fighting to get one!

I'm wanting to speak to people who've gone to management to try and make a change to their 401(k) plans--whether or not management ended up listening.

Thanks so much for your interest. If this applies to you, please contact me at and let me know how to best reach you.

I look forward to hearing from you.

Jena

-- posted by blltnyc