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Learning, Sharing, and Teaching => Investor Alley => Topic started by: MoneyGoal on March 01, 2019, 10:57:49 AM

Title: 401k fees
Post by: MoneyGoal on March 01, 2019, 10:57:49 AM

Newbie here.
I changed job and left the 401k as it is. Are the fees just the expense ratio fees as in the screenshot? Or there are additional fees on top of them?
Should I move it to an IRA? What are the pros and cons?

Title: Re: 401k fees
Post by: terran on March 01, 2019, 05:13:33 PM
Some 401(k)s may charge additional administration fees, but that's something you'd have to find out for your specific plan.

The expense ratio on those target date funds is very low, so I would put all your money in one of those.
Title: Re: 401k fees
Post by: ponzu on March 09, 2019, 08:03:38 AM
The best reason not to rollover to an IRA would be if you live or plan to live in a state that does not protect IRA assets from law suits. 401k assets are protected by federal law.
Title: Re: 401k fees
Post by: MustacheAndaHalf on March 09, 2019, 09:43:31 AM
Normally Vanguard charges 0.14% for target retirement funds.  And there seem to be institutional versions charging 0.09%, so maybe there's an even larger share class charging just 0.05%.  But any rate, 0.05% for a target date fund is a very good deal.  You get U.S. stocks, international, and bonds - adjusted as you reach retirement.

When compare Fidelity Contrafund with Vanguard S&P 500, I get a 0.94 correlation.  Despite the fund name, it's not very contrary - it's fairly close to the U.S. stock market.  A target date fund holds bonds and international - so it's actually more "contra" than the fund named "contrafund".  I'd suggest switching investments to the target date fund.