The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: JLee on March 23, 2017, 10:25:38 AM
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One of my coworkers got a letter saying they were changing investment options - I heard nothing, but logged into my account today and see everything sitting in a cash account as of March 20th. Apparently the fund options we both chose are now gone, and this is what's now available. I had to look up the expense ratios individually, as conveniently they are not provided:
0.46% PIMCO TOTAL RETURN INSTL
0.46% PIMCO LOW DURATION INSTL
0.74% PIMCO COMMODITY REAL RETURN
0.16% BLACKROCK TOTAL INTL EX US IDX
0.04% BLACKROCK S&P INDEX K
unsure AMERICAN FUNDS CAPWLD G&I -F
0.97% BLACKROCK EQUITY DIVIDEND I
1.80% COLUMBIA CAPITAL CONSERV A
1.16% COLUMBIA CAPITAL MOD AGRSV A
1.27% COLUMBIA GLOBAL STRATEGIC EQ A
1.20% COLUMBIA MID CAP GROWTH A
0.45% COLUMBIA MID CAP INDEX
0.45% COLUMBIA SMALL CAP INDEX A
1.27% COLUMBIA SMALL CAP VALUE II A
0.35% COLUMBIA US TREASURY INDEX A
1.96% FEDERATED KAUFMANN SMALL CAP
1.21% INVESCO MID CAP GR
0.95% MAINSTAY HIGH YIELD CORP BOND
0.99% MAINSTAY LARGE CAP GROWTH A
1.41% NEUBERGER BERMAN REAL ESTATE
1.28% THORNBURG INTERNATIONAL VAL A
I looked up the Black Rock funds and both of them have had abysmal performance I misinterpreted the graph and will be going with the Black Rock S&P Index. Thanks everyone!
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Yeah, I don't see how the Blackrock S&P 500 index fund could have worse performance than the actual S&P 500. That's 100% the one I'd go with if I were stuck with these options.
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I'm confused - blackrock funds have bad performance? even this one?
0.04% BLACKROCK S&P INDEX K
I'd go with that.
Ahh I was thrown off by the graph over a long timeline:
(http://i.imgur.com/GPOfy6X.png)
The actual numbers look fine -- thanks! : )
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I got the exact same notice and went with Blackrock S&P Index. Was bummed to see Vanguard drop off the list.
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Which HSA provider is this?
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I feel your pain. My HSA provider is removing 3 Index funds in April (that the fund company is liquidating), so I need to either transfer my money to a new fund or it will be cashed out. Unfortunately, these 3 are the only index funds offered, and they aren't being replaced (haven't heard anything). I'm not impressed with any of the other options available. I'm going to have to go from an Index fund with a 0.46% ER to a Dividend Value fund with a 0.79% ER that also has insane turnover (67% per year on average - what the heck are they doing?! That's 65% more than what I had with the Index fund!). From 511 companies to just 63, which I don't feel is diversified enough. But using my best judgement with the scraps that remain, this is my best option now.
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Which HSA provider is this?
The health provider is Highmark BCBS and the HSA holder is Bank of America.
I feel your pain. My HSA provider is removing 3 Index funds in April (that the fund company is liquidating), so I need to either transfer my money to a new fund or it will be cashed out. Unfortunately, these 3 are the only index funds offered, and they aren't being replaced (haven't heard anything). I'm not impressed with any of the other options available. I'm going to have to go from an Index fund with a 0.46% ER to a Dividend Value fund with a 0.79% ER that also has insane turnover (67% per year on average - what the heck are they doing?! That's 65% more than what I had with the Index fund!). From 511 companies to just 63, which I don't feel is diversified enough. But using my best judgement with the scraps that remain, this is my best option now.
ouch. : (
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Someone else who has done this can chime in, but I thought that you could roll over HSA money to another provider while keeping the original account open. Might be something to look at if you are losing all index investing options.
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Someone else who has done this can chime in, but I thought that you could roll over HSA money to another provider while keeping the original account open. Might be something to look at if you are losing all index investing options.
Yes you can. I do this. I have a terrible HSA provider, but I opened another HSA at Elements and roll over funds to invest in Vanguard.
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Someone else who has done this can chime in, but I thought that you could roll over HSA money to another provider while keeping the original account open. Might be something to look at if you are losing all index investing options.
Yes you can. I do this. I have a terrible HSA provider, but I opened another HSA at Elements and roll over funds to invest in Vanguard.
+1. Just be sure the funds go from trustee to trustee without you as the intermediary.
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Why just do S&P 500. Unless its the only one with a decent expense ratio?
Seems like there is a reasonable international index, small cap and midcap as well. You could a broadly diversified equity holding that emulates US total + some international. Not sure how popular international equities when they exclude small cap/ emerging markets.
BLACKROCK TOTAL INTL EX US IDX
Typically I think an emerging markets inclusive version would have the IMI tag.
The Bond options look pretty weak but may be worth considering if you want a traditional split in bonds/equities.
I suppose if you have diversified portfolio elsewhere with better investment options it could make sense to just hold 1 US equity fund like the S&P 500, here if this is only a small portion of your total investments. And if there is a charge for holding multiple small investments with this account and broker.
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Someone else who has done this can chime in, but I thought that you could roll over HSA money to another provider while keeping the original account open. Might be something to look at if you are losing all index investing options.
Yes you can. I do this. I have a terrible HSA provider, but I opened another HSA at Elements and roll over funds to invest in Vanguard.
+1. Just be sure the funds go from trustee to trustee without you as the intermediary.
You can be the intermediary but you are limited to once per 12-month period. This is what I do.
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Why just do S&P 500. Unless its the only one with a decent expense ratio?
Seems like there is a reasonable international index, small cap and midcap as well. You could a broadly diversified equity holding that emulates US total + some international. Not sure how popular international equities when they exclude small cap/ emerging markets.
BLACKROCK TOTAL INTL EX US IDX
Typically I think an emerging markets inclusive version would have the IMI tag.
The Bond options look pretty weak but may be worth considering if you want a traditional split in bonds/equities.
I suppose if you have diversified portfolio elsewhere with better investment options it could make sense to just hold 1 US equity fund like the S&P 500, here if this is only a small portion of your total investments. And if there is a charge for holding multiple small investments with this account and broker.
The bond's expense ratio is almost 1%. That's a bit ridiculous, IMO.
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Why just do S&P 500. Unless its the only one with a decent expense ratio?
Seems like there is a reasonable international index, small cap and midcap as well. You could a broadly diversified equity holding that emulates US total + some international. Not sure how popular international equities when they exclude small cap/ emerging markets.
BLACKROCK TOTAL INTL EX US IDX
Typically I think an emerging markets inclusive version would have the IMI tag.
The Bond options look pretty weak but may be worth considering if you want a traditional split in bonds/equities.
I suppose if you have diversified portfolio elsewhere with better investment options it could make sense to just hold 1 US equity fund like the S&P 500, here if this is only a small portion of your total investments. And if there is a charge for holding multiple small investments with this account and broker.
The bond's expense ratio is almost 1%. That's a bit ridiculous, IMO.
By the expense ratios, the international index is comparable to competitive offerings from vanguard. You are right the rest are pretty bad. Small and midcap really shouldn't cost more the S&P 500. Probably not worth paying for the extra percentage of diversification on that end. But 0.16 is close to 0.12% that I believe the slightly more diverse int + emerging markets vanguard index costs.'
Maybe consider the 0.35% COLUMBIA US TREASURY INDEX A as a none equity hold. Seems too narrow, but I am not sure how narrow compared to more typical vanguard bond indexes. Worth looking into if you are not sure.
Seems to track semi close to Barclay Aggregate Bonds Index even though it is probably missing a few of the bond types tracked in that index.
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[quote[Small and midcap really shouldn't cost more the S&P 500[/quote]
Uh...yeah they should. That's why Vanguard charges more for them. The stock inside those indexes are less liquid (obviously).