Author Topic: 401k Plan Changes  (Read 1722 times)

OneDogGP

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401k Plan Changes
« on: October 02, 2014, 10:19:40 AM »
All,

Our company has recently decided to change our 401k plan over to Great West Financial from our previous advisors.  With this new plan, we have the option of putting all or some of our existing money / future contributions into a self directed Ameritrade account.  On the good side, the Ameritrade account has a flat $130/yr fee associated with it, which is much less than the .58% management fee Great West will charge for their services. (Plus the fund fees are mostly .50% - 1.25% depending on what is picked)

Now I've read many times over that most of you are big believers in Vanguard's low cost index funds, but I'm not sure if they can be purchased via the Ameritrade account, or if there is an equivalent fund in which to look at.  I've gone onto the Ameritrade site, but haven't been able to determine what kind of low cost index funds are available. (Vanguard or otherwise)

Does anybody else use Ameritrade, and if so any advice you could provide would be greatly appreciated.

Thanks,

OneDogGP

J'onn J'onzz

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Re: 401k Plan Changes
« Reply #1 on: October 02, 2014, 10:38:44 AM »
I hold a few Vanguard ETF in my TD Ameritrade account. They have a selection of about 100 ETFs that are commission free and of those 100 32 of them are Vanguard, VTI being my fav but there are lots more to choose from.

In addition to the no fee ETFs you should be able to purchase any others you want when paying trade commissions, unless there are some restrictions put in place because of the account being related to your 401k.

milesdividendmd

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Re: 401k Plan Changes
« Reply #2 on: October 02, 2014, 11:35:10 AM »
+1.

If you can invest in ETFs through your 401K then TD ameritrade is a no brainer.  There is virtually no vanguard index fund that you can not access at expense ratios equivalent to admiral shares.  (total market, S&P, small cap value, EAFE, EM, etc...)

Just google "TD ameritrade fee free ETFs for full list."

I use TD ameritrade for my HSA through HSA bank and I love it.  I far prefer it to my decent Fidelity 403B plan.  Way better fee free fund options.  (I'm not allowed to trade ETFs in my 403B.)