401k dividends

[Catatonic]

1% is pretty hefty Hoax, are you sure it's not .1 %?

See the above, it came straight out of their disclosures.
The best it can possibly be is 0.028% and like I said, this was for Teamster Retirement and it was around 1% average.
Many times all these fees and expenses are never disclosed but are taken from the funds value.
Like I said, told this multiple times by multiple sources.

 

[oldngray]

I knew the actual costs were higher but never saw an exact number.

 

[Catatonic]

I knew the actual costs were higher but never saw an exact number.

Keep in mind that 1% is still fairly low for a mutual fund that is semi-actively managed.
I am not implying there is anything wrong with BH.
True index funds will usually be the lowest because they require no thought or management.
The "index fund" just mimics what the composition is of the index.

 

[oldngray]

I have more actively managed my investments the past couple of years but meet with my financial adviser next week and am thinking of moving more into index funds. I'm just not sure about whether we are due for a correction.

 

[Jones]

See the above, it came straight out of their disclosures.
The best it can possibly be is .28% and like I said, this was for Teamster Retirement and it was around 1% average.
Many times all these fees and expenses are never disclosed but are taken from the funds value.
Like I said, told this multiple times by multiple sources.

I can tell you that I've never paid even .28% in the Teamster 401K but I'm not in any of the BH funds either, all mine are indexes. If that's accurate then it's just one more reason to stay out of actively managed funds.

 

[upschuck]

The highest expense ratio is .1% for the Teamster 401k. BH has this, S&P500 has .01%.

 

[IVE GOTTA PACKAGE 4U]

The highest expense ratio is .1% for the Teamster 401k. BH has this, S&P500 has .01%.

You are correct, the fees are so small they barely take a bite out of your 401k! Just wish they had a few more options for us!

 

[Catatonic]

The highest expense ratio is .1% for the Teamster 401k. BH has this, S&P500 has .01%.

I will take your word since I am not familiar with the Teamster 401k.
Just be aware that Mutual Funds are notorious for having "hidden costs" that reduce your actual ROI.
They do not show up as management fees or expenses ... they come out of your investment.
That is, you have 100,000 invested and your amount at the end of the year is 106,000.
Your actual gain was $6,500 but expenses reduced your gains by $500.
This never shows up anywhere except a generalized expense description in very small print buried somewhere in the prospectus.

 

[Catatonic]

I have more actively managed my investments the past couple of years but meet with my financial adviser next week and am thinking of moving more into index funds. I'm just not sure about whether we are due for a correction.

Ask him about ETF index funds.
ETFs are important because it is traded just like a stock which is market share at the time of the trade.
A regular Mutual Fund is typically at the price at the end of the day.

 

[IVE GOTTA PACKAGE 4U]

I will take your word since I am not familiar with the Teamster 401k.
Just be aware that Mutual Funds are notorious for having "hidden costs" that reduce your actual ROI.
They do not show up as management fees or expenses ... they come out of your investment.
That is, you have 100,000 invested and your amount at the end of the year is 106,000.
Your actual gain was $6,500 but expenses reduced your gains by $500.
This never shows up anywhere except a generalized expense description in very small print buried somewhere in the prospectus.

In the teamster 401k..you can see the fees and expenses they take out each month. They are actually quite low, compared to many other plans!

 

[oldngray]

Ask him about ETF index funds.
ETFs are important because it is traded just like a stock which is market share at the time of the trade.
A regular Mutual Fund is typically at the price at the end of the day.

thanks. I will ask about those funds. And its a "her". Many bank people are women. I don't know if that is because they are better money managers but it is what it is.

 

[Catatonic]

In the teamster 401k..you can see the fees and expenses they take out each month. They are actually quite low, compared to many other plans!

If you say so.
I have never seen the "hidden costs" described in any statement.

 

[IVE GOTTA PACKAGE 4U]

If you say so.
I have never seen the "hidden costs" described in any statement.

When I go online,and click on transactions, It shows you.......your contributions and fees paid. and yes I say so....lol Pokey!

 

[Catatonic]

When I go online,and click on transactions, It shows you.......your contributions and fees paid. and yes I say so....lol Pokey!

I bet that makes you feel better than if you were actually paying more.

 

[upschuck]

I will take your word since I am not familiar with the Teamster 401k.
Just be aware that Mutual Funds are notorious for having "hidden costs" that reduce your actual ROI.
They do not show up as management fees or expenses ... they come out of your investment.
That is, you have 100,000 invested and your amount at the end of the year is 106,000.
Your actual gain was $6,500 but expenses reduced your gains by $500.
This never shows up anywhere except a generalized expense description in very small print buried somewhere in the prospectus.

If you say so.
I have never seen the "hidden costs" described in any statement.

(scratching head and perplexed)

 

[upschuck]

S&P show fees of 1bps investment fee and .28bps custody fee, that seems pretty low to me.

 

[Catatonic]

(scratching head and perplexed)

They love it that way.
They are Investment Bankers and Fund Managers.

That is why I always stress using a fee-based financial adviser, especially for investments outside a 401k.
They understand where all these hidden expenses are and can guide you to lower cost alternatives.
Going to an investment firm like JP Morgan, or a local financial adviser that charges you no advice fee but manages your money or a bank investment subsidiary will ensure that you are actually paying more than the management fee they charge.
Annuities are a very good example - you buy a $100,000 annuity and the guy that advised you to buy it and processed the transaction for you will typically get between $1500 to $3000 commission.
That's the primary reason there are early withdrawal fees.

 

[oldngray]

They love it that way.
They are Investment Bankers and Fund Managers.

That is why I always stress using a fee-based financial adviser, especially for investments outside a 401k.
They understand where all these hidden expenses are and can guide you to lower cost alternatives.
Going to an investment firm like JP Morgan, or a local financial adviser that charges you no advice fee but manages your money or a bank investment subsidiary will ensure that you are actually paying more than the management fee they charge.
Annuities are a very good example - you buy a $100,000 annuity and the guy that advised you to but it and processed the transaction for you will typically get between $1500 to $3000 commission.
That's the primary reason there are early withdrawal fees.

They love to advise people to churn their investments to run up fees. I like to leave mine alone for probably too long so the best way is probably in between.

 

[Catatonic]

(scratching head and perplexed)

A Basis Point is 1/100 of a percent BTW. i.e. .20% is 20 Basis Points.

See below for the typical gobbledegook: (Note: The highlighting and bolding were added by me).
BNY Mellon charges Investment Fees and Custody Fees to the Plan and its participants in connection with the fund's investment in the underlying collective investment trust managed by BNY Mellon, although the fees and expenses of the underlying BNY Mellon collective investment trust have been voluntarily capped by BNY Mellon at 0.02%. Custody Fees are calculated by BNY Mellon and prorated across all investment funds. Custody Fees may be fixed or variable, and can vary by changes in fund assets and activity. Those fees may be expressed in basis point charges or dollar amount charges. Total fees and expenses are translated into basis points for each fund. The fixed costs amount to an annualized rate of 0.25 basis point, while the variable costs are calculated and charged in arrears and are estimated to be an additional annualized amount of 0.03 - 0.05 basis points. Along with Investment Fees, the Custody Fees are accrued and assessed daily against each fund's unit value, and are reflected in the total return performance information presented herein. There may be additional Plan fees and expenses that participants will bear that are not reflected in fund performance.

The link below will take you to a pdf that talks about the Teamsters BH 2030 fund:
https://www.retirement.prudential.com/RSO/web/fundsheets/UPSB30.pdf

 

[Catatonic]

They love to advise people to churn their investments to run up fees. I like to leave mine alone for probably too long so the best way is probably in between.

They have to feed their family and drive that Benz.
Many advisers tell you to check your structure and holdings annually but that an investment should be made with the intent to hold it for at least 5 years.