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Financial Planning / Foolish 401(k)s
|Subject: Re: 401(K) Services||Date: 7/15/2004 5:32 AM|
|Author: Vile||Number: 17674 of 25612|
"Vile, can you give us an update on your search for a custodian for you small 401K plan?
Have you found anybody else? Found good sources of information?
Please keep us advised."
I actually had only two weeks to research it. I thought it was more important for people in the company to be able to contribute than for me to scrabble around trying to find the perfect company.
Mjdonadio gave me the best piece of info in this post:
I was able to do some minor research into the site he found and it appeared to be at least a good jump off point. Unfortunatly I am a detail man and I didn't feel I had the necessary time to do proper research. The president of the company called a meeting to discuss the three plans they had been given by their financial advisors. They were The Online 401 (K) Plan, John Hancock and Principal.
The Online 401 (K) had excessive fees IMHO but they did offer a Charles Schwab trading account which was an option I was interested in. Unfortunatley the other members of the company aren't that interested in managing their 401 (K)s. They just want a place to dump their money and forget about it. It struck me at the meeting that most people in the company (I hope to help grow it significantly) would want the same thing. I thought it was more important for them to be able to choose from a wide variety of funds and to be able to do it right now rather than wait for me to finish my research. Principal seemed to have the most reasonable fees and the widest fund selection. I am not a big fan of funds but as I said, most people just want to dump their money in one and forget about it.
Being uninterested in it, the president and the other employees let me make the pick since they knew I was most interested which I thought was cool since I wasn't even an official employee yet. So I went with Principal. I figure we'll let the company grow for a year or two and then, assuming it does grow, I will pursue the research in interest and recommend a change at an opportune moment. Who knows, maybe Principal will pick up a trading account option later.
Thanks to everyone for all the info.
NEVER SAY DIE!!!
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