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Author: AnakinSpice Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75340  
Subject: Any experience with ManuLife? Date: 12/11/2000 3:22 PM
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Hello everyone,

Once more I find myself looking to Fool.com for wisdom.

(I did also post this to Index Funds, but noticed this discussion group - I hope that you don't mind.)

My scenario: I am a new employee who is now faced with the option of signing up for my new company's 401(k). I previously, in my old position, was quite foolish and cruised with their 401(k) program, which was with a Fidelity Index fund.

My new company has a relationship with someone called 'ManuLife'. Never heard of them and further investigation on the web turned up very little. Here are a few of the peculiarities:

1) I don't find quotes for their funds on-line as I can with Fidelity, Price, Vanguard etc. I don't see that they are as … well … available as any other I can regularly see in the paper or online – anyone know why?

2) Almost to the fund, there is a small paragraph that begins the description of the fund with “This fund is offered to you through a business arrangement between two strong performers in investment and retirement savings management: ManuLife Financial and (one of many depending on the fund such as Janis, Fidelity, Franklin, AIM, Lord Abbott)”. What exactly does this mean? I am presuming higher fees than if I went to the other directly.

3) The index fund I lean towards is now changing itself to “invest solely in the Manufacturers Investment Trust (MIT) 500 Index Trust, managed by Manufacturers Advisor Corporation”. Again – more fees I presume?

As I am depressed by the options here, rather than see my retirement money line the pockets of those administrators of the so-called funds, I am thinking that I might just have to take the money that I would put to my 401(k) and put it in a new (maybe Vanguard) account that I open for myself – fully realizing that it is not going to be tax deferred, but most likely a better choice that paying out the wazoo for something that is less than palatable.

I would appreciate any and all help or comments to help me straighten this out a little.

Thank you all,

AnakinSpice
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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 26556 of 75340
Subject: Re: Any experience with ManuLife? Date: 12/12/2000 7:33 AM
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Greetings, AnakinSpice, and welcome. You wrote:

My new company has a relationship with someone called 'ManuLife'. Never heard of them and further investigation on the web turned up very little.

Many 401k plans contain options that are proprietary to the plan only, and are not open to the public at large. Therefore, their performance is not reported publicly or readily available. It sounds as if your plan uses that kind of plan.

I am thinking that I might just have to take the money that I would put to my 401(k) and put it in a new (maybe Vanguard) account that I open for myself – fully realizing that it is not going to be tax deferred, but most likely a better choice that paying out the wazoo for something that is less than palatable.

Just ensure you are getting the maximum possible match from your employer before you dump the plan. Even in a poor performer, the "free money" represents an immediate return on your money that's tough to beat in any other investment you may make.

Regards..Pixy


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Author: jtmitch Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 26563 of 75340
Subject: Re: Any experience with ManuLife? Date: 12/12/2000 5:23 PM
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“This fund is offered to you through a business arrangement between two strong
performers in investment and retirement savings management: ManuLife Financial and
(one of many depending on the fund such as Janis, Fidelity, Franklin, AIM, Lord
Abbott)”.


What exactly does this mean?

It sounds to me like it's a variable annuity. Check annual expense ratios (not just on the underlying funds but on the overall contract) as well as surrender fees.

jtmitch

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