UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75379  
Subject: Re: Fool-ifying my employer Date: 9/14/1998 6:21 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Greetings, RM, and welcome. You asked:

Instead, has anyone ever confronted their company's 401k administrator and poured a can of Fool in their lap? Would the process of making new funds available to participants have any reasonable comparison to mating elephants(*)?

<snip>

Would the employer balk at offering high beta funds because we'd be bouncing our money around too much? Does Fidelity charge employers more for offering more volatile funds that encourage more shifting around (at Fidelity's expense, I might add)? Would I stand to gain more by discussing my 401k with my cat? What is the maximum airspeed velocity of a stock certificate when folded into a paper-plane?


It's not the plan administrator that controls plan offerings. Instead, it's the plan sponsor. That's your employer. The sponsor will indeed offer other choices when prodded by plan participants. It's up to you to do the prodding, and it will be far more effective if you can convince others to do so with you. One person won't be enough, but a group will cause your employer to give the matter very serious consideration.

Fidelity may very well want to charge a higher administrative fee for adding other options. That will be a consideration of your employer. If higher fees are too costly, it could also be the deciding factor for the denial of expanding your range of choices.

I'm sure your cat is financially astute, but IMHO you should discuss your 401k options with other participants. If they agree with you, then that discussion should be taken to the employer. And as to the airspeed of stock shares shaped like an airplane, that's a function of the inverse ratio of PE to BV multiplied by the cube of the share price divided by the square root of the transaction costs. I regret my financial calculator isn't sophisticated enough to perform that calculation, and I'm far too lazy to do it by stubby pencil.

Regards.....Pixy
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
Berkshire Hathaway

Is the Market Overvalued?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement