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Author: PosFCF Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 78299  
Subject: Re: 401K Plan Expenses Date: 7/14/2004 6:49 PM
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we are currently with Transamerica

This sounds to me like your 401K is an annuity. Is it? If so, there are questions to ask about that.

The problem is that it seems that all the providers seem to charge such high fees!

What's the problem with that? If your plan document is set-up correctly, the fees will be paid out of the unvested portion of those who leave service over the years. Personally, I care more about the ease of use, the amount of reports the plan administrator helps out with, whether or not there are sufficient high-quality fund choices within the account for meaningful strategy changes and whether there are regular meetings conducted by a financial professional to help the employees understand the plan, their choices, the market, and their own retirement needs and goals. Will the financial professional help you with the IPS (Investment Policy Statement)? Will there be computer access for the plan participants? Are the statements readable? etc, etc.

A lot of people want your plan so that they can get the commission from the quick sale, but who has the follow-up and follow-through? These are more important issues for me than just the mere expenses. I'm not saying the expenses aren't an issue on the agenda, but they should be way down at the bottom.....perhaps the final determinant between two or three otherwise equal plans.

Out of curiosity, which state is the business in?

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