UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next
Author: W401K Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75777  
Subject: Re: PayChex Screwing my 401k? Date: 1/21/2001 8:45 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
Your letter is misdirected. Theletter should go to the employer and not Paychex. Paychex will not allow any of the Vanguard funds in their 401k product. The reason is that Vanguard will not pay Paychex for doing so. Curreentl Paychex only offers 3 fund families that I am aware of. Your employer had a choice of Fidelity Advisor, Merrill Lynch, and Salomon Smith Barney. Merrill offers an index fund, its expense ratio is aroun .38%. However, the other funds from Merrill have poor performance.
Paychex marketed their 401k very heavily to its payroll clients last year, their main theme was if you have a good transfer from payroll to your 401k, you have a great 401k. Obviously this reasoning is flawed.
You and the other employees should ask the employer to switch providers. After all, the 401k is YOUR benefit.
Your employer has a fiduciary liability to run the plan in the employees best interest. Make them aware of this. Let them know the employees want a change. If confronted by a few employees, the employer will usually change plan providers. Tell your employer you want a low investment cost provider. You can try Vanguard, T.Rowe Price, Fidelity, & American Century. Check these fund families for an index fund.
If your employer objects, post a follow up, and we'll try to find answers to any objections your employer may have.

Bill
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
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.
Post of the Day:
Value Hounds

Clorox Isn't Cleaning Up
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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