No. of Recommendations: 0
Hi everyone
Thanks for the advise on the simple 401k. I just got the prospectus(he wasnt kidding about in being 1000 pages) and I am even more confused.
It looks just like mutual funds to me. There are about 50 choices in 3 categories. Metropolitan Series Funds(30 choices) Met invstors series trust(15 or so) and American Funds Insurance Series(3 choices). I tried to look some of the funds up on morningstar and they are not listed. Like the Harris Oakmark Focused Value Portfolio. I am confused and dont know how to research my choices. The program is through New England Financial. Does anyone out there have any experience with this who is willing to help me out? I would like to be aggresive and dont mind a high risk portfolio but I dont want to guess or just use the funds advisor benefits from. Thanks for any help.
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No. of Recommendations: 2
The reason you can not find these funds on Morningstar, is that they are not mutual funds, They are insurance company separate accounts that are designed to mimic the mutual funds they are named after. For instance, you mentioned the American Funds Insurance Series. American funds is one of the best mutual fund families out there, superior performance and below average expenses. They have created a series of options that are sold via an insurance company. They may have similar names as the actual mutual funds, but they can have different managers, different holdings, and they do have different expenses. They do not have ticker symbols, so you can not track them on a third party web site or in the newspaper. You can try to track the fund it is named after to give a general idea of how your fund should be doing.
The advisor who sold this to your company really did a disservice by going into a group annuity with a retirement plan. You should inquire as to how much he was paid, vs how much he would have been paid if he offered a mutual fund based solution.
If you provide a list of the funds offered, I'm sure some Fools will offer assistance in asset allocation. The good news is that American Funds is one of the top money managers in the country, there insurance labled options should be superior to others, again, a list of the specific funds offered via American and the others will be helpful

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