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joycenalex
04-11-2009, 01:00 PM
as part of my employment benefits we have a 401k plan (really it's the nonprofit equivalent a 403b). if you use the automatic rebalancing aspect of the plan, you pay a fee of 33 cents per $1000 of your account. i went off that part of the plan a full year ago, and so i set my percentages mirroring that plan "high risk" portfolio. just like almost everyone, i lost money....27% according to the information provided by the employer paid financial planner. the automatic rebalancing group lost 29%..... my questions are these...1-paying extra fees, when my company pays for them to advise and guide employees seems wrong, but is this a standard business practice? 2- how can i be sure that the way that the "automatic rebalancing" is in MY interest, not in the planner/companies interest in getting more money from my account? 3-are there web locations that i can learn how to manage my accounts with minimal fees? 4- are there fee for advice financial planners?
i grew up as a poor kid, welfare family made good, and i never learned much about the skills of managing money, especially in ways to match my future needs in retirement...i don't want to have a really big cardboard box down by the mission as my retirement home. advice greatfully accepted

kitten645
04-11-2009, 11:10 PM
I am by no means an expert. I do know that a 401K is a good thing and grows (well..used to grow) pretty quickly. I was with T Rowe Price and they NEVER charged a fee. After all, they are "playing" with YOUR money. I would get a Suze Orman book. I've found her to be pretty clear on this sort of thing.
Claudia

zippy-kat
04-12-2009, 06:05 PM
1. Depends on the company.
2. Rebalancing is simply a measure to keep you from being over-weighted; you pick the overall risk level you are comfortable with and rebalancing keeps it in check.
3. Probably but I don't know of any.
4. Some do, some don't.

Sorry this is pretty vague but because I work for a financial company, I'm bound by red tape as to what I can/can't say on a msg board.