Posted: 8/14/2026 10:15:51 PM EDT
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So, my company offers a managed 401K option at a discounted rate of 0.25% of AUM, with the first quarter free. They ran me through some canned questions to determine my strategy, quarterly rebalancing, proactive rebalancing with big market moves, and unlimited use of their financial advisors and retirement planning. I took up their offer, and for the last 2 months they managed my 401K portfolio. 20% bonds, 20% international, 50% domestic stock, 10% multiple other securities - 56 years old with a retirement age goal of 62. The last two months' results look noticeably better than my self-managed individual trading account, but that account is very heavy on tech stocks that took a beating in the last 60 days overall. Does anyone else here use their services? Are you happy? At 0.25% AUM, it is probably the cheapest option for the managed fund, but still it's $2500 a year and will only grow |
IDF, A.A. 215, "Scorpion" Company. 1993-1996
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Fidelity is the vendor for my workplace which requires me to use a curated list of mostly shitty, high fee, Fidelity target date options or a few index funds. The bulk in those accounts is in an S&P index and, because I am getting toward retirement, I keep a decent downturn cushion in a boring money market which is at least making a little bit compared to the bond option I have available which is currently losing money. An advisor isn't going to be able to do much for me in those accounts given the options they would have to work with. To make things simple my brokerage account is with them as well and I am happy with the platform overall. The local hacks call me constantly and leave messages about "wanting to talk" about my brokerage account investments. I don't pick up or return their calls. There is no reason for me to pay their fees for what I can do myself nor do I want to get directed into the Fidelity managed funds that, at least from my research, have higher drag than comparable options like Vanguard. The last point may be relevant to you. Depending upon how much money you have with them you might need to be more worried about the drag of the funds they are selecting than the management fee itself. |
It’s better to keep your mouth shut and appear stupid than open it and remove all doubt.
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Yeah. My 401k does limit me on what I can invest but it looks like the managed option doesn't have this limitation. this is where they have me Attached File |
IDF, A.A. 215, "Scorpion" Company. 1993-1996
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We are at Fidelity and self manage. We have never had to rebalance since retirement. It really is pretty easy to just stand there and do nothing. The time may come that we would put monies under Active Management but not for the foreseeable future. Between Bogleheads and Earlyretirement.org you have all of the information you need. |
Lifetime Member: National Rifle Association, Texas State Rifle Association and Gun Owners of America
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I self manage my individual investment at Schwab. Granted I am intentionally more aggressive there than retirement fund. The last 2 months on my managed 401k surpassed my self managed results. I would never pay the usual 1% AUM fee but at 0.25% I was willing to take the risk i guess I am going to pay them till the end of they year and see what it comes out to for 6 months. |
IDF, A.A. 215, "Scorpion" Company. 1993-1996
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Originally Posted By Samal: Does anyone else here use their services? Are you happy? At 0.25% AUM, it is probably the cheapest option for the managed fund, but still it's $2500 a year and will only grow $2500 fee means you have around $1m? If so, only 5% yield will generate $50k and dwarf that $2500 fee. The extra services you mentioned can easily be worth the fees. 15% of your money is in the FIAM core plus. Read that document and you’ll see that its goal is to beat the Bloomberg bond index. So if it outperforms bonds by 0.01% it has succeeded. The 10 year annual yield is 3%, the 3 year is just over 5%. If you’re expecting 10% or 20% yields on that money you will be disappointed. Keep in mind you’re old, have savings, and the markets are near all time highs. Protecting yourself from a 1/4 or 1/3 market decline is likely more important for you than chasing yields. |
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My work was Fidelity thus the bulk of our retirement savings was there. They also have agreements with a couple of firms that can do the heavy lifting management for a fee. Sliding scale depending on your amount invested. We moved ours into one of those about a year ago and have been happy with the relationship. Really like the "kid" (probably 35) that we are working with. We are paying about .9% right now. They do all of the management. They have several tools available to them (that individual investors don't have access to) that help lower the beta of the portfolio. This includes some private equity investments and some hedging products. The fee also includes them coordinating withdraws in a tax efficient manner and working with a CPA to do our taxes (included in the fee) We have quarterly meetings with them to review where we are with things. I have the technical knowledge to manage things myself but have gone this route for two reasons; 1. I don't want to have to spend the time and energy it would require for me to do it right. (I'd prefer to just go ski, MC, travel etc..) 2. I don't have access to the tools they use to lower my beta. If we change our minds we can always change it going forward. I feel we are getting good bang for our buck at this point. I'm getting a good return after their fees and I'm comfortable with the risk profile of the portfolio for the long term. |