401k Options

[madatrub]

Sorry if this comes off a bit "Ranty", but do other people with 401k's find their choices completely limiting/terrible?

I was checking out the fixed capital preservation account offered by my S&P company, and it stinks! Barely 2% annualized. Seems like a huge disconnect considering what the short term (and even longer term now) fixed asset market looks like.

Anyone in a similar boat?

[Car-Guy]

I've also felt my 401k had limited investment options (5 or 6 funds or company stock) but in the past 20 years it hasn't matter much to me since I've put all mine in the common/fixed assets fund. Currently paying over 7% annualized... So I'm happy with that. For now.

[marinauser]

Quote:

Originally Posted by madatrub Sorry if this comes off a bit "Ranty", but do other people with 401k's find their choices completely limiting/terrible? I was checking out the fixed capital preservation account offered by my S&P company, and it stinks! Barely 2% annualized. Seems like a huge disconnect considering what the short term (and even longer term now) fixed asset market looks like. Anyone in a similar boat?

What is the option that they are offering you?

[Al18]

I retired 4.5 years ago from a SP500 company. The stable value fund never paid more than 1.5% per year for the 14 years I worked there. There’s were many good stock and balanced funds to choose from with low expense charges, but the sv fund was never a good choice.

[madatrub]

Quote:

Originally Posted by marinauser what is the option that they are offering you?

This is the Stable fund performance. The other ones are just high fee "Retirement Targer XXXX Funds", 2 Intl'l fund, 2 S&P fund, and 2 Bond Funds

Screenshot 2023-05-29 190325.jpg

[jazz4cash]

Quote:

Originally Posted by timbervest Wow. Consider myself fortunate that my 401k was with Fidelity and offered dozens of choices as well as Target Date Funds. Just lucky..

I credit megacorp A and megacorp B for choosing Fidelity and negotiating an employee friendly plan. We even had a proprietary extra low fee SP500 index fund. Many companies don’t care if the 401k is any good ad long as it checks a box.

[DrRoy]

A capital preservation type offering has various fixed income investments at various maturities. They are slow to rise in situations where rates are rising, but also slow to drop when they are falling. You usually do ok over time.