BrianB
Recycles dryer sheets
I was looking at DD's 401K. Her contributions and the company match go into the Morgan Stanley Smart Retirement 2055 target date fund at the recommendation of her HR department. They have a special class with a lower expense ratio than the on-line listed, but it is still over 0.25%. It is a fund-of-funds, containing 21 funds plus a small amount of cash.
The part I don't understand is where the dividends & CG's go. All the transactions are correct for her contributions & the company match, but in over 3 years there have been no dividend or CG additions to the balance.
Do TDF's simply put the earnings into the share price (reinvest in the underlying funds)? Or is there another reason none are showing up? The online descriptions from Morgan Stanley show some healthy CG's over the past two years but I can't see where this money has gone.
I'm thinking of talking to her about just switching the balance & future contributions to the S&P500 fund they offer - lower fees and clearer accounting. She is just 30 years old so she has a long time to ride out market volatility and the 35% the TDF holds in foreign stocks seems very high to me.
BrianB
The part I don't understand is where the dividends & CG's go. All the transactions are correct for her contributions & the company match, but in over 3 years there have been no dividend or CG additions to the balance.
Do TDF's simply put the earnings into the share price (reinvest in the underlying funds)? Or is there another reason none are showing up? The online descriptions from Morgan Stanley show some healthy CG's over the past two years but I can't see where this money has gone.
I'm thinking of talking to her about just switching the balance & future contributions to the S&P500 fund they offer - lower fees and clearer accounting. She is just 30 years old so she has a long time to ride out market volatility and the 35% the TDF holds in foreign stocks seems very high to me.
BrianB