My part time non-profit employer just started a 403b plan, their first one since inception 10 years ago. Only about 8 people there make any substantial full-time income from the employer and the other 40 of us are only part time (3-10 hrs/wk) most making from $4000-10000/yr.
Given this, I know it could not have been easy for them to set up a 403b plan with a provider since the amount of investment would not be too impressive.
We received a handout from Transamerica IDEX Mutual Funds, I guess that is who we have to pick our investments from. I looked at their website to see what kind of possibilities there were, and saw a bunch of funds that had, like, 10 other mutual funds inside them. What the ...? How do the fees work for these things- if the expense ratio is listed at a freakin' 1.7%, is that just TA's fees on top of all the enclosed funds' existing ERs, or is the 1.7% the total of all the fees taken out of your investment?
The employer cannot provide any matching, so if these funds suck as much as I think they do, then I will probably just set up my own Solo401k from other SE income. I think Fidelity has a program for individuals...
I will find out all this when I meet with the nice salesmen they brought in, but I just wanted to have knowledge before I have to talk to these "advisors". Anybody have any food for thought?
Given this, I know it could not have been easy for them to set up a 403b plan with a provider since the amount of investment would not be too impressive.
We received a handout from Transamerica IDEX Mutual Funds, I guess that is who we have to pick our investments from. I looked at their website to see what kind of possibilities there were, and saw a bunch of funds that had, like, 10 other mutual funds inside them. What the ...? How do the fees work for these things- if the expense ratio is listed at a freakin' 1.7%, is that just TA's fees on top of all the enclosed funds' existing ERs, or is the 1.7% the total of all the fees taken out of your investment?
The employer cannot provide any matching, so if these funds suck as much as I think they do, then I will probably just set up my own Solo401k from other SE income. I think Fidelity has a program for individuals...
I will find out all this when I meet with the nice salesmen they brought in, but I just wanted to have knowledge before I have to talk to these "advisors". Anybody have any food for thought?