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Do you already have a 401k through target?
You can elect to have a company manage it for you ( its through Target but a different company ). They were recommended by Target and you literally just click a couple of things and they take o ver .The fee they charge is based on the total amount of your 401 account. I have been in the 401k since I was 19 a. For years I just handled the investment options on my own. About 5 years ago I let the company ( cant recall the name of them of the top of my head) take it over. So far I am very pleased. You also get a statement every quarter of how much you contributed, how much Target matched and your rate of return. They also show you what your income could be at your retirement age etc.
You shouldn't have to click "new fund" anywhere, so I'm not sure where the breakup is. Maybe we have different menus.
There's nothing particularly wrong with actively managed funds, but if your ROR minus fee is <~7%, you're paying them to lose you money.
Edit: I checked and its hewitt at .4%. That's pretty low for a fee, most likely target and them have some sort of deal.
notfit05
Trainer/ clerical / inbound D.C. /
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- Jul 24, 2016
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- 319
I agree max it out you won't miss the other 2% a week at all mines actually set around 7 or 8% and I love overtime that means more company $ going to my retirement and in my pocket . My projected income during retirement is suppose to be around 75,000 at age 63 based on the computations they use on the website
Even with having to pay a fee my rate of return has greatly improved since they took over. Overall I'm pleased
Do it yourself or set it on automatic. Nobody can predict the stock market, so these "experts" aren't going to get you any more money than you could on your own.
Recommendations: convert to the Roth IRA, you'll get hit with the initial tax at conversion and any taxes on future contributions, but you won't get taxed when you take it out as retirement pay after you reach maturity age (59). Meaning all interest earned is tax free.
Also hit your max matched contribution (5%) at least. That's free money from the company. Take it!
The age mixes are good. Conservative, but still pretty solid in their ROI (return on investment). No need to fiddle with it either. Put your money in and forget about it. If you leave the company, don't cash out. Roll over into an independent investment company (The mixes are Vanguard, so rolling into a personal Roth IRA there makes the most sense.)
Good luck
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