Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: NOW who wrote (87720)	10/5/2008 9:25:06 AM
From: dave9	2 Recommendations Read Replies (1) \| Respond to of 116555

Which part (of a 401k is sound)? Taking a look at the different parts, I have personally seen crooked behavior at every level in the process. And you worry about sound? Your HR department that chooses a 401k plan? I worked for places once that seemed to choose the 401k plan based on how much they would kick back to the company (and one hr lady that only promoted choices that took her out to the most expensive lunchs...) They financial advisor guy that visits your place of work every now than then telling you canned advice and gets kickback from the crooked funds they promote? Seems that HR gets a good lunch & free gifts every time they visit. Per fundadvice dot com, Washington Mutual, a huge Seattle-based thrift with more than 2,400 offices across the country, gives those employees one of the worst plans we’ve seen. We all know that wamu is a ... well forget it. At least they are gone. Or the place that buys them gets the crooked setup. The funds your companies 401k offers? Chosen by the managing company based upon the amount of kickbacks and fees they pay to the managing company. Not only the highest allowed by law fees but they use a "special arrangement" broker. The actual stock that the fund buys stays at the broker. The advisers to the funds? They advise the fund to buy and sell securities that maximize their profit or the profit of the broker the fund uses. The broker your fund company uses? The advisers get the fund to constantly buy and sell for constant trading fees. Also, the broker also loans out these securities as they are held in the brokers name. And you are worried that part of the above is not sound? Which part? Which part has your money? Which part has the securities that your money bought? Who has the records of the transactions?

To: NOW who wrote (87720)	10/5/2008 9:32:29 AM
From: XBrit	Read Replies (2) \| Respond to of 116555

IRA, not worried at all. It's currently 100% in a Treasury MMF at Schwab. Up until 2 weeks ago, it had spent 10 months being 100% in SDS. 401(k), is less than 10% the size of the IRA, but I'm mildly worried. The only "safe" investment we're offered is John Hancock "stable value" fund. I have serious doubts about some of the underlying assets and the "insurance" they claim to have on the stable return aspect. Anyway, it's returned 4% the last 12 months and no sign of problems so far. If the recession is really bad (quite likely as we all agree), well... I'm at a startup, and most likely I'll have an opportunity for increased leisure time and a rollover to Schwab <G>.