6 ms·

One of the things that most frustrates me about pension funds and even 401k funds is how my retirement is managed by someone who has no concern for my values an

One of the things that most frustrates me about pension funds and even 401k funds is how my retirement is managed by someone who has no concern for my values and could in fact use my money to oppose my values and best interest(as a whole) in the pursuit of increasing gains.

Ekaros 4y ago
Or with increasing of ESG investing ignore possible gains for political reasons. Thus making my future life worse as they don't extract maximum possible value from market.
lotsofpulp 4y ago
If your 401k does not have an option for low cost broad market index funds like SP500, then that is a fault of your employer forcing employees to take on extra risk.
- philips 4y ago
  Or it is the fault of the government for not letting employees have access to self managed IRAs while employed
  - Arainach 4y ago
    Retirement accounts are not intended as general purpose investment vehicles. If everyone could put their 401k/pension in anything, you would see a lot more people getting scammed and gambling on the latest GameStop internet mania. If folks want to invest like that, get a brokerage account. If you want tax-advantaged retirement planning, being limited to less risky things is the tradeoff you make.
    - lotsofpulp 4y ago
      There is no reason Fidelity/Schwab/Vanguard/etc could not restrict accounts to certain investment options just like 401k are. Also, IRAs already exist. No reason for an employer to be in the middle.
  - lotsofpulp 4y ago
    That is true, too. There is no reason an employer should be involved a person’s retirement or healthcare.
  - hnuser847 4y ago
    There's nothing stopping you from having both at the same time, with the caveat that your contributions to the IRA may not be deductible if you earn over a certain threshold.[1] [1] https://www.nerdwallet.com/article/investing/can-i-have-a-401k-and-an-ira#:~:text=401(k)%3A%20You%20can,into%20each%20type%20of%20plan https://www.nerdwallet.com/article/investing/can-i-have-a-40....
s1artibartfast 4y ago
If you are frustrated with your 401(k) management, consider rolling it over to an IRA so you can direct it yourself. https://www.biglawinvestor.com/partial-401k-rollover/ https://www.biglawinvestor.com/partial-401k-rollover/
- buzzy_hacker 4y ago
  Most plans don't allow rollovers while you are still employed at the company.
  - s1artibartfast 4y ago
    Sure, I don't know the numbers but you're probably right. Hopefully the comment helps someone
giarc 4y ago
Unfortunately this is a 'vote with your feet' situation. If you don't like who is managing your 401k, then work for another company (which is drastic, I know). The other option is to simply write to your plans administrator. Tell them your concerns and organize a letter writing campaign if you are really concerned.

Ekaros 4y ago

Or with increasing of ESG investing ignore possible gains for political reasons. Thus making my future life worse as they don't extract maximum possible value from market.

lotsofpulp 4y ago

If your 401k does not have an option for low cost broad market index funds like SP500, then that is a fault of your employer forcing employees to take on extra risk.

philips 4y ago
Or it is the fault of the government for not letting employees have access to self managed IRAs while employed
- Arainach 4y ago
  Retirement accounts are not intended as general purpose investment vehicles. If everyone could put their 401k/pension in anything, you would see a lot more people getting scammed and gambling on the latest GameStop internet mania. If folks want to invest like that, get a brokerage account. If you want tax-advantaged retirement planning, being limited to less risky things is the tradeoff you make.
  - lotsofpulp 4y ago
    There is no reason Fidelity/Schwab/Vanguard/etc could not restrict accounts to certain investment options just like 401k are. Also, IRAs already exist. No reason for an employer to be in the middle.
- lotsofpulp 4y ago
  That is true, too. There is no reason an employer should be involved a person’s retirement or healthcare.
- hnuser847 4y ago
  There's nothing stopping you from having both at the same time, with the caveat that your contributions to the IRA may not be deductible if you earn over a certain threshold.[1] [1] https://www.nerdwallet.com/article/investing/can-i-have-a-401k-and-an-ira#:~:text=401(k)%3A%20You%20can,into%20each%20type%20of%20plan https://www.nerdwallet.com/article/investing/can-i-have-a-40....

s1artibartfast 4y ago

If you are frustrated with your 401(k) management, consider rolling it over to an IRA so you can direct it yourself. https://www.biglawinvestor.com/partial-401k-rollover/ https://www.biglawinvestor.com/partial-401k-rollover/

buzzy_hacker 4y ago
Most plans don't allow rollovers while you are still employed at the company.
- s1artibartfast 4y ago
  Sure, I don't know the numbers but you're probably right. Hopefully the comment helps someone

giarc 4y ago

Unfortunately this is a 'vote with your feet' situation. If you don't like who is managing your 401k, then work for another company (which is drastic, I know). The other option is to simply write to your plans administrator. Tell them your concerns and organize a letter writing campaign if you are really concerned.