w*s
发帖数: 7227 | 1 also is there a 3 month limit, can i pull out after 1 week ?
thanks ! | j****y
发帖数: 1714 | 2 money market funds are rip-offs.
It is plain stupid to save money in cash and pay higher expense ratios than
bond or stock funds would cost.
http://money.cnn.com/2012/02/17/retirement/401k_cash_expenses.f
FORTUNE -- I thought I was clever. Earlier this year I had over half of my
401k assets in cash. I know that investors are terrible at timing the market
and I'm way too young not to be fully invested, but I can't get over the
fact that stocks look expensive right now.
I thought I was smart until I got my Fidelity 401k materials in the mail. It
turns out that Fidelity Cash Reserves, the $118-billion money market fund
where my cash is held, charges annual expenses of 0.31%. That's more than
three times the 0.10% expense ratio Fidelity charges for its S&P 500 index
fund, which also happens to have yielded 1.9% during the past year compared
to a 0.01% yield for cash reserves.
I'm not the only one annoyed with the fees. "It doesn't make any sense that
a money market fund should charge three times more than a large cap index
fund," says Ryan Alfred, president of BrightScope, which analyzes 85% of the
country's 401k plans for the benefit of individual investors. Alfred argues
that Fidelity and other 401k plan administrators are gouging investors in
their own plans. (Fidelity Investments is the largest 401k provider with 27%
market share in the U.S., followed by Aon Hewitt (AON, Fortune 500) with 8.
8% and Vanguard with 7.7%, according to Cerulli Associates.) Alfred's point
is that if Fidelity runs your 401k plan, you don't have much choice but to
use their products. |
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