Monday, February 13, 2012

The TAG 401(k) Plan

I spent the day in a Trustee Meeting for TAG's 401(k) Plan. A few factoids regarding the Plan (in continuous operation since April, 1995): ...

Total Assets -- $149 million

Total Participants -- 2250

Top Five Funds in Plan

1) SAGIC (bond fund)

2) PIMCO Total Return

3) Select Indexed Equity

4) EuroPacific Growth

5) Gabelli Small Growth

What's remarkable to me is that none of the Vanguard Target Retirement Funds are in the Top Five, even though they're the lowest cost options in the Plan.

The Vanguard funds cost participants from 17 to 19 basis points in administrative costs. (That's less than one fifth of a percent, if you're wondering.)

The next least costly option is Northern Trust's Select Indexed Equity Fund (a large cap domestic stock mutual fund that's the Plan's third most popular.) It costs 21 basis points (just over a fifth of a percent.)

Whenever I'm out in the studios, I have a bag of 401(k) books slung over my shoulder. So if you see me and want to enroll, just ask for a book. Enrollment deadlines are the first of each month.


Anonymous said...

The plan only has 2250 participants? I always imagined more for some odd reason. $149 million doesn't sound a lot either. That's only an average of $66k-ish per participant, unless my math is off. That's not a lot for a retirement account.

And before someone makes a comment about not having enough to put into the 401k (or any kind of savings), I'm sure there's things you could cut back on. There are some positions in our industry that pay very well compared to the rest of the country, you don't need to spend your money as fast as you earned it. Live below your means!

Steve , how's the IAP doing? I'm sure you have posted the info before, but can you say how many participants are in the plan and how big the fund is?


Steve Hulett said...

I'll put up a post about it.

Site Meter