Friday, October 31, 2014

TAG 401(k) Plan

A brief update on TAG's 401(k) Plan for participants and/or interested parties.

Plan assets total $221,022,647.

$209,957,503 is in Vanguard funds.

$11,065,144 is in non-Vanguard funds.

There are 2,476 participant accounts.

Fees for the Plan total .19% (19 basis points) of assets. ...

To refresh memories, the TAG 401(k) Plan switched to Vanguard over the summer because the Plan trustees (of which there are six) decided that costs under the previous administrator were higher than they needed to be.

The change to Vanguard has been relatively hiccup-free, although there are always some glitches when hopping from one rumbling investment train to another. The fact that most participants have stayed with Target Date funds is significant. Studios have shown that investors who pick an asset allocation strategy and stick to it are more successful in accumulating moolah than hot-shots who chase performance, jump in and out of markets, and generally micro-manage their portfolio.

Need confirmation? Witness this exchange between financial experts Barry Ritholtz and James O'Shaugnnesy on Bloomberg radio:

O'Shaughnessy: "Fidelity had done a study as to which accounts had done the best at Fidelity. And what they found was..."

Ritholtz: "They were dead."

O'Shaughnessy: "...No, that's close though! They were the accounts of people who forgot they had an account at Fidelity." ...

So maybe the only better thing than having a Target Date fund would be ... forgetting you have one.


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