There was a report this morning that Ford is dropping the popular Fidelity Magellan fund, in addition to several others, from the company’s 401(k) selections due to poor performance. After the eliminations, Ford still offers 30 mutual funds.
My company is a financial services company, so you would think their fund choices rival the best 401(k)s. However, they only offer a small selection of funds, most of which are managed by the company’s mutual fund division. They are definitely not the lowest-cost options out there.
Here are all of my options. I don’t include the full names of most of the funds because I’d rather not disclose my employer. Seriously.
* Specialty – Real Estate:: Real Estate Fund
* Balanced – Blend: Active Allocation Fund
* Large Cap Stock – Value: American Century Income & Growth Fund
* Large Cap Stock – Growth: Growth Fund
* Large Cap Stock – Blend: Core Equity Account
* Large Cap Stock – Blend: Stock Index Fund (expense ratio: 0.3%)
* Mid Cap Stock – Value: Artisan Mid Cap Value
* Mid Cap Stock – Growth: U.S. Emerging Growth Fund
* Small Cap Stock – Blend: Small Company Stock Account
* International Stock – Blend: International Equity Fund
* Stable Value: Fixed Rate Fund
* Fixed Income – Govn’t Securities: Fidelity Advisor Government Investment Fund
* Fixed Income – High Yield: American High-Income Trust
* Company Stock: Common Stock Fund
I’d expect more options from a financial services company, but I assume the 401(k) is a great way for the company to make money off its employees through management and expense fees. For example, the new real estate fund that I chose to begin investing in earlier this year recently announced it was adding a management fee of 1.5% on top of expenses.