XPO | 401k changes

Where is this information coming from?


It was in a company email sent out and it mentioned a letter being sent out by snail mail. It talked about converting some of the existing investment funds over to alternate funds that had lower operating fees and that there would be certain fees that we would now be charged. I think there's a quartly maintenance fee of $7.50 and if you take a loan I believe there is now a $25.00 processing fee. There might be more but that's what I can remember right now
 
Better keep an eye on it before and after the change. A similar thing was done here at FedEx. Now we only have 8 poor performing Vanguard mutual funds to invest in. There are over 60 possible funds available to an investor off the street. There are plenty of "lower cost" plans we could invest in from Vanguard but we are not allowed access to those. These plans we are prevented from using have higher returns compared to the negative returns our current offerings have. Lower fees are not always good.
 
I have not been to impressed with our 401k. Not much choice. So I am glad they are changing. That email also said new funds would be better.
 
The fees are lower. Unless you're taking a bunch of loans, you will be paying less than before.
 
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I am no expert on investing. I have always put a lot of faith in the Morningstar ratings. I look at that ranking more than the last three or five year returns. I always figure if a fund is ranked as a five star fund by Morningstar they must have done something to accomplish or deserve that rating. So I will invest my 401K money in those funds and stay away from a fund that might only be one two or three star rated even if those funds have performed better in the last couple years. I don't know if that is good advice, but I know my investments have grown better since I have taken that stance.
 
http://www3.troweprice.com/fb2/fbkweb/snapshot.do?ticker=TRHRX

Note about the fund's expense ratio:
The fund's gross expense ratio as of 02/01/2016 was 1.42%. To protect the interests of shareholders, T. Rowe Price Associates will waive its fees and/or bear any expenses that would cause the fund's expense ratio to exceed 0.74%. This contractual expense limitation expires on 09/30/2018.

http://www3.troweprice.com/fb2/fbkweb/snapshot.do?ticker=TRXRX

Note about the fund's expense ratio:
The fund's estimated gross expense ratio as of its inception date on 02/26/2016 was 1.18%. Through 09/30/2018, T. Rowe Price has contractually agreed to pay the I Class's operating expenses (excluding management fees; interest; expenses related to borrowings, taxes, and brokerage; nonrecurring, extraordinary expenses; and acquired fund fees and expenses) to the extent the operating expenses exceed 0.05% of the class's average daily net assets. As a result, the fund's net expense ratio was 0.64%.


So it seems XPO has arranged a cheaper way for them to provide a retirement account. And that anyone participating will no longer be a share holder. Or have any share holders rights.
 
The email I read said lower fees and a higher yield.
Yeah, that's what the book in the mail said too. I guess I didn't see anything about choices being more limited than they are now, and with the lower fees, you should be keeping more money.
 
It's always comforting to know that the expert investor's fees have been lowered, and now some jackass in his mother's basement in making your financial investments for you. But hey, at least the "fee" is lower.
:regretful:

That's not what has changed. I linked the info. It's the same guy running the same investment. What has changed is your relationship to the investment and your loss of all rights to it.
 
Better keep an eye on it before and after the change. A similar thing was done here at FedEx. Now we only have 8 poor performing Vanguard mutual funds to invest in. There are over 60 possible funds available to an investor off the street. There are plenty of "lower cost" plans we could invest in from Vanguard but we are not allowed access to those. These plans we are prevented from using have higher returns compared to the negative returns our current offerings have. Lower fees are not always good.

Seriously? Our Funds at FxF 401 (k) are mostly index funds that are very low cost. Do some homework...instead of trolling.
 
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