I’m looking over a friends 401k. The options are less than stellar, some funds have up to a 2% management fee. I was thinking of allocating some funds to the target fund FFFHX. But, I was wondering about the expense ratio. It is listed as .82%. Now is this the only expense ratio they will need to assume, or do the expense ratios of all other underlying funds get paid likewise.
It’s only the 82 bips. It operates as a fund-of-funds, but no, you are not paying FOF expenses. I’ve yet to see a lifecycle fund/target risk fund that does that, though I’m sure that some enterprising mofo will launch one and bury it in fine print…
I think in the modern society which we all live in, fidelity is an archaic method of thinking in regards to copulation. Monogamy was great during the 1500’s when the female could not work and relied on the male for money, food, etc. In this day and age, women no longer need a man in order to survive. They can do just fine on their own and since they have been “liberated” and are “equal to men” then there is no reason for a woman to attach herself to a man in order to live. The entire concept of marriage as an institution should be revamped. Furthermore, the belief that “you can’t sleep with others if you’re in love” does not make sense. In today’s 24/7 life cycle with the possibility of instantaneous communications via the Internet and increased mobility due to cellular phones, one can be in a relationship and be thousands of miles apart from their spouse for a significant amount of time. One can not be expected to hold off on sexual gratification for such an extended amount of time just because it is the “proper thing to do”. Those are my thoughts. Also, from what I know the expense ratio listed should be the aggregate ratio encompassing the fees (administrative, management, etc.) of the fund. All of the underlying funds’ fees should be rolled up in 0.82%. However, I’m not 100% sure because I don’t know much about mutual funds…
Fidelity can charge a 100% management fee and still beat the market.
supersadface Wrote: ------------------------------------------------------- > It’s only the 82 bips. It operates as a > fund-of-funds, but no, you are not paying FOF > expenses. I’ve yet to see a lifecycle fund/target > risk fund that does that, though I’m sure that > some enterprising mofo will launch one and bury it > in fine print… Thanks. Sadly this is one of the better funds to select. Some of the fixed income and small cap funds have management fees pushing 2%! That’s robbery for a mutual fund. I suggested a portion into the target fund, a portion into an S&P 500 fund (11 bp), and some into a fixed income fund (70 bp). My last job did not offer a 401k for some reason, so I stuck with ETFs in a Roth. I’m aghast at how high some of the fees are for the available funds for this Fidelity custodied 401k.
SMIRK Wrote: ------------------------------------------------------- > Fidelity can charge a 100% management fee and > still beat the market. Quoted for truth. I hear that Fidelity pays the markets dividends.