My quarterly 401(k) statements have left me dejected

[Exterous]

I got my final 401(k) statement from my last job today. Since the company went out of business a little over a year ago I recently got a letter saying I needed to move the money or they would send me a check (minus taxes and penalties). I also got my 401(k) statement from my current job

401(k) rate of return old job: 49.8% for the last 12 months
401(k) rare of return new job: 5.1% for the last 12 months

Well - I stretched out my old plan as long as possible but.....

 

[mchammer187]

Roll it over into a Roth?

you would have to pay taxes but can't you at that point invest it in anything you want?

 

[Zargon]

hey man, atleast its not -5%

 

[rasczak]

hey man, atleast its not -5%

agreed

 

[preslove]

You can't pick your funds in with your new job?

 

[apac]

I don't understand, why is the rate of return with the new job so low? It's all in the same market.

 

[Exterous]

Roll it over into a Roth?

you would have to pay taxes but can't you at that point invest it in anything you want?

Yeah - thats what I did. I was bummed about the taxes but the difference in return will be well worth it

You can't pick your funds in with your new job?

You would think so but not really. It's a much smaller company and they only have 3 choices - higher risk, low risk and income. Being 27 I chose higher risk which - according to the tracking - gave me a 1% higher return than low risk

I don't understand, why is the rate of return with the new job so low? It's all in the same market.

It all depends on where you invest the money in the market. At present my opinion of their investment choices is not all that high. At least my employer matches my contribution....

 

[preslove]

That's fucked up, considering how well the market did in 2009.

 

[Blackjack200]

You would think so but not really. It's a much smaller company and they only have 3 choices - higher risk, low risk and income. Being 27 I chose higher risk which - according to the tracking - gave me a 1% higher return than low risk

Sounds like a custom target date product. The 401(k) recordkeeping system is purchasing a basket of securities weighted based on your age and risk appetite (high, low, income)

There's no way you should have made only 5% in the last year. Do you know what the underlying investments are?

 

[Exterous]

Sounds like a custom target date product. The 401(k) recordkeeping system is purchasing a basket of securities weighted based on your age and risk appetite (high, low, income)

There's no way you should have made only 5% in the last year. Do you know what the underlying investments are?

I wish. All I get are statements showing 100% invested in their plan name and then it shows what that plan typically invests in in terms of % domestic stocks, foreign stocks etc. I tried calling a couple of times but its like talking to a brick wall.

'Sir, your money is invested in this plan.'
'Ok I get that but what stocks/bonds etc is my money actually in'
'Your money is all invested in the plan sir'

My one hope is that its a new plan the financial institution setup 2 years ago and they can figure out what is going on

 

[Elbryn]

what's the product name? which company manages the funds?

 

[Zargon]

that sucks man

 

[Special K]

Roll it over into a Roth?

you would have to pay taxes but can't you at that point invest it in anything you want?

You could also roll it into a traditional IRA, not pay the taxes now, and invest it in anything you want.