Re-balance Cycle Reminder All MyPlanIQ’s newsletters are archived here.

For regular SAA and TAA portfolios, the next re-balance will be on Monday, April 17, 2017. You can also find the re-balance calendar for 2017 on ‘Dashboard‘ page once you log in.

As a reminder to expert users: advanced portfolios are still re-balanced based on their original re-balance schedules and they are not the same as those used in Strategic and Tactical Asset Allocation (SAA and TAA) portfolios of a plan.

Please note that we now list the next re-balance date on every portfolio page.

Fund Fees: That’s (Still) Outrageous

You would think that after so many years of campaigns by investors, people like John Bogle and index fund companies like Vanguard and Dimension Fund Advisors, investment fund fees would have dropped dramatically. But instead, fees of funds are stubbornly high. Funds track the same index could have their fees vary markedly. Moreover, you would think that in a sufficiently efficient capital market, fees for a similar or same fund should be very close. Unfortunately, you are wrong again.

From our start in 2008, we were one of the first to assail the high fees in funds and poor fund coverage in 401k plans. The lowest hanging fruit or free lunch for investors to improve their returns is to invest funds with lower fees. Up to this date, we are still puzzled by what we have frequently come across with so many instances of outrageous fees, in both 401k type plans and brokerages. Talk about efficient capital market and less regulation!

High fees in 401k plans

Among many 401k plans in our database, expenses of similar index funds can vary, sometimes as much as 0.7% to 1%. Many small businesses use a 401k plan provider from a payroll processor such as ADP. Recently, a user gave us his 401k plan from ADP mykplan (Notice that MyPlanIQ has no connection with mykplan). The fund fees shocked us: 

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