Sweetened the pot/401k

Discussion in 'FedEx Discussions' started by Migrant Worker, Oct 26, 2014.

  1. Serf

    Serf Active Member

    By now most have you have received the Vanguard letter about Fedex making subtle changes to our 401k plans. Basically, it costing less to manage your money. Fedex is a multi national world wide company. Our gain (however minimal it is) is someone else'es significant loss. Fedex and Vanguard have essentially outsourced the men and women responsible for managing our portfolios and given them to Vishnu. This latest propaganda letter is pure corporate cutthroat.
     
  2. Its still a good deal for the employees. A FEDEX friend of mine,showed them to me. The Primecap,is a great fund. Its currently closed to retail investors,but not to you.
     
  3. Serf

    Serf Active Member

    Correct. It is a good deal. But at someone else'es expense is all I am conveying.
     
  4. Operational needs

    Operational needs Well-Known Member

    How is this corporate cutthroat? I ask out of ignorance. Unfortunately, I have never taken the time to educate myself on this. When FedEx tells us a change is a good deal for us, my "spidey senses" automatically go into overdrive. What's in it for them?
     
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  5. Fedex has a fuduciary responsibilty,to offer you the lowest possible costs or face possibile lawsuits.
     
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  6. IMG950253.jpg
     
  7. MrFedEx

    MrFedEx Engorged Member

    Vanguard is actually a good deal. However, always remember that the reason they had to have a good 401k is because they killed your pension.
     
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  8. I agree with you. Just hope your co-workers take advantage of It.

    We have guys who refuse,to put money in the 401k. Oh...we have a pension! Sometime you have to take charge,for yourself.
     
  9. Mr. 7

    Mr. 7 The monkey on the left.

    Those guys need to seriously look over the pension next time they get a letter in the mail. If any of those guys are on the new Portable pension only, it's a joke!
     
  10. MrFedEx

    MrFedEx Engorged Member

    Right. I can't believe the number of idiots I know who say "We have a pension". No, you don't. The PPA is an ANNUITY...it is NOT a pension. FedEx dumps a minimal amount of money every year into an annuity, which they call a "portable pension". It's portable in the sense that you get a lump sum when you leave, and the "pension" portion is laughable. You might be able to fill your gas tank (once) with your monthly payout.

    After reading the OP's post more closely, the fact they have outsourced Vanguard is concerning. My guess is that the fund and choices have remained the same, but that the customer service employees are now in India or wherever. Historically, Vanguard has been an excellent low-cost group of funds.

    Somehow, FedEx will figure out a way to screw us out of that too.
     
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  11. Thats why,everybody needs to save a little on the side. No matter how small the amount.
     
  12. El Morado Diablo

    El Morado Diablo Active Member

    Expense ratios are the least understood cost to most investors with 401k's. While it's nice to see Vanguard offering funds with low expense ratios the funds themselves are nothing to write home about. The 12 retirement funds are all up 4.0 to 4.65% YTD, the International stock funds are down 2.6 to 5.1% YTD and only one of the Domestic stock funds are up over 10% (Primecap - 12.03%). I'd be willing to pay higher costs in expense ratios for a better group of funds to invest in.
     
  13. overflowed

    overflowed Well-Known Member

    I'm not that old, however I understand what this pension means to me in the long run. I will tell you in my experience most of our co workers, especially the younger ones don't even care. That is what the company counts on. I will be gone soon, and this is one of the main reasons. That and our benefits. Well, lets not forget it takes 55 years to top out.
     
  14. DorkHead

    DorkHead Active Member

    Mr FedEx, offhand, do you have any idea what % per thousand dollars your fees will be when it is time to withdraw?