401k dividends

Kounter Klockwize

Active Member
Does our 401k payout dividends? I have the s&p 400 Russell 2000 and the US Reit index fund. I never see any dividends. Please chime in and let me know if I'M missing something. I would really like to get the real value of compounding interest. It looks like if the stock market goes up then the 401k goes up and if the market is down the our 401k goes down.
 

Catatonic

Nine Lives
Dividends are paid within the 401k.

You might want to keep that REIT fund at 10% or less for at least a couple more years.
 

Kounter Klockwize

Active Member
thats about the % I have it at. can you go into just a little more detail on how dividends are paid Im confused. I have been in the 401k for almost 20 years now.
TX
 
thats about the % I have it at. can you go into just a little more detail on how dividends are paid Im confused. I have been in the 401k for almost 20 years now.
TX
When a dividend Is paid out, the share price gets reduced by the amount of the dividend. Then it gets automatically reinvested at the lower share price. Therefore you own more shares.
 

Kounter Klockwize

Active Member
Nice. That was what I was hoping. I just now realized how good our fees are compared to all the other 401ks out there.
What is your opinion on a self managed account with dreyfus? It might be best to stay away from that self managed account.
 
Nice. Thatiwas what I was hoping. I just now realized how good our fees are compared to all the other 401ks out there.
What is your opinion on a self managed account with dreyfus? It might be best to stay away from that self managed account.
Unless you know what you are doing, which most of us dont. (Myself Included) Just stick with the core funds. Just keep adding money each pay!
 

Catatonic

Nine Lives
Unless you know what you are doing, which most of us dont. (Myself Included) Just stick with the core funds. Just keep adding money each pay!
I agree but if you want to do some active trading on your own, you can trade EFT funds for specific areas.
Since you seem to be interested in dividends, I use Vanguard ETF Dividend Funds. VYM:US
This is a rather conservative approach but I have been getting 7 - 8% over the last few years and above 20% last year with 0.1% cost.
Morningstar can give you access/info to others. Concentrate on low cost funds, which is why I choose Vanguard.
 

Catatonic

Nine Lives
thanks fellas. I dont know nothing on buying stocks except for our ups stock.
You may be best served sticking with one of the Bright Horizon Funds.
Most investment sites have a test or training mode where you can create dummy accounts and try your hand at investing.
This allows you to see whether this is for you or not.
Self-directed investing using individual stocks is a time-consuming process.
 

oldngray

nowhere special
self managed is mostly for people who are obsessive and love to micro manage. If you want to just invest and forget about it then ones like S&P index funds might be better for you. I am not a fan of the Horizon funds since they invest a lot in other countries but that is just my personal preference.
 

UpstateNYUPSer(Ret)

Well-Known Member
self managed is mostly for people who are obsessive and love to micro manage. If you want to just invest and forget about it then ones like S&P index funds might be better for you. I am not a fan of the Horizon funds since they invest a lot in other countries but that is just my personal preference.

I like the BH funds as you can "set it and forget it".
 

Catatonic

Nine Lives
This is a summary of the costs for the Teamster Bright Horizons fund:
Total fees and expenses are translated into basis points for each fund. The fixed costs amount to an annualized
rate of 0.25 basis point, while the variable costs are calculated and charged in arrears and are estimated to be an additional annualized amount of 0.03 - 0.05 basis points. Along with Investment Fees, the Custody Fees are accrued and assessed daily against each fund's unit value, and are reflected in the total return performance information presented herein. There may be additional Plan fees and expenses that participants will bear that are not reflected in fund performance.


The UPS 401k BH funds and Teamster BH 401k funds may be different in costs but the underlined last sentence is important. I have been to 4 - 5 classes on this offered for Management 401k plan.
The costs were always 1% or more per year and my external financial adviser advised me the same.
1% is not excessive and is less than many popular funds that have management and transactional fees around 2 - 2.5%. Not knocking BH funds but targeted ETFs offer strategic investment mechanisms with low total costs and fees.
 
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