Trying to get a clear story, what did Biden do with 401k's?

[glocktogo]

Theoretically this rule should naturally sort itself out, with woke 401k managers who invest based on ESG having poor returns and customers fleeing to those 401k managers who do not.

Moral of story is watch your 401k and know what your manager is investing in.

Theoretically yes, but most people will never know whether their fund management is using ESG or not. Also, individual 401k owners have virtually no power to direct how company or .gov engaged fund services invest. Don't want your individual 401k to utilize ESG in investment decisions? Fine, take your 401k elsewhere and lose employer matching funds. Either way you take a hit.

I don't think ESG should be banned per se. I do think ALL investors should be given full disclosure as to whether ESG is utilized by their fund on investment decisions. They should have the option to "opt out" of ESG being utilized for their investments. At the end of the year, the ESG and non-ESG returns should be provided to all clients. If the ESG fund had better returns, more people will opt in. If not, more people will opt out. That's capitalism at its finest.

[Buckaroo]

This should be true, but many folks have very little control over their employer sponsored 401k. One of the recent trends in virtue signaling amongst companies is to put employees 401k management into the hands of more "progressive" managers. That way they get to virtue signal with someone else's money.

Now one way to deal with that is what is called an "in service rollover". Not all funds allow it. Basically you roll over your 401k funds from your current employers plan into a different plan, just like when you leave one company for another. You cannot touch the money, it just has to transfer to the new fund. But you can gain more control of how it is managed. Your contributions and any match keep going into the employer account while the balance is somewhere else. You just have to wash-rinse-repeat. I'm not well versed in this one, but the option exists.

This is what we are doing at the suggestion of our advisor. Wife will continue to fund her employers 401k to get the match but otherwise we are pulling out.

[utahjeepr]

This is what we are doing at the suggestion of our advisor. Wife will continue to fund her employers 401k to get the match but otherwise we are pulling out.

I'm told that these transfers really rankle HR and the fund managers, but F 'em. It ain't their money it's yours.

[ABNAK]

My 401K is the TSP, which is the Federal version. My wife and I, being paranoid of losses as we close on retirement age, have every dime going into the "G-fund", which hardly makes shit for interest returns but is VERY safe and under the TSP you are guaranteed your principle if deposited in the G-fund. Not making much money in returns but safe as hell. It's a fund made up of bonds and the like, so I don't think there is a PC/woke component to those (if someone knows better please let me know). We both max it out, like $1153 each per two-week pay period ($30K per year per person).

[AndyLate]

In a nutshell it relieves the fund manager of fiduciary duty and leaves investments ripe for fraud.

Andy

[titsonritz]

He taking 10% for the big guy.

[utahjeepr]

My 401K is the TSP, which is the Federal version. My wife and I, being paranoid of losses as we close on retirement age, have every dime going into the "G-fund", which hardly makes shit for interest returns but is VERY safe and under the TSP you are guaranteed your principle if deposited in the G-fund. Not making much money in returns but safe as hell. It's a fund made up of bonds and the like, so I don't think there is a PC/woke component to those (if someone knows better please let me know). We both max it out, like $1153 each per two-week pay period ($30K per year per person).

The G fund is very safe and has yields similar to private bond funds. All 5 TSP funds are managed by Black Rock, just so you know.

[Waylander]

This should be true, but many folks have very little control over their employer sponsored 401k. One of the recent trends in virtue signaling amongst companies is to put employees 401k management into the hands of more "progressive" managers. That way they get to virtue signal with someone else's money.

Now one way to deal with that is what is called an "in service rollover". Not all funds allow it. Basically you roll over your 401k funds from your current employers plan into a different plan, just like when you leave one company for another. You cannot touch the money, it just has to transfer to the new fund. But you can gain more control of how it is managed. Your contributions and any match keep going into the employer account while the balance is somewhere else. You just have to wash-rinse-repeat. I'm not well versed in this one, but the option exists.

This is what we are doing at the suggestion of our advisor. Wife will continue to fund her employers 401k to get the match but otherwise we are pulling out.

I had no idea this was even possible. I get a match and my only investment option is BLACKROCK! so I’ve been sweating for a while as you might imagine.

But then who do I invest with for low fee index funds or target date? Vanguard? Schwab? I’ve use either or in my Roth but I’m hearing they are leaning the same way.

[SteyrAUG]

When I watched people get their 401ks halved under Obama, I made a conscious decision to make firearms my 401k. I've been outperforming most people I know.

[Buckaroo]

I had no idea this was even possible. I get a match and my only investment option is BLACKROCK! so I’ve been sweating for a while as you might imagine.

But then who do I invest with for low fee index funds or target date? Vanguard? Schwab? I’ve use either or in my Roth but I’m hearing they are leaning the same way.

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