Siemens bought out UGS (my employer) in march. Prior to that UGS was owned by EDS. Prior to that SDRC was my employer until that dark day when the CEO sold out and merged us into EDS.
The 401k money prior to UGS has the option of being rolled into Siemens 401k plan, or rolled into an IRA. All UGS 401k money must be merged into Siemens plan. If you ever wondered why the 401k divides money up by "rollover contributions", "employee contributions" and "employer contributions", it because at times like this, you need to know who contributed what.
I chose to rollover the 69k from SDRC/EDS into an IRA with T Rowe Price.
Funds selected:
PRFDX (T Rowe Equity Income) 42%
PRDMX (T Rowe Diversified Mid Cap Growth) 14%
PRDSX ( T Rowe Diversified Small Cap Growth)14%
TRIGX (T Rowe International Growth and Income)14%
PRIDX (T Rowe International Discovery)8%
RPSIX (T Rowe Spectrum Income) 8%
The Siemens plan looks OK... it has one fund for domestic large cap, one fund for domestic small cap, one fund for international large cap, another for international small cap...
but no ticker symbols for any of above... no expense information for any of above... no return history for any of above.
I have a self directed brokerage option for the 401k which I might be considering.
**edit**- chose T Rowe Spectrum Income over New Income. Spectrum income is a fund of funds, which is 75-80% in bonds and cash (other 25% is in PRFDX). Because spectrum income has exposure to high yield and foreign bonds, it's return is higher than most bond funds (8-9% type returns). New Income is one of many bond funds in Spectrum Income.
401k rollover
October 24th, 2007 at 07:58 am
October 25th, 2007 at 12:42 pm
October 25th, 2007 at 12:45 pm
New Income is a bond fund.
I think the overlap is close to 0.
International Growth and Income is large cap equity
International Discovery is small cap equity.
probability of overlap is low.
Part of investing with TRP is their fund managers generally follow what the prospectus suggests.
thx for feedback.
November 20th, 2007 at 02:23 pm
November 21st, 2007 at 07:04 am
January 2nd, 2008 at 01:58 pm
January 2nd, 2008 at 02:27 pm
All 6 funds fit into my asset allocation. 73% domestic equity, 25% foreign equity, 2% bonds.
In the case of PRFDX and PRIDX, I already owned them
In the case of TRIGX, my wife owned it.
For the mid cap, the fund chosen was T Rowe's newest mid cap fund. I haven't seen T Rowe merge a fund, so I am anticipating the mid cap fund will be around for 20+ years. Same with small cap fund.
My experience with mid and small caps suggest that smaller funds are better than large funds. The mid cap I have with T Rowe in my Roth (RPMGX) is one of oldest, best and largest mid cap funds out there. I wanted something smaller. In the case of small caps, PRNHX actually is so big it might be a mid cap fund (at times x-ray shows this as a mid cap fund). So I wanted a pure small cap play. More often than not, a small cap fund will not be "held" by me for long periods anyway for this reason. I am hoping for a goodd 10 year run, then will move on again.
For the bond fund, I wanted something aggressive. There is a small chance I will retire in less than 20 years, so I wanted a bond position. But at same time I need returns more than stability right now. Spectrum Income holds some high yield, some government bond, some foreiqn bonds, some real estate bonds... so it covers everything- and it also owns a small 20% position in equity income (dividend paying stocks).
Each fund has moderate expenses. Not the lowest, but well below the category average.
I put lots of work into coming up with the asset allocation. The exact fund I choose to implement the allocation is not going to change long term returns much.
January 3rd, 2008 at 02:51 am
January 23rd, 2008 at 06:38 am
February 14th, 2008 at 07:31 pm
February 14th, 2008 at 07:48 pm