Home  >  Financial Articles and Q&A  >  I would like to compare our firm's 401(k) plan (ABA...

I would like to compare our firm's 401(k) plan (ABA REtirment Funds Program) performance against other plans, but I don't see that plan on your list. How would I otherwise go about getting a comparison? Can you give me a relative rating of our plan?

Mar 11, 2013 by Kathleen from Wayne, PA in  |  Flag
4 Answers  |  5 Followers
Follow Question
6 votes
Peter C. Karp Level 20

Kathleen,

In order to compare your firm’s ABA’s Retirement program 401(k) plan performance against other plans, you should contact your plan’s investment advisor and request that they benchmark your plan against other investment provider platforms or send out requests for proposals (RFP). It would be very difficult for us to give you a relative rating without knowing all of the fees you are currently paying, analyzing investment performance reports, knowing the services you are using and demographics of your plan. Each plan is different and performance is reflective of the fees associated with each plan. We have worked with law firms that had the ABA plan as their consultant to oversee the 401(k) and other types of retirement plans they have. You may contact our office to discuss ways we could assist you. As an independent investment advisory firm, we work with all of the leading investment providers and would be able to provide you with some comparisons after receiving specific information on your current plan.

Disclosure: The posted information is for informational purposes only. This message does not constitute an offer to sell or a solicitation of an offer to buy any security. All opinions and estimates constitute Karp Capital's judgment as of the date of the report and are subject to change without notice. Accordingly, no representation or warranty, expressed or otherwise, is made to, and no reliance should be placed on, the fairness, accuracy, completeness or timeliness of the information contained herein. Securities offered through Financial Telesis Inc., member SIPC/FINRA. Financial Telesis Inc. and Karp Capital Management are not affiliated companies.

1 Comment   |  Flag   |  Mar 15, 2013 from San Francisco, CA
Kathleen

Thank you Peter for taking the time to respond to my request.

1 like | 
Flag |  Mar 19, 2013 near Wayne, PA

1|600 characters needed characters left
3 votes

Kathleen,

Please check the link below to see if this possibly answers your questions... I'm assuming by ABA you are referring to the American Bar Association?

Best Regards,

Rod Miller, CFP, CLU, ChFC

http://www.brightscope.com/401k-rating/164166/American-Bar-Association/166651/Thrift-Plan-For-Employees-Of-The-American-Bar-Association-And-Affiliates/

1 Comment   |  Flag   |  Mar 11, 2013 from Springfield, MO
Kathleen

Not the correct plan... see my comment above to Anthony Vicare. I'm interested in the American Bar Association Members/Northern Trust Collective Trust.

2 likes | 
Flag |  Mar 12, 2013 near Wayne, PA

1|600 characters needed characters left
3 votes

Hello Kathleen. Sometimes the sponsor may have the plan registered in a different name. Can you provide the name of the sponsor?

3 Comments   |  Flag   |  Mar 11, 2013 from Newport Beach, CA
Kathleen

IThe American Bar Association Thirft Plan for Employes of the American Bar Association is not the plan I'm interested in ratings for. In the prospectus the plan is titled American Bar Association Members/Northern Trust Collective trust. The master trust is titled American Bar Association Members Retirment Trust.

Flag |  Mar 12, 2013 near Wayne, PA
Anthony Paul Vicari

I don't have a rating that I can access but can provide you with a link that has their performance characteristics in relation to the S&P 500. Here's the link: https://www.infinata2.com/td/AccessPoint.aspx?action=DisplayFrame&transaction=5.0.346758

Flag |  Mar 12, 2013 near Newport Beach, CA
Anthony Paul Vicari

If you have problems accessing the report, let me know. I can email it to you directly if you prefer.

Flag |  Mar 12, 2013 near Newport Beach, CA

1|600 characters needed characters left
0 votes

Kathleen, Brightscope has tools to evaluate various plans against a benchmark. Not all plans are evaluated. I am not sure if you want to evaluate the plan, or the funds that you invest in.

If you are concerned about the overall performance of the plan, without trying to be crass at all, as an employee, some of your concerns may be academic. That is simply because likely you have no control over actual plan expense, overall employee participation, employer matches, and other data that comprise the ratings.

If you are concerned about performance of the funds inside the plan, if may be most effective to do your own research. You can, for example, compare the large cap growth funds to other large cap growth funds, or a moderate allocation fund vs. the universe of other moderate allocation funds. I would advise you that you need to look at not just recent, but also 3 year and 5 year returns. You will see that some funds are clearly more volatile than others. I would be looking at a variety of metrics for risk, but perhaps at this time you should just try to get an overview of how your funds are performing versus the universe of like funds. Of course, not all funds that are labeled large cap growth, or the other asset categories, are structured the same, but the comparisons will give you an idea of how your funds are performing. A good place to find info on all funds is www.morningstar.com

Often, funds that are offered perform, over time, in an range of average to above average performance. This disappoints some people, in that they would like to see all of their funds ‘best of class’. In a structured investment vehicle, such as a 401(k), it is important to have investment choices that are reasonably not volatile. Often, the best performing funds are not particularly risk-averse, and those responsible for making the fund selection decisions will avoid funds that appear to be risky or volatile. Their goal should be excellence, but sometimes in the short term, it will perform at above average, or maybe just average. The funds should be reviewed for mediocre performance, and should periodically be replaced if under-performing.

I hope that I have offered information to help your concerns.

Comment   |  Flag   |  Mar 18, 2013 from Delray Beach, FL

1|600 characters needed characters left