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.
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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?
Rod Miller, CFP, CLU, ChFC
Hello Kathleen. Sometimes the sponsor may have the plan registered in a different name. Can you provide the name of the sponsor?
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.