For those of you who are bored by talk of personal finances, you may wish to avert your eyes. Scroll down. Read about my weekend.
My company switches 401(k) providers about as often as I change underwear (like once a year). Our most recent switch was to Fidelity. Woo hoo. When they transferred all of our money from the previous 401(k) provider (Prudential? Providence? Mr. Bob's Savings & Loan?), they re-allocated our investments into "similar" packages. For example, if I had invested some of my money into a International Stock Index Fund. Fidelity would have transferred an equal percentage of my total investment into their International Stock Index Fund.
With me so far?
Well, see ... what happened wuzzz... I had 100% of my money invested in some sort of "We'll invest your money for you based on the date you plan to retire" Fund, probably called the You're Never Going to Be Able to Retire Fund.
Now, Fidelity has the exact same type of plan (in my case, called "Fidelity 2035," which if you ask me is being very optimistic about my retirement, but anyway ...); however, when they transferred all my investments from the previous provider to Fidelity, they did not do a 100% transfer from similar "based on when you're going to retire" fund to Fidelity 2035. Rather, they broke up the previous provider's funds into categories and invested in similar sounding categories. Instead of having one easy to manage and follow category, I now had 7 or 8. Bleah.
VUBOQ likes his 401(k) statement simple and easy-to-read.
Thus, whenever I think about it, I go to the Fidelity website and transfer all the money out of one of those funds into my 2035 Fund. Unfortunately, I don't think about this very often. Even after a year, I still have about 4 more accounts to transfer.
I guess it doesn't matter much since I'll be out of a job soon anyway. *sigh*