Personal Finance Questions and Answers for Young Professionals » Personal Finance

Is NEF profiting from their mistake?

pbucelwicz — Tue, 23 Dec 2008 14:16:54 +0000

A few months ago back in September 2008, I initiated a transfer in my 401k. I was to sell shares in my Opp fund and put into an index fund. Immediately after I set that transaction to happen I decided it was a bad idea. I have many years for that fund to turn around and I didn’t want to lock in my losses by selling it. So I canceled it online right away(1-5 min after). I changed my future contributions to put more into my index funds as my plan to ride out the ups and downs.

Figuring me canceling that transaction was ok, because I got a confirmation email telling me it was canceled, I didn’t check back in several weeks. I got busy at work and didn’t have time to check my 401k account often. In late October I noticed my funds were not represented in my asset allocation anymore. I called up NEF and put in a claim for this, and they admit that they messed up and that it was a computer error why this transaction still went through even when I canceled it the same day.

It has been 6 weeks now, NEF calls me every week telling me, they haven’t figured out why this happened, but are still working on it. My account has not gone back to the way it should be. What is the hold up?

There are a few things that need to happen in order to get my account back to the way it should be. 1. They need to give me back the same number of shares I had, in my Opp fund. 2. Reimburse paid dividend that account might have had in the months I was “out” of the fund. 3. Reimburse me for any extra fees I paid while making the transaction and maintenance fees on the fund the money went into.

Why can’t they put it back the way it was NOW, then figure out why their system made the mistake? My theory is that it will work out better for them to wait. As the market keeps falling the price at which they will buy back the shares that were sold, is much lower. So the longer they wait, the farther the fund falls, the cheeper it is for them to get my shares back. I am not sure if that’s how it works but what other reasons are there for them to be waiting on this?

Am I SOL and I will never get my shares back?

Fidelity Freedom 2040 ( MUTF:FFFFX )

pbucelwicz — Wed, 17 Sep 2008 12:42:31 +0000

My sister has been contributing to her 401k for several years now. She is only in 1 fund, the Fidelity Freedom 2040. As I take it, this fund automatically adjusts to accommodate the persons retiring in year 2040. She is 26 years old and will probably retire more than 10 years after this date.

Is this an ok fund for her to be in? Looking at the performance of the stock and associated fees, it seems in line with an index fund. Think she should diversify more or continue to contribute to this fund?

A Financial Primer for Gen Y

CraigTS — Tue, 19 Aug 2008 19:03:25 +0000

http://features.us.reuters.com/personalfinance/news/N13484347.html

Where is the safest place to invest your money in a recession?

pbucelwicz — Tue, 19 Aug 2008 17:43:10 +0000

Simple question right? I am not watching the market everyday trying to time it. I’m an average young professional looking for long term growth. Currently I am investing in my tax deferred 401k at my company, my Roth IRA, Brokerage account, and MMA.

Within these accounts is there a sector which would protect what I currently have for a while? Foreign, Bonds, MMA etc. Saving my money in my MMA is almost a wash with the rate of inflation. I am getting about 4% APY, and inflation seems higher than that. My funds in my IRA, and 401k have gone down about 15-20%. Do I just sit tight and hope for a rebound? or do I move into safer funds for the time being?