Originally Posted by game

My S&P500 index funds are up 25% since October 2023. I'm so glad I opted out of the stupid MBCBP.

Originally Posted by First Break

Hows your spill cash doing? Id be willing to bet the rest of my 401k that mine has outperformed yours.

Originally Posted by game

My S&P500 index funds are up 25% since October 2023. I'm so glad I opted out of the stupid MBCBP.

Originally Posted by First Break

Not for nothing.. you dont have to "blindly accept" anything. The PWA language is fully transparent as to how the money is invested. Ill quote in case you dont have a PWA handy:

"The investment strategy for the MBCBP will target an allocation of:
a. 40% to global public equity markets in a manner similar to the MSCI All Country World Index
b. 60% to U.S. intermediate bonds in a manner similar to the Bloomberg US Aggregate Bond Index."

According to the documentation from last summer, this allocation closely tracks the "LIRIX" fund offered by Blackrock. The summary prospectus from that fund states:

"As of March 31, 2024, the Fund held approximately 41% of its assets in Underlying Funds designed to track particular equity indexes, approximately 59% of its assets in Underlying Funds designed to track particular bond indexes"

On a cursory look, my MBCBP investment return tracks almost perfectly with LIRIX, as advertised.

How is the MBCBP not "transparent" if a) it is fully disclosed how the funds are invested (just like any other public fund), and b) it tracks very closely to a public fund that was disclosed before you opted into the plan. If you could look on your Fidelity account and see the money attached to the "LIRIX" ticker symbol, would that feel more "transparent" to you?

FWIW, based on the performance of LIRIX in May, Id fully expect a positive allocation. Regardless of that, performance over one month means absolutely nothing when discussing investment options for retirement. Ask anyone who was in VOO or QQQ during 2022. Some months were bloodbaths. That does not mean that VOO or QQQ are bad investments over time, quite the contrary.

Originally Posted by notEnuf

It is a shadow fund (by shadow I mean a private account that perfectly outlines the investments of a public mutual fund, not some clandestine description) supposedly invested to mimic LIRIX holdings and returns. There are no public or private reports on the program investments therefore I have no way of verifiing how it is apportioned. As a private independent account it has no transparancy disclosures required AFAIK. We have 0 funds invested in the LIRIX fund or any public fund that must comply with public disclosure rules. And the target indices above were for reference as to how the funds were intended to be invested. All I'm asking for is a statement that says exactly how they are currently invested and how the returns were calculated. I don't think this is an outragious ask especially after multiple negative allocations. If it tracks LIRIX perfectly, then that would be an easy disclosure and serve to further credibility of the manager. I am patient and will wait for the total year returns but I now see the lack of disclosure as a flaw. I will probably have $300K invested in this vehicle by the time I retire.

Originally Posted by First Break

Hows your spill cash doing? Id be willing to bet the rest of my 401k that mine has outperformed yours.

Originally Posted by game

My S&P500 index funds are up 25% since October 2023. I'm so glad I opted out of the stupid MBCBP.

Originally Posted by crazyjaydawg

Ha! Every time I see an MBCBP thread pop up, I know that it’s going to be because something else undesirable was discovered and I have to try my hardest not to drop a “told you so” every time.

During the opt out period I was being chastised for even thinking it may be a bad deal. 90% made it seem like the best thing since sliced bread.

My planning said that I needed >8% annually to beat simply investing 401(k) excess in a brokerage account. It sounds like the MBCBP is off to a pretty rough start.

But hey, at least they’re investing in socially conscious companies, so at least people know their money is hard at work supporting DEI.

Originally Posted by tennisguru

That entirely out dated, but people keep bringing it up like it’s gospel. Yes, originally a Blackrock fund was going to be used, but it never was actually implemented as they found a way to invest in the proper mix with a lower expense ratio.