Principal 401k Unimpressive earnings/ Rollover

[vvasi9]

hi

I have employer sponsored 401k for almost two years now with Principal and I am not very impressed with the returns. I tried to keep it diversified between stocks (large cap, short/mid), bonds, real estate, international.. but the returns are way below the average market especially this year, the YTD is less than 2%. Not sure if I am doing anything wrong and like to get any tips to make my portfolio better.

Anyone else have 401 with principal who can share their performance this year?

Also, I am exploring my options to roll it over to IRA like Vanguard but not sure if there are any limitations to do that. I am 30 years old and working for the same employer who provided the 401k.

Thanks!

[QDROphile]

The summary plan description of your plan will describe when distributions can be made from the plan. You must have a distribution to be able to roll over funds. At age 30 it is unlikely that you will be eligible for a distribution if you are still employed by the plan sponsor.

Thank cold, thoughtless, and cowardly reaction to section 404© of ERISA for you investment complaints. Or look closer to home.

[Kevin C]

Salary deferrals can not be distributed while employed prior to age 59.5 except for hardships. As pointed out, it is unlikely your other accounts would be eligible for in-service at your age.

As for investment returns, the last two years have been pretty unimpressive across the board. You don't say what percentage of your balance you have in bonds. At age 30, you may want to review that decision. You hopefully have a loooooong time before retirement. Thanks to the "cowardly reaction to section 404©", you have the option of selecting the investment mix that is appropriate for you instead of being stuck with an investment mix that the Trustees think is appropriate for the plan as a whole. QDRO is referring to your plan allowing self-directed investments. You mentioned Vanguard. Their website would be a good place to check returns on mutual funds to see what a portfolio with the same stock/bond mix might have returned with them for the same time period. If you don't like what you see, it's time to review the available investment options to see if there is a mix that is more appropriate for you. Your plan may have an investment advisor available to assist participants.

Good luck.

[GMK]

Salary deferrals can not be distributed while employed prior to age 59.5 except for hardships.

and only if the plan allows (again see the summary plan description).

Morningstar is another site for information on how your funds compare with other peer funds. (I have no affiliation with Morningstar. I just find useful information there.)