"The mandates include about $30 billion in pension assets for Verizon and Lockheed Martin and $40 billion in Verizon defined-contribution retirement assets, which are typically 401(k)s, according to Goldman."
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Perhaps folks should be worried about the expense ratios of their funds..maybe things have changed for the better..
https://www.investmentnews.com/ria-news/goldman-sachs-sued-for-unlawful-401k-management/170523
@a2 I had the same question that I put through AI - this is the answer:
The short answer is no, your 401(k) account isn't moving away from Fidelity. You will still log into Fidelity to view your balance, change your contribution rates, and manage your account. Instead, this news changes who designs and manages the investment options inside that Fidelity account. The Difference Between a "Recordkeeper" and a "Manager" To understand what this means for your 401(k), it helps to look at the two different roles required to run a massive corporate plan: The Recordkeeper (Fidelity): Think of Fidelity as the administrative storefront. They host the website, handle your login security, process your payroll contributions, send you statements, and track how many shares of a fund you own. Fidelity is staying in place. The Investment Manager / OCIO (Goldman Sachs): This is the role changing hands. Previously, Verizon had its own internal, in-house team called VIMCO (Verizon Investment Management Corp.) that decided which mutual funds, target-date funds, and index funds should be offered on your 401(k) menu. Verizon has decided to shut down VIMCO and outsource that "Chief Investment Officer" responsibility to Goldman Sachs Asset Management. What Actually Changes for Plan Participants? When the transition goes into effect, Goldman Sachs will take over the day-to-day oversight of the investment menu. Your Portal Remains the Same: You will still use NetBenefits or your usual Fidelity portal. Potential Menu Tweaks: Because Goldman is taking over the building of the portfolios, they may adjust the specific fund options available to you, rebalance the underlying assets in the target-date strategies, or swap out underperforming institutional managers. No Interruption to Your Savings: If any funds are replaced, the plan will handle what is called a "mapping" process, where money in an old fund automatically moves to a closely matching new fund without you needing to do anything or triggering any tax penalties. Essentially, the engine under the hood is being upgraded and maintained by Goldman Sachs, but the dashboard you use to drive your retirement savings every day remains exactly where it is.
Sounds like fees are going to rise. Good Dung will be skimming more?
looks like we still use Fidelity but Goldman will manage the funds you select
Fidelity > Goldman Sachs -- this is a disaster for employees.
Why has the company not shared this information with its employees? Why do we always hear about major stuff from the street first?
What does this mean for 401k—an introduction or migration into Goldman Sachs mutual funds, or movement away from Fidelity?
Also, will the expense ratios change?