The Standard is an insurance company so the 401k is most likely structured as a group annuity. The Standard collects all money from all participants and invests it directly with, in this case, Fidelity in the fund (FXAIX). This is considered a “Separate Account” so the money is separate from the insurance company assets - it resides at Fidelity and is separate from other claims against the insurance company’s internal assets. What this effectively means is that if The Standard were to go bankrupt (highly unlikely), the 401k assets are completely walled off from that.
The Standard does all of the record keeping to account for each participant’s balance. They calculate their own internal NAV for the fund, deducting administration fees and adding any distributions back in. Because of this, and the initiation date of the fund vs. when it was added by The Standard, the NAVs do not match and will further diverge over time.
So basically you own FXAIX but the cost and return will not match exactly to the retail version of the fund.
This does cause problems in Quicken; I use the feature in Quicken Deluxe where you can track your 401k by total dollars and not use tickers and number of shares. Not ideal but it is the only thing I have found to work.
The Standard does all of the record keeping to account for each participant’s balance. They calculate their own internal NAV for the fund, deducting administration fees and adding any distributions back in. Because of this, and the initiation date of the fund vs. when it was added by The Standard, the NAVs do not match and will further diverge over time.
So basically you own FXAIX but the cost and return will not match exactly to the retail version of the fund.
This does cause problems in Quicken; I use the feature in Quicken Deluxe where you can track your 401k by total dollars and not use tickers and number of shares. Not ideal but it is the only thing I have found to work.
Statistics: Posted by Kenkat — Sat Jan 18, 2025 3:20 pm