Retirement Plans

[oyeah1717]

Hello,

First time on the forums so I apologize in advance if I have done something wrong.

My question regards to stock price vs unit value in regards to funds.

I have fund that is "So and So retirement target 2050" now I invest in it biweekly through my paycheck.

Thus I have multiple POs that have bought shares at different values.

Now my concern is that the listed share price on google finance is 35 but in my account on the company's website says the unit value is 40.

Is this good or bad? I think good because A) The current share price is the highest its ever been so its impossible for me to have lost money at any of my biweekly Purchase Orders (POs).
B) A higher number is better?

Is this a correct assumption? Is there an easy formula to calculate how much of a return I have gotten over the course of the ENTIRE life of my account?

Thanks!

The oyeah!

[bjl584]

A higher number is better.

The total return of your account should be available on whatever website your retirement plan is with. You can always ask your HR dept. for some help navigating the webpage.

[oyeah1717]

so could I say that since my unit value is 40 and share price is 35, I have a return of ~14% over the entire length of the account? Since the 40 "unit value" should be an average of all the shares I have purchased over the length of the account.

Ill talk with the company but these large financial institutes take forever to get someone on the phone!

[Petunia 100]

"Unit value" screams insurance contract to me. As in, you are investing indirectly through an insurance product and paying an additional layer of fees for the privilege.

Is this investment in a 403b account? In a variable annuity purchased from an insurance agent?

[oyeah1717]

No this is a 401k plan by my company. the fund mentioned above does have a expense ratio if that helps.

[Petunia 100]

What is the ticker?

[oyeah1717]

Jibcx

[Petunia 100]

That is a large growth fund, not a target retirement 2050 fund. Are we talking about the right fund?

Individual investor returns are not tracked by calculating average price paid per share and labeling that number "unit value". However, the term "unit value" is commonly used when money is pooled from many investors and then used to purchase mutual fund shares. This is common in retirement plans of non-profit entities, and is seen in both 403b plans and 457 plans. Also, in annuity products.

Far from being a good thing, it indicates you are not directly investing in the shares of the mutual fund. This always boils down to more fees eating into your returns.

Call your company's HR department and ask why your account shows "unit value" instead of "share price". Ask if there is anyway you can opt out of "units" and invest directly in your chosen investments. You may have to go up the ladder a bit, the person who answers the phone or responds to your e-mail may not know.

[snafu]

Cancel, error