TransAmerica 401(K) Review (2024) (2024)

2024 TransAmerica 401(k) Savings and Investment Plan review. TransAmerica retirement account performance, minimum, rating, investing cost, and fees. TransAmerica vs Vanguard comparison.

TransAmerica 401k Plan Overview

Transamerica is well-known for its life insurance products, but it also offers retirement investment options.

Their website provides unique features alongside the standard information you would expect. It's good to know what works well and what could be improved when considering if Transamerica is the right choice for your retirement planning.

TransAmerica Website

The website interface starts with a convenient At-a-Glance interactive chart on the homepage. This feature allows you to quickly view your total balance and the types of contributions making up that balance. If linked to an employer matching program, it shows how much you've contributed compared to your employer.

Clicking Balance Details takes you to a page where you can see the types of investments your money is in.

A persistent side bar allows for quick navigation to other sections of the profile.

The Contributions tab lets you adjust the percentage of your paycheck that is automatically saved each period. Changes made here will take effect the next pay cycle.

The Dividend Election tab provides options for dividend payouts: by check, direct deposit, or reinvested into your employer's stock.

The Resource Center tab connects you with professional advisory services through a partnership with Edelman Financial Engines. Here, you can access personalized retirement forecasts, personal advisors, and services like account reallocation and rebalancing.

Investment Evaluation pop-ups offer valuable insights. They assess your retirement plan based on your savings rate, goals, and investment outlook, and provide a simple stoplight rating—green indicates you are on track, red suggests adjustments are needed, and yellow advises caution. Detailed pie charts compare your current allocations against suggested ones based on market conditions and your age, helping you stay informed and proactive about your investments.

Is TransAmerica Safe?

Transamerica is particularly strong in security, which is crucial for protecting your investments. They've worked hard to make their website very secure.

When you log in from a new device, Transamerica sends a code to your registered email that you must enter on the website. You might also be asked a security question.

If your session is idle for a short time, the site asks you to interact within 5 minutes. If you don't, you'll need to log in again. This strict security measure is vital in today's world, where hacking and technology risks are common. This level of security is something that other brokerages often lack, giving Transamerica an edge.

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TransAmerica Pros and Cons

TransAmerica’s website offers a unique feature that monitors your investments and alerts you if they aren’t performing as expected. It allows you to see the historical and projected performance of your retirement funds, helping you make informed decisions without feeling overwhelmed.

The website’s design isn’t the most user-friendly initially, but it becomes more manageable with a little practice.

However, Transamerica's website isn't very appealing compared to platforms like Charles Schwab. It feels outdated, similar to Vanguard's old-fashioned interface. The menus and navigation are clunky and not intuitive, which might deter younger users.

Customer service is another weak point. Users often face long wait times to speak with representatives, bureaucratic delays for simple requests, and frequent site maintenance downtimes.

Regarding investment performance, Transamerica's funds often lag behind competitors like Vanguard. For example, the Transamerica ClearTrack 2060 R1 fund is down 8% year to date, while Vanguard’s VTTSX 2060 fund is down only 7%. Over five years, Transamerica’s fund gained 37%, whereas Vanguard’s achieved a 47% increase, marking a significant difference in long-term investment growth.

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TransAmerica 401k Review Summary

Whether to choose Transamerica depends on what you value most. If security and proactive investment monitoring are your priorities, Transamerica might be a good choice. However, you might have to compromise on user experience and fund performance.

Transamerica is worth considering in the financial services industry but may not be the best option for everyone.

Updated on 6/3/2024.