Comments on: 401k Revenue Sharing Controversy http://www.myretirementblog.com/401k-revenue-sharing-controversy.html Retire happy, healthy and wise. Sat, 22 Nov 2008 11:29:27 +0000 http://wordpress.org/?v=2.6.3 By: Journey To Financial Freedom http://www.myretirementblog.com/401k-revenue-sharing-controversy.html#comment-368 Journey To Financial Freedom Wed, 24 Jan 2007 13:52:11 +0000 http://www.myretirementblog.com/401k-revenue-sharing-controversy.html#comment-368 <strong>Carnival Of Investing # 57 is UP!!!...</strong> PS : First of all, I would like say sorry for the late posting for this week’s Carnival of Investing due to the internet connection problem with my PC. But now everything is clear. Below is the submission for this week: What Increases Your Home&... Carnival Of Investing # 57 is UP!!!…

PS : First of all, I would like say sorry for the late posting for this week’s Carnival of Investing due to the internet connection problem with my PC. But now everything is clear.

Below is the submission for this week:

What Increases Your Home&…

]]> By: Donna http://www.myretirementblog.com/401k-revenue-sharing-controversy.html#comment-362 Donna Tue, 23 Jan 2007 10:25:56 +0000 http://www.myretirementblog.com/401k-revenue-sharing-controversy.html#comment-362 We noticed an issue of unduly large fees in my husband's 401(k) plan -- the list of funds was extremely short and most were "load" funds. He works with people who are hourly employees and every dollar they were putting away was literally being reduced by 4.75% in most of these funds. In addition, the expenses for the funds were up to about 2% and the management company recommending the funds was making .85%. To make matters worse, the fees were not disclosed at all; they were just "lousy" investments. We kept wondering why his plan was doing so badly, but we didn't start investigating until I learned a lot more about the issue of fees and expenses. Well, even his employers were outraged and a whole change is in the works. Meanwhile, some of our greatest savings years were really not as valuable as they could have been. It's so frustrating to work so hard and have someone essentially steal your money. To make matters worse, my husband says that when the funds were picked, he was sure he was told they were all no-load, low expense funds. Ignorance in this case was not bliss. By the way, the way we figured it out was by going on the website. It had a whole different format for the way the statement was created. And, I hate to say it, but it probably was in our fund prospectus or something, but I certainly couldn't wade through them (now I do). In all matters about which we have a choice (IRA and my 403(b)), we use Vanguard -- almost all of their funds are highly rated, I had an old fund that, left alone, grew nicely, and their expenses are generally quite low compared with others. We noticed an issue of unduly large fees in my husband’s 401(k) plan — the list of funds was extremely short and most were “load” funds. He works with people who are hourly employees and every dollar they were putting away was literally being reduced by 4.75% in most of these funds. In addition, the expenses for the funds were up to about 2% and the management company recommending the funds was making .85%. To make matters worse, the fees were not disclosed at all; they were just “lousy” investments. We kept wondering why his plan was doing so badly, but we didn’t start investigating until I learned a lot more about the issue of fees and expenses. Well, even his employers were outraged and a whole change is in the works. Meanwhile, some of our greatest savings years were really not as valuable as they could have been. It’s so frustrating to work so hard and have someone essentially steal your money. To make matters worse, my husband says that when the funds were picked, he was sure he was told they were all no-load, low expense funds. Ignorance in this case was not bliss.

By the way, the way we figured it out was by going on the website. It had a whole different format for the way the statement was created.

And, I hate to say it, but it probably was in our fund prospectus or something, but I certainly couldn’t wade through them (now I do).

In all matters about which we have a choice (IRA and my 403(b)), we use Vanguard — almost all of their funds are highly rated, I had an old fund that, left alone, grew nicely, and their expenses are generally quite low compared with others.

]]> By: » 84th Carnival of Personal Finance  on Blueprint for Financial Prosperity http://www.myretirementblog.com/401k-revenue-sharing-controversy.html#comment-358 » 84th Carnival of Personal Finance  on Blueprint for Financial Prosperity Mon, 22 Jan 2007 13:24:26 +0000 http://www.myretirementblog.com/401k-revenue-sharing-controversy.html#comment-358 [...] Over at My Retirement Blog, I take a look at a Kiplinger’s article about how your 401k plan administrators may be getting a kickback to offer certain funds. [...] [...] Over at My Retirement Blog, I take a look at a Kiplinger’s article about how your 401k plan administrators may be getting a kickback to offer certain funds. [...]

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