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JudyS

Bloomberg Article

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Super article Judy. Kind of sad actually. I remember giving my two cents to Dan Preston about fees when he called.

 

Keep up the good fight and thanks for sharing.

 

 

Tony

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Tony --

 

Sad? More like mad, probably. There's nothing like fury to give one impetus....

 

Here on this website, we're all more or less "missionaries" for no-load funds, so it was a gift to be given this opportunity to speak out.

 

JudyS

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Judy with those kind of fees why even participate ? I can understand perhaphs taking the company match, the free money, but after that I wouldn't invest another penny. With those kinds of expenses, the tax deferral benefit is lost.

 

 

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Great article, Judy. My favorite part was the NEA flak's response to the high fees of NEA's Valuebuilder monstrosity:

 

"We don't condone high fees ..."

 

Hahahahahahahahahahahahaha!

 

The late Supreme Court Justice Louis Brandeis once said, "Sunshine is the best disinfectant."

 

That certainly applies to 403b and 401k plans. And it sure applies to salespeople who do not disclose their cut of loads that are charged to clients. Yes, they could sure use a good dose of disinfectant.

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FT6 --

 

The issue here is transparency. Of COURSE it's hardly worth participating with those fees, but who knew? My husband has been asking, requesting, insisting, and fighting about it for years, and until the independent fiduciary examined the plan for Bloomberg, no one KNEW. These fees are practically impossible to find.

 

In the typical 403b with an insurance firm it would be equally difficult to discern all the fees, I believe. However, I also have come to believe that the salesmen that you and I (the poor working stiffs) deal with don't know EITHER. Why? They only know what they've been taught. By whom? The company they work for. And the companies they work for have no incentive at all to come clean with the low guys on the totem poles -- the salespeople. Why should they?

 

Not that I'm a conspiracy theorist or anything !

 

JudyS

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Tony --

 

Sad? More like mad, probably. There's nothing like fury to give one impetus....

 

Here on this website, we're all more or less "missionaries" for no-load funds, so it was a gift to be given this opportunity to speak out.

 

JudyS

 

 

Judy:

 

Could you please explain how (as reported in the article) you H could have expected to amass 1.5M in his 401k plan over 16 years from 1995 to his retirement 2011 when he turns 66? My calculations tell me that in order to accumulate 1.5M over 16 yrs @9% would require annual contributions of about $41,697 (at a time when employee contributions prior to 2002 could be no more than 10k).

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Hi Judy,

Wonderful article. I emailed to the members of the oversight 457 committee.

Beautiful log cabin out in the woods. How great can that be?

Have a great day,

Steve

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Steve, Intruder, and Tony --

 

Tony: Dan? To whom are you referring? There was a small mention of Daniels-Hall and the NEA suit.

 

Intruder: Nice catch on how the math didn't work. However, the 401(k) is only part of our portfolio, and Jerry was referring to the entirety.

 

Steve: Thanks and thanks. Please note that an EXPANDED article will be in Bloomberg Magazine, I believe. March, I think. Even more ammunition for your committees. The house is not quite in the woods, but that s###### makes it look like it. And Jerry has periods of time when he's not quite so grumpy. From our small perspective, real heroes in this piece are Matsumoto and Hutcheson -- they've worked hard on this and stuck their necks out.

 

BTW, all of us poor workin' stiffs out here appreciate your work, you guys!

 

JudyS

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