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Usa Today Article On Retirement Acct Fees

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Thanks for sharing. I just posted on the home page. It's my understanding the government may finally be taking the issue of clear fee disclosure seriously.

 

Dan Otter

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From the article....

 

Employees would receive details about investment expenses and past performance in a chart or similar format to allow them to easily compare fund options. Retirement plans would also be required to compare funds' investment performance with a benchmark index, such as the S&P 500. Additionally, for the first time, the plan would have to disclose each quarter the dollar amount that each participant pays for administrative services such as accounting and recordkeeping.

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Jarhead and Admin --

And it would be lovely, too, if ALL the fees, costs, and expenses were clearly delineated. If history is any guide, the industry will fight this tooth and nail. To counter that, we need to write in OUR opinion -- any idea where to write, exactly? This is a place where we can have a real impact with such a simple act, especially if numerous people write. First the 401k world, then the 403b world.....

 

JudyS

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Judy ,

The insurance financial corporations will fight this tooth and nail for sure. They would be exposed and wouldn't look very good ###### would they ?

 

 

An uneducated public is their meal ticket and they have been on a high fat diet for many many years. I still get a kick on how they hide everything by stating their prices in units instead of shares and how their agents never point out the costs.

 

 

 

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Intruder --

When greater transparency is required in 401(k)s, it will be a small step to have the same done in 403(b)s... so we start whenever an opportunity presents itself. Besides, our house is like many others -- one of us has a 403(b) and the other has a 401(k).... It's all good...

 

SO WHERE DO WE WRITE IN OUR OPINION?

 

JudyS

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Intruder --

When greater transparency is required in 401(k)s, it will be a small step to have the same done in 403(b)s... so we start whenever an opportunity presents itself. Besides, our house is like many others -- one of us has a 403(b) and the other has a 401(k).... It's all good...

 

SO WHERE DO WE WRITE IN OUR OPINION?

 

JudyS

 

 

What opinion are you talking about. There is no federal regulation of public 403b plans so there is no one to write to.

 

As for transparancy under the DOL regs participants will be given two separate sets of information: At the beginning of each year an annual statement of the fees that will be charged in excess of the fund operating expense ratios and those that might be charged during the year; and a quarterly statement of the fees that are actually charged to the participant's account for the quarter. Needless to say the two figures will differ at the end of the year for many participants. Who do you think will pay for the cost of this transparency?

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Judy,

You can start by writing to Kathy Chu, the author of the paper. After that you can write to your reps. There is no end to the list of people to write to.

I have done this in the past with great success. It sometimes gets people in power thinking when only one person, you, writes a letter.

Steve

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Judy,

You can start by writing to Kathy Chu, the author of the paper. After that you can write to your reps. There is no end to the list of people to write to.

I have done this in the past with great success. It sometimes gets people in power thinking when only one person, you, writes a letter.

Steve

 

 

What is writing to the author of the article going to accomplish? Congress has refused to enact legislation to regulate public retirement plans for the last 25 years because they are not engaged in interstate commerce.

 

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Judy,

Intruder is absolutely right. This movement is absolutely hopeless. This behavior is a symptom of depression when everything is hopeless (it’s the psychologist in me).

 

And Intruder is right about the obstacles. Life is full of obstacles that he constantly and rightfully can identify with full legal authority. Why should you write a letter, make posts here, be featured on national television. Forget it because Intruder said so.

 

You and I can imagine what Gandhi or MLK faced. All kinds of the most powerful political, cultural, national, and LEGAL obstacles, but they still SUCCEEDED. There were all types of Intruders trying to tell them the same thing. DON”T EVEN TRY. This is a fact: the naysayers are almost always right in the SHORT TERM, but this site is about long term planning and thinking and we will prevail despite the naysayers and their legal straightjacket “brilliance.” Why will we prevail, because we have won great victories in the last couple of years.

 

There is hope for everybody. In the business of education, we never know which student will excel.

 

And intruder’s response to this post will confirm what I just said. He/she/it is very predictable.

Steve

 

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Who do you think will pay for the cost of this transparency?

Hi,

I guess that the investor is going to pay for the transparency just as he is paying big time for the lack of transparency. Once people catch on that they are paying high fees, the fees will surely come down. Maybe not right away, but it will happen. Best Wishes.

 

Joe

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