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URL:  http://boards.fool.com/401k-reps-15039765.aspx

Subject:  401K Reps Date:  5/24/2001  8:04 PM
Author:  bigcaat Number:  29899 of 76418

I just saw this post on Morningstar's Vanguard Forum. I'm just so stunned, I had to share it with " 'da Fools." If you'd like to see the entire conversation, the link is:

http://socialize.morningstar.com/NewSocialize/asp/FullConv.asp?forumId=F100000015&convId=41684

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<<<What I "learned" from a 401K rep Community Watch

Hi All,
This is partly for amusement and partly to show how company 401Ks are run. We had a rep for the company that administers our 401K here yesterday.
Here are some things I "learned":
1) Our 401K has mutual funds that he guarantees will return 8 to 15 percent over the next 20 years.
2)Value funds carry zero risk.
3)Everyone should be invested in at least 50% technology.
4) Everyone should have at least 25% healthcare.
5) Without asking me any questions other than my age, he said the best portfolio for me would be 50% tech, 25% healthcare, and 25% value.
6) The reasons Vanguards costs are so low, is that they have mediocre returning funds. You must pay higher costs for better returning funds.
Just thought I would share these with everyone. How salesmen can say these things with a straight face is beyond me. >>>

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If it weren't so egregious, it might be funny.

Caat
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