UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: shess Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76237  
Subject: Re: 401K Inquities Date: 9/28/1998 12:57 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
In message 5634, Scott said:
BTW, I really dislike the 401(k) concept's implementation for these reasons and others.

In message 5655, Pixy responded:
Fortunately, the fees within 401k plans are receiving extensive review by the federal government at long last. Some are unconscionable and outright gouges of participants due to employer inattentiveness and employee disinterest/ignorance. With luck, the DOL will hold employers' feet to the fire so they become more cost conscious in this area.

Unfortunately, being self-employed, I have no choice but to see this as exactly comparable to the bruhaha (sp? ha!) over health insurance and holding insurer's feet to the fire. The fact that the federal government has to get involved to protect the majority interest is part of the problem! There clearly are better and worse 401(k) plans, but as an employee it can be _very_ hard to find out where your plan stands. All plans claim to be good plans, but even with the best plans it's almost impossible to nail down fees and hidden costs, including a whole range of costs spiritually similar to the "soft money" of the mutual fund arena.

I am positive that most 401(k) participants don't want to know about this stuff. But progress happens at the margins, and so far as I can tell, the 401(k) was created specifically to make the margins obscure. At the time, this may have made sense, but these days, a bit more transparency should be in order. [For instance, what possible employee-centric justification is there for forcing vested 401(k) funds to remain with your employer's 401(k) plan until you change employers?]

"Nurse, I think we need to raise Scott's dosage!",
scott
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Macro Economics

Implications of the Ballad of Ted Plotz
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement