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Subject:  Re: 401K Date:  1/28/2000  12:26 AM
Author:  ZZFly Number:  1788 of 22193

<<I totally agree with GW. I have two parallel thoughts on these types of situations. The first is a shared anger at those doing the legalized robbery. The second is for those who are putting their hard earned money into the funds but are too lazy to do their homework. If you think that 1.2% annual expenses for an index fund are low and that a 4% back end load is okay, you almost deserve to get ripped off.


I fully agree with you that the fees outlined are unacceptable. The difficult issue is that the employees don't "almost deserve to get ripped off" - they have no or little control over the 401(k) vendor selected by their employer.

As a financial professional who works with small employers I get the impression that you do not fully appreciate the dynamics of the situation.

In closing, I would not sell a product which provides such little value to the customer but some of my competetors will.

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