Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 1
Has your employer selected a "menu" of funds for use in the plan? usually, the service provider provides a "platform" that has many (hundreds) of fund to choose from, and the employer selects a dozen or so for inclusion in the plan. It's the employer's responsibility to prudently select the funds, and to prudently select the service provider who offers the menu of funds. Edward Jones caters to the smaller plan market space, and the economics of that space are such that costs are higher (there is a fixed allocation of "overhead" that each plan has to cover, and that means it's going to be more expensive than General Motor's plan, on a per participant basis).

Check with your employer and let them know you think the funds aren't appropriate and use the words "fiduciary duties" and tell them you are just concerned (for them) because of all the litigation out there surrounding fees and expenses (including fund expense ratios) in the plan.

By the way, Vanguard doesn't share any revenue back to a service provider, so while some of their funds may be available in some plans, sometimes, the use of those funds means the expenses of running the plan must come from other sources (including hard dollar charges to participant accounts or other revenue sharing mutual funds). Vanguard does have a small plan product that uses Vanguard funds - it's actually run by Ascensus (a "pure" recordkeeping company that has a deal with Vanguard).
Print the post  

Announcements

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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.