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Scott says:

BTW, I really dislike the 401(k) concept's implementation for these reasons and others. Sometimes, you get lucky and have an excellent plan, but often you're getting ripped off by all parties involved. It doesn't have to be that way. My wife has been part of various 401(k) plans, while I'm self-employed and so use a SEP-IRA. The differences are _appalling_. The SEP-IRA expenses are low, I can track my account without having to read through various gobbledigook, and there aren't three organizations trying to pawn fees off on me.

If we can come up with a simple, transparent, cheap retirement system for companies of _one_, it's hard to believe we couldn't come with something better when we're talking about companies with hundreds and thousands of workers.

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. And with luck more employees will become aware of what these fees are doing to their long-term results and begin to demand change. If attacked from both sides, employers will begin to take more responsibility in this neglected area.


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