I started a new job a few months ago, which I really like. There is a waiting period on the 401k, so I'm eligible starting next month.
Today, HR scheduled me to meet with the 401k rep. This guy is apparently a friend of the owner of my company and he told me he has been managing the company 401k plan for 17 years.
- Me: I'm mostly interested in low-cost index funds. Do we have any in our plan.
- Him: Yes, we have quite a few.
- Me: Can I see them?
- Him: (producing a booklet and showing me the fees)
- Me: Where are the low cost ones?
- Him: What do you mean?
- Me: These are all over 1%. These are very expensive.
- Him: These are very much in line with the industry.
I just dropped it. I couldn't tell if he was lying to me or just ignorant. But it infuriated me.
Then it gets worse. As I went back to my desk to read over the material, I discovered that about 90% of the choices are "A shares" -- meaning they charge a front-end fee of 5% just for the privilege of buying them.
Totally disgusting. I can hardly stand to think about how much money this guy and his 401k plan has cost my colleagues over the last 17 years.
Any thoughts? Ideas on how to positively impact this situation?
Submitted May 30, 2017 at 09:59PM by dandan14 http://ift.tt/2qxT03J
