I work for a large hospital and dread each year's benefits fair. It's like a circus down in the cafeteria. Salespeople hawk everything from pet insurance to identity insurance. There are also the "jewelry sellers" who offer to take a small amount from your paychecks if you want to buy something. Some employees use up huge amounts of their pay buying this stuff.
To top it off, about 5 years ago, I realized that my retirement administrator, Valic, had ridiculous fees for their funds. After a bit of research, I discovered that the fund that I had been paying a 1% fee NEVER beat the S&P index! That's when I noticed a little fund at the bottom of the page called Schwab PCRA. I switched to Schwab's S&P index fund at .03% fees and haven't looked back. (My Valic "advisor" begged me not to leave until December when his numbers came in, whatever that means.)
My husband works for a large home improvement company and just discovered the same thing. Waaaaay down at the bottom of the page is the Schwab PCRA.
I guess my question is: Why do employers offer 401K and 403-b plans with excessive fees? Why do they offer overpriced pet insurance? Do they get some kind of a kickback? Wouldn't it be in the employer's best interest to advise employees of these crazy fees? Unless of course, they were profiting from them.
Submitted August 24, 2017 at 04:01PM by UsedToBeHot http://ift.tt/2w8sYn2
