3 ms·
> Companies have no control over your 401K. They can’t “take money” out of your 401K account. They control who your 401k trustee is and therefore the range of
by slededit 8y ago
> Companies have no control over your 401K. They can’t “take money” out of your 401K account.
They control who your 401k trustee is and therefore the range of investment products available to you. Companies get kickbacks from their 401k trustees and the difference comes from fees charged to you from the investment products you buy. Obviously the company with the higher fees can pay the most in kickbacks.
But its all very transparent you see. The inflated fees are clearly marked in the prospectus you didn't read, and if you don't like them you can get a job somewhere else. All very above board.
- scarface74 8y agoSeeing that my tenure at a job is usually only three years, in the grand scheme of things, it really doesn’t make a big difference. I can transfer the money to an IRA of my choice with lower fees - like Vanguard.
- slededit 8y agoWhile its great it works out for you, that doesn't solve the systemic issue at hand.