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>I assume they're probably getting some kickback or something from the arrangement of restricting the 401k/HSA member's funds to high fee investments. "Liz Can
by MrFoof 7y ago
>I assume they're probably getting some kickback or something from the arrangement of restricting the 401k/HSA member's funds to high fee investments.
"Liz Cannon, who heads the Indian River chapter of the Florida Education Association, urged union members to buy retirement investments from Valic Financial Advisors Inc. through a firm owned by the union. That way “we also make money,” she said in a November 2017 newsletter, through regular dividends."
It's stated clearly in the article that there functionally are.
Tip of the iceberg at that. I'm sure there's a few folks between the investment firm and related parties that have bought themselves a boat based on the massive haircut the teachers are taking.
The kick in the gut though is the WSJ article itself. To the naive reader, it makes it seem as if 1% fees are good. They're not. 1% is wildly un-competitive in today's environment.
- mbreedlove 7y ago> They're not. 1% is wildly un-competitive in today's environment. Especially now that Fidelity offers zero expense radio funds. https://www.fidelity.com/mutual-funds/investing-ideas/index-funds https://www.fidelity.com/mutual-funds/investing-ideas/index-...
- whb07 7y agoLast I checked most of Europe is expecting interest rates in the NEGATIVE. In the US interest rates are being chained to the floor at 2%. So yes, 1% is beyond massive and the difference between 1% to 2% isn’t 1%.
- bluGill 7y ago1% fees not interest rates. They are different things. The 1% fee is they take 1% off the top every years. They might invest in good investments otherwise, but even the best investments cannot makeup for good investments and 0.15% fees where are common these days.