4 ms·
This Frontline doc (2013) paints a nice picture. https://www.pbs.org/wgbh/frontline/film/retirement-gamble/ https://www.pbs.org/wgbh/frontline/film/retirement-
by dangerboysteve 7y ago
This Frontline doc (2013) paints a nice picture.
https://www.pbs.org/wgbh/frontline/film/retirement-gamble/ https://www.pbs.org/wgbh/frontline/film/retirement-gamble/
Many pension funds are screwing their members with high fee mutual funds resulting in 2-3%+ haircuts on annual returns. And this does not include all the mystery fees on top of everything else. Imagine what the compounding effects on this is. And these funds are shitty compared to Vanguard index fund over time. It comes down to shady backroom deals, kickbacks and incentive based selling.
edit: added year of the doc.
- elliekelly 7y ago12b-1 fees[1] are the biggest scam the mutual fund industry has going. [1] https://www.fool.com/investing/general/2010/10/15/why-we-oppose-12b-1-fees.aspx https://www.fool.com/investing/general/2010/10/15/why-we-opp...
- blaser-waffle 7y agoIs anything like that in Canada? My RRSP returns are not impressive despite shooting for low cost options, including popular Vanguard funds...
- elliekelly 7y agoYes, I don’t know the regulatory framework that allows it off the top of my head but they’re often called “trailer fees” in Canada. Look in the fund prospectus for disclosures relating “shareholder service fees” and “embedded commissions”. If you work with an advisor ask whether they (the advisor) receive compensation from any of the funds they recommend.