Sales people should be held to the same fiduciary standard as Registered Investment Advisors who accept full ERISA 3(38) fiduciary liability. I was a "pesky sales person" for over 30 years, made a lot of money, and decided that it was time to serve the best interest of the clients.
When you pesky sales people start offering the true no-loads with FULLY disclosed fees, then I'll believe you. Until then, beware he who believes his own BS.
studley Dolittleof CA3:34PM May 20, 2010
How about more cost sharing by the employer. The net reason for high fees in retirement plans is the employers unwillingness to pay any expense. (i.e. bury expense in fund returns.)
On the flip side, If I were to offer a 1 percent match vs. paying all wrap, advisor commissions , etc etc hard dollar. which do you think would get higher participation? Most participants have no clue about expenses and would rather hear about a higher matching percentage vs. lower expenses. Net don't they do the same thing?
KOSof FL8:36AM April 22, 2010
the public should be advised ,in some way, that high profile banks are pushing annuities with no escape clause, high expenses.Some large insurance companies are selling these. worst of all when you annuitize the balance you get a 5% payout. compared to average payout, let say 8% on one mil. $50,000 per yr vs. $80,000. Would you believe the sales person in this large bank doen't know what they're pushing and the victom does,t know what their buying. What a disaster after working all your life .
dick longenhagenof PA10:01PM February 24, 2010
1)Those who seek advice get better results.
2)Sometimes those who give the best advice are those pesky sales people.
3)Insurance companies seem to be stable while banks seem to be having issues.
...when your bank has to give everything away (free checking, free toasters, free money) they can't stay in business. When your insurance and financial advisor pass along advice YOU BOTH MAKE MONEY and you both keep your job! Don't think the advice is worth the money? Find a new advisor!!
What about shifting plans away from insurance based offerings with huge hidden fees (partly to pay uneeded salespeople a commission) and into true open architecture plans with no load funds with no wrap fees.
Most plans would see a better investment lineup, better participant and client service and save between .5% and 1.5% in expenses. This one move would increase 401(k) balances tremendously.
JBFof IL9:50AM February 15, 2010
My company has reinstated a minor amount of matching dollars to my 401k. They also took the liberty without consulting me to move all of my investments into some sort of retirement date guided mix of funds designed to preserve investment dollars with a very low risk and, of course, a modest return.
As did many Americans, I lost a huge amount of value in my retirement investments in 2008, roughly 16%, but it had started to recover nicely in '09 with the same investment allocations. Now here's the kicker. With all of my money now in the same "low risk" fund picked by my employer, I've already lost over 3% of total in the first month of the year alone.
You do everything that's recommended for retirement savings; monthly contributions at the maximum rate allowed. A nice little nest egg builds over 20 years, as advertised. Then all of a sudden, boom, $60,000 gone here, $12,000 gone there. Where will it end? What is a safe retirement investment these days? It sure isn't the banks. And with my recent experience, it isn't the 401k either.
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studley Dolittle of CA 3:34PM May 20, 2010
KOS of FL 8:36AM April 22, 2010
dick longenhagen of PA 10:01PM February 24, 2010
TimP of IL 9:51AM February 16, 2010
JBF of IL 9:50AM February 15, 2010
EJ of TX 5:13PM February 11, 2010