Bloomberg Law reports that class action lawsuits concerning 401k fees have seen a five-fold increase in the past 12 months! The word is getting out that 401k fees skimmed from employees’ retirement savings are a severe problem, and financial advisors pocketing these 401k fees are feeling the heat. We think these lawsuits are a good…
Author: 401kEasy
401k AUM — 401k Assets Under Management — AKA 401k “Skimming” by 401k Financial Advisor Pick-Pockets
The vast majority of 401k providers selling 401k administration and investment services to small American businesses are surreptitiously charging plan participants 401k AUM fees. “AUM” stands for “Assets Under Management,” and represents your total 401k retirement savings. If you have saved $50,000 in your 401k, a 1.5% AUM would equal approximately $750 per year going…
Do Venture Capital Investments in new 401k “Start-Ups” Make Sense? (Part 3 of a 3-Part Series)
In Part 1 of this 3-Part series, we discussed the problems of 401k fees skimmed from investors’ retirement savings, and how these fees become the primary economic driver and profit center that attract venture capital firms. Part 2 of this series listed three reasons why the small 401k market is the wrong target for venture…
Do VC-Backed 401k Start-Ups—Venture Capital Investments in new 401k “Start-Ups” Make Sense? (Part 2 of a 3-Part Series)
Venture capital (VC) firms making bets on new 401k provider “start-ups” are making a mistake, and simultaneously supporting the evil practice of skimming 401k fees. There are three reasons we make this claim: Reason 1 401k provider “start-ups” funded by venture capital firms are targeting small businesses. Small businesses have historically shunned 401k plans because…
Do Venture Capital Investments in new 401k “Start-Ups” Make Sense? (Part 1 of a 3-Part Series)
We think venture capital investors are making a mistake betting big on 401k providers who charge 401k fees to employees’ retirement savings. Both the public and various non-profits like AARP and governmental agencies are taking a close look at 401k fees, and we anticipate 401k fee regulation in the future. Besides, just as what happened…
The Case Against the Roth 401K
This question of whether one is better off with contributing to the traditional 401k or Roth 401k is the subject of debate. We come down firmly on the side that a Roth 401k is more a gimmick than a legitimate financial tool, and people who use Roth 401k end up, over the long term, paying…
Getting Mutual Fund Performance Information is Quick and Easy
Getting detailed, updated mutual fund performance information is quick and easy. Simply go to your favorite browser search engine (i.e. Google, Firefox, Edge, etc.) and type in the search field the following: Morningstar + (ticker symbol), and click “enter” You will be taken to the Morningstar mutual fund performance rating report for the specific fund…
What’s Wrong With 401k Loans?
Please keep this in mind; 401k loans are definitely not a good source for quick or emergency cash. 401k loans have significant negative consequences, both immediately and in the long-term. If you’re considering a 401(k) loan, please be aware of the following…… Applying for a 401(k) loan is time consuming and it can take several…
Is Someone Taking Your Money and “Skimming” 401k Fees From Your 401k Without Your Knowledge?
Answer: Probably, according to non-profit AARP, the answer is “YES”. We think 401(k) financial advisors who are deducting fees from participants 401(k) retirement savings are essentially “pick-pockets.” Why do we say this? A pick-pocket is someone who takes money from you when you are unaware it is happening. So if according to non-profit AARP, a…
401k Easy Blog—Mandate & Mission
The 401k Easy Blog is not neutral and not without bias. Our goal is to alert and educate 401k savers to the severe damage 401k fees are causing to their retirement security financial advisors and their partner 401k administrators are constantly “skimming” fees from workers’ 401k accounts, and according to non-profit AARP, most people…