Author Topic: Sad day.  (Read 3165 times)

Murse

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Sad day.
« on: November 10, 2015, 03:46:17 PM »
I just got done setting up my deferred comp (457) plan through work. I was so excited when I saw vtsax as one of the investment options. After setting it all up, I decided to read the fine print on the expenses sheet, the 457 plan company charges .21% above whatever the fund fees are that you pick. Of course I am going to save a lot more on the money put in then .21% but it is insane to me that for just running the plan they charge over 4 times what the fund costs, making it cost over 5x the normal cost at a total cost of .26%

Murse

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Re: Sad day.
« Reply #1 on: November 10, 2015, 03:56:03 PM »
It posted twice, feel free to merge or delete one, it won't allow me to delete one myself.

libertarian4321

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Re: Sad day.
« Reply #2 on: November 10, 2015, 04:35:17 PM »
Companies that run 401K and 403b plans rip people off left and right.  I assume this is the same.

I get charged hundreds of dollars a year by a 401K company that does nothing but mail 4 statements per year.

If the government had it's stuff together, it would allow people to take their money out of these rip off accounts and transfer them to Vanguard or similar.


Lski'stash

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Re: Sad day.
« Reply #3 on: November 10, 2015, 05:08:43 PM »
Mine charges .38 percent above- and I had to struggle to find something that low (through Midwest Capital)! All the rest were wayyy over one percent combined.

StockBeard

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Re: Sad day.
« Reply #4 on: November 10, 2015, 06:21:15 PM »
I didn't realize I should feel so lucky that my company's 401k is actually with Vanguard.

clarkevii

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Re: Sad day.
« Reply #5 on: November 10, 2015, 07:43:28 PM »
457s are almost always like this. I get charged .5 just to choose my Vanguard Funds.

Just be happy you have access to a 457. They are so badass and worth the extra fee. You can withdraw when you leave your job and you can stash another 18K in a 401K.

ducky19

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Re: Sad day.
« Reply #6 on: November 11, 2015, 07:50:34 AM »
Wow. Our 401k plan is administered by Hewitt and we are charged a grand total of $5/mo ($60/year) above what the funds charge. Feeling pretty lucky about now!

RWD

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Re: Sad day.
« Reply #7 on: November 11, 2015, 08:45:24 AM »
457s are almost always like this. I get charged .5 just to choose my Vanguard Funds.

Just be happy you have access to a 457. They are so badass and worth the extra fee. You can withdraw when you leave your job and you can stash another 18K in a 401K.

My wife also has a 0.5% additional charge on her retirement accounts, I believe.

druth

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Re: Sad day.
« Reply #8 on: November 11, 2015, 10:57:31 AM »
My fund is only a .11% fee if I choose the cheapest fund (essentially S&P 500), with a decent number of less than .2% fee funds.  BUT they charge 21$ per quarter for 'maintenance' if you have more than 5k in the fund.  So...  at 5k they charge 1.68% per year!  That's nuts!