上周看John Oliver的show。震惊了。我还真不知道自己的401k是怎么投资的。
他解释的我有些晕,平时的投资都是家里的投资顾问做,从没关心过。但是如果费用真的如John Oliver讲的那么高,我是一定会改变投资方式的。 想听听专家的说法!谢谢!
Here is episode about 401K fees
Last Week Tonight with John Oliver: Retirement Plans (HBO) - YouTube
John Oliver, who has famously exposed the questionable practices of various industries on his HBO TWX, +2.38% show “Last Week Tonight” — and once posted a picture of our editor in chief at his high school prom — recently took a look at the onerous fees that some retirement plans charge.
“As a favor to your future self, it is worth watching this for 20 minutes because you could easily make small mistakes that could seriously cost you down the line,” he says toward the beginning of the June 12 episode.
He goes on to say that most actively managed funds don’t beat the market, and that anyone can call himself an investment adviser whether he has official credentials or not. And he explains what it means when an adviser is bound by a fiduciary standard: “It’s currently legal for advisers to put their own interests ahead of yours unless they’re a fiduciary.” (He also talks about the people who call into the Suze Orman show — one caller asked if it was OK to spend $4,000 to get certified to be an Elf Spotter.)
But he dedicates much of the show to what he learned after asking his production company to set up a 401(k) plan for his employees. Namely, that there are a lot of fees.
“Compound interest works both ways,” he says. The company managing the show’s 401(k), John Hancock, gave him and his staff a presentation. After looking at the plan’s paperwork, “Last Week Tonight” realized there were the following fees: A combined 1.69% fee, plus a $24 per person per year fee, plus a fee for a broker who was acting as an intermediary. The broker received 1% of assets the first year and 0.5% every year after that. Oliver points out that if his 35 employees saved $6,000 a year for 30 years, it would cost them $1 million in fees overall. In addition, the broker said he was not a fiduciary, and when he sent the show a table showing how much the plan could grow, he was off by more than $10 million because of bad arithmetic, according to Oliver.
John Hancock, in response, told the show that its fees were normal and competitive within the industry.
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A spokeswoman for John Hancock told MarketWatch via email that the show’s 401(k) plan was placed with it after “an open and rigorous competitive review,” and it was competing against other prominent companies for the account. She said John Hancock disagrees with the way its business practices were characterized.
“We feel that the analysis and presentation of fees and services by the show is flawed and misleading,” she said, adding, “We believe in the value of the services we provide and feel they add to the success of the plan in helping participants for retirement.”
In the end, Oliver offered five tips for people saving for retirement. You can see these starting around the 18-minute mark of the video, where they are much more humorously presented than they are here:
- 1. Start saving now
- 2. Invest in low-cost index funds
- 3. Ask if your adviser is a fiduciary
- 4. Gradually shift investments from stocks to bonds as you get older
- 5. Keep your fees under 1%