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So in order to take advantage of the 401k plan, you have to pay 3% to Nationwide for doing basically nothing. If the fund returns, say, 2% one year, you not only get nothing, you paid 1% to get nothing because Nationwide stole all your profits and then some.
I'm confident we can track this kind of highway robbery back to donations to certain Congressmen. Maybe all of them.
Defeats the purpose of tax benefits. Cheaper to just pay the tax in some cases.
I'm confident we can track this kind of highway robbery back to donations to certain Congressmen. Maybe all of them.
At a start-up I worked at I took charge of the 410k program and got us out of high fee and underperforming Oppenheimer funds into a more reasonable plan. The HR guy was clueless and easily duped by the 401k sales people. But once I pointed out the shitty plan, there was no resistance to change it. No conspiracy, just a decision maker out of his element.
The mutual funds themselves are OK, some are even the low-cost Vanguard index funds that themselves take only 0.1% (one tenth of a percent) as "Gross Expense Ratio". Vanguard is good.
The scam is that Nationwide tacks on a "Net AMC/Asset fee" of 3% or so for every single fund. That's thirty times what Vanguard itself is charging. This is legalized theft!
So in order to take advantage of the 401k plan, you have to pay 3% to Nationwide for doing basically nothing. If the fund returns, say, 2% one year, you not only get nothing, you paid 1% to get nothing because Nationwide stole all your profits and then some.
I'm confident we can track this kind of highway robbery back to donations to certain Congressmen. Maybe all of them.