The Latest Fidelity 401k customer RIP-OFF Program
This seems like a good place to post this rant...
I just received a nice custom printed brochure from Fidelity featuring the following program:
Fidelity® Portfolio Advisory Service at Work
Here are the highlights: We help keep your retirement goals on track by-
- Managing your investments through the ups and downs of the market
- Aligning your account to a model portfolio that is constructed to enhance growth and manage risk
- Keeping your account's investment strategy appropriate to your needs through annual reviews and check-ins
Now this would be nice feature for someone that does not have a clue about the investing as part of the 401k program, this RIP-OFF changes an annual fee of 1% of your portfolio value, and recommendations are only in our company plan fund choices which average .75 to 1.25% annual fee!!!! And the plan has fairly limited choices, its not self directed with access to individual stocks/etf!!!!
As far as I can tell all you receive is allocation plan based on your age and retirement, they don’t even take into account other investments, home ownership, income, personal goals, etc – it looks like it’s just a computer driven allocation report!!!! You’re even responsible for making the recommended changes.
This is even a bigger rip-off when you consider that our plan offer target dated retirement funds, ex. FID freedom 2035 (at .78% fee) which are geared toward folks that want assets allocated by age / retirement date, event this fee is a rip-off when you consider Vanguard had targeted fees at .19%. So, some sucker will likely sign-up for this program, be pointed to more expensive funds, plus this BS fee… the user will be spending 1.75 to 2.25% in fee. This should be called The Retirement Delay and Make Fund Manager Rich Program!!!!
Companies need to start getting sued for placing there employees in program such as this that are a such a scam… but they will because Fidelity offer the company a kickback of the fee and Vanguard does not! End of rant!